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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2009
(Dollars in millions, except per share data and unless otherwise indicated)
A summary of the Company’s restricted share activity for 2009, 2008 and 2007 is as follows:
Weighted
Average
(Shares in thousands) Shares Fair Value
Outstanding as of December 31, 2006 2,800.1 $ 30.60
Granted 2,057.7 34.94
Released (2,470.6) 31.05
Cancelled (338.5) 31.84
Outstanding as of December 31, 2007 2,048.7 33.98
Granted 277.4 19.51
Released (581.4) 30.18
Cancelled (286.0) 31.13
Outstanding as of December 31, 2008 1,458.7 33.30
Granted 1,654.3 21.83
Released (1,219.9) 24.63
Cancelled (129.5) 31.13
Outstanding as of December 31, 2009 1,763.6 $ 28.70
For those restricted awards with common stock price thresholds, the weighted average grant date fair values of these awards were
$10.99, $17.30 and $37.34 for the years ended December 31, 2009, 2008 and 2007, respectively, based on the following assumptions:
2009 2008 2007
Expected volatility 50.4% 37.0% 36.4%
Risk-free interest rates 1.4% 3.3% 4.6%
Derived service periods (in years) 0.2 2.4 0.6
For all other restricted share awards, the weighted average grant date fair values $24.08, $19.6 and $33.47 for the years ended
December 31, 2009, 2008 and 2007, respectively.
In 2009, the Company granted a total of approximately 1.7 million restricted share awards. As part of these awards, in January 2009,
the Board approved the granting of 0.3 million restricted shares of the Company’s common stock to certain executive officers of the
Company. The grant date fair value of these awards was $10.99 per share with an aggregate fair value of $3.1 for the grant and a vesting price
of $12.88 per share. Additionally, in December 2009, the Board granted 0.6 million restricted share awards to certain executive officers of the
Company. These awards, which vested immediately, are subject to certain sales restrictions and had a grant date fair value of $28.53 per share
for an aggregate fair value of $17.1. The remaining 0.8 million restricted share awards had an aggregate fair value of $15.9 and vest if the
Company achieves certain earnings performance targets over a 3 year period.
In 2008, the majority of the restricted shares granted were primarily performance based awards which vest upon achievement of
certain internal performance measures and fulfillment of the explicit service periods.
In 2007, the Company granted a total of approximately 2.1 million restricted awards. As part of these awards, in May 2007, the Board
approved the granting of an aggregate of 0.4 million restricted shares of the Company’s common stock to certain executive officers of the
Company. The grant date fair value of these restricted share awards was $39.93 per share with an aggregate fair value of $14.6 for the grant
and a vesting stock price of $48.70 per share. In November 2007, the Company accelerated the vesting of these and other restricted share
awards for certain employees who in exchange forfeited the right to certain termination benefits. Additionally, the affected employees are
restricted from selling a portion of the shares through 2012, subject to certain exceptions. As a result, the Company recorded a charge of
$22.8 and the number common shares outstanding increased by approximately 0.8 million shares. The other restricted awards granted by the
Company during 2007 vest primarily by achieving certain performance measures or common stock price thresholds in addition to rendering
explicit service requirements. Approximately 0.4 million awards were granted with common stock thresholds and the weighted average grant
date fair value was $35.06 per share with an aggregate fair value of $14.5. Approximately 1.3 million awards were granted with performance
measures and the weighted average grant date fair value of these awards was $33.47 per share with an aggregate fair value of $42.8.
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