Starbucks 2006 Annual Report Download - page 65

Employees may purchase shares having a fair market value of up to $25,000 (measured as of the first day of each quarterly
offering period for each calendar year). The total number of shares issuable under the plan is 32.0 million. There were
1.5 million shares issued under the plan during the fiscal year ended October 1, 2006 at an average price of $26.81. There
were 1.5 million shares issued under the plan during the fiscal year ended October 2, 2005 at an average price of $21.27.
There were 2.0 million shares issued under the plan during the fiscal year ended October 3, 2004 at an average price of
$14.23. Since inception of the plan, 16.3 million shares have been purchased, leaving 15.7 million shares available for
future issuance. Of the approximately 73,000 employees eligible to participate, approximately 23,000 were participants
in the plan as of October 1, 2006.
Starbucks has an additional employee stock purchase plan in the United Kingdom that allows eligible U.K. employees to
save toward the purchase of the Company’s common stock. Under the Save-As-You-Earn (“SAYE”) plan the employee’s
purchase price is 85% of the fair value of the stock on the first business day of a three-year offering period. The total
number of shares issuable under the plan is 1.2 million. There were 36,348 shares issued under the plan during the fiscal
year ended October 1, 2006 at an average price of $8.84, and 1.1 million shares remain available for future issuance.
There were 25,382 shares issued under the plan during the fiscal year ended October 2, 2005 at an average price of $7.93.
There were 8,960 shares issued under the plan during the fiscal year ended October 3, 2004 at an average price of $9.47.
During fiscal 2004, the Company suspended future offerings under this plan. The last offering was made in December
2002 and matured in February 2006.
A new employee stock purchase plan, the U.K. Share Incentive Plan, was introduced during fiscal 2004 to replace the
SAYE plan. The plan allows eligible U.K. employees to purchase shares of common stock through payroll deductions
during six-month offering periods at the lesser of the fair market value of the stock at the beginning or at the end of the
offering period. The Company will award one matching share for each six shares purchased under the plan. The total
number of shares issuable under the plan is 1.4 million. There were 11,138 shares issued under the plan during the fiscal
year ended October 1, 2006 at an average price of $26.42. There were 10,732 shares issued under the plan during the
fiscal year ended October 2, 2005 at an average price of $22.08. As of October 1, 2006, 1.38 million shares were available
for future issuance.
Deferred Stock Plan
Starbucks has a deferred stock plan for certain key employees that enables participants in the plan to defer receipt of
ownership of common shares from the exercise of nonqualified stock options. The minimum deferral period is five years.
As of October 1, 2006, receipt of 3,394,200 shares was deferred under the terms of this plan. The rights to receive these
shares, represented by common stock units, are included in the calculation of basic and diluted earnings per share as
common stock equivalents.
Defined Contribution Plans
Starbucks maintains voluntary defined contribution plans covering eligible employees as defined in the plan documents.
Participating employees may elect to defer and contribute a portion of their compensation to the plans up to limits stated
in the plan documents, not to exceed the dollar amounts set by applicable laws. For employees in the United States and
Canada, the Company matched 25% to 150% of each employee’s eligible contribution based on years of service, up to a
maximum of the first 4% of each employee’s compensation. The Company’s matching contributions to all plans were
approximately $19.3 million, $12.4 million and $9.8 million in fiscal years 2006, 2005 and 2004, respectively.
STARBUCKS CORPORATION, FORM 10-K 61