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SYSCO CORPORATION-Form10-K80
PARTII
ITEM8Financial Statements and Supplementary Data
The following summary presents information regarding outstanding options as of June 28, 2014 and changes during the  scal year then ended with regard
to options under all stock incentive plans:
Shares Under
Option
Weighted
Average
Exercise Price
Per Share
Weighted
Average
Remaining
Contractual
Term (in years)
Aggregate
Intrinsic Value
(inthousands)
Outstanding as of June 29, 2013 31,556,789 $ 29.07
Granted 5,575,645 33.31
Exercised (7,754,053) 29.99
Forfeited (1,096,146) 28.86
Expired (812,324) 31.86
OUTSTANDING AS OF JUNE 28, 2014 27,469,911 $ 29.59 4.74 $ 226,830
VESTED OR EXPECTED TO VEST AS OF JUNE 28, 2014 27,250,629 $ 29.58 4.72 $ 225,328
EXERCISABLE AS OF JUNE 28, 2014 9,604,094 $ 28.51 2.72 $ 89,660
The total number of employee options granted was 5,575,645, 6,212,716 and 7,015,952 in  scal years 2014, 2013 and 2012, respectively. During
scal 2014, 2,159,698 options were granted to 11 executive of cers and 3,415,947 options were granted to approximately 167 other key employees.
During  scal 2013, 2,351,720 options were granted to 11 executive of cers and 3,860,996 options were granted to approximately 152 other key
employees. During  scal 2012, 2,898,854 options were granted to 11 executive of cers and 4,117,098 options were granted to approximately 180
other key employees.
The weighted average grant-date fair value of options granted in  scal 2014, 2013 and 2012 was $4.64, $3.20 and $3.69, respectively. The total intrinsic
value of options exercised during  scal 2014, 2013 and 2012 was $19.1 million, $24.1 million and $8.3 million, respectively.
Restricted Stock Units
During  scal 2014, 2013 and 2012, 1,322,709, 1,722,835 and 1,528,734 restricted stock units, respectively, were granted to employees, the majority of
which will vest ratably over a three-year period. Some of these restricted stock units were granted with dividend equivalents. The fair value of each restricted
stock unit award granted with a dividend equivalent is based on the company’s stock price as of the date of grant. For restricted stock unit awards granted
without dividend equivalents, the fair value was reduced by the present value of expected dividends during the vesting period. The weighted average grant-
date fair value per share of restricted stock units granted during  scal 2014, 2013 and 2012 was $33.39, $29.75 and $27.35, respectively. The total fair
value of restricted stock units vested during  scal 2014, 2013 and 2012 was $39.4 million, $27.6 million and $11.8 million, respectively.
Non-Employee Director Awards
During  scal 2014, 2013 and 2012, 43,119, 48,069 and 63,657 shares, respectively, of restricted awards were granted to non-employee directors that will
vest over a one-year period. Non-employee directors may elect to receive these awards in restricted stock shares that will vest at the end of the award’s stated
vesting period or as deferred units which convert into shares of Sysco common stock upon a date selected by the non-employee director that is subsequent
to the award’s stated vesting date. The fair value of the restricted awards is based on the company’s stock price as of the date of grant. The weighted average
grant-date fair value of the shares granted during  scal 2014, 2013 and 2012 was $33.40, $29.96 and $27.65, respectively. The total fair value of restricted
stock shares vested and deferred units distributed during  scal 2014, 2013 and 2012 was $1.4 million, $1.9 million and $2.2 million, respectively. Restricted
stock shares are valued on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date.
Non-employee directors may elect to receive up to 100% of their annual directors’ fees in Sysco common stock on either an annual or deferred basis. Sysco
provides a matching grant of 50% of the number of shares received for the stock election subject to certain limitations. As a result of such elections, a total of
24,565, 26,702 and 31,397 shares with a weighted-average grant date fair value of $34.59, $30.38 and $28.46 per share were issued in  scal 2014, 2013
and 2012, respectively, in the form of fully vested common stock or deferred units. The total fair value of common stock issued as a result of election shares
and deferred units distributed during  scal 2014, 2013 and 2012 was $0.8 million, $0.5 million and $0.5 million, respectively. Common stock shares are valued
on their vesting date. Vested deferred units are valued on their subsequent conversion and distribution date.
As of June 28, 2014, there were 84,869 fully vested deferred units outstanding that will convert into shares of Sysco common stock upon dates selected by
the respective non-employee directors.