Share-Based Payments

6 Months Ended

Jun. 30, 2014

Share-Based Payments

16. Share-Based Payments

Mattel has various stock compensation plans, which are more fully described in “Note 7 to the Consolidated Financial Statements–Share-Based Payments” in its 2013 Annual Report on Form 10-K. Under the Mattel, Inc. 2010 Equity and Long-Term Compensation Plan, Mattel has the ability to grant nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, RSUs, performance awards, dividend equivalent rights, and shares of common stock to officers, employees, and other persons providing services to Mattel. Stock options are granted with exercise prices at the fair market value of Mattel’s common stock on the applicable grant date and expire no later than ten years from the date of grant. Both stock options and time-vesting RSUs generally provide for vesting over a period of three years from the date of grant.

Compensation expense, included within other selling and administrative expenses in the consolidated statement of operations, related to stock options and RSUs is as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
	(In thousands)
Stock option compensation expense	$	1,674	$	1,609	$	4,234	$	4,218
RSU compensation expense		10,105		12,110		20,238		23,363
	$	11,779	$	13,719	$	24,472	$	27,581

As of June 30, 2014, total unrecognized compensation cost related to unvested share-based payments totaled $67.5 million and is expected to be recognized over a weighted-average period of 1.7 years.

Mattel uses treasury shares purchased under its share repurchase program to satisfy stock option exercises and the vesting of RSUs. Cash received for stock option exercises for the six months ended June 30, 2014 and 2013 was $14.6 million and $106.8 million, respectively.