Stock
Bean Stock
Sharing in Our Success
United States
Bean Stock
Rewards
Partners
We are proud to be able to offer Bean Stock to partners
around the world.
Created in 1991, Bean Stock is an opportunity for
partners to share in the financial success of the company
through shares of Starbucks stock—it’s why we are called
partners. We continue that long history of investing in
you, our partners with this year’s Bean Stock grant.
Bean Stock is one of the many ways for partners to know
their contributions are valued and rewarded.
As partners and shareholders, we fully recognize that
Starbucks current successes are due to your ongoing
commitment to deliver extraordinary moments of
connection with customers and each other.
So, this reward is our thank you for all that you do to
create an exceptional Starbucks Experience in our stores
and in the communities we serve.
Congratulations!
Look Inside
2
What You Need to Know
3
Actions to Get You Started
4
Bean Stock Restricted Stock Units (RSUs)—
Questions and Answers
4
Who Is Eligible?
4
What Is a Bean Stock Restricted Stock Unit (RSU)?
4
How Many Bean Stock RSUs Will You Receive?
5
How Does Vesting Work?
6
How Are Taxes Determined?
7What Happens After the Shares Are Deposited into
My Fidelity Account®?
8
How Do I Sell My Shares?
8
What Services Does Fidelity Provide?
9
Currency Conversion
9
How Do I Set Up My Fidelity Account®?
10 How do I accept my grant online at Fidelity?
11 What Happens If I Leave Starbucks?
12 Where Can I Get More Information?
13 Glossary
What You
Need to Know
It’s important that you understand how your Bean Stock
reward works, how you’ll receive value from your
reward, and what to expect. Read through this brochure
for details and watch the Bean Stock videos on
Starbucks.com/partners to learn more.
Remember, Bean Stock is a reward that is granted to
you; there is no need to enroll.
Here are a few quick facts:
Your
Bean Stock reward will be in the form of 1
Restricted Stock Units (RSUs).
2 RSUs give you the right to receive shares of Starbucks stock after a specified period of time, known as vesting.
3
2
RSUs vest 50 percent the first anniversary and
50 percent the second anniversary. This means on the first anniversary date of your grant—when it vests—you become a Starbucks shareholder.
Actions to Get
You Started
There is no need to enroll in Bean Stock, but you need
to activate your account at Fidelity to view and manage
your Bean Stock reward:
• If you have not activated your Fidelity Account® yet, go to netbenefits.fidelity.com and log in. Select Register Now. Click the Activate link next to your Starbucks stock plan and follow the step-by-step process to fully complete your activation.
•
If you don’t activate your account and complete your tax certification form (which is part of the activation process) by the first anniversary of the grant, this may impact the release of your shares and could result in additional tax withholding.
•You will need to accept your grant online as soon as possible.
If you do not accept your grant, this may impact the distribution of net
shares on the vest date.
•
Always keep your home address current with Starbucks.
This ensures the timely delivery of important information such as:
– Monthly, quarterly and annual account statements
– Confirmation statements for sale transactions
– Important year-end tax information
3
Bean Stock Restricted Stock Units (RSUs)
Questions
and Answers
Who Is Eligible?
You are eligible for Bean Stock Restricted Stock Units (RSUs) if you:
•Are employed by Starbucks as of May 1 of the fiscal year preceding
the grant date
•Are paid at least 360 hours during the fiscal year, and
•Are in a position up to, but not including, the director level.
What Is a Bean Stock Restricted Stock Unit (RSU)?
A Restricted Stock Unit, or RSU, is the right to receive a specified number of
shares of Starbucks common stock upon satisfaction of the vesting period.
You receive shares of Starbucks stock (less taxes) when your RSUs vest.
In addition RSUs are never underwater—there is always some inherent
value, and upon vesting you own the shares outright. There is no need to
exercise RSUs.
How Many Bean Stock RSUs Will You Receive?
The number of Bean Stock RSUs you may receive vary year-to-year based on
your job (retail) or annualized salary (nonretail) and the fair market value of
Starbucks stock on the grant date.
The number of RSUs granted is calculated by taking the economic value and
dividing it by the closing price of Starbucks stock on the grant date.
For retail partners (barista through district manager), Starbucks determines
your economic value based on the job you hold on the last day of the
fiscal year. Each retail job will have a fixed economic value that will be
awarded to each partner who holds that position.
4
For nonretail partners, Starbucks determines your economic value based on
your annualized salary as of the last day of the fiscal year.
