Starbucks 2008 Annual Report Download - page 74

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transactions from October 1, 2006 through September 28, 2008 (in millions, except per share and contractual life
amounts):
Number
of
Shares
Weighted
Average
Grant Date
Fair Value
per Share
Weighted
Average
Remaining
Contractual
Life (Years)
Aggregate
Intrinsic
Value
Nonvested, October 1, 2006................... — $ — — $ —
Granted ................................ 0.2 27.83
Vested ................................. — —
Forfeited/Cancelled ....................... — —
Nonvested, September 30, 2007 ................ 0.2 27.83 3.0 4.7
Granted ................................ 2.0 16.43
Vested ................................. — —
Forfeited/Cancelled ....................... (0.2) 17.27
Nonvested, September 28, 2008 ................ 2.0 17.36 2.5 30.5
As of September 28, 2008, total unrecognized stock-based compensation expense related to nonvested RSUs was
approximately $29.4 million, before income taxes, which is expected to be recognized over a weighted average
period of approximately 3.5 years.
ESPP
The Company’s ESPP allows eligible employees to contribute up to 10% of their base earnings toward the quarterly
purchase of the Company’s common stock, subject to an annual maximum dollar amount. The employees’ purchase
price is 85% of the lesser of the fair market value of the stock on the first business day or the last business day of the
quarterly offering period. The following summarizes transactions under this ESPP from fiscal year 2006 through
2008 (shares in millions):
Shares
Average
Price Per
Share
Issued during fiscal year 2006....................................... 1.5 $26.81
Issued during fiscal year 2007....................................... 1.9 24.59
Issued during fiscal year 2008....................................... 2.9 14.52
Total number of shares issuable under the plan .......................... 32.0
Total number of shares issued since inception ........................... 21.0
Shares available for future issuance................................... 11.0
Starbucks has an additional employee stock purchase plan in the United Kingdom, which allows eligible UK
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 awards
one matching share for each six shares purchased under the plan. The total number of shares issuable under the plan
is 1.4 million. As of September 28, 2008, 1.3 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 September 28, 2008, receipt of 3.4 million 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. No new initial deferrals are permitted under this plan; the plan
permits re-deferrals of previously deferred shares.
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