Staples 2013 Annual Report Download - page 160

STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
C-29
midpoint of the vesting date (if unvested) or the valuation date (if vested) and the full contractual term, which the Company believes
to yield a reasonable approximation of the expected term of the options. The fair value of stock options is expensed over the
applicable vesting period using the straight line method.
Restricted Shares
The following table summarizes the Company's grants of Restricted Shares in 2013 (amounts exclude unvested
performance shares):
Number of
Shares
Weighted-Average
Grant Date Fair
Value Per Share
Nonvested at February 2, 2013 14,549,213 $ 15.54
Granted 3,961,377 15.60
Vested (6,102,874) 17.28
Canceled (2,233,284) 14.89
Nonvested at February 1, 2014 10,174,432 $ 14.66
The total market value of Restricted Shares vested during 2013, 2012 and 2011 was $96.2 million, $71.4 million and
$73.3 million, respectively.
Shares Available for Issuance
At February 1, 2014, 52.9 million shares of common stock were reserved for issuance under Staples' 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 United States. 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.
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, certain former and and current employees of PSD participate in a
pension plan in the Netherlands along with participants from other business units of Staples, and as a result of the transaction there
was a curtailment in the plan. The Company updated the valuations of the related pension plan assets and liabilities during the
third quarter of 2013, and based on these measurements determined that the curtailment and settlement gains and losses related
to these plan obligations were insignificant. See Note D - Discontinued Operations for additional information regarding PSD.
In August 2010, the Company began sponsoring 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.
Unless otherwise noted, the information contained in this note includes both continuing and discontinued operations. The
following table presents a summary of the total projected benefit obligation for the pension plans, the fair value of plan assets and
the associated funded status recorded in the consolidated balance sheet at February 1, 2014 and February 2, 2013 (in thousands):
February 1, 2014 February 2, 2013
Projected
Benefit
Obligations
Fair Value
of Plan
Assets
Funded
Status
Projected
Benefit
Obligations
Fair Value
of Plan
Assets
Funded
Status
Overfunded Plans:
International Plans $ (954,826) $ 1,042,370 $ 87,544 $ (968,196) $ 1,054,904 $ 86,708
Total Overfunded Plans $ (954,826) $ 1,042,370 $ 87,544 $ (968,196) $ 1,054,904 $ 86,708
Underfunded Plans:
U.S. Plans $ (38,183) $ 33,379 $ (4,804) $ (40,661) $ 32,273 $ (8,388)
International Plans (121,275) 98,776 (22,499)(155,116) 110,654 (44,462)
Total Underfunded Plans $ (159,458) $ 132,155 $ (27,303) $ (195,777) $ 142,927 $ (52,850)