Retail Reward Calculation Example Based on Job
Job:
Economic Value (USD):
Fair Market Value: (closing stock price on grant date)
Barista
$375
÷ $50
= 8*
RSUs Granted:
Nonretail Reward Calculation Example Based on
Annualized Salary
Annualized Salary (USD):
Economic Value (USD):
Fair Market Value: (closing stock price on grant date)
RSUs Granted:
$10,000
$375
÷ $50
= 8*
*All Bean Stock RSUs granted will be rounded up to the nearest whole share.
How Does Vesting Work?
Vesting is basically a waiting period during which you must remain
employed by Starbucks without any breaks in service. As your Bean Stock
RSU grant vests, the units become shares of Starbucks stock that you can
then sell or continue to hold in your Fidelity Account®.
Bean Stock RSUs vest over a two-year period. On the first anniversary of
the grant date, 50% of the grant vests. The next 50% of the grant vests on
the second anniversary of the grant date.
5
Vesting Example
% VESTED
Let’s say you received 8 RSUs on the grant date. As long as you
remain a partner, 50% or 4 RSUs will vest on the first anniversary
of the grant date. And on the second anniversary of the grant date,
the remaining 4 RSUs vest for a combined total of 8 RSUs.
100%
+4
50%
4
2
1
ANNIVERSARY
8 RSUs =
4
+
4
Important Information About Taxes
With RSUs, the taxable event is the vest date.
How Are Taxes Determined?
When RSUs vest, depending on where you work and/or live, you may
be required to pay income tax on the market value of the vested shares.
Starbucks will satisfy any tax-withholding obligations, if applicable, by
reducing the number of vested shares equal to the amount of income
tax you owe. This is referred to as “Netting of Shares.” The remaining shares
will be deposited in your Fidelity Account® shortly after the vest date.
At vesting, Starbucks is responsible for reporting the taxable income to
the tax authorities. The taxable income will also be reported through payroll,
and the amount of tax withheld in shares will be detailed on your pay
statement.
Partners who have been granted RSUs while employed by Starbucks in other
countries may have additional taxes that need to be withheld through local
payroll at the time of vesting.
6
Tax-Withholding Example
Let’s say you received 8 RSUs on the grant date, and one year later
when the first 50% (4 units) vest, the closing price of Starbucks stock
is $55.
This example is for illustration purposes only:
Vesting Date:
First Anniversary
$55
Closing Stock Price (per share) on Date of Vest:
4 x $55 = $220
Taxable Income:
Tax Withholding: $220 x 32.65%* = $71.83
Shares to Cover Taxes:
$71.83 ÷ $55 = 2** shares
4 – 2 = 2 shares
Netting of Shares: Number of Shares Deposited in Fidelity Account :
®
Value of Net Shares:
2 shares
2 x $55 = $110
* The example shows tax withholding at the U.S. supplemental income rate at the time of grant,
which includes 25% Federal, 6.2% FICA and 1.45% Medicare. The example in this situation does
not reflect state, provincial and or/local taxes. For your own personal situation, we encourage
all partners to consult with their own tax adviser with respect to the federal, state and local tax
consequences in regards to taxation of RSUs at the time of vest.
** S
hares will be rounded up to the nearest whole share, and any residual from the netting of shares
will be refunded to you through payroll.
What Happens After the Shares Are Deposited into
My Fidelity Account®?
You can easily determine the value of the net shares deposited into your
Fidelity Account® (value = shares x price). Once deposited you have
two options:
Option
1
Keep the shares in your Fidelity Account®. You can keep the shares in
your Fidelity Account® and become a Starbucks shareholder.
As a shareholder, you have the right to vote on important Starbucks issues,
such as who serves on the Board of Directors. You will also be entitled
to receive any quarterly announced dividends as long as you remain a
shareholder through the dividend record date.
You also take on the benefits and risks of changes in the stock price.
7
Option 2
Sell the shares through Fidelity. You may sell the net shares that you own at
any time once they are deposited into your Fidelity Account®.
Please note that when selling any Starbucks stock, all partners must follow
the Starbucks Insider Trading Policy, which prohibits trading in Starbucks
stock while aware of material, nonpublic information. If you have questions
regarding this, please contact Starbucks Securities and Corporate Law at
(206) 318-6195 or (206) 318-0134 to discuss these restrictions before you first
engage in any transaction in Starbucks stock.
How Do I Sell My Shares?
