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32 ENR 2005 Annual Report
ENERGIZER HOLDINGS, INC.
Notes to Consolidated Financial Statements
(Dollars in millions, except per share and percentage data)
Asummary of nonqualified ENR stock options outstanding is as follows (shares in millions):
2005 2004 2003
Weighted-Average Weighted-Average Weighted-Average
Shares Exercise Price Shares Exercise Price Shares Exercise Price
Outstanding on October 1, 6.62 $22.49 7.12 $19.75 7.69 $18.14
Granted 0.26 48.73 0.68 43.98 0.95 28.99
Exercised (2.08) 19.04 (1.15) 18.04 (1.52) 17.37
Cancelled (0.04) 30.15 (0.03) 26.04 – –
Outstanding on September 30, 4.76 25.38 6.62 22.49 7.12 19.75
Exercisable on September 30, 3.08 $19.58 3.99 $18.08 3.36 $17.67
Information about ENR nonqualified options at September 30, 2005 is summarized below (shares in millions):
Outstanding Stock Options Exercisable Stock Options
Weighted-Average
Remaining Contractual Weighted-Average Weighted-Average
Range of Exercise Prices Shares Life (Years) Exercise Price Shares Exercise Price
$16.81 to $25.05 2.89 4.8 $17.76 2.73 $17.55
$25.21 to $37.84 0.97 7.4 $29.65 0.23 $30.52
$37.85 to $44.67 0.90 8.7 $45.34 0.12 $43.97
$16.81 to $44.67 4.76 6.0 $25.38 3.08 $19.58
10. Pension Plans and Other Postretirement Benefits
The Company has several defined benefit pension plans covering
substantially all of its employees in the U.S. and certain employees
in other countries. The plans provide retirement benefits based on
years of service and earnings.
During the fourth quarter of fiscal 2004, the Company announced
a Voluntary Enhanced Retirement Option (VERO) offered to
approximately 600 eligible employees in the U.S. of which 321
employees accepted. A charge of $15.2, pre-tax, was recorded
during the fourth quarter of fiscal 2004 related to the VERO and
certain other special pension benefits, and the estimated impact
of such benefits on the Company’s pension plan is reflected in the
amounts presented below.
The Company 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 signif-
icant in the aggregate and therefore are not included in the informa-
tion presented below.
The Company currently provides other postretirement benefits,
consisting of health care and life insurance benefits for certain
groups of retired employees. Certain retirees are eligible for a fixed
subsidy, provided by the Company, toward their total cost of health
care benefits. Retiree contributions for health care benefits are
adjusted periodically, to cover the increase in the total costs of the
plan cost inflation and program change. Cost trend rates no longer
materially impact future cost of the plan.