Starbucks 2009 Annual Report Download - page 76

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Stock option transactions from October 1, 2006, through September 27, 2009 (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 1, 2006 . ....................... 69.4 16.83 6.2 1,196.2
Granted ....................................... 12.3 36.04
Exercised ..................................... (12.7) 10.23
Expired/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
Expired/forfeited ................................ (11.3) 28.49
Outstanding, September 28, 2008...................... 63.0 20.96 5.7 114.9
Granted ....................................... 30.9 8.97
Granted under option exchange program............... 4.7 14.92
Exercised ..................................... (7.2) 7.31
Expired/forfeited ................................ (13.5) 18.99
Cancelled under option exchange program ............. (14.3) 29.34
Outstanding, September 27, 2009...................... 63.6 14.75 6.7 442.4
Exercisable, September 27, 2009 ...................... 27.5 17.69 4.1 142.1
Vested and expected to vest, September 27, 2009 .......... 57.8 15.12 6.5 388.6
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 25, 2009 was $19.83.
As of September 27, 2009, total unrecognized stock-based compensation expense, net of estimated forfeitures,
related to nonvested stock options was approximately $68 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 $44 million, $50 million and $274 million during the three fiscal years ended September 27, 2009.
The total fair value of options vested was $75 million, $99 million and $28 million during fiscal years 2009, 2008
and 2007, respectively.
RSUs
The Company has both time-vested and performance-based RSUs. Time-vested RSUs are awarded to eligible
employees and entitle the grantee to receive shares of common stock at the end of a vesting period, subject solely to
the employee’s continuing employment. The Company’s performance-based RSUs are awarded to eligible
employees and entitle the grantee to receive shares of common stock if the Company achieves specified
performance goals for the full fiscal year in the year of award and the grantee remains employed during the
subsequent vesting period. The fair value of RSUs is based on the closing price of Starbucks common stock on the
award date. Expense for performance-based RSUs is recognized when it is probable the performance goal will be
achieved.
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