Starbucks 2008 Annual Report Download - page 73

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The following summarizes all stock option transactions from October 2, 2005, through September 28, 2008 (in
millions, except per share and contractual life amounts):
Shares
Subject to
Options
Weighted
Average
Exercise
Price
per Share
Weighted
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
Outstanding, October 2, 2005 . ....................... 72.5 $13.22 6.3 $ 857.3
Granted ....................................... 13.3 30.52
Exercised ..................................... (13.2) 9.02
Cancelled/forfeited .............................. (3.2) 24.51
Outstanding, October 1, 2006 . ....................... 69.4 16.83 6.2 1,196.2
Granted ....................................... 12.3 36.04
Exercised ..................................... (12.7) 10.23
Cancelled/forfeited .............................. (3.5) 30.92
Outstanding, September 30, 2007 ...................... 65.5 20.97 6.2 507.5
Granted ....................................... 15.4 22.11
Exercised ..................................... (6.6) 10.71
Cancelled/forfeited .............................. (11.3) 28.49
Outstanding, September 28, 2008 ...................... 63.0 20.96 5.7 114.9
Exercisable, September 28, 2008 ...................... 41.1 17.73 4.2 114.8
Vested and expected to vest, September 28, 2008 .......... 60.1 20.68 5.5 114.9
The aggregate intrinsic value in the table above is the amount by which the market value of the underlying stock
exceeded the exercise price of outstanding options, is before applicable income taxes and represents the amount
optionees would have realized if all in-the-money options had been exercised on the last business day of the period
indicated. The closing per share market value of the Company’s stock on September 26, 2008 was $14.96.
As of September 28, 2008, total unrecognized stock-based compensation expense related to nonvested stock options
was approximately $64.6 million, before income taxes, and is expected to be recognized over a weighted average
period of approximately 2.7 years. The total intrinsic value of stock options exercised was $50 million, $274 million
and $327 million during the fiscal years ended September 28, 2008, September 30, 2007 and October 1, 2006,
respectively. The total fair value of options vested was $99 million, $28 million and $95 million during fiscal years
2008, 2007 and 2006, respectively.
RSUs
RSUs are awarded to eligible employees and entitle the grantee to receive shares of common stock at the end of a
vesting period, subject to the employee’s continuing employment. The fair value of these service-based RSUs are
based on the fair value of Starbucks common stock on the award date. The following table summarizes all RSU
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