Energizer 2014 Annual Report Download - page 79

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ENERGIZER HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per share)
The Company records estimated expense for the performance based grants based on target achievement of performance metrics
for the three year period for each respective program unless evidence exists that achievement above or below target for the
applicable performance metric is more likely to occur. The estimated fair value of the award is determined using the closing
share price of the Company's common stock on the date of the grant.
The following table summarizes RSE activity during the current fiscal year (shares in millions):
Shares
Weighted-Average
Grant Date
Estimated Fair
Value
Nonvested RSE at October 1, 2013 1.64 $75.75
Granted 0.48 104.22
Vested (0.47) 73.71
Canceled (0.24) 77.51
Nonvested RSE at September 30, 2014 1.41 $85.81
As of September 30, 2014, there was an estimated $25.5 of total unrecognized compensation costs related to RSE granted to
date, which will be recognized over a weighted-average period of approximately 1.1 years. The amount recognized may vary as
vesting for a portion of the awards depends on the achievement of the established performance targets. The weighted-average
estimated fair value for RSE granted in fiscal 2014, 2013 and 2012 was $104.2, $84.3, and $70.3, respectively. The estimated
fair value of RSE vested in fiscal 2014, 2013 and 2012 was $47.2, $46.7, and $29.3, respectively.
(11) 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.
In the first quarter of fiscal 2013, the Company approved and communicated changes to its U.S. pension plan, which is the most
significant of the Company's pension obligations. Effective January 1, 2014, the pension benefit earned at that date by active
participants under the legacy Energizer U.S. pension plans was frozen and future service benefits are no longer being accrued
under these retirement programs. For the twelve months ended September 30, 2013, the Company recorded a non-cash, pre-tax
curtailment gain of $37.4 as a result of this plan change.
In the fourth quarter of fiscal 2013, the Company finalized and communicated a decision to discontinue certain post-retirement
medical and life insurance benefits. The communication was provided to all eligible participants of the impacted plans and
advised that the Company would discontinue all benefits associated with the impacted plans effective December 31, 2013. As a
result of this action, the Company recorded a non-cash, pre-tax gain of $70.2 in the fourth fiscal quarter of 2013. The gains
represent the combined effect of the acceleration of a prior service cost credit and other gains and the elimination of the
majority of the post-retirement benefit liability.
The combined impact of the non-cash gains associated with the pension and other postretirement benefit changes noted above,
which was $107.6 pre-tax, was reported on a separate line item in the Consolidated Statement of Earnings and Comprehensive
Income.
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.
As a result of the feminine care acquisition, the Company assumed certain pension and post-retirement obligations of
approximately $20 related to the plans in place.
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