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Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The preceding table includes the remaining operating lease commitments that are included as a component of the Company’
s restructuring
liabilities (see Note 17).
12. Stock-based compensation
The Company measures all stock-
based payments at fair value and recognizes related expense within operating expenses in the
consolidated statements of operations over the requisite service period (generally the vesting period). During fiscal 2014 , 2013 , and 2012
, the
Company recorded stock-based compensation expense of $45.9 million , $43.7 million and $35.7 million , respectively, for all forms of stock-
based compensation awards.
Stock plan
At June 28, 2014 , the Company had 11.3 million shares of common stock reserved for stock-based awards, which consisted of
1.8 million
for stock options granted but not yet vested and vested but not yet exercised, 6.4 million
available for future awards under plans approved by
shareholders, 2.8 million for restricted stock incentive and performance shares granted but not yet vested, and 0.4 million
shares available for
future award under the Company's Employee Stock Purchase Plan ("ESPP").
Stock options
Stock option grants have a contractual life of ten years , vest in 25% increments on each anniversary of the grant date
, commencing with
the first anniversary, and require an exercise price of 100% of the fair market value at the date of grant. Stock-
based compensation expense
associated with stock options during fiscal 2014 , 2013 and 2012 was $4.7 million , $4.0 million and $3.1 million , respectively.
The fair value of stock options is estimated as of the date of grant using the Black-
Scholes model based on the assumptions in the
following table. The assumption for the expected term is based on evaluations of historical and expected future employee exercise behavior. The
risk-
free interest rate is based on U.S. Treasury rates as of the date of grant with maturity dates approximately equal to the expected term at the
grant date. The historical volatility of Avnet’
s common stock is used as the basis for the volatility assumption. The Company estimates dividend
yield based upon expectations of future dividends as of the grant date.
64
2015
$
91,242
2016
69,823
2017
55,204
2018
39,359
2019
29,846
Thereafter
92,015
Total
$
377,489
Years Ended
June 28,
2014
June 29,
2013
June 30,
2012
Expected term (years)
6.0
6.0
6.0
Risk-free interest rate
1.7
%
0.9
%
1.2
%
Weighted average volatility
34.3
%
35.0
%
33.7
%
Dividend yield
1.5
%
0.0
%
0.0
%