Mattel 2003 Annual Report Download - page 82

The components of accumulated other comprehensive loss are as follows (in thousands):
As of Year End
2003 2002
Currency translation adjustments ............................................ $(236,172) $(294,019)
Minimum pension liability adjustments ....................................... (60,042) (52,321)
Net unrealized gain on securities ............................................ 32,801 28,309
Net unrealized (loss) on derivative instruments ................................. (23,594) (22,616)
$(287,007) $(340,647)
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 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):
2003 2002 2001
Number Price Number Price Number Price
Outstanding at January 1 ......................... 40,396 $18.65 52,473 $24.82 54,313 $25.70
Options granted ............................ 7,394 19.49 7,131 20.02 5,651 15.05
Options exercised .......................... (3,663) 13.50 (4,019) 13.57 (2,650) 12.33
Options canceled ........................... (1,394) 23.77 (15,189) 42.16 (4,841) 30.23
Outstanding at December 31 ...................... 42,733 $19.07 40,396 $18.65 52,473 $24.82
Exercisable at December 31 ...................... 30,646 $18.96 28,426 $19.21 38,958 $27.38
Available for grant at December 31 ................ 15,717 15,292 21,775
73