Staples 2007 Annual Report Download - page 37

retirement or resignation, should such director leave our Board before the end of the applicable vesting
period.
(2) Represents stock option grants that vest ratably on an annual basis over a four-year vesting period,
provided that the director continues to serve on our Board. The stock options awarded to a director who
meets the age and length of service requirements under our rule of 65 will fully vest upon retirement or
resignation, should such director leave our Board before the end of the applicable vesting period. For
options granted prior to May 1, 2005, the fair value for these options was estimated as of the date of
grant using a Black-Scholes option-pricing model. For stock options granted on or after May 1, 2005, the
fair value of each award is estimated as of the date of grant using a binomial valuation model.
Additional information regarding the assumptions used to estimate the fair value of all stock option
awards is included in Note H to Consolidated Financial Statements contained in our Annual Report on
Form 10-K for our 2007 fiscal year.
(3) The amounts shown in the Stock Awards and Option Awards columns represent the accounting expense
that we recognized under FASB Statement No. 123(R) during our 2007 fiscal year for awards granted
during our 2007 fiscal year and prior years, not the actual amounts paid to or realized by our Outside
Directors during our 2007 fiscal year. The FASB 123(R) amount as of the grant date for stock awards
and stock options is generally spread over the number of months of service required for the shares
subject to the award to vest. The FASB 123(R) amount recorded for our directors’ stock and option
awards in 2007 reflects the retirement acceleration provisions of FASB 123(R). Under these provisions,
the compensation expense associated with individuals who are eligible to retire and receive their awards
before the stated vesting dates must be accelerated even if such individuals do not intend to retire. All
of our Outside Directors other than Messrs. King, Sulentic and Vishwanath and Ms. Meyrowitz are
currently eligible for accelerated vesting of their stock and option awards granted between June 30, 2004
and December 13, 2007 under our rule of 65, which is described under the caption ‘‘Accelerated Vesting
of Awards’’ following the Grants of Plan-Based Awards for 2007 Fiscal Year table elsewhere in this
proxy statement. The amount disclosed disregards estimates of forfeitures of awards that are otherwise
included in our financial statement reporting for such awards.
(4) Reflects payments of dividend equivalents on restricted stock.
The table below supplements the Director Compensation table above by providing (1) the FASB 123(R) grant
date fair value of restricted shares and stock options awarded to our directors during our 2007 fiscal year and (2) the
total number of stock options and unvested restricted shares held by our directors as of February 2, 2008, the end of
our 2007 fiscal year.
Fair Values and Outstanding Director Awards
Number of
Shares Total Options and
Award Awarded in Grant Date Unvested Shares
Name Grant Date Type FY 2007 Fair Value ($) as of 2007 FYE
Basil L. Anderson ........................ 3/8/2007 RS 600 15,672
6/13/2007 RS 600 14,586
9/13/2007 RS 600 13,254
12/13/2007 RS 600 13,734 5,400
3/8/2007 OP 4,500 38,970
6/13/2007 OP 4,500 34,155
9/13/2007 OP 4,500 31,050
12/13/2007 OP 4,500 32,175 426,375
Brenda C. Barnes^ ....................... NA RS NA NA 0
NA OP NA NA 0
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