Energizer 2011 Annual Report Download - page 76

ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share and percentage data)
The following table summarizes RSE activity during the current year (shares in millions):
Nonvested RSE at October 1, 2010
Granted
Vested
Cancelled
Nonvested RSE at September 30, 2011
Shares
1.78
0.78
(0.32)
(0.26)
1.98
Weighted-Average
Grant Date Fair
Value
$ 75.0
74.9
83.1
104.8
$ 69.9
As of September 30, 2011, there was an estimated $54.7 of total unrecognized compensation costs related to RSE granted to
date, which will be recognized over a weighted-average period of approximately 1.3 years. The amount recognized may vary as
vesting for a portion of the awards depends on the achievement of the established CAGR targets. The weighted-average fair
value for RSE granted in fiscal 2011, 2010 and 2009 was $74.9, $65.6 and $63.2, respectively. The fair value of RSE vested in
fiscal 2011, 2010 and 2009 was $25.3, $25.8 and $18.0, respectively.
In November 2011, which is fiscal 2012, the Company granted RSE awards to certain employees which included
approximately 310,000 shares that in most cases vest ratably over four years or upon death, disability or change of control. At
the same time, the Company granted two RSE awards to key executives. One grant includes approximately 130,700 shares and
vests on the third anniversary of the date of grant or upon death, disability or change of control. The second grant includes
approximately 305,000 shares which vests on the date that the Company publicly releases its earnings for its 2014 fiscal year
contingent upon the Company’s EPS CAGR for the three year period ending on September 30, 2014. Under the terms of the
award, 100% of the grant vests if an EPS CAGR of at least 12% is achieved, with smaller percentages vesting if the Company
achieves an EPS CAGR between 5% and 12%. In addition, the terms of the performance awards provide that the awards vest
upon death, disability and in some instances upon change of control. The total performance award expected to vest will be
amortized over the vesting period. The closing stock price on the date of the grant used to determine the award fair value was
$70.18.
(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, in certain circumstances, on years of service and on
earnings. As a result of the ASR acquisition on November 23, 2010, the Company assumed pension and post-retirement
obligations and assets including projected benefit obligations. The transfer of these obligations and assets can be seen in the
following tables. The ASR transfer included on the following table was partially offset by the exclusion, in fiscal 2011, of
certain plan obligations and plan assets of foreign plans deemed immaterial for reporting purposes.
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 significant in the aggregate and therefore are not included in the information presented in the following tables.
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 entire increase in
total plan costs. Cost trend rates no longer materially impact the Company’s future cost of the plan due to the fixed nature of
the subsidy.
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