Mattel 2003 Annual Report Download - page 83

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 year end 2003 (options
in thousands):
Options Outstanding
Options
Exercisable
Exercise Price Ranges Number
Remaining
Life Price Number Price
$10.31 – $11.00 ..................................... 4,531 5.9 $10.39 4,531 $10.39
11.01 – 11.26 ..................................... 3,012 6.4 11.25 3,012 11.25
11.27 – 11.98 ..................................... 2,441 6.2 11.87 2,441 11.87
11.99 – 14.00 ..................................... 2,450 5.4 13.58 2,450 13.58
14.01 – 19.30 ..................................... 4,877 6.3 15.36 3,863 15.28
19.31 – 19.98 ..................................... 7,150 9.5 19.43 21 19.43
19.99 – 22.00 ..................................... 6,398 8.2 20.05 2,581 20.05
22.01 – 24.98 ..................................... 4,764 3.3 23.38 4,637 23.41
24.99 – 30.00 ..................................... 4,965 2.3 25.86 4,965 25.86
30.01 – 42.00 ..................................... 2,145 3.5 41.77 2,145 41.77
$10.31 – $42.00 ..................................... 42,733 6.1 19.07 30,646 18.96
Learning Company Stock Option Plans
Prior to the May 1999 merger, Learning Company and its subsidiaries had various incentive and
nonqualified stock option plans that provided benefits for eligible employees and non-employee directors.
Effective with the 1999 merger, each option outstanding under these plans was converted into an option to
purchase 1.2 shares of Mattel common stock. The exercise price of such options was adjusted by dividing the
Learning Company option price by 1.2. Other than options granted under some plans assumed by Learning
Company in connection with acquisitions, all Learning Company stock options vested and became fully
exercisable as a result of the 1999 merger. No options were available for grant under any Learning Company
stock option plan during 2003, 2002 or 2001.
The following is a summary of stock option information and weighted average exercise prices for Learning
Company’s stock option plans during the year (options in thousands):
2003 2002 2001
Number Price Number Price Number Price
Outstanding at January 1 .......................... 88 $4.68 125 $ 7.56 2,674 $17.07
Options exercised ............................ (7) 5.29 (34) 14.41 (1,565) 13.33
Options canceled ............................ — — (3) 14.74 (984) 24.23
Outstanding and exercisable at December 31 .......... 81 $4.63 88 $ 4.68 125 $ 7.56
The exercise price for Learning Company stock options outstanding as of year end 2003 ranges from
$4.54 per share to $16.15 per share, with a weighted average of $4.63 per share.
Nonvested Stock
Mattel awarded 685.5 thousand deferrable nonvested stock units to its chief executive officer pursuant to the
terms of his employment contract. These units vested at a rate of 25% annually in 2000, 2001, and 2002, with the
remaining units vesting in 2008. The aggregate fair market value of the nonvested stock units is being amortized
to compensation expense over the vesting period. The amount charged to operating expense related to the vesting
of these units was $0.2 million, $0.3 million and $1.6 million in 2003, 2002 and 2001, respectively.
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