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58 Jarden Corporation Annual Report 2012
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2012 (Dollars in millions, except per share data and unless otherwise indicated)
The weighted average per share grant date fair value of options granted and the total intrinsic value of options exercised for 2012,
2011 and 2010 are as follows:
The weighted average assumptions used to determine the fair value of options granted in 2012, 2011 and 2010 is as follows:
Shares
(in thousands)
Weighted
Average
Exercise Price
Weighted
Average
Remaining Life
(years)
Total Intrinsic
Value
(in millions)
Options outstanding, beginning of year 1,492.8 $ 23.59
Granted — —
Exercised (1,095.6) 24.15
Cancelled (7.0) 27.98
Options outstanding, end of year (a) 390.2 $ 21.93 2.7 $ 11.6
Options exercisable, end of year $ 21.52 2.7 $ 11.4
Weighted Average
Per Share Grant Date
Fair Value
Total Intrinsic Value
of Options Exercised
(in millions)
2012 $ — $ 16.5
2011 — 18.4
2010 16.89 9.4
2012 2011 2010
Expected volatility — — 60.7%
Risk-free interest rates — — 2.3%
Expected life (in years) — — 4.5
(a) Approximates the options vested and expected to vest
The Company conducts business globally and, as a result, the Company or its subsidiaries file income tax returns in the U.S. federal
jurisdiction, and in various state, local, and foreign jurisdictions. In the normal course of business, the Company or its subsidiaries
are subject to examination by tax authorities throughout the world, including such major jurisdictions as Canada, France, Germany,
Hong Kong, Malaysia, the Netherlands, Peru, Spain and the U.S. As of December 31, 2012, the Company remains subject to
examination by federal and state tax authorities for the tax years 2005 to 2011. At December 31, 2012, certain of the Company’s
more significant foreign jurisdictions remain subject to examination for various tax years between 2000 and 2011. At December 31,
2012, the Company believes it has no material tax positions for which it is reasonably possible that the total amount of unrecognized
tax benefits may significantly change within twelve months.
The Company classifies all interest expense and penalties on uncertain tax positions as income tax expense. The provision for
income taxes for 2012, 2011 and 2010 includes tax-related interest expense of $2.4, $1.1 and $1.1, respectively. As of December 31,
2012 and 2011, the liability for tax-related interest expense was $6.8 and $5.2, respectively.
13. Stockholders’ Equity and Share-Based Awards
The Company maintains the 2009 Stock Incentive Plan and the Amended and Restated 2003 Stock Incentive Plan, as amended,
which allows for grants of stock options, restricted stock and short-term cash awards. At December 31, 2012, there were
approximately 1.4 million share-based awards collectively available for grant under these stock plans.
Stock Options
A summary of the Company’s stock option activity in 2012 is as follows: