Staples 2015 Annual Report Download - page 142

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APPENDIX C
C-25 STAPLES Form 10-K
STAPLES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements (continued)
Performance Shares
In April 2013, March 2014 and March 2015, the Company
entered into long-term performance share agreements with
certain executives. Vesting is 50% based on satisfaction of
certain sales growth metrics and 50% based on achievement
of certain return on net assets percentage targets. Payout
under these arrangements may range from 25% to 200%
of target for each metric, depending on actual performance.
Each award covers a three year period. Vesting is based on
performance in each fiscal year, with metrics established
at the beginning of each year. Any award earned based on
performance may be increased or decreased by 25% if the
Company’s cumulative total shareholder return (“TSR”) over
the three year performance period is in the top or bottom one-
third of the S&P 500 TSR, respectively. Shares earned, if any,
will be issued on a fully-vested basis at the conclusion of the
three-year performance period only if the grantee is still actively
employed by or serving as a consultant to the Company at that
time, with certain exceptions for retirement, death, disability,
and termination without cause.
For each performance period completed, the table below
shows the target number of shares, the aggregate grant-
date fair value, and the percentage of target shares earned
based on the extent to which the performance targets were
achieved, subject to adjustment based on TSR at the end of
the three year performance period.
Performance period Award date Target number of
shares (millions) Grant date fair
value (millions) % of target
shares earned
2015
March 2015 0.5 $7
78.4%March 2014 0.5 $9
April 2013 0.5 $8
2014 March 2014 0.6 $7 87.3%
April 2013 0.5 $6
2013 April 2013 0.5 $7 49.7%
Restricted Shares
The following table summarizes the Company’s grants of Restricted Shares in 2015:
Restricted Shares(1)
Number of Shares
(in millions)
Weighted-Average
Grant Date Fair
Value Per Share
January 31, 2015 9 $13.14
Granted 4 14.68
Vested (5) 13.16
Canceled (1) 13.35
January 30, 2016 7 $13.84
(1) Excludes shares issuable under outstanding performance awards
The weighted-average grant date fair values per share of Restricted Shares granted during 2015, 2014 and 2013 were $14.68,
$11.73 and $15.60, respectively. The total market value of Restricted Shares vested during 2015, 2014 and 2013 was $74 million,
$54 million and $96 million, respectively.