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Table of Contents CDW CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the Company's stock option activity for the year ended December 31, 2014 :
The total intrinsic value of stock options exercised during the years ended December 31, 2014 and 2013 was $1.0 million and zero ,
respectively.
Restricted Stock Units ("RSUs")
Restricted stock units represent the right to receive unrestricted shares of the Company's stock at the time of vesting. RSUs generally
cliff-vest at the end of four years.
The following table summarizes the Company's RSU activity for the year ended December 31, 2014 :
85
Year Ended December 31,
2014
2013
Weighted-average grant date fair value
$
7.23
$
4.75
Weighted-average volatility
(1)
30.00
%
35.00
%
Weighted-average risk-free rate
(2)
1.77
%
1.58
%
Dividend yield
0.70
%
1.00
%
Expected term (in years)
(3)
6.0
5.4
(1) Based upon an assessment of the two-year, five-year and implied volatility for the Company’
s selected peer group, adjusted for
the Company’s leverage.
(2)
Based on a composite U.S. Treasury rate.
(3) Calculated using the simplified method. The simplified method defines the expected term as the average of the option’s
contractual term and the option’s weighted-average vesting period. The Company utilizes this method as it has limited
historical stock option data that is sufficient to derive a reasonable estimate of the expected stock option term.
Options
Number of Options
Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Term
(years)
Aggregate Intrinsic
Value (millions)
Outstanding at January 1, 2014
1,280,255
$17.00
Granted
1,245,513
24.40
Forfeited/Expired
(31,209
)
21.33
Exercised
(73,487
)
17.00
Outstanding at December 31, 2014
2,421,072
$20.75
8.3
$34.9
Exercisable at December 31, 2014
576,963
$17.00
7.2
$10.5
Vested and expected to vest at December 31, 2014
2,378,364
$20.74
8.3
$34.3
Number of Units
Weighted-
Average
Grant-Date Fair
Value
Nonvested at January 1, 2014
1,351,572
$
17.04
Granted
25,895
24.29
Vested/Settled
(5,984
)
17.00
Forfeited
(126,781
)
17.04
Nonvested at December 31, 2014
1,244,702
$
17.19