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Jarden Corporation Annual Report 2014 61
2014 2013 2012
Expected volatility 32.0%40.7%45.8%
Risk-free interest rates 1.7%0.8%0.9%
Derived service periods (in years) 0.3 0.1 0.2
For all other restricted stock awards, the weighted average grant date fair values were $40.99, $36.92 and $21.74 for the years ended
December31, 2014, 2013 and 2012, respectively.
As part of the restricted stock awards granted in 2014, in January 2014, the Board authorized an annual grant of approximately
0.8million restricted stock awards to certain executive ofcers. These awards had an aggregate grant date fair value of $28.8 and
vested during 2014 when the Company’s weighted average share price exceeded certain thresholds. In 2014, the Company also granted
approximately 3.9million restricted stock awards to certain executive ofcers with an aggregate grant date fair value of $161 that vest
upon the achievement of performance targets, the achievement of which are currently deemed improbable. In 2014, the Company
also granted approximately 0.8million restricted stock awards with an aggregate grant date fair value of $32.3 that vest upon the
achievement of the achievement of certain performance targets.
As of December31, 2014, there was $28.7 of unrecognized compensation cost related to non-vested share-based awards whose costs
are expected to be recognized through 2017 over a weighted-average period of approximately 20 months.
During the fourth quarter of 2012, the Company recognized $33.6 of cumulative stock-based compensation related to certain restricted
stock awards granted in 2010 where compensation expense was not previously recognized as the achievement of the performance
targets was not deemed probable.
Stockholders’ Equity
In February 2014, the Board authorized an increase in the then available amount under the Company’s existing stock repurchase
program (the “Stock Repurchase Program”) to allow for the repurchase of up to $500 in the aggregate of the Company’s common
stock.
In March 2014, pursuant to the Stock Repurchase Program, the Company used proceeds from the 2034 Convertible Notes offering to
repurchase approximately 4.0million shares of its common stock for approximately $163 at a per share price of approximately $40.43
through privately negotiated transactions.
In September 2013, pursuant to a public offering of its common stock, the Company completed an equity offering of approximately
24.8million newly-issued shares of common stock at a per share price of approximately $31.33 per share. The net proceeds to the
Company, after the payment of underwriting discounts and other expenses of the offering, were approximately $745. The proceeds
were used to fund a portion of the YCC Acquisition.
Cash dividends paid to stockholders in 2012 were $7.5. In January 2012, the Company announced that the Board had decided to
suspend the Company’s dividend program following the dividend paid on January31, 2012.
14. Earnings Per Share
A computation of the weighted average shares outstanding for 2014, 2013 and 2012 is as follows:
(In millions) 2014 2013 2012
Weighted average shares outstanding:
Basic 185.3170.6176.1
Dilutive share-based awards 0.81.41.2
Convertible debt 3.70.5—
Diluted 189.8172.5177.3
Because it is the Company’s intention to redeem the principal amount of the Senior Subordinated Convertible Notes in cash, the treasury
stock method is used for determining potential dilution in the diluted earnings per share computation. For the three months ended
December31, 2014, the 2034 Convertible Notes have been excluded from the computation of diluted earnings per share as the effect would
be antidilutive, as the initial conversion price exceeded the average market price of the Company’s common stock during the three months
ended December31, 2014. As of December31,2014, there were 5.6million potentially dilutive restricted share awards with performance-
based vesting targets that were not met and as such, have been excluded from the computation of diluted earnings per share.
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2014 (Dollars in millions, except per share data and unless otherwise indicated)