Staples 2005 Annual Report Download - page 107

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STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (Continued)
C-22
NOTE I Employee Benefit Plans (Continued)
Restricted Stock
In 2003, the Company began granting restricted shares in lieu of special grants of stock options in order to better
align management and shareholder interests. All shares underlying awards of restricted stock are restricted in that they
are not transferable (i.e., they may not be sold) until they vest. Subject to limited exceptions, if the employees who
received the restricted stock leave Staples prior to the vesting date for any reason, the shares of restricted stock will be
forfeited and returned to Staples. The following table summarizes the Company’s grants of restricted stock in fiscal 2005,
2004 and 2003:
Date of Award
Number of
Shares
Granted
Weighted
Average Fair
Market
Value Vesting Date
July 2003....................... 90,000 $ 12.23 July 2007
December 2003.................. 18,000 18.51 December 2006
December 2003.................. 27,000 17.37 January 2008
January 2004 .................... 300,000 17.55 February2006
January 2004 .................... 1,012,500 17.55 January 2007
June 2004....................... 46,500 20.09 June 2009
June2004 - July 2004............. 10,116 19.14 June 2007 - July 2007
September 2004 - October2004.... 112,200 19.82 September 2007 - October2007
November 2004 - December 2004 . . 7,523 21.86 November 2007 - December 2007
December 2004.................. 34,500 21.97 December 2009
December 2004.................. 112,500 22.20 February2006
January 2005 .................... 12,000 21.90 January 2008
February 2005 ................... 4,368 21.82 50% February 2007;
50% February 2008
March 2005 ..................... 5,247 21.10 50%March 2007; 50%March 2008
March 2005- April2005 .......... 14,400 21.14 March 2008 - April 2008
June2005 - August2005.......... 23,500 21.80 June 2008 - August 2008
September 2005.................. 9,000 21.59 August2006
September 2005.................. 50,000 21.54 30% September 2008;
30%September 2009;
40% September 2010
September 2005.................. 10,460 21.23 September 2008
December 2005.................. 6,300 23.18 December 2008
December 2005.................. 112,500 23.18 February2006
In connection with the issuance of restricted stock, Staples included $15.1 million, $11.0 million and $0.9 million in
compensation expense for fiscal year 2005, 2004 and 2003, respectively.
On February 3, 2002, the Company issued 450,000 shares of restricted stock with a weighted average fair market of
$11.95 per share. 250,500 shares vested on March 1, 2004, and the remaining 199,500 shares vested on February 1, 2005.
In connection with the issuance of the restricted stock, Staples included $2.7 million in compensation expense in fiscal
year 2003.
Performance Accelerated Restricted Stock (“PARS”)
PARS are shares of Staples common stock that may be issued to employees (including officers) of Staples. The
shares, however, are restricted in that they are not transferable (i.e., they may not be sold) by the employee until they
vest, generally after the end of five years. Such vesting date may accelerate if Staples achieves certain