Mattel 2005 Annual Report Download - page 86

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, 2005
(options in thousands):
Options Outstanding
Options
Exercisable
Exercise Price Ranges Number
Remaining
Life Price Number Price
$10.31 – $15.00 ...................................... 13,114 4.2 $12.18 13,082 $12.18
15.01 – 18.00 ...................................... 7,148 7.7 16.91 6,842 16.90
18.01 – 22.00 ...................................... 19,287 7.6 19.32 18,687 19.34
22.01 – 33.00 ...................................... 6,550 1.5 24.49 6,508 24.50
33.01 – 42.00 ...................................... 1,752 1.9 41.75 1,752 41.75
$10.31 – $42.00 ...................................... 47,851 5.6 $18.53 46,871 $18.54
Learning Company Stock Option Plans
Prior to its 1999 merger, with Mattel, The Learning Company (“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 2005, 2004, or 2003.
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):
2005 2004 2003
Number Price Number Price Number Price
Outstanding at January 1 ......................... 77 $4.62 81 $4.63 88 $4.68
Options exercised .......................... — — (4) 4.88 (7) 5.29
Options canceled ........................... — — — — — —
Outstanding and exercisable at December 31 ......... 77 $4.62 77 $4.62 81 $4.63
The exercise price of Learning Company stock options outstanding as of December 31, 2005 ranges from
$4.54 per share to $16.15 per share, with a weighted average price of $4.62 per share.
Restricted Stock and Restricted Stock Units
In 2000, Mattel awarded 685.5 thousand deferrable restricted stock units to its Chief Executive Officer
pursuant to the terms of his employment contract. These units are 75% vested, with the remaining units vesting in
2008. The aggregate fair market value of the restricted stock units is being amortized to compensation expense
over the vesting period. The amount charged to expense related to the vesting of these units was $0.2 million in
2005, 2004 and 2003.
In 2005, Mattel granted 49.3 thousand shares of restricted stock and restricted stock units to certain
employee officers and non-employee board members. The 2005 compensation expense recognized related to
these grants was $0.2 million.
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