•Contact Fidelity to sell* some or all of your vested shares online through
netbenefits.fidelity.com, or by phone with a Fidelity Representative.
•Fidelity will sell the shares immediately on the open market.
•Fidelity will deposit the cash proceeds less fees into your account
upon settlement.
•You can instruct Fidelity to send the proceeds to you by mailing a check
or making a wire transfer directly to your bank account.
As each partner’s personal tax situation is unique, consulting a tax adviser
is recommended before you sell any of your Bean Stock. Please refer to the
“Partner Information Supplement” posted on the Fidelity website section
under Plan Documents.
aware that if the stock price increases after the vest date, your
*Be
value increases and you may be subject to either a long-term or
short-term capital gains tax. If you sell the shares and the stock
price has gone down, you would then experience a capital loss.
What Services Does Fidelity Provide?
Fidelity Stock Plan Services (Fidelity) is Starbucks dedicated provider of
recordkeeping and administrative services for stock plans. Fidelity and
Starbucks have teamed up to provide you a host of benefits and services that
will give you easy access to your stock plan information.
8
One of the advantages of Bean Stock is that you are provided with a
Fidelity Account®. This lets you conveniently manage your Bean Stock and
access your proceeds to help fund your overall financial goals.
At Fidelity you can:
• Access your account information online
• View account balances
• Conduct transactions
• Use investment tools
• Transfer proceeds directly into your bank account upon settlement
• Access stock plan documents
• Access transaction confirmation and account statements
Currency Conversion
If you wish to withdraw cash proceeds from your Fidelity Account,® currency
conversion is an optional service offered to stock plan participants. If you
choose not to use Fidelity Stock Plan Services for your currency conversion,
you can wire proceeds out in U.S. dollars and convert them at another
institution (if allowed by your country / bank). Please note, exchange rates
and transaction times may vary over time. You are encouraged to review
and compare rates to ensure you receive the best rate possible. If you have
questions regarding currency conversion, please contact Fidelity Stock Plan
Services. You may also incur fees from your financial institution.
How Do I Set Up My Fidelity Account®?
You will automatically be set up with a Fidelity Account®. Before you
can take advantage of your Fidelity Account®, you need to activate it
on netbenefits.fidelity.com. To ensure you are making the most of this
benefit, be sure to activate your account as soon as possible.
If you prefer, you may also call a Fidelity Representative at (866) 697-1048
to request a paper application to activate your account.
As part as the account activation process, you will also need to check your
W-9 Tax Certification status online and complete the appropriate form
at Fidelity. This form is part of the account activation process. If you do
not complete this Tax Certification form, you may have an additional tax
withholding from the Internal Revenue Service (IRS) at the time you sell
your shares.
9
How do I accept my grant online at Fidelity?
1
LOG IN to netbenefits.fidelity.com
2
If this is your first Bean Stock grant, ACTIVATE your Fidelity Account
• Follow the steps to enter/verify your personal information.
• You will be asked to read and agree to the terms of the agreement.
3
VIEW and ACCEPT your grant
• Your unaccepted and accepted grants will appear on the Summary
page. Click Accept Grant.
• Before accepting your grant, you must read your Plan Document
by clicking on the Plan Document link. Indicate that you have read
and agree to the plan documents by checking the box and click
Next.
• You must also read and agree to the terms of your Grant
Agreement by clicking on the Grant Agreement link. Indicate that
you have read your Grant Agreement by checking the box and click
Accept.
• You will receive a Confirmation Number showing that you have completed the acceptance process for your grant.
10
What Happens If I Leave Starbucks?
Depending on your situation, the chart below explains
what happens to your vested and unvested Bean Stock
RSUs when you leave Starbucks.
Your Situation
You voluntarily leave
Starbucks or are
separated for reasons
other than misconduct
or retirement.
You involuntarily
leave Starbucks for
misconduct.
hat Happens to
W
Your Vested Bean
Stock—RSUs
hat Happens
W
to Your Unvested
Bean Stock—RSUs
All vested RSUs that
were converted to
actual shares are yours.
You determine when to
sell these shares. There
is no time limit.
A ll unvested RSUs
are forfeited.
All vested RSUs
converted to actual
shares and in your
account will go to your
estate. Your estate will
determine when to sell
these shares. There is no
time limit.
A ll unvested RSUs
are forfeited.
You retire at age 55
or greater and have
10 years or more of
credited service.
You are no longer an
active Starbucks partner
due to a permanent and
total disability.
Your death.
11
Where Can I Get More Information?
