Rayovac 2002 Annual Report Download - page 52

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
(8) Stock Option Plans
In 1996, the Company’s Board of Directors (“Board”) approved the Rayovac Corporation 1996 Stock Option Plan (“1996 Plan”). Under the 1996 Plan,
stock options to acquire up to 2,318 shares of Common stock, in the aggregate, may be granted to select employees and directors of the Company under
either or both a time-vesting or a performance-vesting formula at an exercise price equal to the market price of the Common stock on the date of grant.
The time-vesting options become exercisable primarily in equal 20% increments over a five-year period. The performance-vesting options become exer-
cisable at the end of ten years with accelerated vesting over each of the first five years if the Company achieves certain performance goals. Accelerated
vesting may occur upon sale of the Company, as defined in the 1996 Plan. As of September 30, 2002, there were options with respect to 1,237 shares
of Common stock outstanding under the 1996 Plan.
In 1997, the Board adopted the 1997 Rayovac Incentive Plan (“Incentive Plan”). The Incentive Plan replaces the 1996 Plan and no further awards will
be granted under the 1996 Plan other than awards of options for shares up to an amount equal to the number of shares covered by options that termi-
nate or expire prior to being exercised. Under the Incentive Plan, the Company may grant to employees and non-employee directors stock options, stock
appreciation rights (“SARs”), restricted stock, and other stock-based awards, as well as cash-based annual and long-term incentive awards. Accelerated
vesting will occur in the event of a change in control, as defined in the Incentive Plan. Up to 5,000 shares of Common stock may be issued under the
Incentive Plan. The Incentive Plan expires in August 2007. As of September 30, 2002, there were options with respect to 2,868 shares of Common stock
outstanding under the Incentive Plan.
A summary of the status of the Company’s plans is as follows:
2000 2001 2002
Weighted-Average Weighted-Average Weighted-Average
Options Exercise Price Options Exercise Price Options Exercise Price
Outstanding, beginning of period 2,832 $ 9.14 3,276 $12.15 3,266 $14.12
Granted 729 21.62 857 14.83 1,057 14.37
Exercised (132) 4.71 (701) 4.75 (15) 8.81
Forfeited (153) 8.39 (166) 18.43 (203) 11.30
Outstanding, end of period 3,276 $12.15 3,266 $14.12 4,105 $14.01
Options exercisable, end of period 1,325 $ 7.67 1,304 $11.81 1,884 $11.39
The Company also granted approximately 277 and 24 shares of restricted stock during 2001 and 2002, respectively, under the Incentive Plan. The
restrictions lapse over the three-year period ending September 30, 2003. As of September 30, 2002, the restrictions had lapsed on 44 of these shares and
the Company recognized the forfeiture of 24 of these shares.
The following table summarizes information about options outstanding and outstanding and exercisable as of September 30, 2002:
Options Outstanding Options Outstanding and Exercisable
Weighted-Average
Range of Number Remaining Weighted-Average Number Weighted-Average
Exercise Prices of Shares Contractual Life Exercise Price of Shares Exercise Price
$ 4.39 1,009 4 years $ 4.39 1,009 $ 4.39
$13.00–$20.938 2,246 8.1 15.24 443 16.78
$21.25–$29.50 850 6.7 22.19 432 22.22