MasterCard 2014 Annual Report Download - page 76

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MASTERCARD INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
74
The following table summarizes the Company’s option activity for the year ended December 31, 2014:
Options Weighted-Average
Exercise Price
Weighted-Average
Remaining
Contractual Term Aggregate
Intrinsic Value
(in thousands) (in years) (in millions)
Outstanding at January 1, 2014 . . . . . . . . . . . . . . . 6,960 $ 33
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,685 $ 78
Exercised. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,127) $ 25
Forfeited/expired. . . . . . . . . . . . . . . . . . . . . . . . . . . (43) $ 56
Outstanding at December 31, 2014 . . . . . . . . . . . . 7,475 $ 44 6.9 $ 318
Exercisable at December 31, 2014 . . . . . . . . . . . . . 3,435 $ 26 5.4 $ 205
Options vested and expected to vest at
December 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . 7,354 $ 43 6.9 $ 315
As of December 31, 2014, there was $26 million of total unrecognized compensation cost related to non-vested options. The cost
is expected to be recognized over a weighted-average period of 2.4 years.
Restricted Stock Units
The following table summarizes the Company’s RSU activity for the year ended December 31, 2014:
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, 2014 . . . . . . . . . . . . . . . 5,330 $ 38
Granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,353 $ 76
Converted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,240) $ 25
Forfeited/expired. . . . . . . . . . . . . . . . . . . . . . . . . . . (211) $ 52
Outstanding at December 31, 2014 . . . . . . . . . . . . 4,232 $ 56 1.2 $ 364
RSUs vested and expected to vest at
December 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . 4,077 $ 55 1.2 $ 351
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, adjusted for the exclusion of dividend equivalents. 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. As of December 31, 2014, there was $92 million of total unrecognized compensation cost
related to non-vested RSUs. The cost is expected to be recognized over a weighted-average period of 1.8 years.