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Share-Based Compensation
9 Months Ended
Mar. 28, 2015
Share-Based Compensation [Abstract]  
Share-Based Compensation

 

12.  SHARE-BASED COMPENSATION  

 

Sysco provides compensation benefits to employees and non-employee directors under several share-based payment arrangements including various employee stock incentive plans, the Employees’ Stock Purchase Plan, and various non‑employee director plans. 

 

Stock Incentive Plans 

 

In the first 39 weeks of fiscal 2015, options to purchase 4,497,954 shares were granted to employees.  The fair value of each option award is estimated as of the date of grant using a Black-Scholes option pricing model.  The weighted average grant-date fair value per option granted during the first 39 weeks of fiscal 2015 was $5.78.

 

In the first 39 weeks of fiscal 2015, 1,194,486 restricted stock units were granted to employees.  Based on the jurisdiction in which the employee resides, some of these restricted stock units were granted with forfeitable 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 restricted stock unit granted during the first 39 weeks of fiscal 2015 was $37.59

Employees' Stock Purchase Plan 

 

Plan participants purchased  926,819  shares of Sysco common stock under the Sysco Employees’ Stock Purchase Plan during the first 39 weeks of fiscal 2015

 

The weighted average fair value per share of employee stock purchase rights issued pursuant to the Employees' Stock Purchase Plan was $5.75 during the first 39 weeks of fiscal 2015.  The fair value of the stock purchase rights is estimated as the difference between the stock price and the employee purchase price. 

 

All Share-Based Payment Arrangements 

 

The total share-based compensation cost that has been recognized in results of operations was $61.7 million and $60.9 million for the first 39 weeks of fiscal 2015 and fiscal 2014, respectively. 

 

As of March 28, 2015, there was $80.3 million of total unrecognized compensation cost related to share-based compensation arrangements.  This cost is expected to be recognized over a weighted-average period of 2.56 years.