XML 82 R16.htm IDEA: XBRL DOCUMENT
v2.4.0.8

Stock Plans | 12 Months Ended
--- | ---
Oct. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock Plans | Stock Plans At October 31, 2013, Cooper had the following share-based compensation plans: 2006 Long-Term Incentive Plan for Non-Employee Directors (2006 Directors Plan) In March 2006, the Company received stockholder approval of the 2006 Directors Plan, and it was amended by the Board of Directors in March 2007, October 2007, October 2008 and December 2008. The Company received stockholder approval of an amendment and restatement of the 2006 Directors Plan in March 2009 and the Board of Directors amended the Amended and Restated 2006 Directors Plan in October 2009 and October 2010. The Company received stockholder approval of a further amendment and restatement of the 2006 Directors Plan in March 2011 and the Board of Directors amended the Second Amended and Restated 2006 Directors Plan in October 2011 and October 2012. The Second Amended and Restated 2006 Directors Plan, as amended, authorizes either Cooper's Board of Directors or a designated committee thereof composed of two or more Non-Employee Directors to grant to Non-Employee Directors during the period ending March 21, 2019, equity awards for up to 950,000 shares of common stock, subject to adjustment for future stock splits, stock dividends, expirations, forfeitures and similar events. As amended, the Second Amended and Restated 2006 Directors Plan provides for annual grants of stock options and restricted stock to Non-Employee Directors on November 1 and November 15, respectively, of each fiscal year. Specifically, each Non-Employee Director may be awarded on each November 15 the right to purchase for $0.10 per share, a number of shares of restricted stock with a total value of $135,000 or $148,000 in the case of the Non-Executive Chairman of the Board on the date of grant. The restrictions on the restricted stock will lapse on the first anniversary of the date of grant. Each Non-Employee Director may also be awarded on each November 1, a grant of options to purchase common stock with an approximate accounting value of $135,000, or in the case of the Lead Director and/or any non-executive Chairman of the Board, as the case may be, of $148,500. These options vest on the first anniversary of the date of grant. Options expire no more than 10 years after the grant date. In December 2008, the 2006 Directors' Plan was also amended to allow discretionary granting of stock options and/or restricted stock with similar terms to the annual grant other than the specific share requirements. As of October 31, 2013, 246,516 shares remained available under the 2006 Directors' Plan for future grants. 2007 Long-Term Incentive Plan (2007 LTIP) In March 2007, the Company received stockholder approval of the 2007 LTIP and in October 2007, the Board of Directors amended the 2007 LTIP. In March 2009, the Company received stockholder approval of an amendment and restatement of the 2007 LTIP and in March 2011, the Company received stockholder approval of a further amendment and restatement of the 2007 LTIP. The Second Amended and Restated 2007 LTIP is designed to increase Cooper's stockholder value by attracting, retaining and motivating key employees and consultants who directly influence our profitability. The Second Amended and Restated 2007 LTIP authorizes either Cooper's Board of Directors, or a designated committee thereof composed of two or more Non-Employee Directors, to grant to eligible individuals during the period ending December 31, 2017, up to 5,230,000 shares in the form of specified equity awards including stock option, restricted stock unit and performance share awards, subject to adjustment for future stock splits, stock dividends, expirations, forfeitures and similar events. During fiscal 2013, the Company granted stock options, restricted stock units (RSUs) and performance share awards to employees under the Second Amended and Restated 2007 LTIP. Equity awards are granted at 100% of fair market value on the date of grant and expire no more than 10 years after the grant date. Stock options may become exercisable based on our common stock achieving certain price targets, specified time periods elapsing or other criteria designated by the Board of Directors or its authorized committee at their discretion. RSUs are nontransferable awards entitling the recipient to receive shares of common stock, without any payment in cash or property, in one or more installments at a future date or dates as determined by the Board of Directors or its authorized committee. For RSUs, legal ownership of the shares is not transferred to the employee until the unit vests, which is generally over a specified time period. Performance share awards are nontransferable awards entitling the recipient to receive a variable number of shares of common stock, without any payment in cash or property, in one or more installments at a future date or dates as determined by the Board of Directors or its authorized committee. Legal ownership of the shares is not transferred to the recipient until the award vests, and the number of shares distributed is dependent upon the achievement of certain performance targets over a specified period of time. As of October 31, 2013, 1,609,325 shares remained available under the Second Amended and Restated 2007 LTIP for future grants. The amount of available shares includes shares which may be distributed under performance share awards. Share-Based Compensation The compensation cost and related tax benefit recognized in the Company's consolidated financial statements for share-based awards were as follows:
October 31, |  |  |
(In millions) | 2013 |  | 2012 |  | 2011
Selling, general and administrative expense | $ | 25.3 |  |  | $ | 19.2 |  |  | $ | 12.4 |
Cost of sales | 1.9 |  |  | 1.3 |  |  | 0.8 |
Research and development expense | 1.3 |  |  | 1.0 |  |  | 0.7 |
Capitalized in inventory | 1.9 |  |  | 1.3 |  |  | 0.8 |
Total compensation expense | $ | 30.4 |  |  | $ | 22.8 |  |  | $ | 14.7 |
Related income tax benefit | $ | 8.8 |  |  | $ | 7.0 |  |  | $ | 4.4 |
Cash received from exercises under all share-based payment arrangements for the fiscal years ended October 31, 2013, 2012 and 2011 was approximately $19.3 million, $55.1 million and $82.0 million, respectively. Details regarding the valuation and accounting for share-based awards follow. Stock Options The fair value of each stock option award granted is estimated on the date of grant using the Black-Scholes option valuation model and assumptions noted in the following table. The expected life of the awards is based on the observed and expected time to post-vesting forfeiture and/or exercise. Groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. In determining the expected volatility, management considers implied volatility from publicly-traded options on the Company's stock at the date of grant, historical volatility and other factors. The risk-free interest rate is based on the continuous rates provided by the United States Treasury with a term equal to the expected life of the option. The dividend yield is based on the projected annual dividend payment per share, divided by the stock price at the date of grant.
