Coach 2009 Annual Report Download - page 58

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TABLE OF CONTENTS
COACH, INC.
Notes to Consolidated Financial Statements
(dollars and shares in thousands, except per share data)
4. SHARE-BASED COMPENSATION – (continued)
Share Units
The grant-date fair value of each Coach share unit is equal to the fair value of Coach stock at the grant date. The weighted-average grant-
date fair value of shares granted during fiscal 2010, fiscal 2009 and fiscal 2008 was $30.55, $24.62 and $40.47, respectively. The
following table summarizes information about non-vested shares as of and for the year ended July 3, 2010:
Number of
Non-Vested
Shares
Weighted-
Average
Grant-Date
Fair Value
Nonvested at June 27, 2009 2,583 $ 29.36
Granted 2,184 30.55
Vested (768) 31.99
Forfeited (219) 31.03
Nonvested at July 3, 2010 3,780 29.40
The total fair value of shares vested during fiscal 2010, fiscal 2009 and fiscal 2008 was $23,955, $15,859 and $18,225,
respectively. At July 3, 2010, $59,735 of total unrecognized compensation cost related to non-vested share awards is expected to be
recognized over a weighted-average period of 1.1 years.
Employee Stock Purchase Plan
Under the Employee Stock Purchase Plan, full-time Coach employees are permitted to purchase a limited number of Coach common
shares at 85% of market value. Under this plan, Coach sold 176, 268 and 155 new shares to employees in fiscal 2010, fiscal 2009 and
fiscal 2008, respectively. Compensation expense is calculated for the fair value of employees’ purchase rights using the Black-Scholes
model and the following weighted-average assumptions:
Fiscal Year Ended
July 3,
2010
June 27,
2009
June 28,
2008
Expected term (years) 0.5 0.5 0.5
Expected volatility 57.6% 64.7% 28.4%
Risk-free interest rate 0.2% 1.1% 4.1%
Dividend yield 1.0% —% —%
The weighted-average fair value of the purchase rights granted during fiscal 2010, fiscal 2009 and fiscal 2008 was $9.15, $8.42 and
$10.26, respectively.
Deferred Compensation
Under the Coach, Inc. Deferred Compensation Plan for Non-Employee Directors, Coach’s outside directors may defer their director’s
fees. Amounts deferred under these plans may, at the participants’ election, be either represented by deferred stock units, which represent the
right to receive shares of Coach common stock on the distribution date elected by the participant, or placed in an interest-bearing account to
be paid on such distribution date. The amounts accrued under these plans at July 3, 2010 and June 27, 2009 were $2,980 and $2,480,
respectively, and are included within total liabilities in the consolidated balance sheets.
54