Avon 2014 Annual Report Download - page 106

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of restricted stock and restricted stock units at December 31, 2014, and changes during 2014, is as follows:
Restricted
Stock
And Units
(in 000’s)
Weighted-
Average
Grant-Date
Fair Value
January 1, 2014 4,234 $20.67
Granted 3,212 14.58
Vested (1,574) 22.23
Forfeited (877) 17.27
December 31, 2014 4,995 $16.80
A summary of performance restricted stock units at December 31, 2014, and changes during 2014, is as follows:
Performance
Restricted
Stock Units
(in 000’s)
Weighted-
Average
Grant-Date
Fair Value
January 1, 2014(1) 4,383 $22.19
Granted 2,330 14.68
Vested – –
Forfeited (1,737) 22.35
December 31, 2014(1) 4,976 $17.53
(1) Based on initial target payout.
The total fair value of restricted stock units that vested during 2014 was $21.9, based upon market prices on the vesting dates. At
December 31, 2014, there was approximately $64.7 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 1.8 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 2014, 40,000 of these restricted stock units vested, and
120,000 of these restricted stock units were outstanding at December 31, 2014. During 2014, 2013 and 2012, we recognized
compensation cost of $.8, $1.4 and $1.4, respectively, for these restricted stock units. At December 31, 2014, there was $.8 of
unrecognized compensation cost related to these restricted stock units.
NOTE 11. 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 $9.4 in 2014, $10.6 in 2013 and $11.8 in 2012, which follow the same investment
allocation that the participant has selected for his or her own contributions. For U.S. employees hired on or after January 1, 2015, we will
make additional contributions to a Retirement Savings Account (“RSA”) within the PSA. Such contributions will range from 3% to 6% of a
participant’s eligible compensation depending on the sum of the participant’s age and length of service (as of December 31 of the prior
year). Investment of such contributions will follow the same investment allocation that the participant has selected for his or her own
contributions to the PSA. A participant will be vested in the RSA generally after three full years of applicable service.