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Starbucks Corporation 2014 Form 10-K 73
Stock option transactions for the year ended September 28, 2014 (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, September 29, 2013 22.0 $ 29.11 6.0 $ 1,060
Granted 3.1 80.23
Exercised (4.8) 24.27
Expired/forfeited (0.5) 51.80
Outstanding, September 28, 2014 19.8 37.86 5.8 754
Exercisable, September 28, 2014 12.7 25.32 4.4 631
Vested and expected to vest, September 28, 2014 19.2 36.89 5.7 747
The aggregate intrinsic value in the table above, which 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.
As of September 28, 2014, 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 2.6 years. The total intrinsic value of stock options exercised was $258 million, $539 million,
and $440 million during fiscal years 2014, 2013, and 2012, respectively. The total fair value of options vested was $44 million,
$56 million, and $59 million during fiscal years 2014, 2013, and 2012, respectively.
RSUs
We have both time-vested and performance-based RSUs. Time-vested RSUs are awarded to eligible employees and non-
employee directors 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 or the non-employee director's continuing service. The majority of RSUs vest in two equal
annual installments beginning a year from the grant date. 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 during the performance period
and the grantee remains employed during the subsequent vesting period.
RSU transactions for the year ended September 28, 2014 (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 29, 2013 5.8 $ 44.08 0.9 $ 452
Granted 2.9 80.13
Vested (2.6) 40.08
Forfeited/canceled (0.7) 65.59
Nonvested, September 28, 2014 5.4 62.34 1.0 407
For fiscal 2013 and 2012, the weighted average fair value per RSU granted was $50.23 and $44.05, respectively. As of
September 28, 2014, total unrecognized stock-based compensation expense related to nonvested RSUs, net of estimated
forfeitures, was approximately $113 million, before income taxes, and is expected to be recognized over a weighted average
period of approximately 2.0 years. The total fair value of RSUs vested was $103 million, $104 million and $80 million during
fiscal years 2014, 2013, and 2012, respectively.
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
2014.