Sunbeam 2009 Annual Report Download - page 65

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Stock Options
A summary of the Company’s stock option activity in 2009, 2008 and 2007 is as follows (Shares in thousands):
2009 2008 2007
Weighted Weighted Weighted
Average Average Average
(Shares in thousands) Shares Exercise Price Shares Exercise Price Shares Exercise Price
Options outstanding, beginning of year 3,765.0 $ 17.09 3,431.2 $ 16.88 4,101.2 $ 17.38
Granted 549.8 20.27 871.5 20.88 — —
Exercised (951.9) 9.31 (186.8) 11.29 (457.4) 18.39
Cancelled (229.1) 24.79 (350.9) 27.5 (212.6) 23.41
Options outstanding, end of year 3,133.8 $ 19.45 3,765.0 $ 17.09 3,431.2 $ 16.88
Options exercisable, end of year 2,088.0 $ 18.90 2,774.8 $ 15.31 2,484.4 $ 12.07
Other stock option data:
Weighted average per share grant date
fair value of grants during the year $ 9.91 $ 7.44 $ —
Significant option grants outstanding at December 31, 2009 and related weighted average price and remaining life information is as
follows:
Options Outstanding Options Exercisable
Weighted Weighted Weighted
(Shares in thousands) Number Average Average Number Average
Exercise Price Outstanding Exercise Price Remaining Life (years) Exercisable Exercise Price
$2.43 – $ 8.19 42.9 $ 4.38 1.96 42.9 $ 4.38
$8.60 – $13.14 933.9 9.96 2.90 921.9 9.94
$14.30 – $21.40 1,365.0 20.66 5.85 335.8 20.75
$21.90 – $28.57 154.1 23.95 4.28 149.6 23.88
$29.46 – $37.99 637.9 30.68 2.35 637.8 30.68
3,133.8 $ 19.45 4.14 2,088.0 $ 18.90
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 2009, 2008 and 2007, based upon the market
price upon exercise, was approximately $18.6, $2.1, and $9.9, respectively. The common stock options granted during 2009 and 2008, vest
ratably over the explicit service period.
The weighted average assumptions used to determine the fair value of options granted is as follows:
2009 2008 2007
Expected volatility 58.3% 37.7% —
Risk-free interest rates 2.3% 3.2% —
Expected life (in years) 4.5 4.5 —
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. 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.
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2009
(Dollars in millions, except per share data and unless otherwise indicated)
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