Mattel 2009 Annual Report Download - page 94

Download and view the complete annual report

Please find page 94 of the 2009 Mattel annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 134

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134

The following is a summary of stock option information and weighted average exercise prices for Mattel’s
stock options (amounts in thousands, except weighted average exercise price):
2009 2008 2007
Number
Weighted
Average
Exercise
Price Number
Weighted
Average
Exercise
Price Number
Weighted
Average
Exercise
Price
Outstanding at January 1 ..................... 25,400 $18.15 24,735 $18.73 38,507 $18.50
Granted ............................... 3,708 17.57 4,017 20.46 1,927 23.70
Exercised .............................. (2,450) 12.61 (1,444) 12.55 (12,935) 17.01
Forfeited .............................. (181) 20.11 (378) 20.81 (87) 18.96
Canceled .............................. (1,192) 21.18 (1,530) 38.17 (2,677) 27.22
Outstanding at December 31 .................. 25,285 $18.45 25,400 $18.15 24,735 $18.73
Exercisable at December 31 ................... 18,601 $18.20 19,716 $17.40 21,048 $18.35
The intrinsic value of a stock option is the amount by which the current market value of the underlying stock
exceeds the exercise price of an option. The total intrinsic value of options exercised during 2009, 2008, and
2007 was $12.4 million, $12.5 million, and $119.3 million, respectively. At December 31, 2009, options
outstanding had an intrinsic value of $47.3 million, with a weighted average remaining life of 5.5 years. At
December 31, 2009, options exercisable had an intrinsic value of $38.5 million, with a weighted average
remaining life of 4.4 years. The weighted average grant date fair value of options granted during 2009, 2008, and
2007, was $3.71, $3.67, and $4.76, respectively. At December 31, 2009, total stock options vested or expected to
vest totaled 24.9 million shares, with a total intrinsic value of $46.8 million, weighted average exercise price of
$18.45, and weighted average remaining life of 5.6 years. During 2009, 3.2 million stock options vested. The
total grant date fair value of stock options vested during 2009, 2008, and 2007 totaled $12.7 million,
$7.5 million, and $5.3 million, respectively.
Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises.
Cash received from stock options exercised during 2009, 2008, and 2007 was $30.9 million, $18.3 million, and
$222.6 million, respectively.
Restricted Stock and Restricted Stock Units
RSUs are valued at the market value on the date of grant and the expense is evenly attributed to the periods
in which the restrictions lapse, which is three years from the date of grant.
Compensation expense recognized related to grants of RSUs was $31.7 million, $24.7 million, and $14.8
million in 2009, 2008, and 2007, respectively, and is included within other selling and administrative expenses.
Income tax benefits related to RSU compensation expense recognized in the consolidated statements of
operations during 2009, 2008, and 2007 totaled $9.5 million, $7.9 million, and $4.6 million, respectively.
84