Years Ended October 31, | 2013 |  | 2012 |  | 2011
Expected life | 4.7 - 5.5 years |  |  | 4.3 - 5.7 years |  |  | 4.5 - 5.7 years |
Expected volatility | 34.8% - 35.9% |  |  | 39.5% - 43.8% |  |  | 40.2% - 41.3% |
Risk-free interest rate | 0.63% - 0.78% |  |  | 0.69% - 1.08% |  |  | 1.01% - 1.41% |
Dividend yield | 0.06 | % |  | 0.09 | % |  | 0.12 | %
The status of the Company's stock option plans at October 31, 2013, is summarized below:
| Number of Shares |  | Weighted- Average Exercise Price Per Share |  | Weighted- Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Outstanding at October 31, 2012 | 2,293,708 |  |  | $ | 45.26 |  |  |  |  |
Granted | 224,288 |  |  | $ | 96.24 |  |  |  |  |
Exercised | 808,167 |  |  | $ | 39.68 |  |  |  |  |
Forfeited or expired | 1,153 |  |  | $ | 43.99 |  |  |  |  |
Outstanding at October 31, 2013 | 1,708,676 |  |  | $ | 54.58 |  |  | 5.35 |  |
Vested and exercisable at October 31, 2013 | 1,108,100 |  |  | $ | 49.10 |  |  | 4.10 |  | $ | 88,818,089 |
The weighted-average fair value of each option granted during fiscal 2013, estimated as of the grant date using the Black-Scholes option pricing model, for the 2007 LTIP was $31.51. The weighted-average fair value of each option granted during fiscal 2012, estimated as of the grant date using the Black-Scholes option pricing model, for the 2007 LTIP was $25.40. For the 2006 Directors Plan, the weighted-average fair values of options granted for fiscal 2013 and 2012 were $32.20 and $25.24, respectively. The expected requisite service period for options granted to employees in fiscal 2013 was 60 months. The total intrinsic value of options exercised during the year ended October 31, 2013 was $55.8 million. Stock awards outstanding under the Company's current plans have been granted at prices which are either equal to or above the market value of the common stock on the date of grant. Options granted under the 2007 LTIP generally vest over three and one-half to five years based on market and service conditions and expire no later than ten years after the grant date. Options granted under the 2006 Directors Plan generally vest in one year or upon achievement of a market condition and expire no later than ten years after the grant date. The Company generally recognizes compensation expense ratably over the vesting period. Directors' options and restricted stock grants are expensed on the date of grant as the 2006 Directors Plan does not contain a substantive future requisite service period. As of October 31, 2013, there was $9.0 million of total unrecognized compensation cost related to nonvested options, which is expected to be recognized over a remaining weighted-average vesting period of 3.1 years. Restricted Stock Units RSUs granted under the 2007 LTIP have been granted at prices which are either equal to or above the market value of the stock on the date of grant and generally vest over four to five years. The fair value of restricted stock units is estimated on the date of grant based on the market price of our common stock. The Company recognizes compensation expense ratably over the vesting period. As of October 31, 2013, there was $36.7 million of total unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized over a remaining weighted-average vesting period of 3.1 years. The status of the Company's non-vested RSUs at October 31, 2013, is summarized below:
| Number of Shares |  | Weighted- Average Grant Date Fair Value Per Share
Non-vested RSUs at October 31, 2012 | 653,119 |  |  | $ | 56.45 |
Granted | 253,847 |  |  | $ | 96.93 |
Vested and issued | 218,904 |  |  | $ | 51.72 |
Forfeited or expired | 40,877 |  |  | $ | 65.99 |
Non-vested RSUs at October 31, 2013 | 647,185 |  |  | $ | 73.33 |
Performance Units Performance units are granted to selected executives and other key employees with vesting contingent upon meeting future reported earnings per share goals over a defined performance cycle, usually three years. Performance units, if earned, may be paid in cash or shares of common stock. The performance shares actually earned will range from zero to 150% of the target number of performance shares for performance periods ending in fiscal 2013 through fiscal 2015. Subject to limited exceptions set forth in the performance share plan, any shares earned will be distributed in the immediate subsequent fiscal period after the performance period. The fair value of performance unit awards is estimated on the date of grant based on the current market price of our common stock and the estimate of probability of award achievement. This estimate is reviewed each fiscal period and adjustments are recorded prospectively if it is determined that the estimate of probability of award achievement has changed. The Company recognizes compensation expense ratably over the vesting period. As of October 31, 2013, there was $9.8 million of total unrecognized compensation cost related to non-vested performance units, which is expected to be recognized over a remaining weighted-average vesting period of 1.7 years. Performance units granted on December 13, 2010 vested on October 31, 2013 and met 150% of the target and, subject to the provisions of the plan, the Company expects to award 106,787 shares of common stock in fiscal 2014. The Company also granted performance unit awards on December 14, 2011 and December 12, 2012 with specific performance goals for each period ending on October 31, 2014 and October 31, 2015, respectively.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration