Irinquiries@prestigebrands.com
Prestige Consumer Healthcare Inc.
660 White Plains Road – Ste 250
Tarrytown, NY 10591
Telephone: 914-524-6819
| Dear Stockholder: | | |
June 29, 2020
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WHETHER OR NOT YOU EXPECT TO ATTEND THE ANNUAL MEETING IN PERSON, PLEASE PROMPTLY COMPLETE, SIGN, DATE AND MAIL THE ENCLOSED PROXY CARD OR VOTE BY THE INTERNET. A SELF-ADDRESSED POSTAGE PAID RETURN ENVELOPE IS ENCLOSED FOR YOUR CONVENIENCE. NO POSTAGE IS REQUIRED IF MAILED IN THE UNITED STATES. YOU MAY REVOKE YOUR PROXY BY FOLLOWING THE INSTRUCTIONS ON PAGE 4 OF THE PROXY STATEMENT. If you own shares in a brokerage account, your broker cannot vote your shares for proposals regarding the election of our directors, approval of the compensation of our named executive officers, or approval of our 2020 Long-Term Incentive Plan unless you provide voting instructions to your broker. Therefore, it is very important that you exercise your right as a stockholder and vote on all proposals.
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| | | | A-1 | | | |
| | | | B-1 | | |
Name
|
| |
Age
|
| |
Director Since
|
|
Ronald M. Lombardi | | |
56
|
| | June 2015 | |
Gary E. Costley | | |
76
|
| | November 2004 | |
John E. Byom | | |
66
|
| | January 2006 | |
Christopher J. Coughlin | | |
67
|
| | August 2019 | |
Sheila A. Hopkins | | |
64
|
| | August 2015 | |
James M. Jenness | | |
74
|
| | May 2015 | |
Natale S. Ricciardi | | |
71
|
| | May 2016 | |
Dawn M. Zier | | |
55
|
| | May 2020 | |
Position
|
| |
2019
Annual Fee($) |
| |
2020
Annual Fee($) |
| ||||||
Chairman of the Audit Committee
|
| | | | 17,500 | | | | | | 20,000 | | |
Chairman of the Compensation and Talent Management Committee
|
| | | | 15,000 | | | | | | 17,500 | | |
Chairman of the Nominating and Corporate Governance Committee
|
| | | | 12,500 | | | | | | 12,500 | | |
Lead Independent Director
|
| | | | 25,000 | | | | | | 25,000 | | |
Committee
|
| |
Membership
|
|
Audit Committee | | |
Christopher J. Coughlin (Chairman)
John E. Byom Gary E. Costley Sheila A. Hopkins James M. Jenness Natale S. Ricciardi Dawn M. Zier |
|
Compensation and Talent Management Committee | | |
John E. Byom (Chairman)
Gary E. Costley Christopher J. Coughlin Sheila A. Hopkins James M. Jenness Natale S. Ricciardi Dawn M. Zier |
|
Nominating and Corporate Governance Committee | | |
James M. Jenness (Chairman)
John E. Byom Gary E. Costley Christopher J. Coughlin Sheila A. Hopkins Natale S. Ricciardi Dawn M. Zier |
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| | |
2020
|
| |
2019
|
| ||||||
Audit Fees
|
| | | | 1,547,141 | | | | | $ | 1,371,169 | | |
Audit Related Fees
|
| | | | 150,000 | | | | | | — | | |
Tax Fees
|
| | | | 128,665 | | | | | | 761,336 | | |
All Other Fees
|
| | | | 2,899 | | | | | | 3,543 | | |
Total Independent Accountant’s Fees
|
| | | | 1,828,705 | | | | | | 2,136,048 | | |
| | |
Shares Beneficially
Owned |
| |||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage(1)
|
| ||||||
5% or more Stockholders: | | | | | | | | | | | | | |
BlackRock, Inc.(2)
|
| | | | 6,682,835 | | | | | | 13.3% | | |
The Vanguard Group(3)
|
| | | | 5,088,819 | | | | | | 10.14% | | |
Dimensional Fund Advisors LP(4)
|
| | | | 3,864,098 | | | | | | 7.70% | | |
Directors and Named Executive Officers: | | | | | | | | | | | | | |
Ronald M. Lombardi(5)
|
| | | | 334,077 | | | | | | * | | |
Adel Mekhail(6)
|
| | | | 0 | | | | | | | | |
William C. P’Pool(7)
|
| | | | 41,673 | | | | | | * | | |
Christine Sacco(8)
|
| | | | 73,534 | | | | | | * | | |
Jeffrey Zerillo(9)
|
| | | | 14,977 | | | | | | * | | |
John E. Byom
|
| | | | 38,968 | | | | | | * | | |
Christopher J. Coughlin
|
| | | | 4,183 | | | | | | * | | |
Gary E. Costley
|
| | | | 48,968 | | | | | | * | | |
Sheila A. Hopkins
|
| | | | 14,497 | | | | | | * | | |
James M. Jenness
|
| | | | 19,059 | | | | | | * | | |
Natale S. Ricciardi
|
| | | | 15,768 | | | | | | * | | |
Dawn M. Zier
|
| | | | 0 | | | | | | * | | |
