Callaway 2011 Annual Report Download - page 99

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The following table summarizes the Company’s stock option activities for the year ended December 31,
2011 (in thousands, except price per share and contractual term):
Options
Number of
Shares
Weighted-
Average
Exercise Price
Per Share
Weighted-
Average
Remaining
Contractual
Term
Aggregate
Intrinsic
Value
Outstanding at January 1, 2011 ......................... 9,732 $12.55
Granted ....................................... 1,731 $ 7.51
Exercised ...................................... — $ —
Forfeited ...................................... (293) $ 7.51
Expired ....................................... (1,258) $17.21
Outstanding at December 31, 2011 ...................... 9,912 $11.23 3.26 $—
Vested and expected to vest in the future at December 31,
2011 ........................................... 9,854 $11.25 3.23 $—
Exercisable at December 31, 2011 ...................... 8,065 $12.06 2.24 $—
The weighted-average grant-date fair value of options granted during the years ended December 31, 2011,
2010 and 2009 was $2.94, $2.37 and $3.95 per share, respectively. The total intrinsic value for options exercised
during the years ended December 31, 2010 was $85,000. No options were exercised during the years ended
December 31, 2011 and 2009.
At December 31, 2011, there was $3,351,000 of total unrecognized compensation expense related to options
granted to employees under the Company’s share-based payment plans. That cost is expected to be recognized
over a weighted-average period of 1.3 years. The amount of unrecognized compensation expense noted above
does not necessarily represent the amount that will ultimately be realized by the Company in its consolidated
statement of operations.
Cash received from the exercise of stock options for the year ended December 31, 2010 was $564,000.
There were no stock option exercises in 2011 and 2009. During 2010, the Company settled the exercise of stock
options through the Callaway Golf Company Grantor Stock Trust (see Note 13).
Restricted Stock Awards and Restricted Stock Units
All restricted stock awards and restricted stock units awarded under the 2004 Plan and the 2001 Directors
Plan are recorded at the Company’s closing stock price on the date of grant. Restricted stock awards and
restricted stock units generally cliff-vest over a three year period. In connection with restricted stock awards, the
Company recorded compensation expense of $51,000 in 2010 and reversed compensation expense of $223,000 in
2009, due to employee terminations. The Company did not grant restricted stock awards in 2011, 2010 and 2009.
In 2011, 2010 and 2009, the Company recorded $1,799,000, $3,126,000 and $3,400,000, respectively, of
compensation expense related to restricted stock units.
The table below summarizes the total number of restricted stock units granted to certain employees and
directors and the weighted average grant date fair value during the years ended December 31, 2011, 2010 and
2009 (number of shares are in thousands).
# of Units
Granted
Weighted Average
Grant-Date Fair Value
2011 2010 2009 2011 2010 2009
Restricted Stock Units ...................................... 61 505 512 $7.01 $7.64 $7.72
F-25