Mattel 2010 Annual Report Download - page 90

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The following is a summary of stock option information and weighted average exercise prices for Mattel’s
stock options:
2010 2009 2008
Number
Weighted
Average
Exercise
Price Number
Weighted
Average
Exercise
Price Number
Weighted
Average
Exercise
Price
(In thousands, except weighted average exercise price)
Outstanding at January 1 ...................... 25,285 $18.45 25,400 $18.15 24,735 $18.73
Granted ............................... 3,097 21.52 3,708 17.57 4,017 20.46
Exercised .............................. (4,761) 15.41 (2,450) 12.61 (1,444) 12.55
Forfeited ............................... (232) 19.29 (181) 20.11 (378) 20.81
Canceled .............................. (124) 17.73 (1,192) 21.18 (1,530) 38.17
Outstanding at December 31 ................... 23,265 $19.48 25,285 $18.45 25,400 $18.15
Exercisable at December 31 ................... 16,630 $19.30 18,601 $18.20 19,716 $17.40
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 2010, 2009, and
2008 was $34.6 million, $12.4 million, and $12.5 million, respectively. At December 31, 2010, options
outstanding had an intrinsic value of $138.7 million, with a weighted average remaining life of 5.8 years. At
December 31, 2010, options exercisable had an intrinsic value of $102.2 million, with a weighted average
remaining life of 4.6 years. At December 31, 2010, total stock options vested or expected to vest totaled
23.0 million shares, with a total intrinsic value of $137.2 million, weighted average exercise price of $19.46, and
weighted average remaining life of 5.8 years. During 2010, 3.2 million stock options vested. The total grant date
fair value of stock options vested during 2010, 2009, and 2008 totaled $12.2 million, $12.7 million, and $7.5
million, respectively.
Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises.
Cash received from stock options exercised during 2010, 2009, and 2008 was $73.4 million, $30.9 million, and
$18.3 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 $34.2 million, $31.7 million, and $24.7
million in 2010, 2009, and 2008, 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 2010, 2009, and 2008 totaled $10.3 million, $9.5 million, and $7.9 million, respectively.
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