For general stock plan questions, please talk to your manager or Partner
Resources generalist. For additional questions, call Starbucks Partner
Contact Center at (866) 504-7368 weekdays from 5 a.m. to 5 p.m., Pacific.
To inquire about your stock, activate your account or sell shares, contact
Fidelity Stock Plan Services.
You have two ways to contact Fidelity:
•Go to netbenefits.fidelity.com
• Call Fidelity at (866) 697-1048, where you can speak to a Fidelity
Representative from 2 p.m. Sunday through 9 p.m. Friday, Pacific
For information regarding Bean Stock grants made prior to November,
please reference the “Starbucks 2005 Company-Wide Sub-Plan to the 2005
Long-Term Equity Incentive Plan,” commonly referred to as the “Plan
Document,” and the Bean Stock brochure posted on the Fidelity website
netbenefits.fidelity.com.
12
Glossary
Annualized Salary
In general, for hourly nonretail
partners, your annualized salary is
determined by taking your hourly
rate equivalent and converting it to
an annual salary as of the last day of
the fiscal year. For salaried nonretail
partners, your Bean Stock reward is
based on your annual salary as of
the last day of the fiscal year.
Dividend
A distribution of a portion of a
company’s earnings, decided by
the board of directors, to a class of
its shareholders. The dividend is
most often quoted in terms of the
dollar amount each share receives
(dividends per share). It can also be
quoted in terms of a percent of the
current market price, referred to as
dividend yield. Dividends may be in
the form of cash, stock or property.
Economic Value
The economic value is derived
using a common financial reporting
methodology to estimate the
current value of Restricted Stock
Units (RSUs) based on several
assumptions, including the closing
price of Starbucks stock on the
grant date, the anticipated value at
future vest dates, and the changes
in Starbucks stock price. Essentially,
it is the present value of potential
future gains over the vesting period
of the RSU. Each year we use
economic value to establish a set of
guidelines by which we determine
the number of shares rewarded (in
the form of an RSU).
Equity Reward
An issuance of stock-based rewards
pursuant to an employee (partner)
stock plan, such as stock options or
RSUs.
Exercise
Exercising stock options is
the process of purchasing the
underlying shares of Starbucks
stock at a set price (also known as
exercise price) regardless of current
market price.
Fair Market Value
The closing price of Starbucks
common stock on the grant date,
as reported by The NASDAQ Stock
Market®.
Fiscal Year
A fiscal year is the 12-month period
used for accounting purposes.
Starbucks fiscal year starts on the
Monday following the Sunday
closest to September 30, and
ends on the Sunday closest to
September 30 the following year.
13
Grant Date
The date on which Starbucks grants
equity rewards like RSUs and stock
options. This date marks the start of
your vesting schedule.
Netting of Shares
The tax withholding process
where the total number of shares
deposited into your Fidelity
Account® is reduced by the number
of shares equal to the amount of
income tax you owe.
Restricted Stock Unit (RSU)
A Restricted Stock Unit, or RSU,
is the right to receive a specified
number of shares of Starbucks stock
upon satisfaction of the vesting
criteria.
Shares of Stock
The terms “share” and “stock” are
often used interchangeably. A share
of stock is an individual share of
ownership in a company. When you
purchase shares of Starbucks stock,
you become a shareholder—or
part owner—in the company. As a
shareholder, you have the right to
vote on important company issues,
such as who serves on the Board of
Directors.
Stock Options
The right to buy shares of Starbucks
stock at a set price (also known as
“exercise price”) for a specified
period of time.
Underwater
A stock option is considered
“underwater” if the exercise price of
the stock option is higher than the
current market price. RSUs are never
underwater.
Vesting
The time period that gives you the
right to receive a specified number
of shares of Starbucks stock. When a
portion of your RSU has vested, you
own the shares outright. Vesting will
generally occur on the anniversary
date of the RSU grant.
This brochure highlights the terms of “Starbucks 2005 Company-Wide
Sub-Plan to the 2005 Long-Term Equity Incentive Plan.” If a discrepancy
should arise between this information and the official plan documents
including your award agreement, the official plan documents govern in all
cases. The Company reserves the right at its discretion with or without notice
to review, change, amend or cancel the plan at any time. The language in
this brochure does not constitute a guarantee of employment. Nor does
any of the material in this brochure itself in any way constitute a contract of
employment or a contract to continue to offer the plan described herein.
© 2013 Starbucks Coffee Company. All rights reserved.
This brochure is made with 100% post-consumer material.
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