MasterCard 2009 Annual Report Download - page 121

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except percent and per share data)
The following table summarizes the Company’s option activity for the year ended December 31, 2009:
Options
Weighted Average
Exercise Price
Weighted Average
Remaining
Contractual Term
(in years)
Aggregate
Intrinsic
Value
Outstanding at January 1, 2009 ........ 705 $ 93
Granted ........................... 184 $168
Exercised ......................... (153) $ 57
Forfeited/expired ................... (5) $117
Outstanding at December 31, 2009 ..... 731 $120 7.7 $99,686
Exercisable at December 31, 2009 ..... 185 $ 96 7.1 $29,534
Options vested at December 31, 20091. . 455 $105 7.4 $68,638
1Includes options for participants that are eligible to retire and thus have fully earned their awards.
The total intrinsic value of options exercised during the years ended December 31, 2009, 2008 and 2007 was
$21,762, $36,987 and $4,877, respectively. As of December 31, 2009, there was $10,589 of total unrecognized
compensation cost related to non-vested options. The cost is expected to be recognized over a weighted average
period of 1.6 years.
Restricted Stock Units
The following table summarizes the Company’s RSU activity for the year ended December 31, 2009:
Units
Weighted-Average
Grant-Date Fair
Value
Weighted Average
Remaining
Contractual Term
(in years)
Aggregate
Intrinsic
Value
Outstanding at January 1, 2009 ........ 1,523 $ 43
Granted ........................... 270 $164
Converted ......................... (571) $ 40
Forfeited/expired ................... (14) $ 44
Outstanding at December 31, 2009 ..... 1,208 $ 71 0.6 $308,968
RSUs vested at December 31, 20091.... 454 $ 44 0.1 $116,215
1Includes RSUs for participants that are eligible to retire and thus have fully earned their awards.
The fair value of each RSU is the closing stock price on the New York Stock Exchange of the Company’s
Class A common stock on the date of grant. The weighted-average grant-date fair value of RSUs granted during
the years ended December 31, 2008 and 2007 was $208.64 and $153.93, respectively. The portion of the RSU
award related to the minimum statutory withholding taxes will be settled by withholding shares upon vesting.
The remaining RSUs will be settled in shares of the Company’s Class A common stock after the vesting period.
The total intrinsic value of RSUs converted into shares of Class A common stock during the years ended
December 31, 2009, 2008 and 2007 was $91,079, $194,051 and $31,389, respectively. As of December 31, 2009,
there was $29,821 of total unrecognized compensation cost related to non-vested RSUs. The cost is expected to
be recognized over a weighted average period of 2.1 years.
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