Under Armour 2013 Annual Report Download - page 80

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Non-Employee Director Compensation Plan and Deferred Stock Unit Plan
The Company’s Non-Employee Director Compensation Plan (the “Director Compensation Plan”) provides
for cash compensation and equity awards 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. 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, a
grant under the 2005 Plan of restricted stock units covering stock valued at $75.0 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, 2013 and 2011
was $25.82 and $19.28, respectively. There were no stock options granted during the year ended December 31,
2012. 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,
2013 2012 2011
Risk-free interest rate 1.2% — 1.2% - 2.6%
Average expected life in years 6.25 — 6.25
Expected volatility 55.4% — 54.4% - 56.1%
Expected dividend yield — % — % — %
A summary of the Company’s stock options as of December 31, 2013, 2012 and 2011, and changes during
the years then ended is presented below:
(In thousands, except per share amounts)
Year Ended December 31,
2013 2012 2011
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 3,149 $15.31 4,808 $13.99 5,948 $12.66
Granted, at fair market value 10 48.70 — — 220 36.05
Exercised (911) 13.35 (1,218) 10.17 (1,126) 11.42
Expired — — — — (26) 9.47
Forfeited (112) 16.82 (441) 15.19 (208) 13.41
Outstanding, end of year 2,136 $16.22 3,149 $15.31 4,808 $13.99
Options exercisable, end of year 1,173 $15.59 968 $13.10 846 $12.71
The intrinsic value of stock options exercised during the years ended December 31, 2013, 2012 and 2011
was $44.1 million, $44.5 million and $27.4 million, respectively.
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