All directors and executive officers as a group (12 persons)(10)
|
| | | | 605,704 | | | | | | 1.2% | | |
| | |
Prior Plan(1)
|
| |||
Total shares underlying outstanding stock options
|
| | | | 1,209,659 | | |
Weighted-average exercise price of outstanding stock options
|
| | | $ | 37.53 | | |
Weighted-average remaining contractual life of outstanding stock options
|
| |
7.3 years
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Total shares underlying time-based outstanding unvested full value awards
|
| | | | 318,662 | | |
Total shares underlying performance-based outstanding full value awards
|
| | | | 268,278(2) | | |
Total shares currently available for grants
|
| | | | 827,210(3) | | |
Common Stock outstanding as of June 12, 2020
|
| | | | 50,188,863 | | |
Market price of Common Stock as of June 12, 2020
|
| | | $ | 40.30 | | |
Key Equity Metrics
|
| |
FY2020
|
| |
FY2019
|
| |
FY2018
|
| |||||||||
Restricted Stock Units Granted
|
| | | | 220,300 | | | | | | 226,400 | | | | | | 105,800 | | |
Options Granted
|
| | | | 302,700 | | | | | | 294,500 | | | | | | 182,800 | | |
Net Shares Granted
|
| | | | 523,000 | | | | | | 520,900 | | | | | | 288,600 | | |
Weighted Average Basic Shares Outstanding
|
| | | | 50,723,000 | | | | | | 52,068,000 | | | | | | 53,099,000 | | |
Burn Rate(1)
|
| | | | 1.03% | | | | | | 1.00% | | | | | | 0.54% | | |
Restricted Stock Units Outstanding
|
| | | | 512,100 | | | | | | 413,000 | | | | | | 393,500 | | |
Options Outstanding
|
| | | | 1,020,200 | | | | | | 944,600 | | | | | | 873,200 | | |
Net Shares Outstanding
|
| | | | 1,532,300 | | | | | | 1,357,600 | | | | | | 1,266,700 | | |
Shares Available (Fiscal Year End)
|
| | | | 1,470,436 | | | | | | 1,675,428 | | | | | | 2,139,845 | | |
Common Shares Outstanding
|
| | | | 51,203,040 | | | | | | 51,203,040 | | | | | | 51,731,171 | | |
Overhang(2) | | | | | 5.86% | | | | | | 5.92% | | | | | | 6.59% | | |
Dilution(3) | | | | | 2.99% | | | | | | 2.65% | | | | | | 2.45% | | |
Current Overhang (as of June 12, 2020)
|
| |
FY2021
|
| |||
Restricted Stock Units Outstanding
|
| | | | 586,940 | | |
Options Outstanding
|
| | | | 1,209,659 | | |
Net Shares Outstanding
|
| | | | 1,796,599 | | |
Shares Available
|
| | | | 827,210 | | |
Common Shares Outstanding
|
| | | | 50,188,863 | | |
Overhang(2) | | | | | 5.22% | | |
Dilution(3) | | | | | 3.58% | | |
Stock Awards
|
| |
Granted After FY2020
|
| |||
Restricted Stock Units Granted
|
| | | | 153,613 | | |
Options Granted
|
| | | | 249,875 | | |
Net Shares Granted
|
| | | | 403,488 | | |
Plan Category
|
| |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights (a) |
| |
Weighted-average
exercise price of outstanding options, warrants and rights (b) |
| |
Number of
securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) |
| |||||||||
Equity compensation plans approved by security holders
|
| | | | 1,746,317(1) | | | | | $ | 35.90(2) | | | | | | 1,280,256(3) | | |
Equity compensation plans not approved by security holders
|
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 1,746,317 | | | | | $ | 35.90 | | | | | | 1,280,256 | | |
Plan Category
|
| |
Number of
securities to be issued upon exercise of outstanding options, warrants and rights (a) |
| |
Weighted-average
exercise price of outstanding options, warrants and rights (b) |
| |
Number of
securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) |
| |||||||||
Equity compensation plans approved by security holders
|
| | | | 2,064,877(1) | | | | | $ | 37.53(2) | | | | | | 827,210(3) | | |
Equity compensation plans not approved by security
holders |
| | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | | 2,064,877 | | | | | $ | 37.53 | | | | | | 827,210 | | |
| | |
Adjusted Results
|
| |
Target
|
| ||||||
Sales
|
| | | $ | 3,126.5 | | | | | $ | 3,190.0 | | |
EBITDA
|
| | | $ | 1,052.0 | | | | | $ | 1,114.7 | | |
| √ | | |
The Compensation and Talent Management Committee is composed solely of independent directors
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| | √ | | |
