The Company also has purchase obligations that are not  reflected in the consolidated statements of financial position,  representing open purchase orders and contracts related to  the procurement of materials, supplies, and various services.  As of October 26, 2014, commitments related to those pur- chase orders, and all known contracts exceeding $1.0 million,  are shown below. The Company primarily purchases goods  and services on an as-needed basis and therefore, amounts  in the table represent only a portion of expected future cash  expenditures. A reconciliation of the number of options outstanding and  exercisable (in thousands) as of October 26, 2014, and  changes during the fiscal year then ended, is as follows: As of October 26, 2014, the Company has $41.7 million of  standby letters of credit issued on its behalf. The standby  letters of credit are primarily related to the Company’s  self-insured workers compensation programs. However, that  amount also includes revocable standby letters of credit total- ing $3.5 million for obligations of an affiliated party that may  arise under workers compensation claims. Letters of credit  are not reflected in the Company’s consolidated statements of  financial position. The Company is involved on an ongoing basis in litigation  arising in the ordinary course of business. In the opinion of  management, the outcome of litigation currently pending will  not materially affect the Company’s results of operations,  financial condition, or liquidity. The Company issues stock options and nonvested shares as  part of its stock incentive plans for employees and non-em- ployee directors. The Company’s policy is to grant options with  the exercise price equal to the market price of the common  stock on the date of grant. Options typically vest over periods  ranging from six months to four years and expire ten years  after the date of the grant. The Company recognizes stock- based compensation expense ratably over the shorter of the  requisite service period or vesting period. The fair value of  stock-based compensation granted to retirement-eligible  individuals is expensed at the time of grant. As part of the annual valuation process, the Company reas- sesses the appropriateness of the inputs used in the valuation  models. The Company establishes the risk-free interest rate  using stripped U.S. Treasury yields as of the grant date where  the remaining term is approximately the expected life of the  option. The dividend yield is set based on the dividend rate  approved by the Company’s Board of Directors and the stock  price on the grant date. The expected volatility assumption is set  based primarily on historical volatility. As a reasonableness test,  implied volatility from exchange traded options is also examined  to validate the volatility range obtained from the historical anal- ysis. The expected life assumption is set based on an analysis of  past exercise behavior by option holders. In performing the val- uations for option grants, the Company has not stratified option  holders as exercise behavior has historically been consistent  across all employee and non-employee director groups. The fair value of each option award is calculated on the date  of grant using the Black-Scholes valuation model utilizing the  following weighted-average assumptions: The weighted-average grant date fair value of stock options  granted and the total intrinsic value of options exercised (in thousands) during each of the past three fiscal years is as follows: (in thousands) 2015  $403,459 2016 25,835 2017 31,855 2018 35,350 2019 28,725 Later Years  10,019 Total  $535,243 Fiscal Year Ended October 26, October 27,   October 28,  2014  2013  2012 Risk-free interest rate  2.5% 1.4%  1.8% Dividend yield  1.8% 2.1%  2.0% Stock price volatility  20.0% 20.0%  21.0% Expected option life  8 years 8 years  8 years Fiscal Year Ended October 26, October 27,   October 28,  2014  2013  2012 Weighted-average grant date fair value  $ 9.70 $ 5.50  $ 5.64 Intrinsic value of exercised options  $74,972 $77,610  $30,210 Weighted-  Weighted-  Average  Average  Remaining  Aggregate  Exercise  Contractual  Intrinsic  Shares  Price  Term  Value Outstanding at October 27, 2013  18,466  $22.09 Granted  1,400   45.43 Exercised  2,447   17.45 Forfeited  17   32.40 Outstanding at October 26, 2014  17,402  $24.61  5.3 yrs  $486,023 Exercisable at October 26, 2014  12,444  $20.76  4.3 yrs  $395,462 Note L Stock-Based Compensation 54