Sunbeam 2011 Annual Report Download - page 61

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59
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2011 (Dollars in millions, except per share data and unless otherwise indicated)
The total fair value of restricted shares granted and total fair value of restricted shares vested for 2011, 2010 and 2009 is as follows:
For those restricted awards with common stock price thresholds, the weighted average grant date fair values of these awards were
$29.50, $30.72 and $10.99 for 2011, 2010 and 2009, respectively, based on the following assumptions:
For all other restricted share awards, the weighted average grant date fair values were $28.55, $31.00 and $24.08 for the years ended
December 31, 2011, 2010 and 2009, respectively.
As part of the restricted share awards granted in 2011, in January 2011, the Board authorized an annual grant of approximately
0.4 million restricted share awards to certain executive officers. These awards had an aggregate grant date fair value of $11.7 and
vested during the first three months of 2011 when the Company’s weighted average share price exceeded certain thresholds. In
2011, the Company also granted approximately 0.8 million restricted share awards with an aggregate grant date fair value of $24.3
that cliff vest upon the achievement of certain performance targets.
Additionally, in January 2010, the Board authorized a grant of approximately 1.4 million restricted share awards to certain executive
officers. These awards, which had an aggregate grant date fair value of $44.8, have a 5-year contractual life and their restrictions
lapse if and when the Company achieves certain performance targets. The Company is currently not recognizing compensation
expense on these awards as the achievement of the performance targets is improbable.
As of December 31, 2011, there was $31.5 of unrecognized compensation cost related to non-vested share-based awards. Those
costs are expected to be recognized through 2014 over a weighted-average period of approximately 14 months.
2011 2010 2009
Expected volatility 44.0% 49.4% 50.4%
Risk-free interest rates 2.2% 2.6% 1.4%
Derived service periods (in years) 0.2 0.1 0.2
(in millions) 2011 2010 2009
Total fair value of restricted shares granted $ 36.0 $ 73.9 $ 36.1
Total fair value of restricted shares vested 14.5 19.5 30.0
Shares
(in thousands)
Outstanding as of December 31, 2010 3,422.6
Granted 1,246.8
Released/Vested (487.1)
Cancelled (209.6)
Outstanding as of December 31, 2011 3,972.7
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 common stock options granted during 2011, 2010 and 2009, vest ratably over the
explicit service period typically 3 to 4 years and generally have a contractual term of 7 years.
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.
A summary of the Company’s restricted share activity for 2011 is as follows: