Mattel 2013 Annual Report Download - page 93

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remaining life of 5.8 years. At December 31, 2013, stock options vested or expected to vest totaled 9.1 million
shares, with a total intrinsic value of $184.2 million, weighted average exercise price of $27.31, and weighted
average remaining life of 6.8 years. During 2013 approximately 2 million stock options vested. The total grant
date fair value of stock options vested during 2013, 2012, and 2011 was approximately $13 million, $15 million,
and $14 million, respectively.
Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises.
Cash received from stock options exercised during 2013, 2012, and 2011 was $134.5 million, $122.3 million, and
$115.6 million, respectively.
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 $38.2 million, $35.3 million, and $30.7
million in 2013, 2012, and 2011, respectively, and is included within other selling and administrative expenses in
the consolidated statements of operations. Income tax benefits related to RSU compensation expense recognized
in the consolidated statements of operations during 2013, 2012, and 2011 totaled $10.6 million, $9.6 million, and
$9.0 million, respectively.
The following is a summary of RSU information and weighted average grant date fair values for Mattel’s
RSUs:
2013 2012 2011
Shares
Weighted
Average
Grant Date
Fair Value Shares
Weighted
Average
Grant Date
Fair Value Shares
Weighted
Average
Grant Date
Fair Value
(In thousands, except weighted average grant date fair value)
Unvested at January 1 ..................... 3,505 $28.24 3,732 $22.53 4,274 $19.49
Granted ............................ 1,116 42.82 1,417 34.43 1,663 26.38
Vested ............................. (1,337) 24.53 (1,479) 19.96 (1,740) 19.01
Forfeited ........................... (248) 31.82 (165) 26.47 (465) 21.53
Unvested at December 31 .................. 3,036 $34.94 3,505 $28.24 3,732 $22.53
At December 31, 2013, RSUs expected to vest totaled 2.9 million shares, with a weighted average grant date
fair value of $34.77. The total grant date fair value of RSUs vested during 2013, 2012, and 2011 was $32.8
million, $29.5 million, and $33.1 million, respectively.
In addition to the expense and share amounts described above, Mattel recognized compensation expense of
$11.4 million, $14.2 million, and $8.3 million during 2013, 2012, and 2011, respectively, for Performance RSUs
granted in connection with its January 1, 2011–December 31, 2013 LTIP, as more fully described in “Note 4 to
the Consolidated Financial Statements—Employee Benefit Plans.” Income tax benefits related to Performance
RSU compensation expense recognized in the consolidated statements of operations during 2013, 2012, and 2011
totaled $4.2 million, $5.2 million, and $3.1 million, respectively.
Note 8—Earnings Per Share
Unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend
equivalents (whether paid or unpaid) are participating securities and are included in the computation of earnings
per share pursuant to the two-class method. Certain of Mattel’s RSUs are considered participating securities
because they contain nonforfeitable rights to dividend equivalents.
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