Energizer 2011 Annual Report Download - page 73

ENERGIZER HOLDINGS, INC.
(Dollars in millions, except per share and percentage data)
The following table sets forth the computation of basic and diluted earnings per share (shares in millions):
Numerator:
Net earnings for basic and dilutive earnings per share
Denominator:
Weighted-average shares - basic
Effect of dilutive securities:
Stock options
Restricted stock equivalents
Total dilutive securities
Weighted-average shares - diluted
Basic net earnings per share
Diluted net earnings per share
FOR THE YEARS ENDED
SEPTEMBER 30,
2011
$ 261.2
69.6
0.2
0.5
0.7
70.3
$ 3.75
$ 3.72
2010
$ 403.0
70.0
0.2
0.3
0.5
70.5
$ 5.76
$ 5.72
2009
$ 297.8
62.4
0.4
0.3
0.7
63.1
$ 4.77
$ 4.72
At September 30, 2011, approximately 0.7 million of the Company’s outstanding restricted stock equivalents and stock options
were not included in the diluted net earnings per share calculation because to do so would have been anti-dilutive. In the event
the potentially dilutive securities are anti-dilutive on net earnings per share (i.e., have the effect of increasing earnings per
share), the impact of the potentially dilutive securities is not included in the computation. There were approximately 1.2 million
and 0.8 million anti-dilutive securities at September 30, 2010 and 2009, respectively, which were not included in the diluted net
earnings per share calculations for the reason noted above.
(9) Share-Based Payments
The Company's Incentive Stock Plan was initially adopted by the Board of Directors in March 2000 and approved by
shareholders at the 2001 Annual Meeting of Shareholders. This plan was superseded in January 2009 as the Board of Directors
approved a new plan, which was approved by shareholders at the 2009 Annual Meeting of Shareholders (the "2009 Plan"). New
awards granted after January 2009 are issued under the 2009 Plan. Under the 2009 Plan, awards of restricted stock, restricted
stock equivalents or options to purchase the Company's common stock (ENR stock) may be granted to directors, officers and
employees. The 2009 Plan was amended and restated by approval of the shareholders at the January 2011 Annual Meeting of
Shareholders to set the maximum number of shares authorized for issuance under the plan to 8.0 million. For purposes of
determining the number of shares available for future issuance under the 2009 Plan, as amended and restated, awards of
restricted stock and restricted stock equivalents reduces the shares available for future issuance by 1.95 for every one share
awarded. Options awarded reduces the number of shares available for future issuance on a one-for-one basis. At September 30,
2011, 2010, and 2009 there were 4.6 million, 2.0 million, and 3.4 million shares, respectively, available for future awards under
the 2009 Plan, as amended and restated. Since the original plan has been superseded, no further shares under this original plan
were available for future awards after the adoption of the 2009 plan, as amended and restated.
Options are granted at the market price on the grant date and generally have vested ratably over three to seven years. These
awards typically have a maximum term of 10 years. Restricted stock and restricted stock equivalent awards may also be
granted. Option shares and prices, and restricted stock and stock equivalent awards, are adjusted in conjunction with stock
splits and other recapitalizations so that the holder is in the same economic position before and after these equity transactions.
The Company permits employee deferrals of bonus and, in the past, permitted deferrals of retainers and fees for directors,
under the terms of its Deferred Compensation Plan. Under this plan, employees or directors, deferring amounts into the
Energizer Common Stock Unit Fund are credited with a number of stock equivalents based on the fair value of ENR stock at
the time of deferral. In addition, the participants are credited with an additional number of stock equivalents, equal to 25% for
employees and 33 1/3% for directors, of the amount deferred. This additional match vested immediately for directors and vests
three years from the date of initial crediting for employees. Effective January 1, 2011, the 33 1/3% match for directors was
eliminated for future deferrals. Amounts deferred into the Energizer Common Stock Unit Fund, and vested matching deferrals,
may be transferred to other investment options offered under the plan after specified restriction periods. At the time of
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