Starbucks 2011 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2011 Starbucks annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

As of October 2, 2011, total unrecognized stock-based compensation expense, net of estimated forfeitures, related to
nonvested stock options was approximately $44 million, before income taxes, and is expected to be recognized over
a weighted average period of approximately 2.4 years. The total intrinsic value of stock options exercised was $323
million, $118 million, and $44 million during fiscal years 2011, 2010, and 2009, respectively. The total fair value of
options vested was $126 million, $108 million, and $75 million during fiscal years 2011, 2010, and 2009,
respectively.
RSUs
We have 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. Our performance-based RSUs are awarded to eligible employees and entitle the grantee to
receive shares of common stock if we achieve 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.
RSU transactions from September 28, 2008 through October 2, 2011 (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, September 28, 2008 .................. 2.0 $17.36 2.5 $ 31
Granted ..................................... 3.3 8.78
Vested ...................................... 0.0 0.00
Forfeited/Cancelled ............................ (0.9) 13.94
Nonvested, September 27, 2009 .................. 4.4 11.55 1.6 88
Granted ..................................... 2.3 22.27
Vested ...................................... (0.7) 16.35
Forfeited/Cancelled ............................ (0.6) 12.27
Nonvested, October 3, 2010 ..................... 5.4 13.55 1.1 141
Granted ..................................... 5.4 31.06
Vested ...................................... (1.7) 9.40
Forfeited/Cancelled ............................ (0.8) 25.68
Nonvested, October 2, 2011 ..................... 8.3 23.11 0.8 309
As of October 2, 2011, total unrecognized stock-based compensation expense related to nonvested RSUs, net of
estimated forfeitures, was approximately $71 million, before income taxes, and is expected to be recognized over a
weighted average period of approximately 2.2 years.
ESPP
Our ESPP allows eligible employees to contribute up to 10% of their base earnings toward the quarterly purchase of
our common stock, subject to an annual maximum dollar amount. The purchase price is 95% of the fair market value
of the stock on the last business day of the quarterly offering period. The number of shares issued under our ESPP
was 0.5 million in fiscal 2011.
Deferred Stock Plan
We have a deferred stock plan for certain non-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
68