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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2010 (Dollars in millions, except per share data and unless otherwise indicated)
Stock Options
A summary of the Company’s stock option activity in 2010, 2009 and 2008 is as follows:
Significant option grants outstanding at December 31, 2010 and related weighted average price and remaining life information is
as follows:
The Company does not use cash to settle any of its options or restricted share awards and when available issues shares from its
treasury stock instead of issuing new shares. The total intrinsic value of options exercised for 2010, 2009 and 2008, based upon the
market price upon exercise, was approximately $9.4, $18.6, and $2.1, respectively. The common stock options granted during 2010,
2009 and 2008, vest ratably over the explicit service period and generally have a contractual term of 7 years.
The weighted average assumptions used to determine the fair value of options granted in 2010, 2009 and 2008 is as follows:
Restricted Shares of Common Stock
The Company issues restricted share awards whose restrictions lapse upon either the passage of time (service vesting), achieving
performance targets, attaining Company common stock price thresholds, or some combination of these restrictions. The contractual
life is generally 7 years for those restricted shares with performance targets, common stock price thresholds, or some combination
thereof. For those restricted share awards with common stock price thresholds, the fair values were determined using a Monte Carlo
simulation embedded in a lattice model. The fair value for all other restricted share awards were based on the closing price of the
Company’s common stock on the dates of grant.
2010 2009 2008
(Shares in thousands) Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price Shares
Weighted
Average
Exercise Price
Options outstanding, beginning of year 3,133.8 $ 19.45 3,765.0 $ 17.09 3,431.2 $ 16.88
Granted 40.0 33.51 549.8 20.27 871.5 20.88
Exercised (544.6) 15.55 (951.9) 9.31 (186.8) 11.29
Cancelled (99.9) 24.12 (229.1) 24.79 (350.9) 27.5
Options outstanding, end of year 2,529.3 $ 20.33 3,133.8 $ 19.45 3,765.0 $ 17.09
Options exercisable, end of year 1,924.3 $ 20.00 2,088.0 $ 18.90 2,774.8 $ 15.31
Other stock option data:
Weighted average per share grant date fair value
of grants during the year $ 16.89 $ 9.91 $ 7.44
Options Outstanding Options exercisable
Exercise Price
Number
Outstanding
(in thousands)
Weighted
average
exercise price
Weighted
average
remaining life
(years)
Number
Exercisable
(in thousands)
Weighted
average
exercise price
$ 2.43 – $ 8.60 392.8 $ 8.46 2.5 392.8 $ 8.46
$10.65 – $13.14 311.2 12.42 3.6 305.2 12.46
$18.89 – $21.40 1,108.8 20.66 5.9 552.0 20.74
$21.90 – $29.46 520.7 28.19 2.8 518.5 28.20
$33.07 – $37.99 195.8 33.89 3.4 155.8 33.99
2,529.3 $ 20.33 4.3 1,924.3 $ 20.00
Other stock option data (in millions):
Total intrinsic value of in-the-money options $ 27.3 $ 21.4
2010 2009 2008
Expected volatility 60.7% 58.3% 37.7%
Risk-free interest rates 2.3% 2.3% 3.2%
Expected life (in years) 4.5 4.5 4.5
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