Harley Davidson 2013 Annual Report Download - page 95

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95
The following table summarizes the stock option transactions for the year ended December 31, 2013 (in thousands except
for per share amounts):
Options
Weighted-
Average
Price
Options outstanding, beginning of period 4,460 $ 38
Options granted 453 $ 52
Options exercised (1,357) $ 37
Options forfeited (165) $ 61
Options outstanding, end of period 3,391 $ 40
Exercisable, end of period 2,535 $ 37
The weighted-average fair value of options granted during the years ended December 31, 2013, 2012 and 2011 was $12,
$14 and $15, respectively.
As of December 31, 2013, there was $3.9 million of unrecognized compensation cost related to stock options that is
expected to be recognized over a weighted-average period of 1.6 years.
The following table summarizes the aggregate intrinsic value related to options outstanding, exercisable and exercised as
of and for the years ended December 31 (in thousands):
2013 2012 2011
Exercised $ 28,879 $ 34,443 $ 7,919
Outstanding $ 100,054 $ 60,963 $ 55,701
Exercisable $ 81,930 $ 35,873 $ 22,926
The Company’s policy is to issue new shares of common stock upon the exercise of employee stock options. The
Company has a continuing authorization from its Board of Directors to repurchase shares to offset dilution caused by the
exercise of stock options which is discussed in Note 17.
Stock options outstanding at December 31, 2013 (options in thousands):
Price Range Weighted-Average
Contractual Life Options Weighted-Average
Exercise Price
$10.01 to $20 5.1 593 $ 13
$20.01 to $30 6.1 504 $ 23
$30.01 to $40 4.1 334 $ 39
$40.01 to $50 7.7 788 $ 44
$50.01 to $60 6.9 634 $ 52
$60.01 to $70 2.0 538 $ 66
Options outstanding 5.6 3,391 $ 40
Options exercisable 4.6 2,535 $ 37
Stock Appreciation Rights (SARs)
SARs vest under the same terms and conditions as options; however, they are settled in cash equal to their settlement date
fair value. As a result, SARs are recorded in the Company’s consolidated balance sheets as a liability until the date of exercise.
The fair value of each SAR award is estimated using a lattice-based valuation model. In accordance with ASC Topic 718,
“Stock Compensation”, the fair value of each SAR award is recalculated at the end of each reporting period and the liability
and expense adjusted based on the new fair value and the percent vested.