Our executive severance plan does not contain a Section 280G excise tax “gross-up” provision.
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| √ | | |
The Compensation and Talent Management Committee’s independent compensation consultant, CAP, is retained directly by the Compensation and Talent Management Committee and performs no other consulting or other services for us.
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| | √ | | |
The Compensation and Talent Management Committee conducts an annual review of our compensation-related risk profile to ensure that compensation-related risks are not reasonably likely to have a material adverse effect on the Company
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| √ | | |
The change in control definition contained in our 2005 LTIP is not a “liberal” definition that would be activated on mere stockholder approval of a transaction.
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| | √ | | |
The Compensation and Talent Management Committee regularly reviews succession and talent management.
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| √ | | |
We prohibit hedging and limit pledging by the Company’s directors, executive officers and employees.
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| | √ | | |
Equity awards granted after May 2018 have a “double trigger” change in control vesting provision.
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| √ | | |
We maintain a compensation clawback policy, as described later in this CD&A.
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| | √ | | |
Our 2005 LTIP prohibits the repricing of stock options without stockholder approval
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| √ | | |
We maintain robust stock ownership guidelines, which are described in detail below.
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| | √ | | |
Our 2005 LTIP prohibits the granting of stock options with an exercise price below fair market value.
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| | | | | | | √ | | | We do not provide excessive perquisites. | |
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Pay Element
|
| |
What the Pay Element Is Intended to
Reward |
| |
Fixed or Variable
|
| |
Purpose of the Pay Element
|
|
| Base Salary | | | Skills, experience, competence, performance, responsibility, leadership and contribution to the Company | | | Fixed | | | Recognize the level of job scope and complexity, and the skills, experience, leadership and sustained performance required by the executive. | |
| Annual Cash Incentive (“AIP”) | | | Efforts to achieve annual target revenue and profitability | | | Variable | | |
Reward the achievement of annual performance targets.
Ensures compensation is properly aligned to financial performance, including being completely at risk for failure to meet annual financial threshold targets.
|
|
| Long-Term Incentives (Performance Stock Units, Restricted Stock Units and Stock Options) | | |
Efforts to achieve long-term revenue growth and profitability over the three year vesting period.
Ability to increase and maintain stock price
Achievement of adjusted cumulative EBITDA and cumulative revenue goals
Continued employment with the Company during the three year vesting period
|
| | Variable | | |
Reward achievement of long-term financial performance and strategic corporate initiatives.
Provide a competitive mix of incentives to attract and retain top talent and to further reinforce alignment between the interests of management and stockholders.
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|
Long-Term Incentive (LTI) Vehicle
|
| |
% of Target LTI Value: NEOs
other than CEO* |
| |
% of Target LTI Value: CEO
|
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Performance Stock Units
|
| | | | 33% | | | | | | 75% | | |
Stock Options
|
| | | | 33% | | | | | | 0% | | |
Service-based Restricted Stock Units
|
| | | | 33% | | | | | | 25% | | |
|
•
Akorn, Inc.
•
AMAG Pharmaceuticals, Inc.
•
B&G Foods Holdings Corp.
•
Calavo Growers Inc.
•
Church & Dwight Co.
•
Cott Corporation
•
Edgewell Personal Care Company
|
| |
•
Energizer Holdings, Inc.
•
Helen of Troy Limited
•
Hain Celestial Group, Inc.
•
Jazz Pharmaceuticals plc
•
Revlon, Inc.
•
Tupperware Brands Corp
•
Vista Outdoor Inc.
|
|
Name
|
| |
2021 Salary
|
| |
% Increase
|
| ||||||
Mr. Lombardi
|
| | | $ | 875,000 | | | | | | N/A | | |
Ms. Sacco
|
| | | $ | 522,675 | | | | | | N/A | | |
Mr. Mekhail
|
| | | $ | 440,000 | | | | | | N/A | | |
Mr. P’Pool
|
| | | $ | 457,750 | | | | | | N/A | | |
Mr. Zerillo
|
| | | $ | 316,725 | | | | | | N/A | | |
Metric
|
| |
Weighting
|
| |
Definition
|
| |
Rationale for Selection
|
|
AIP net sales
|
| | 50% | | | Total revenues | | | Drive consistent top-line growth | |
AIP Adjusted EBITDA
|
| | 50% | | | Net income plus depreciation and amortization, interest expense, integration, transition, purchase accounting, legal and various other costs associated with acquisitions and divestitures, tradename impairment and tax adjustment associated with acquisitions. | | | Drive stockholder value creation in terms of growth of earnings per share and free cash flow. The Compensation and Talent Management Committee assigned greater weight to the Adjusted EBITDA metric to recognize that profitable growth is critical. | |
| | | | | | | | |
Performance Level / Payout (mil)
|
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Metric
|
| |
Weighting
|
| |
Threshold
(50%) |
| |
Target
(100%) |
| |
Maximum
(200%) |
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Net Sales
|
| | | | 50% | | | | | $ | 859.7 | | | | | $ | 955.2 | | | | | $ | 1,050.7 | | |
Adjusted EBITDA
|
| | | | 50% | | | | | $ | 294.8 | | | | | $ | 327.6 | | | | | $ | 360.4 | | |
Name
|
| |
Target Bonus
|
| |
Company
Performance Payout (105.5% of Target Bonus) |
| |
Individual
Performance Adjustment |
| |
Total Payout
|
| ||||||||||||
Mr. Lombardi
|
| | | $ | 875,000 | | | | | $ | 923,125 | | | | | $ | 131,875 | | | | | $ | 1,055,000 | | |
Ms. Sacco
|
| | | $ | 313,605 | | | | | $ | 330,853 | | | | | $ | 63,147 | | | | | $ | 394,000 | | |
Mr. Mekhail
|
| | | $ | 194,700* | | | | | $ | 205,409 | | | | | $ | 19,591 | | | | | $ | 225,000* | | |
Mr. P’Pool
|
| | | $ | 228,875 | | | | | $ | 241,463 | | | | | $ | 23,537 | | | | | $ | 265,000 | | |
Mr. Zerillo
|
| | | $ | 126,690 | | | | | $ | 133,658 | | | | | $ | 19,342 | | | | | $ | 153,000 | | |
Name
|
| |
2020 Targeted Award Value
|
| |||
Mr. Lombardi
|
| | | $ | 3,075,000 | | |
Ms. Sacco
|
| | | $ | 785,000 | | |
Mr. Mekhail
|
| | | $ | 440,000 | | |
Mr. P’Pool
|
| | | $ | 470,000 | | |
Mr. Zerillo
|
| | | $ | 320,000 | | |
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Performance Stock Units
|
| |
•
Vest at the end of three years if company achieves pre-established goals relative to cumulative adjusted EBITDA and cumulative Net Sales (each weighted 50%)
•
Participants can earn up to 200% of the target number of shares with exceptional performance
•
If performance is below target, but above threshold, participants can earn 50% of their award
•
If performance is below threshold, participants earn 0% of their award
|
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Stock Options
|
| | Vest ratably* over three years based on service | |
|
Restricted Stock Units
|
| | Vest ratably* over three years based on service | |
Office
|
| |
Value of Stockholdings Required to be Owned
|
|
Non-Employee Director
|
| | 5X Annual Retainer | |
Chief Executive Officer
|
| |
