Sonic 2013 Annual Report Download - page 49

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47
The per share weighted average fair value of stock options granted during 2013, 2012 and 2011 was $4.69,
$2.88 and $4.63, respectively. In addition to the exercise and grant date prices of the awards, certain weighted
average assumptions that were used to estimate the fair value of stock option grants in the respective periods are
listed in the table below:
2013 2012 2011
Expected term (years) 4.9 4.9 4.7
Expected volatility 48% 48% 46%
Risk-free interest rate 0.8% 0.8% 2.0%
Expected dividend yield –% –% –%
The Company estimates expected volatility based on historical daily price changes of the Company’s common
stock for a period equal to the current expected term of the options. The risk-free interest rate is based on the
United States treasury yields in effect at the time of grant corresponding with the expected term of the options.
The expected option term is the number of years the Company estimates that options will be outstanding prior to
exercise considering vesting schedules and historical exercise patterns.
Stock Options
A summary of stock option activity under the Company’s stock-based compensation plans for the year ended
August 31, 2013, is presented in the following table:
Weighted
Weighted Average
Average Remaining Aggregate
Exercise Contractual Intrinsic
Options Price Life (Yrs.) Value
Outstanding September 1, 2012 7,258 $ 12.41
Granted 729 11.28
Exercised (1,527) 10.71
Forfeited or expired (898) 15.42
Outstanding at August 31, 2013 5,562 $ 12.25 3.29 $ 26,239
Exercisable at August 31, 2013 4,138 $ 13.22 2.43 $ 16,936
Proceeds from the exercise of stock options for fiscal years 2013, 2012 and 2011 were $16.3 million,
$0.3 million and $2.1 million, respectively. The total intrinsic value of options exercised during the years ended
August 31, 2013, 2012 and 2011 was $3.8 million, $0.1 million and $0.8 million, respectively.
Restricted Stock Units
A summary of the Company’s RSU activity during the year ended August 31, 2013 is presented in the following table:
Weighted
Average
Restricted
Grant Date
Stock Units Fair Value
Outstanding September 1, 2012 119 $ 8.31
Granted 32 11.26
Vested (80) 8.57
Outstanding at August 31, 2013 71 $ 9.36
The aggregate fair value of restricted stock that vested during the years ended August 31, 2013, 2012 and
2011 was $0.9 million, $0.5 million and $0.7 million, respectively.
Notes to Consolidated Financial Statements
August 31, 2013, 2012 and 2011 (In thousands, except per share data)