Equity Based Employee Benefit Plans

9 Months Ended

Oct. 29, 2011

Equity Based Employee Benefit Plans Disclosure [Abstract]

Equity Based Employee Benefit Plans

Equity Based Employee Benefit Plans

Staples offers its associates share ownership through certain equity based employee benefit plans, including the Amended and Restated 1998 Employee Stock Purchase Plan and the Amended and Restated International Employee Stock Purchase Plan (collectively the “Employee Stock Purchase Plans”), and the Amended and Restated 2004 Stock Incentive Plan (the “2004 Plan”).

Under the Employee Stock Purchase Plans, U.S. and International associates may purchase shares of Staples common stock at 85% of the lower of the market price of the common stock at the beginning or end of an offering period through payroll deductions in an amount not to exceed 10% of an employee’s annual base compensation.  Under the Amended and Restated 2004 Stock Incentive Plan, the Company grants restricted stock and restricted stock units (collectively, “Restricted Shares”) and nonqualified stock options to associates.  The Restricted Shares are restricted in that they are not transferable (i.e. they may not be sold) until they vest. The nonqualified stock options cannot be exercised until they vest.  Vesting of the Restricted Shares and nonqualified stock options occurs over different periods, depending on the terms of the individual award, but expenses relating to these awards are all recognized on a straight line basis over the applicable vesting period.

The following table summarizes the nonqualified stock options and Restricted Share activity in year-to-date2011:

	Nonqualified Stock Options (1)				Restricted Shares (2) (3)
	Number of Shares		Weighted Average Exercise Price per Share		Number of Shares		Weighted Average Grant Date Fair Value per Share
Outstanding at January 29, 2011	44,813,257		$	19.86	14,271,158		$	20.62
Granted	6,086,065		15.90		8,374,952		15.93
Exercised/Released	(1,629,997	)	10.87		(4,347,900	)	21.82
Canceled	(1,032,814	)	21.23		(1,049,372	)	19.18
Outstanding at October 29, 2011	48,236,511		$	19.64	17,248,838		$	18.13
Exercisable at October 29, 2011	34,798,180		$	20.12

(1) At October 29, 2011, the aggregate intrinsic value of the outstanding nonqualified stock options was $17.9 million and the aggregate intrinsic value of the exercisable nonqualified stock options was $17.8 million. The total intrinsic value of options exercised during year-to-date2011 and 2010 was $9.9 million and $17.4 million, respectively. The intrinsic value of the nonqualified stock options is the amount by which the market value of the underlying stock exceeds the exercise price of the option.

(2) Restricted Shares do not include 0.7 million special performance and retention shares ("Performance Shares") which Staples granted to certain employees in 2010 with a fair market value of $19.27 per share. Performance Shares are awards under which restricted stock is only issued if the Company meets minimum performance targets. The fair value of Performance Shares is based upon the market price of the underlying common stock as of the date of grant.

(3) The total market value of Restricted Shares vesting during year-to-date2011 and 2010 was $70.1 million and $85.0 million, respectively.

In connection with its equity based employee benefit plans, Staples included $35.6 million and $117.1 million in compensation expense for the third quarter and year-to-date2011, respectively, and $39.6 million and $109.2 million in compensation expense for the third quarter and year-to-date2010, respectively.

As of October 29, 2011, Staples had $240.5 million of nonqualified stock options and Restricted Shares to be expensed over the period through August 2015.