5X Annual Salary (exclusive of annual bonus) (increased from 4X)
|
|
Chief Financial Officer
|
| | 3X Annual Salary (exclusive of annual bonus) | |
Other senior executive officers
|
| | 2X Annual Salary (exclusive of annual bonus) | |
Name
|
| |
Age
|
| |
Position
|
|
Ronald M. Lombardi | | |
56
|
| | President and Chief Executive Officer | |
Christine Sacco | | |
45
|
| | Chief Financial Officer | |
Adel Mekhail | | |
59
|
| | Executive Vice President of Marketing & Sales | |
William C. P’Pool | | |
54
|
| |
Senior Vice President, General Counsel and Corporate Secretary
|
|
Jeffrey Zerillo | | |
59
|
| | Senior Vice President, Operations | |
Name and Principal Position
|
| |
Fiscal
Year |
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards(6) ($) |
| |
Option
Awards(7) ($) |
| |
Non-Equity
Incentive Plan Compensation(8) ($) |
| |
All
Other Compensation ($) |
| |
Total
($) |
| ||||||||||||||||||||||||
Ronald M. Lombardi
President and Chief Executive Officer |
| | | | 2020 | | | | | | 875,000 | | | | | | | | | | | | 3,075,000 | | | | | | 0 | | | | | | 1,055,000 | | | | | | 46,679(9) | | | | | | 5,051,679 | | |
| | | 2019 | | | | | | 850,000 | | | | | | | | | | | | 2,660,002 | | | | | | 0 | | | | | | 722,925 | | | | | | 41,620(9) | | | | | | 4,274,547 | | | ||
| | | 2018 | | | | | | 850,000 | | | | | | | | | | | | 1,700,021 | | | | | | 835,004 | | | | | | 765,000 | | | | | | 41,378(9) | | | | | | 4,191,404 | | | ||
Christine Sacco
Chief Financial Officer |
| | | | 2020 | | | | | | 522,675 | | | | | | | | | | | | 523,309 | | | | | | 261,671 | | | | | | 394,000 | | | | | | 13,820(12) | | | | | | 1,715,475 | | |
| | | 2019 | | | | | | 505,000 | | | | | | | | | | | | 506,653 | | | | | | 253,333 | | | | | | 269,973 | | | | | | 8,645(10) | | | | | | 1,543,604 | | | ||
| | | 2018 | | | | | | 487,000 | | | | | | | | | | | | 487,035 | | | | | | 239,200 | | | | | | 292,200 | | | | | | 33,505(11) | | | | | | 1,538,940 | | | ||
Adel Mekhail(1)
Executive Vice President, Sales and Marketing |
| | | | 2020 | | | | | | 390,076 | | | | | | | | | | | | 219,994 | | | | | | 219,994 | | | | | | 225,000(3) | | | | | | 13,200(10) | | | | | | 1,068,264 | | |
William C. P’Pool
Senior Vice President, General Counsel and Corporate Secretary |
| | | | 2020 | | | | | | 457,750 | | | | | | | | | | | | 313,362 | | | | | | 156,668 | | | | | | 265,000 | | | | | | 12,960(10) | | | | | | 1,205,740 | | |
| | | 2019 | | | | | | 425,000 | | | | | | | | | | | | 283,346 | | | | | | 141,670 | | | | | | 189,338 | | | | | | 12,540(10) | | | | | | 1,051,894 | | | ||
| | | 2018 | | | | | | 410,000 | | | | | | | | | | | | 273,368 | | | | | | 134,260 | | | | | | 205,000 | | | | | | 91,548(11) | | | | | | 1,114,176 | | | ||
Jeffrey Zerillo(2)
Senior Vice President, Operations |
| | | | 2020 | | | | | | 316,725 | | | | | | | | | | | | 213,325 | | | | | | 106,668 | | | | | | 153,000 | | | | | | 10,689(10) | | | | | | 800,407 | | |
| | | 2019 | | | | | | 296,125 | | | | | | 100,000(4) | | | | | | 382,744(5) | | | | | | 102,997 | | | | | | 110,128 | | | | | | 13,249(10) | | | | | | 1,005,243 | | |
| | | | | | | | |
Estimated Future
Payouts Under Non-Equity Incentive Plan Awards(1) |
| |
Estimated Future
Payouts Under Equity Incentive Plan Awards(2) |
| |
All Other
Stock Awards: Number of Shares or Stock of Units (#)(3) |
| |
All Other
Option Awards: Number of Securities Underlying Options (#)(4) |
| |
Exercise
or Base Price of Option Awards ($/Sh) |
| |
Grant Date
Fair Value of Stock and Option Awards ($)(5) |
