Under Armour 2009 Annual Report Download - page 74

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A summary of the Company’s stock options as of December 31, 2009, 2008 and 2007, and changes during
the years then ended is presented below:
(In thousands, except per share amounts)
Year Ended December 31,
2009 2008 2007
Number
of Stock
Options
Weighted
Average
Exercise
Price
Number
of Stock
Options
Weighted
Average
Exercise
Price
Number
of Stock
Options
Weighted
Average
Exercise
Price
Outstanding, beginning of year 2,456 $15.92 2,126 $ 8.23 2,755 $6.19
Granted, at fair market value 1,364 14.53 609 37.96 67 45.12
Exercised (853) 4.69 (225) 3.49 (660) 3.34
Expired (34) 33.87 — — — —
Forfeited (102) 27.04 (54) 13.67 (36) 10.42
Outstanding, end of year 2,831 $18.02 2,456 $15.92 2,126 $8.23
Options exercisable, end of year 908 $11.58 1,044 $ 7.22 639 $5.70
The intrinsic value of stock options exercised during the years ended December 31, 2009, 2008 and 2007
was $14.8 million, $6.7 million and $31.9 million, respectively.
The following table summarizes information about stock options outstanding and exercisable as of
December 31, 2009:
(In thousands, except per share amounts)
Options Outstanding Options Exercisable
Number of
Underlying
Shares
Weighted
Average
Exercise
Price Per
Share
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Intrinsic
Value
Number of
Underlying
Shares
Weighted
Average
Exercise
Price Per
Share
Weighted
Average
Remaining
Contractual
Life (Years)
Total
Intrinsic
Value
2,831 $18.02 6.7 $34,466 908 $11.58 2.6 $16,830
Included in the tables above are 1.4 million performance-based stock options granted to officers and key
employees under the 2005 Plan. These performance-based stock options have a weighted average exercise price
of $15.87 and a term of ten years. Of the 1.4 million performance-based stock options, 1.2 million performance-
based stock options will vest upon the achievement of a combined annual operating income target for 2009 and
2010. The remaining 0.2 million performance-based stock options were granted to the Company’s President upon
his hiring and will vest in four equal installments subject to the achievement of combined annual operating
income targets beginning with 2010 and 2011. Upon the achievement of a combined annual operating income
target, 50% of the stock options (or 45% in certain cases) will vest and the remaining 50% of the stock options
(or 45% in certain cases) will vest one year later. During the year ended December 31, 2009, the operating
income targets for the 0.2 million performance-based stock options were reduced to more closely align the
targets with the operating income targets for the 1.2 million performance-based stock options noted above.
The weighted average fair value of these awards is $7.13 and was estimated using the Black-Scholes option-
pricing model consistent with the weighted average assumptions included in the table above. During the year
ended December 31, 2009, the Company recorded $2.9 million in stock-based compensation expense for these
performance-based stock options. As of December 31, 2009, the Company had $6.9 million of unrecognized
compensation expense expected to be recognized over a weighted average period of 2.0 years if all combined
operating income targets were reached.
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