Under Armour 2009 Annual Report Download - page 73

The Company’s 2000 Stock Option Plan (the “2000 Plan”) provided for the issuance of stock options,
restricted stock and other equity awards to officers, directors, key employees and other persons. The 2000 Plan
was terminated and superseded by the 2005 Plan upon the Company’s initial public offering in November 2005.
No further awards may be granted under the 2000 Plan. Stock options and restricted stock awards under the 2000
Plan generally vest ratably over a four to five year period. The exercise period for stock options generally does
not exceed five years from the date of grant. The Company generally receives a tax deduction for any ordinary
income recognized by a participant in respect to an award under the 2000 Plan.
Employee Stock Purchase Plan
The Company’s Employee Stock Purchase Plan (the “ESPP”) allows for the purchase of Class A Common
Stock by all eligible employees at a 15% discount from fair market value subject to certain limits as defined in
the ESPP. The maximum number of shares available under the ESPP is 1.0 million shares. During the years
ended December 31, 2009, 2008 and 2007, 59.8 thousand, 46.6 thousand and 22.1 thousand shares were
purchased under the ESPP, respectively.
2006 Non-Employee Director Compensation Plan and Deferred Stock Unit Plan
The Under Armour, Inc. 2006 Non-Employee Director Compensation Plan (the “Director Compensation
Plan”) provides for cash compensation and awards of stock options and restricted stock units to non-employee
directors of the Company under the 2005 Plan. Non-employee directors have the option to defer the value of their
annual cash retainers as deferred stock units in accordance with the Under Armour, Inc. 2006 Non-Employee
Deferred Stock Unit Plan (the “DSU Plan”). Each new non-employee director receives an award of restricted
stock units upon the initial election to the Board of Directors, with the units covering stock valued at $0.1 million
on the grant date and vesting in three equal annual installments. In addition, each non-employee director
receives, following each annual stockholders’ meeting, an annual grant under the 2005 Plan of stock options to
acquire stock with a value of $75.0 thousand as of the grant date and an award of restricted stock units covering
stock valued at $25.0 thousand on the grant date. Each award vests 100% on the date of the next annual
stockholders’ meeting following the grant date.
The receipt of the shares otherwise deliverable upon vesting of the restricted stock units automatically
defers into deferred stock units under the DSU Plan. Under the DSU Plan each deferred stock unit represents the
Company’s obligation to issue one share of the Company’s Class A Common Stock with the shares delivered six
months following the termination of the director’s service.
Stock Options
The weighted average fair value of a stock option granted for the years ended December 31, 2009, 2008 and
2007 was $7.79, $19.48 and $22.88, respectively. The fair value of each stock option granted is estimated on the
date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:
Year Ended December 31,
2009 2008 2007
Risk-free interest rate 2.0% - 3.16% 2.9% - 4.4% 4.5% - 4.6%
Average expected life in years 5.0 - 6.5 5.4 - 8.3 5.5 - 6.5
Expected volatility 53.35% - 56.23% 44.0% - 47.7% 44.4%
Expected dividend yield 0% 0% 0%
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