Stock-based compensation expense is recognized over the period from the date of grant to the date when the  award is no longer contingent on the employee providing additional service. Awards under the 1991 Incentive Plan,  2010 Incentive Plan and 2004 Directors’ Plan generally vest over a stated vesting period or upon the retirement of an  employee or director, as the case may be. The 2004 Director’s Plan provided for the issuance of up to 500,000 shares of Class A Common Stock in the form  of stock options or restricted stock awards. Restricted stock has never been awarded under the 2004 Directors’ Plan.  Prior to 2012, under our 2004 Directors’ Plan, each non-employee director of our Company received annual grants of  non-qualified stock options with 10-year terms to purchase 4,000 shares of Class A Common Stock from our Company  at the average market price of such shares on the date of grants. These annual grants were replaced with annual  grants of cash-settled phantom stock units in 2012, and, accordingly, no grants of stock options were made under this  plan in 2012 or 2013. Under its terms, the 2004 Directors’ Plan terminated as of April 30, 2014. Our pool of excess tax benefits (“APIC Pool”) available to absorb tax deficiencies was approximately $26  million as of December 28, 2014.  The 1991 Incentive Plan provided, and the 2010 Incentive Plan provides, for grants of both incentive and non- qualified stock options at an exercise price equal to the market value of our Class A Common Stock on the date of  grant. Stock options have generally been granted with a 3-year vesting period and a 10-year term and vest in equal  annual installments. Due to a change in the Company’s long-term incentive compensation, no grants of stock options  were made in 2014. Our 2004 Directors’ Plan provided for grants of stock options to non-employee directors at an exercise price  equal to the market value of our Class A Common Stock on the date of grant. Prior to 2012, stock options were  granted with a 1-year vesting period and a 10-year term. No grants of stock options were made in 2014 or 2013. Our  Company’s directors are considered employees for purposes of stock-based compensation. Changes in our Company’s stock options in 2014 were as follows: The total intrinsic value for stock options exercised was $1.5 million in 2014, $5.3 million in 2013 and $0.9  million in 2012. The fair value of the stock options granted was estimated on the date of grant using a Black-Scholes valuation  model that uses the assumptions noted in the following table. The risk-free rate is based on the U.S. Treasury yield  curve in effect at the time of grant. The expected life (estimated period of time outstanding) of stock options granted  was determined using the average of the vesting period and term. Expected volatility was based on historical  volatility for a period equal to the stock option’s expected life, ending on the date of grant, and calculated on a  monthly basis. The fair value for stock options granted with different vesting periods and on different dates is  calculated separately. There were no stock option grants in 2013 or 2014. P. 98 – THE NEW YORK TIMES COMPANY GLYPH<160> December 28, 2014 (Shares in thousands) Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value $(000s) Options outstanding at beginning of year 9,749 $ 20 4 $ 23,273 Granted GLYPH<151> GLYPH<151> Exercised (169) 7 Forfeited/Expired (1,410) 34 Options outstanding at end of period 8,170 $ 18 3 $ 16,234 Options expected to vest at end of period 8,157 $ 18 3 $ 16,234 Options exercisable at end of period 7,877 $ 18 3 $ 14,508 Stock Options