Under Armour 2012 Annual Report Download - page 77

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Stock Options
There were no stock options granted during the year ended December 31, 2012. The weighted average fair
value of a stock option granted for the years ended December 31, 2011 and 2010 was $19.28 and $8.36,
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,
2011 2010
Risk-free interest rate 1.2% - 2.6% 1.6% - 3.1%
Average expected life in years 6.25 6.25 - 7.0
Expected volatility 54.4% - 56.1% 55.2% - 55.8%
Expected dividend yield — —
A summary of the Company’s stock options as of December 31, 2012, 2011 and 2010 , and changes during
the years then ended is presented below:
(In thousands, except per share amounts)
Year Ended December 31,
2012 2011 2010
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 4,808 $13.99 5,948 $12.66 5,662 $ 9.01
Granted, at fair market value — — 220 36.05 2,870 14.66
Exercised (1,218) 10.17 (1,126) 11.42 (1,598) 3.82
Expired — — (26) 9.47 (14) 20.63
Forfeited (441) 15.19 (208) 13.41 (972) 11.76
Outstanding, end of year 3,149 $15.31 4,808 $13.99 5,948 $12.66
Options exercisable, end of year 968 $13.10 846 $12.71 608 $16.52
The intrinsic value of stock options exercised during the years ended December 31, 2012, 2011 and 2010
was $44.5 million, $27.4 million and $7.6 million, respectively.
The following table summarizes information about stock options outstanding and exercisable as of
December 31, 2012:
(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
3,149 15.31 6.8 104,618 968 $13.10 5.7 34,292
Included in the tables above are 2.3 million and 2.5 million performance-based stock options granted to
officers and key employees under the 2005 Plan during the years ended December 31, 2010 and 2009. These
performance-based stock options have a weighted average exercise price of $10.38, and a term of ten years.
These performance-based options have vestings that are tied to the achievement of certain combined annual
operating income targets. Upon the achievement of each of the combined operating income targets, 50% of the
options vest and the remaining 50% vest one year later. If certain lower levels of combined operating income are
achieved, fewer or no options vest at that time and one year later, and the remaining stock options are forfeited.
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