3. Options on common shares granted and outstanding, as well as the weighted average exercise price, are shown below (in thousands, except exercise prices):

			Weighted				Weighted
			Average				Average
		Option	Exercise			Options	Exercise
		Shares	Price		Exercisable		Price

Outstanding, December 26, 2014		4,975	$	44.72		3,318	$	34.86
	Granted	537		74.23
	Exercised	(109)		34.55
	Canceled	(11)		71.93
Outstanding, June 26, 2015		5,392	$	47.81		3,726	$	37.92

The Company recognized year-to-date share-based compensation of $11.0 million in 2015 and $9.8 million in 2014. As of June 26, 2015, there was $17.2 million of unrecognized compensation cost related to unvested options, expected to be recognized over a weighted average period of 1.8 years.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions and results:

	Twenty-six Weeks Ended
	June 26,			June 27,
	2015			2014
Expected life in years		6.5			6.5
Interest rate		1.7	%		2.0	%
Volatility		35.1	%		36.1	%
Dividend yield		1.6	%		1.5	%
Weighted average fair value per share	$	23.22		$	24.83

Under the Company's Employee Stock Purchase Plan, the Company issued 166,000 shares in 2015 and 193,000 shares in 2014. The fair value of the employees' purchase rights under this Plan was estimated on the date of grant. The benefit of the 15 percent discount from the lesser of the fair market value per common share on the first day and the last day of the plan year was added to the fair value of the employees' purchase rights determined using the Black-Scholes option-pricing model with the following assumptions and results:

	Twenty-six Weeks Ended
	June 26,			June 27,
	2015			2014
Expected life in years		1.0			1.0
Interest rate		0.2	%		0.1	%
Volatility		18.9	%		21.4	%
Dividend yield		1.6	%		1.4	%
Weighted average fair value per share	$	16.51		$	17.81

In April 2015, shareholders of the Company approved the Graco Inc. 2015 Stock Incentive Plan. The plan provides for issuance of up to 3.5 million shares of Graco common stock.

Shares authorized for issuance under stock option and purchase plans are shown below (in thousands):

		Available for Future
	Total Shares	Issuance as of
	Authorized	June 26, 2015
Stock Incentive Plan (2015)	3,500	3,460
Employee Stock Purchase Plan (2006)	7,000	4,928
Total	10,500	8,388

Amounts available for future issuance exclude outstanding options. Options outstanding as of June 26, 2015 include options granted under three plans that were replaced by subsequent plans. No shares are available for future grants under those plans.