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ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share and percentage data)
As of September 30, 2012, the aggregate intrinsic value of stock options outstanding and stock options exercisable was $14.8
and $12.8 respectively. The aggregate intrinsic value of stock options exercised for the years ended September 30, 2012, 2011
and 2010 was $3.4, $8.3, and $21.1, respectively. When valuing new grants, Energizer uses an implied volatility, which reflects
the expected volatility for a period equal to the expected life of the option. No new option awards were granted in the fiscal
years ended September 30, 2012 and 2011.
As of September 30, 2012, there are no unrecognized compensation costs related to stock options granted. For outstanding
nonqualified stock options, the weighted-average remaining contractual life is 3.4 years.
The following table summarizes nonqualified ENR stock option activity during the current fiscal year (shares in millions):
Shares
Weighted-Average
Exercise Price
Outstanding on October 1, 2011 0.77 $ 50.36
Canceled (0.04) 64.03
Exercised (0.09) 35.99
Outstanding on September 30, 2012 0.64 $ 51.59
Exercisable on September 30, 2012 0.42 $ 44.48
Restricted Stock Equivalents (RSE)
In October 2007, the Company granted RSE awards to certain employees which included approximately 234,800 shares, of
which 210,000 vested and granted an additional 11,000 shares, all of which fully vested. At the same time, the Company
granted RSE awards to senior executives totaling approximately 268,700 shares which vested as follows: 1) 25% of the total
restricted stock equivalents granted, or 67,000 net of forfeitures, vested on the third anniversary of the date of grant; 2) the
remainder of the RSE did not vest because the Company performance target was not achieved.
In October 2008, the Company granted RSE awards to certain employees which included approximately 265,200 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
RSE awards to senior executives totaling approximately 374,600 which vested as follows: 1) 25% of the total restricted stock
equivalents granted, or 91,900, net of forfeitures, vested on the third anniversary of the date of grant; 2) the remainder of the
RSE did not vest because the Company performance target was not achieved.
In February 2009, the Company granted RSE awards to senior executives totaling approximately 296,000 shares. These awards
were granted in lieu of (i) each executive’s continued participation in the 2009 annual cash bonus program, (ii) his or her right
to receive accruals under the Company’s Supplemental Executive Retirement Plan (an excess pension plan) for calendar year
2009, and (iii) his or her right to receive Company matching accruals under the Company’s Executive Savings Investment Plan
(an excess 401(k) plan) for the 2009 calendar year. Vesting of the equivalents occurred on November 16, 2009, and the number
of shares vested, which was 142,466, was determined based on achievement of individual and Company performance targets
for the period from October 1, 2008 through September 30, 2009. The total award which vested was amortized over the vesting
period.
In October 2009, the Company granted RSE awards to certain employees which included approximately 266,300 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 senior executives totaling approximately 485,600 shares which vested as follows: 1) 30% of the total
restricted stock equivalents granted, or approximately 130,000, net of forfeitures, vested on the third anniversary of the date of
grant; 2) approximately 201,700 shares vested on November 8, 2012 based on the Company’s compound annual growth rate for
earnings per share as defined in the incentive plan (EPS CAGR) for the three year period ended on September 30, 2012. Under
the terms of the performance award, 66.7% of the performance grant vested based on a 9.33% three year EPS CAGR.
In October 2010, the Company granted RSE awards to certain employees which included approximately 313,300 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 86,700 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 202,300 shares which
vests on the date that the Company publicly releases its earnings for its 2013 fiscal year contingent upon the Company’s EPS
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