Avon 2013 Annual Report Download - page 104

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of restricted stock and restricted stock units at December 31, 2013, and changes during 2013, is as follows:
Restricted
Stock
And Units
(in 000’s)
Weighted-
Average
Grant-Date
Fair Value
January 1, 2013 3,467 $23.18
Granted 2,323 20.36
Vested (1,004) 27.91
Forfeited (552) 22.03
December 31, 2013 4,234 $20.67
A summary of performance restricted stock units at December 31, 2013, and changes during 2013, is as follows:
Performance
Restricted
Stock Units
(in 000’s)
Weighted-
Average
Grant-Date
Fair Value
January 1, 2013(1) 2,909 $22.19
Granted 1,977 20.17
Vested – –
Forfeited (503) 21.34
December 31, 2013(1) 4,383 $22.19
(1) Based on initial target payout.
The total fair value of restricted stock units that vested during 2013 was $19.4, based upon market prices on the vesting dates. At
December 31, 2013, there was approximately $64.4 of unrecognized compensation cost related to restricted stock, restricted stock units
and performance restricted stock units compensation arrangements. That cost is expected to be recognized over a weighted-average period
of 2.0 years.
In addition to the amounts in the table above, in April 2012 we granted 200,000 restricted stock units that will be funded with treasury
shares, outside of the 2010 Plan, in reliance upon The New York Stock Exchange rules. These restricted stock units have a weighted-average
grant-date fair value of $21.69 and vest and settle ratably over five years. During 2013, 40,000 of these restricted stock units vested, and
160,000 of these restricted stock units were outstanding at December 31, 2013. During 2013 and 2012, we recognized compensation cost
of $1.4 and $1.4, respectively, for these restricted stock units. At December 31, 2013, there was $1.6 of unrecognized compensation cost
related to these restricted stock units.
NOTE 11. Stock Repurchase Program
In October 2007, our Board of Directors approved a five-year $2,000.0 share repurchase program (“$2.0 billion program”) which began in
December 2007. The program expired on December 17, 2012. We repurchased approximately 4.8 million shares for $180.8 under the $2.0
billion program through its expiration.
NOTE 12. Employee Benefit Plans
Savings Plan
We offer a qualified defined contribution plan for U.S.-based employees, the Avon Personal Savings Account Plan (the “PSA”), which allows
eligible participants to contribute up to 25% of eligible compensation through payroll deductions. We match employee contributions dollar
for dollar up to the first 3% of eligible compensation and fifty cents for each dollar contributed from 4% to 6% of eligible compensation.
We made matching contributions in cash to the PSA of $10.6 in 2013, $11.8 in 2012 and $12.6 in 2011, which were then used by the PSA
to purchase our shares in the open market through June 30, 2011. Beginning July 1, 2011, matching contributions follow the same
allocation that the participant has selected for his or her own contributions.