MasterCard 2011 Annual Report Download - page 119

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following table summarizes the Company’s option activity for the year ended December 31, 2011:
Options
Weighted Average
Exercise Price
Weighted Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
(in thousands) (in years) (in millions)
Outstanding at January 1, 2011....... 736 $156
Granted ......................... 166 $241
Exercised ........................ (130) $138
Forfeited/expired .................. (6) $218
Outstanding at December 31, 2011.... 766 $177 7.1 $150
Exercisable at December 31, 2011 .... 364 $130 5.8 $ 89
Options vested and expected to vest at
December 31, 20111............. 473 $145 6.2 $108
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, 2011, 2010 and 2009 was
$22 million, $26 million and $22 million, respectively. As of December 31, 2011, there was $15 million of total
unrecognized compensation cost related to non-vested options. The cost is expected to be recognized over a
weighted average period of 1.7 years.
Restricted Stock Units
The following table summarizes the Company’s RSU activity for the year ended December 31, 2011:
Units
Weighted-Average
Grant-Date Fair
Value
Weighted Average
Remaining
Contractual Term
Aggregate
Intrinsic
Value
(in thousands) (in years) (in millions)
Outstanding at January 1, 2011 ...... 417 $193
Granted ......................... 242 $257
Converted ....................... (13) $211
Forfeited/expired ................. (32) $202
Outstanding at December 31, 2011 . . . 614 $217 1.3 $229
RSUs vested at December 31, 20111. . 61 $191 0.8 $ 23
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, 2011, 2010 and 2009 was $257, $231 and $164, respectively. Upon vesting a
portion of the RSU award may be withheld to satisfy the minimum statutory withholding taxes. 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,
115