Mattel 2002 Annual Report Download - page 76

The components of accumulated other comprehensive loss are as follows (in thousands):
As of Year End
2002 2001
Currency translation adjustments ............................................ $(294,019) $(307,036)
Minimum pension liability adjustments ....................................... (52,321) (4,300)
Net unrealized gain on securities ............................................ 28,309 —
Net unrealized gain (loss) on derivative instruments ............................. (22,616) 3,538
$(340,647) $(307,798)
Note 7—Stock Compensation Plans
Mattel Stock Option Plans
Under various plans, Mattel has the ability to grant incentive stock options, nonqualified stock options,
stock appreciation rights, nonvested stock awards, and shares of common stock to officers, key employees, and
other persons providing services to Mattel. In addition, nonqualified stock options are granted to members of
Mattel’s board of directors who are not employees of Mattel. Generally, options are exercisable contingent upon
the grantees’ continued employment with Mattel. Nonqualified stock options are granted at not less than 100% of
the fair market value of Mattel’s common stock on the date of grant. Options granted to employees at market
price usually expire within ten years from the date of grant and vest on a schedule determined by the
Compensation/Options Committee of the board of directors, generally semi-annually over three years. Options
granted to employees at above market price expire five or ten years from the date of grant and vest based on
whether the exercise price is achieved by a specified date. Options granted to non-employee members of the
board of directors usually expire within ten years from the date of grant and vest annually over four years.
Mattel’s current stock option plans, the 1996 and 1999 plans, expire on December 31, 2005 and 2009,
respectively. All outstanding awards under plans that previously expired continue to be exercisable under the
terms of their respective grant agreements. The aggregate number of shares of common stock available for grant
under the 1996 and 1999 plans cannot exceed 50.0 million and 12.8 million shares, respectively.
The following is a summary of stock option information and weighted average exercise prices for Mattel’s
stock option plans during the year (options in thousands):
2002 2001 2000
Number Price Number Price Number Price
Outstanding at January 1 ........................ 52,473 $24.82 54,313 $25.70 49,152 $30.51
Optionsgranted ........................... 7,131 20.02 5,651 15.05 17,900 11.01
Options exercised .......................... (4,019) 13.57 (2,650) 12.33 (1,064) 10.79
Options canceled .......................... (15,189) 42.16 (4,841) 30.23 (11,675) 24.40
Outstanding at December 31 ..................... 40,396 $18.65 52,473 $24.82 54,313 $25.70
Exercisable at December 31 ...................... 28,426 $19.21 38,958 $27.38 35,017 $29.41
Available for grant at December 31 ................ 15,292 21,775 16,277
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