Energizer 2002 Annual Report Download - page 37

ENR 2002 Annual Report Page 35
A summary of nonqualified ENR stock options outstanding is as follows (shares in millions):
2002 2001 2000
Weighted-Average Weighted-Average Weighted-Average
Shares Exercise Price Shares Exercise Price Shares Exercise Price
Outstanding on October 1, 7.71 $ 17.54 7.37 $ 17.41 – $ –
Granted 0.52 26.34 0.38 20.30 7.37 17.41
Exercised (0.52) 17.31 (0.01) 17.00 – –
Cancelled (0.02) 19.80 (0.03) 20.00 – –
Outstanding on September 30, 7.69 18.14 7.71 17.54 7.37 17.41
Exercisable on September 30, 3.04 $ 17.52 1.62 $ 17.43 – $ –
Information about ENR nonqualified options at September 30, 2002 is summarized below (shares in millions):
OUTSTANDING STOCK OPTIONS EXERCISABLE STOCK OPTIONS
Weighted-Average
Remaining
Contractual Life Weighted-Average Weighted-Average
Range of Exercise Prices Shares (Years) Exercise Price Shares Exercise Price
$16.81 to $21.06 7.31 7.7 $ 17.58 3.04 $ 17.52
$25.05 to $30.10 0.38 9.9 28.97 – –
$16.81 to $30.10 7.69 7.8 18.14 3.04 17.52
12. Pension Plans and Other Postretirement
Benefits
Energizer has several defined benefit pension plans covering substan-
tially all of its employees in the United States and certain employees in
other countries. The plans provide retirement benefits based on years of
service and earnings.
Energizer also sponsors or participates in a number of other non-
U.S. pension arrangements, including various retirement and termination
benefit plans, some of which are required by local law or coordinated
with government-sponsored plans, which are not significant in the aggre-
gate and therefore are not included in the information presented below.
Energizer currently provides other postretirement benefits, consisting of
healthcare and life insurance benefits for certain groups of retired
employees. Retiree contributions for healthcare benefits are adjusted
periodically, as total costs of the program change. In prior years,
Energizer has increased its contributions for healthcare benefits to
partially mitigate the impact of increased medical costs to eligible
retirees, although there is no requirement in Energizer’s retiree health
plan to do so. The benefit obligation as of the beginning of fiscal 2001
and prior was computed assuming such increases continue in the
future. In fiscal 2001, the plan was amended such that there will not be
an increase in Energizer’s contribution rate beyond the level of subsidy
to be provided for in calendar 2002. The impact of this amendment
was a reduction of the projected benefit obligation of $39.4.
Prior to the spin-off, Energizer employees participated in Ralston’s
defined benefit plans. In addition, certain groups of retirees and man-
agement employees were eligible for certain postretirement benefits
provided by Ralston.