| ||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Threshold
($) |
| |
Target
($) |
| |
Maximum
($) |
| |
Threshold
(#) |
| |
Target
(#) |
| |
Maximum
(#) |
| |||||||||||||||||||||||||||||||||||||||||||||
Mr. Lombardi
|
| | | | | | | | | | 437,500 | | | | | | 875,000 | | | | | | 1,750,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | | | | NA | | | | | | 0 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,155 | | | | | | | | | | | | | | | | | | 768,750 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | 37,733 | | | | | | 75,466 | | | | | | 150,932 | | | | | | | | | | | | | | | | | | | | | | | | 2,306,250 | | | ||
Ms. Sacco
|
| | | | | | | | | | 156,802 | | | | | | 313,605 | | | | | | 627,210 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 24,686 | | | | | | 30.56 | | | | | | 261,671 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 8,562 | | | | | | | | | | | | | | | | | | 261,655 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | 4,281 | | | | | | 8,562 | | | | | | 17,124 | | | | | | | | | | | | | | | | | | | | | | | | 261,654 | | | ||
Mr. Mekhail(6)
|
| | | | | | | | | | 97,350 | | | | | | 194,700 | | | | | | 389,400 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 5/13/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 21,194 | | | | | | 30.19 | | | | | | 219,994 | | | ||
| | | 5/13/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 7,287 | | | | | | | | | | | | | | | | | | 219,994 | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | NA | | | | | | NA | | | | | | NA | | | | | | | | | | | | | | | | | | | | | | | | 0 | | | ||
Mr. P’Pool
|
| | | | | | | | | | 114,437 | | | | | | 228,875 | | | | | | 457,750 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,780 | | | | | | 30.56 | | | | | | 156,668 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,127 | | | | | | | | | | | | | | | | | | 156,681 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | 2,563 | | | | | | 5,127 | | | | | | 10,254 | | | | | | | | | | | | | | | | | | | | | | | | 156,681 | | | ||
Mr. Zerillo
|
| | | | | | | | | | 63,345 | | | | | | 126,690 | | | | | | 253,380 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,063 | | | | | | 30.56 | | | | | | 106,668 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 3,490 | | | | | | | | | | | | | | | | | | 106,663 | | | ||
| | | 5/6/2019 | | | | | | | | | | | | | | | | | | | | | | | | 1,745 | | | | | | 3,490 | | | | | | 6,980 | | | | | | | | | | | | | | | | | | | | | | | | 106,662 | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||||||||||||||
Name
|
| |
Number
of Securities Underlying Unexercised Options (#) Exercisable |
| |
Number
of Securities Underlying Unexercised Options (#) Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number
of Shares or Units of Stock That Have Not Vested (#) |
| |
Market
Value of Shares or Units of Stock That Have Not Vested(1) ($) |
| |
Equity
Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
| |
Equity
Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested(1) ($) |
| ||||||||||||||||||||||||
Mr. Lombardi | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 25,155(16) | | | | | | 922,685 | | | | | | 37,733(20) | | | | | | 1,384,046 | | |
| | | | | 26,258(9) | | | | | | 13,129(9) | | | | | | 56.11 | | | | | | 5/8/2027 | | | | | | 15,049(15) | | | | | | 551,997 | | | | | | 33,860(19) | | | | | | 1,241,985 | | |
| | | | | 53,725(10) | | | | | | 0(10) | | | | | | 57.18 | | | | | | 5/9/2026 | | | | | | 5,050(14) | | | | | | 185,234 | | | | | | 12,271(18) | | | | | | 277,851 | | |
