Mattel 2014 Annual Report Download - page 96

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The following is a summary of stock option information and weighted average exercise prices for Mattel’s
stock options:
2014 2013 2012
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
(In thousands, except weighted average exercise price)
Outstanding at January 1 ....................... 9,218 $27.48 14,630 $22.34 19,299 $20.30
Granted ................................ 3,373 35.33 1,488 42.70 1,827 34.29
Exercised ............................... (1,891) 22.35 (6,828) 19.74 (6,312) 19.50
Forfeited ............................... (166) 36.85 (60) 33.18 (134) 27.13
Canceled ............................... (11) 25.28 (12) 20.02 (50) 20.02
Outstanding at December 31 .................... 10,523 $30.77 9,218 $27.48 14,630 $22.34
Exercisable at December 31 .................... 5,810 $26.07 6,135 $22.70 10,971 $20.03
The intrinsic value of a stock option is the amount by which the current market value of the underlying stock
exceeds the exercise price of an option. The total intrinsic value of options exercised during 2014, 2013, and
2012 was $24.1 million, $156.6 million, and $85.8 million, respectively. At December 31, 2014, options
outstanding had an intrinsic value of $38.4 million, with a weighted average remaining life of 7.2 years. At
December 31, 2014, options exercisable had an intrinsic value of $38.3 million, with a weighted average
remaining life of 5.6 years. At December 31, 2014, stock options vested or expected to vest totaled 10.3 million
shares, with a total intrinsic value of $38.4 million, weighted average exercise price of $30.66, and weighted
average remaining life of 7.1 years. During 2014, approximately 2 million stock options vested. The total grant
date fair value of stock options vested during 2014, 2013, and 2012 was approximately $12 million, $13 million,
and $15 million, respectively.
Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises.
Cash received from stock options exercised during 2014, 2013, and 2012 was $43.3 million, $134.5 million, and
$122.3 million, respectively.
Restricted Stock Units
RSUs are valued at the market value on the date of grant and the expense is evenly attributed to the periods
in which the restrictions lapse, which is generally three years from the date of grant.
Compensation expense recognized related to grants of RSUs, excluding Performance RSUs, was $39.5
million, $38.2 million, and $35.3 million in 2014, 2013, and 2012, respectively, and is included within other
selling and administrative expenses in the consolidated statements of operations. Income tax benefits related to
RSU compensation expense recognized in the consolidated statements of operations during 2014, 2013, and 2012
totaled $10.6 million, $10.6 million, and $9.6 million, respectively.
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