Polaris 2013 Annual Report Download - page 82

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General stock option and restricted stock information. The following summarizes stock option activity and the
weighted average exercise price for the following plans for the each of the three years ended December 31,
2013, 2012 and 2011:
Omnibus Plan Option Plan Director Stock Option Plan
(Active) (Frozen) (Frozen)
Weighted Weighted Weighted
Average Average Average
Outstanding Exercise Outstanding Exercise Outstanding Exercise
Shares Price Shares Price Shares Price
Balance as of December 31, 2010 ......... 4,308,812 $20.54 2,473,760 $23.36 104,000 $21.91
Granted ........................ 1,276,500 50.52 — — — —
Exercised ....................... (865,875) 16.30 (1,373,414) 21.98 (16,000) 18.14
Forfeited ....................... (36,700) 26.38 (1,800) 24.27 (8,000) 13.35
Balance as of December 31, 2011 ......... 4,682,737 $29.45 1,098,546 $25.08 80,000 $23.52
Granted ........................ 570,700 66.19 — — — —
Exercised ....................... (861,397) 22.54 (744,974) 25.84 (64,000) 22.62
Forfeited ....................... (61,630) 40.95 — — — —
Balance as of December 31, 2012 ......... 4,330,410 $35.50 353,572 $23.47 16,000 $27.10
Granted ........................ 1,037,729 87.06 — — — —
Exercised ....................... (821,679) 24.45 (191,141) 23.23 (16,000) $27.10
Forfeited ....................... (80,380) 47.55 — — — —
Balance as of December 31, 2013 ......... 4,466,080 $49.29 162,431 $23.74 — —
Vested or expected to vest as of
December 31, 2013 ................. 4,463,880 $49.29 162,431 $23.74 — —
Options exercisable as of December 31, 2013 1,411,931 $27.65 162,431 $23.74 — —
The weighted average remaining contractual life of options outstanding and of options outstanding and
exercisable as of December 31, 2013 was 6.98 years and 5.48 years, respectively.
The following assumptions were used to estimate the weighted average fair value of options of $30.43, $23.40,
and $18.44 granted during the years ended December 31, 2013, 2012, and 2011, respectively:
For the Years Ended
December 31,
2013 2012 2011
Weighted-average volatility .................................. 49% 50% 49%
Expected dividend yield .................................... 1.9% 2.2% 1.9%
Expected term (in years) ................................... 4.4 4.6 4.7
Weighted average risk free interest rate ......................... 0.9% 0.7% 1.4%
The total intrinsic value of options exercised during the year ended December 31, 2013 was $86,101,000. The
total intrinsic value of options outstanding and of options outstanding and exercisable at December 31, 2013,
was $450,108,000 and$186,391,000, respectively. The total intrinsic values are based on the Company’s closing
stock price on the last trading day of the applicable year for in-the-money options.
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