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HENRY SCHEIN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
(in thousands, except per share data)
92
Note 16 – Employee Benefit Plans – (Continued)
A summary of the stock option activity under the Plans is presented below:
Years Ended
December 28, December 29, December 31,
2013 2012 2011
Weighted Weighted Weighted
Average Average Average
Exercise Exercise Exercise
Shares Price Shares Price Shares Price
Outstanding at beginning of year ..........
.
2,138 $ 48.61 4,059 $ 44.53 5,012 $ 43.05
Granted ..................................................
.
- - - - 10 69.45
Exercised ...............................................
.
(815) 43.86 (1,890) 40.06 (942) 36.84
Forfeited ................................................
.
- - (31) 36.02 (21) 48.35
Outstanding at end of year ....................
.
1,323 $ 51.53 2,138 $ 48.61 4,059 $ 44.53
Options exercisable at end of year ........
.
1,323 $ 51.53 2,137 $ 48.62 3,778 $ 43.47
The following weighted-average assumptions were used in determining the fair values of stock options using
the Black-Scholes valuation model:
2011
Expected dividend yield ......................................................................................................................................
.
- %
Expected stock price volatility ............................................................................................................................
.
20 %
Risk-free interest rate ..........................................................................................................................................
.
2.13 %
Expected life of options (years) ..........................................................................................................................
.
4.75
During the years ended December 28, 2013 and December 29, 2012, we did not grant any stock options.
We have not declared cash or stock dividends on our stock in the past and we do not anticipate declaring cash
or stock dividends in the foreseeable future. The expected stock price volatility was based on the evaluation of
implied volatilities from traded call options on our stock and from call options embedded in our convertible debt,
historical volatility of our stock and other factors. The risk-free interest rate was based on the U.S. Treasury yield
curve in effect on the date of grant in conjunction with considering the expected life of options. The expected life
of options represented the approximate period of time that granted options were expected to be outstanding and was
based on historical data, including, among other things, option exercises, forfeitures and cancellations. Estimates of
fair value are not intended to predict actual future events or the value ultimately realized by recipients of stock
options, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made
by us.
The following table represents the intrinsic values of:
As of
December 28, December 29, December 31,
2013 2012   2011
Stock options outstanding ................................................................ $ 83,252 $ 67,044 $80,821
Stock options exercisable ................................................................. 83,252 66,964 79,202