Mattel 2001 Annual Report Download - page 65

Note 6—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 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 over four years. Options granted 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. Mattel’s current stock option plans, the 1997, 1996 and 1999 plans, expire on December 31, 2002, 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 1997, 1996 and 1999 plans cannot exceed 24.0 million, 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):
2001 2000 1999
Number Price Number Price Number Price
Outstanding at January 1 ...................... 54,313 $25.70 49,152 $30.51 34,736 $36.16
Options granted ......................... 5,651 15.05 17,900 11.01 21,628 21.91
Options exercised ........................ (2,650) 12.33 (1,064) 10.79 (201) 20.93
Options canceled ........................ (4,841) 30.23 (11,675) 24.40 (7,011) 37.76
Outstanding at December 31 ................... 52,473 $24.82 54,313 $25.70 49,152 $30.51
Exercisable at December 31 .................... 38,958 $27.38 35,017 $29.41 10,813 $23.89
Available for grant at December 31 .............. 21,775 16,277 16,292
The following table summarizes information about the weighted average remaining contractual life (in
years) and the weighted average exercise prices for Mattel stock options outstanding as of December 31, 2001
(options in thousands):
Options Outstanding Options Exercisable
Exercise Price Ranges Number Remaining Life Price Number Price
$ 7.52—$ 7.52 7 0.12 $ 7.52 7 $ 7.52
8.41— 10.38 6,630 7.93 10.37 2,908 10.36
10.50— 11.88 6,286 8.19 11.46 4,220 11.56
12.00— 14.86 9,260 8.18 14.29 4,553 13.88
15.00— 22.50 5,903 5.54 19.40 4,102 18.77
24.00— 25.75 6,783 4.84 25.31 6,775 25.31
26.13— 42.00 4,036 5.16 37.62 2,825 37.01
42.31— 42.31 6,833 1.03 42.31 6,833 42.31
44.87— 44.87 6,735 1.04 44.87 6,735 44.87
$ 7.52—$44.87 52,473 5.34 $24.82 38,958 $27.88
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