Starbucks 2012 Annual Report Download - page 85

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79
As of September 30, 2012, total unrecognized stock-based compensation expense, net of estimated forfeitures,
related to nonvested stock options was approximately $35 million, before income taxes, and is expected to be
recognized over a weighted average period of approximately 2.3 years. The total intrinsic value of stock options
exercised was $440 million, $323 million, and $118 million during fiscal years 2012, 2011, and 2010,
respectively. The total fair value of options vested was $59 million, $126 million, and $108 million during fiscal
years 2012, 2011, and 2010, 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 27, 2009 through September 30, 2012 (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 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
Granted 4.1 44.05
Vested (4.2) 18.93
Forfeited/cancelled (0.9) 35.56
Nonvested, September 30, 2012 7.3 34.68 0.9 366
As of September 30, 2012, total unrecognized stock-based compensation expense related to nonvested RSUs, net
of estimated forfeitures, was approximately $80 million, before income taxes, and is expected to be recognized
over a weighted average period of approximately 2.0 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 0.4 million in fiscal 2012.