Staples 2015 Annual Report Download - page 143

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APPENDIX C
STAPLES C-26
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
Stock Options
The Company did not grant any stock options during 2013, 2014 or 2015. Information with respect to stock options granted in
2012 and prior is as follows (shares in millions):
Number of
Shares
Weighted-Average
Exercise Price
Per Share
Weighted-Average
Remaining
Contractual
Term in Years
Aggregate
Intrinsic Value (1)
(in millions)
Outstanding at January 31, 2015 27 $20.51
Granted — —
Exercised (1) 15.54
Canceled — —
Expired (6) 21.51
Outstanding at January 30, 2016 20 $20.36 3.39 $0
Exercisable at January 30, 2016 20 $20.58 3.31 $0
Vested or expected to vest at January 30, 2016 20 $20.39 3.38 $0
(1) The intrinsic value of the non-qualified stock options is the amount by which the market value of the underlying stock exceeds
the exercise price of an option.
The total intrinsic value of options exercised during 2015, 2014 and 2013 was $1 million, $1 million and $6 million, respectively.
Employee Stock Purchase Plan
Staples offers its associates the opportunity for share
ownership pursuant to the Amended and Restated Employee
Stock Purchase Plan. U.S. and International associates are
able to purchase shares of Staples common stock at 85%
of the market price of the common stock at the end of the
offering period through payroll deductions in an amount not
to exceed 10% of an employee’s annual base compensation.
During 2015 and 2014, the Company issued 3 million shares
each year pursuant to this plan.
Shares Available for Issuance
At January 30, 2016, 70 million shares of common stock were reserved for issuance under Staples’ 2014 Plan, 2004 Plan, 401(k)
Plan and employee stock purchase plans.
NOTE L — PENSION AND OTHER POST-RETIREMENT
BENEFIT PLANS
The company sponsors pension plans that cover certain
employees in Europe and the U.S. The benefits due to U.S.
plan participants are frozen. A number of the defined benefit
plans outside the U.S. are funded with plan assets that have
been segregated in trusts. Contributions are made to these
trusts, as necessary, to meet legal and other requirements.
The Company also sponsors an unfunded post-retirement life
insurance benefit plan, which provides benefits to eligible U.S.
executives based on earnings, years of service and age at
termination of employment.
In the third quarter of 2013, the Company completed the sale
of PSD, pursuant to which certain defined benefit pension
plan obligations were transferred to the buyer. In addition, until
December 31, 2014 certain employees of PSD participated
as current employees in a pension plan in the Netherlands
along with participants from other business units of Staples,
and as a result of the transaction their benefits have been
curtailed. The curtailment and settlement gains and losses
related to these plan obligations were insignificant. See Note
D - Sale of businesses and assets for additional information
regarding PSD.