Whole Foods 2013 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2013 Whole Foods 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 72

  • 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

53
(13) Share-Based Payments
Total share-based payment expense before income taxes recognized during fiscal years 2013, 2012 and 2011 was approximately
$57 million, $42 million and $27 million, respectively. Share-based payment expense was included in the following line items
on the Consolidated Statements of Operations for the fiscal years indicated (in millions):
2013 2012 2011
Cost of goods sold and occupancy costs $ 2 $ 2 $ 1
Direct store expenses 32 22 14
General and administrative expenses 23 18 12
Share-based payment expense before income taxes 57 42 27
Income tax benefit (22) (16) (10)
Net share-based payment expense $ 35 $ 26 $ 17
Stock Options
At September 29, 2013, September 30, 2012 and September 25, 2011 approximately 42.3 million shares, 16.8 million shares
and 23.4 million shares of the Company’s common stock, respectively, were available for future stock incentive grants. The
following table summarizes option activity (in millions, except per share amounts and contractual lives in years):
Number
of options
outstanding
Weighted
average
exercise price
Weighted
average
remaining
contractual life
Aggregate
intrinsic
value
Outstanding options at September 26, 2010 37.9 $ 23.00
Options granted 6.4 31.25
Options exercised (13.6) 21.97
Options expired (2.8) 33.31
Options forfeited (0.6) 18.97
Outstanding options at September 25, 2011 27.3 $ 24.50
Options granted 7.2 44.23
Options exercised (13.7) 26.44
Options expired (0.1) 25.10
Options forfeited (0.7) 28.32
Outstanding options at September 30, 2012 20.0 $ 30.17
Options granted 4.3 51.33
Options exercised (4.1) 20.52
Options expired (0.1) 18.86
Options forfeited (0.9) 37.20
Outstanding options at September 29, 2013 19.2 $ 36.90 5.20 $ 413
Vested/expected to vest at September 29, 2013 18.0 $ 36.37 5.15 $ 395
Exercisable options at September 29, 2013 5.6 $ 26.60 4.22 $ 179
The weighted average fair value per option granted during fiscal years 2013, 2012 and 2011 was $12.36, $13.68 and $10.92,
respectively. The aggregate intrinsic value of stock options at exercise, represented in the table above, was approximately $125
million, $201 million, and $106 million during fiscal years 2013, 2012 and 2011, respectively. The Company realized a tax
benefit from stock options exercised during fiscal years 2013, 2012 and 2011 totaling approximately $123 million, $198 million
and $105 million, respectively. The total fair value of shares vested during fiscal years 2013, 2012 and 2011 was approximately
$246 million, $186 million and $129 million, respectively, including the value of vested options exercised during those same
periods. As of the end of fiscal years 2013 and 2012, there was approximately $130 million and $135 million of unrecognized
share-based payment expense, respectively, related to nonvested stock options, net of estimated forfeitures, related to
approximately 12.4 million shares and 14.2 million shares, respectively. The Company anticipates this expense to be recognized
over a weighted average period of approximately 3.1 years.