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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) 

## (amounts in thousands, except share data or if otherwise indicated) 

## THE HERSHEY COMPANY 

A summary of activity relating to grants of stock options for the year ended December 31, 2020 is as follows: 

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The weighted-average fair value of options granted was $21.31, $15.25 and $15.58 per share in 2020, 2019 and 2018, respectively. The fair value was estimated on the date of grant using a Black-Scholes option-pricing model and the following weighted-average assumptions: 

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• "Dividend yields" means the sum of dividends declared for the four most recent quarterly periods, divided by the average price of our Common Stock for the comparable periods; 

• "Expected volatility" means the historical volatility of our Common Stock over the expected term of each grant; 

• "Risk-free interest rates" means the U.S. Treasury yield curve rate in effect at the time of grant for periods within the contractual life of the stock option; and 

• "Expected term" means the period of time that stock options granted are expected to be outstanding based on historical data. 

The total intrinsic value of options exercised was $32,121, $115,786 and $38,382 in 2020, 2019 and 2018, respectively. 

As of December 31, 2020, there was $2,138 of total unrecognized compensation expense related to non-vested stock option awards granted under the EICP, which we expect to recognize over a weighted-average period of 1.3 years. 

The following table summarizes information about stock options outstanding as of December 31, 2020: 

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