Activision 2015 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2015 Activision annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

63
Stock Option Activities
Stock option activities for the year ended December 31, 2015 are as follows (amounts in millions, except number of shares, which are
in thousands, and per share amounts):
Shares
Weighted-average
exercise price
Weighted-average
remaining
contractual term
Aggregate
intrinsic value
Outstanding stock options at December 31, 2014 ......................... 29,486 $ 14.50
Granted ......................................................................................... 4,133 32.55
Exercised ....................................................................................... (8,356) 13.08
Forfeited ........................................................................................ (928) 18.44
Expired .......................................................................................... (6) 8.73
Outstanding stock options at December 31, 2015 ......................... 24,329 $ 17.90 5.98 $ 506
Vested and expected to vest at December 31, 2015 ...................... 23,448 $ 17.57 5.86 $ 496
Exercisable at December 31, 2015 ................................................ 15, 270 $ 13.51 4.19 $ 385
The aggregate intrinsic value in the table above represents the total pretax intrinsic value (i.e. the difference between our closing stock
price on the last trading day of the period and the exercise price, times the number of shares for options where the exercise price is
below the closing stock price) that would have been received by the option holders had all option holders exercised their options on
that date. This amount changes based on the market value of our stock. The total intrinsic value of options actually exercised was
$125 million, $117 million, and $104 million for the years ended December 31, 2015, 2014, and 2013, respectively. The total grant
date fair value of options vested was $19 million, $19 million, and $29 million for the years ended December 31, 2015, 2014, and
2013, respectively.
At December 31, 2015, $43 million of total unrecognized compensation cost related to stock options is expected to be recognized over
a weighted-average period of 1.53 years.
Restricted Stock Units and Restricted Stock Awards Activities
We grant restricted stock units, which represent the right to receive shares of our common stock, and restricted stock awards, which
are issued and outstanding upon grant but subject to the risk of forfeiture (collectively referred to as “restricted stock rights”). Vesting
for restricted stock rights is contingent upon the holders’ continued employment with us and may be subject to other conditions (which
may include the satisfaction of a performance measure). Also, certain of our performance-vesting restricted stock rights include a
range of shares that may be released at vesting which are above or below the targeted number of restricted stock rights based on actual
performance relative to the grant date performance measure. If the vesting conditions are not met, unvested restricted stock rights will
be forfeited. Holders of restricted stock are restricted from selling the shares until they vest. Upon vesting of restricted stock rights, we
may withhold shares otherwise deliverable to satisfy minimum tax withholding requirements.
The following table summarizes our restricted stock rights activity for the year ended December 31, 2015, with performance-vesting
restricted stock right grants presented at the maximum potential shares that could be earned and issued at vesting (amounts in
thousands except per share amounts):
Restricted Stock
Rights
Weighted-
Average Grant
Date Fair Value
Unvested restricted stock rights balance at December 31, 2014 17,967 $ 11.85
Granted* ......................................................................... 2,330 29.31
Vested ............................................................................. (7,146) 12.80
Forfeited.......................................................................... (1,221)
15.23
Unvested restricted stock rights balance at December 31, 2015 11,930 $ 12.74
* 1.7 million of the performance-vesting restricted stock rights granted at maximum potential shares did not
have an accounting grant date as there is not a mutual understanding between the Company and the employee
of the performance terms. Accordingly, no grant date fair value was established and the weighted averaged
grant date fair value calculated above excludes these shares.
10K_ 6NEW pages 18 37 38 55 59 63_040816.pdf 6 4/8/16 9:04 PM