Sonic 2014 Annual Report Download - page 45

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The per share weighted average fair value of stock options granted during 2014, 2013 and 2012 was $6.82, $4.69 and $2.88,
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:
2014 2013 2012
Expected term (years) 4.7 4.9 4.9
Expected volatility 37% 48% 48%
Risk-free interest rate 1.5% 0.8% 0.8%
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, 2014,
is presented in the following table:
Weighted
Weighted Average
Average Remaining Aggregate
Exercise Contractual Intrinsic
Options Price Life (Yrs.) Value
Outstanding September 1, 2013 5,562 $ 12.25
Granted 532 20.48
Exercised (1,727) 12.76
Forfeited or expired (207) 19.37
Outstanding at August 31, 2014 4,160 $ 12.73 3.30 $ 35,255
Exercisable at August 31, 2014 2,977 $ 12.12 2.38 $ 27,155
Proceeds from the exercise of stock options for fiscal years 2014, 2013 and 2012 were $17.4 million, $16.3 million and $0.3
million, respectively. The total intrinsic value of options exercised during the years ended August 31, 2014, 2013 and 2012 was $13.0
million, $3.8 million and $0.1 million, respectively.
Restricted Stock Units
A summary of the Company’s RSU activity during the year ended August 31, 2014 is presented in the following table:
Weighted
Average
Restricted Grant Date
Stock Units Fair Value
Outstanding September 1, 2013 71 $ 9.36
Granted 33 20.59
Vested (56) 10.03
Forfeited (2) 6.80
Outstanding at August 31, 2014 46 $ 16.78
The aggregate fair value of restricted stock that vested during the years ended August 31, 2014, 2013 and 2012 was $1.1 million,
$0.9 million and $0.5 million, respectively.
Notes to Consolidated Financial Statements
August 31, 2014, 2013 and 2012 (In thousands, except per share data)
43