Under Armour 2005 Annual Report Download - page 63

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Under Armour, Inc. and Subsidiaries
Notes to the Consolidated Financial Statements—(Continued)
(amounts in thousands, except per share and share amounts)
As of December 31, 2005, there were no stock rights reserved or available to be granted under the 2000
Plan. A summary of the Company’s stock compensation plans as of December 31, 2005, 2004, and 2003, and
changes during the years then ended is presented below:
Year Ended December 31,
2005 2004 2003
(Shares in thousands)
Number of
options
Weighted
Average
Exercise Price
Number of
options
Weighted
Average
Exercise Price
Number of
options
Weighted
Average
Exercise Price
Outstanding, Beginning of Year . . 3,528 $ 1.11 2,880 $0.40 2,670 $0.29
Granted, at fair market value . . . 217 13.00 1,338 2.11 210 1.87
Granted, at below fair market
value ................... 1,099 2.65 ————
Granted, at above fair market
value ................... 513 10.77 ————
Exercised .................. (1,139) 0.66 (690) 0.11 — —
Forfeited .................. (3) 2.65 ————
Outstanding, End of Year ........ 4,215 $ 3.42 3,528 $1.11 2,880 $0.40
Options exercisable at year end
2000 Plan ...................... 1,198 $ 0.72 1,689 $0.40 1,929 $0.25
2005 Plan ...................... 45 $13.00 — $ — — $ —
Stock Options
In 2005, the Company granted 1,084,030 stock options to employees with exercise prices below fair market
value with vesting periods generally one to four years. The Company has recorded unearned compensation of
$951, net of forfeitures and recognized $375 in compensation expense for the year ended December 31, 2005,
related to these grants. Additionally, the Company granted 110,000 stock options to non-employees, of which
15,000 had an exercise price below fair market value, all of which vested immediately. For the year ended
December 31, 2005, the Company recorded $322 in consulting expense for these grants.
Restricted Stock
In 2005, the Company granted 140,100 restricted shares of Class A Common Stock to select employees and
directors of which 900 shares were forfeited by year end. Some shares were immediately vested and the
remaining shares vest ratably from two to five years. Based on the fair market value of Class A Common Stock
on the date of these grants, the Company recorded unearned compensation of $1,694 and compensation expense
of $443 for the year ended December 31, 2005.
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