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PAYCHEX, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table summarizes stock option activity for the year ended May 31, 2014:
In millions, except per share amounts
Shares subject
to options
Weighted-average
exercise price
per share
Weighted-average
remaining
contractual term
(years)
Aggregate
intrinsic value(1)
Outstanding as of May 31, 2013 ..... 8.0 $34.17
Granted ........................ 0.9 $38.52
Exercised ...................... (3.4) $35.51
Forfeited ....................... — $29.26
Expired ........................ (0.1) $38.11
Outstanding as of May 31, 2014 ..... 5.4 $34.00 5.3 $38.7
Exercisable as of May 31, 2014 ...... 3.4 $33.87 3.6 $24.7
(1) Market price of the underlying stock as of May 31, 2014 less the exercise price.
Other information pertaining to stock option grants is as follows:
Year ended May 31,
In millions, except per share amounts 2014 2013 2012
Total intrinsic value of stock options exercised ......................... $18.9 $7.8 $ 0.8
Total grant-date fair value of stock options vested ...................... $ 3.0 $3.0 $10.4
Performance stock options: In July 2011, the Board approved a special award of performance-based stock
options under a Long-Term Incentive Plan. Subsequent grants of this award have been made upon hire of new
officers. Under this award, stock options were granted to officers with vesting dependent on achievement against
long-term strategic and financial objectives. The awards will vest in full if performance targets for the fiscal year
ending May 31, 2016 are achieved, with acceleration of up to one-half of the award if performance targets are
achieved for fiscal 2014. Based on results for fiscal 2014, 23.5% of the award vested in July 2014.
The following table summarizes performance stock option activity for the year ended May 31, 2014:
In millions, except per share amounts
Shares subject
to options
Weighted-average
exercise price
per share
Weighted-average
remaining
contractual term
(years)
Aggregate intrinsic
value(2)
Outstanding as of May 31, 2013 ... 2.7 $30.95
Granted(1) .................... 0.1 $36.66
Exercised .................... — $ —
Forfeited ..................... — $ —
Expired ...................... — $ —
Outstanding as of May 31, 2014 ... 2.8 $31.25 7.4 $27.8
Exercisable as of May 31, 2014 .... —$— — $—
(1) Performance stock options granted assuming achievement of performance goals at target. Actual amount of
shares to be earned may differ from this amount.
(2) Market price of the underlying stock as of May 31, 2014 less the exercise price.
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