Rayovac 2003 Annual Report Download - page 50

On August 16, 2002, the Company granted approximately 24 shares of restricted stock to a certain member of management. These
shares vested on September 30, 2003, as the recipient was still employed with the Company. The total market value of the restricted
shares on the date of grant was approximately $313 which was recorded as unearned compensation as a separate component of share-
holders’ equity. Unearned compensation was amortized over the 13-month vesting period.
On October 1, 2002, the Company granted approximately 393 shares of restricted stock to certain members of management. The
total market value of the restricted shares on date of grant was approximately $4,790 which was recorded as unearned compensa-
tion as a separate component of shareholders’ equity. During 2003, the Company recognized the forfeiture of approximately 28
restricted shares of stock. The total market value on the date of grant for the forfeited shares was approximately $347 which was
recorded as an adjustment to unearned compensation. Approximately 101 of these shares vest on September 30, 2004, 243 shares
vest on September 30, 2005, and 21 shares vest on September 30, 2006, if the recipient is still employed by the Company. Unearned
compensation is being amortized to expense over the appropriate vesting period.
(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 exercisable 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, 2003, there were options with respect to 1,186
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 terminate 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 con-
trol, 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, 2003, there were options with respect to 3,737 shares of Common stock outstanding
under the Incentive Plan.
A summary of the status of the Company’s plans is as follows:
2001 2002 2003
Weighted-Average Weighted-Average Weighted-Average
Options Exercise Price Options Exercise Price Options Exercise Price
Outstanding, beginning of period 3,276 $12.15 3,266 $14.12 4,105 $14.01
Granted 857 14.83 1,057 14.37 1,210 12.31
Exercised (701) 4.75 (15) 8.81 (40) 4.39
Forfeited (166) 18.43 (203) 11.30 (352) 15.73
Outstanding, end of period 3,266 $14.12 4,105 $14.01 4,923 $13.55
Options exercisable, end of period 1,304 $11.81 1,884 $11.39 2,553 $12.91
The Company also granted approximately 277, 24, and 393 shares of restricted stock during 2001, 2002, and 2003, respectively, under
the Incentive Plan. The restrictions on the 2001 grant lapsed over the three-year period ended September 30, 2003 and the restrictions
on the 2002 grant lapsed over the two-year period ended September 30, 2003. The restrictions on the 2003 grant lapse over the four-
year period ending September 30, 2006. As of September 30, 2003, the restrictions had lapsed on 277 of these shares and the Company
recognized the forfeiture of 52 of these shares.
Notes to Consolidated Financial Statements
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
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