Rayovac 2010 Annual Report Download - page 138

SPECTRUM BRANDS HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
related charges during the period from October 1, 2008 through August 30, 2009 and Fiscal 2008, respectively,
primarily related to the accelerated vesting of certain awards related to terminated employees.
The Successor Company granted approximately 939 shares of restricted stock during Fiscal 2010. Of these
grants, 271 restricted stock units were granted in conjunction with the Merger and are time-based and vest over a
one year period. The remaining 668 shares are restricted stock grants that are time based and vest as follows:
(i) 18 shares vest over a one year period; (ii) 611 shares vest over a two year period; and (iii) 39 shares vest over
a three year period. The total market value of the restricted shares on the date of the grant was approximately
$23,299.
The Predecessor Company granted approximately 229 shares of restricted stock during Fiscal 2009. Of these
grants, 42 were time-based and would vest on a pro rata basis over a three year period and 187 shares were
purely performance-based and would vest only upon achievement of certain performance goals. All vesting dates
were subject to the recipient’s continued employment with the Company, except as otherwise permitted by the
Predecessor Board or if the employee was terminated without cause. The total market value of the restricted
shares on the date of grant was approximately $150. Upon the Effective Date, by operation of the Plan, the
restricted stock granted by the Predecessor Company was extinguished and deemed cancelled.
The Predecessor Company granted approximately 408 shares of restricted stock during Fiscal 2008. Of these
grants, 158 shares were time-based and would vest on a pro rata basis over a three year period and 250 were
purely performance-based and would vest only upon achievement of certain performance goals. All vesting dates
were subject to the recipient’s continued employment with the Company, except as otherwise permitted by the
Predecessor Board or if the employee was terminated without cause. The total market value of the restricted
shares on the date of grant was approximately $2,165. Upon the Effective Date, by operation of the Plan, the
restricted stock granted by the Predecessor Company was extinguished and deemed cancelled.
The fair value of restricted stock is determined based on the market price of the Company’s shares on the
grant date. A summary of the status of the Successor Company’s non-vested restricted stock as of September 30,
2010 is as follows:
Restricted Stock Shares
Weighted
Average
Grant Date
Fair Value Fair Value
Restricted stock at September 30, 2009 ...................... — $ — $ —
Granted ............................................... 939 24.82 23,299
Vested ................................................ (244) 23.59 (5,763)
Restricted stock at September 30, 2010 ...................... 695 $25.23 $17,536
(x) Restructuring and Related Charges
Restructuring charges are recognized and measured according to the provisions of ASC Topic 420: “Exit or
Disposal Cost Obligations,” (“ASC 420”). Under ASC 420, restructuring charges include, but are not limited to,
termination and related costs consisting primarily of one-time termination benefits such as severance costs and
retention bonuses, and contract termination costs consisting primarily of lease termination costs. Related charges,
as defined by the Company, include, but are not limited to, other costs directly associated with exit and
integration activities, including impairment of property and other assets, departmental costs of full-time
incremental integration employees, and any other items related to the exit or integration activities. Costs for such
activities are estimated by management after evaluating detailed analyses of the cost to be incurred. The
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