| | | | | 32,800(2) | | | | | | 0(2) | | | | | | 33.50 | | | | | | 5/12/2024 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 38,793(3) | | | | | | 0(3) | | | | | | 29.94 | | | | | | 5/14/2023 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 52,367(4) | | | | | | 0(4) | | | | | | 13.24 | | | | | | 5/9/2022 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 23,220(5) | | | | | | 0(5) | | | | | | 11.27 | | | | | | 5/10/2021 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 6,373(6) | | | | | | 0(6) | | | | | | 11.90 | | | | | | 12/5/2020 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ms. Sacco | | | | | 0(12) | | | | | | 24,686(12) | | | | | | 30.56 | | | | | | 5/6/2029 | | | | | | 8,562(16) | | | | | | 314,054 | | | | | | 4,281(20) | | | | | | 157,027 | | |
| | | | | 8,262(11) | | | | | | 16,526(11) | | | | | | 29.46 | | | | | | 5/7/2028 | | | | | | 5,733(15) | | | | | | 210,286 | | | | | | 4,300(19) | | | | | | 157,724 | | |
| | | | | 7,522(9) | | | | | | 3,761(9) | | | | | | 56.11 | | | | | | 5/8/2027 | | | | | | 1,447(14) | | | | | | 53,076 | | | | | | 3,516(18) | | | | | | 79,596 | | |
| | | | | 25,746(7) | | | | | | 0(7) | | | | | | 47.39 | | | | | | 9/12/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mr. Mekhail | | | | | 0(13) | | | | | | 21,194(13) | | | | | | 30.19 | | | | | | 5/13/2029 | | | | | | 7,287(17) | | | | | | 267,287 | | | | | | | | | | | | | | |
Mr. P’Pool | | | | | 0(12) | | | | | | 14,780(12) | | | | | | 30.56 | | | | | | 5/6/2029 | | | | | | 5,127(16) | | | | | | 188,058 | | | | | | 2,564(20) | | | | | | 94,048 | | |
| | | | | 4,620(11) | | | | | | 9,242(11) | | | | | | 29.46 | | | | | | 5/7/2028 | | | | | | 3,206(15) | | | | | | 117,596 | | | | | | 2,405(19) | | | | | | 88,215 | | |
| | | | | 4,222(9) | | | | | | 2,111(9) | | | | | | 56.11 | | | | | | 5/8/2027 | | | | | | 812(14) | | | | | | 29,784 | | | | | | 1,974(18) | | | | | | 44,676 | | |
| | | | | 13,683(8) | | | | | | 0(8) | | | | | | 50.06 | | | | | | 11/14/2026 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mr. Zerillo | | | | | 0(12) | | | | | | 10,063(12) | | | | | | 30.56 | | | | | | 5/6/2029 | | | | | | 3,490(16) | | | | | | 128,013 | | | | | | 1,745(20) | | | | | | 64,007 | | |
| | | | | 3,359(11) | | | | | | 6,719(11) | | | | | | 29.46 | | | | | | 5/7/2028 | | | | | | 6,331(15) | | | | | | 232,221 | | | | | | 1,748(19) | | | | | | 64,117 | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||
Name
|
| |
Number of Shares
Acquired on Exercise (#) |
| |
Value Realized on
Exercise ($)(1) |
| |
Number of Shares
Acquired on Vesting (#) |
| |
Value Realized
on Vesting ($)(2) |
| ||||||||||||
Mr. Lombardi
|
| | | | 0 | | | | | | 0 | | | | | | 23,067 | | | | | | 701,327 | | |
Ms. Sacco
|
| | | | 0 | | | | | | 0 | | | | | | 9,325 | | | | | | 306,814 | | |
Mr. Mekhail
|
| | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Mr. P’Pool
|
| | | | 0 | | | | | | 0 | | | | | | 5,079 | | | | | | 173,800 | | |
Mr. Zerillo
|
| | | | 0 | | | | | | 0 | | | | | | 3,165 | | | | | | 95,425 | | |
Name
|
| |
Termination by
Company Without Cause or Resignation with Good Reason ($)(1) |
| |
Death/
Disability ($)(2) |
| |
Qualifying
Termination in Connection with Change in Control ($)(3) |
| |
Change in Control
(Absent Qualifying Termination) ($)(4) |
| ||||||||||||
Mr. Lombardi
|
| | | | 2,655,170 | | | | | | 4,563,762 | | | | | | 11,902,948 | | | | | | 3,776,830 | | |
Ms. Sacco
|
| | | | 866,450 | | | | | | 1,242,141 | | | | | | 3,369,369 | | | | | | 857,283 | | |
Mr. Mekhail
|
| | | | 690,170 | | | | | | 404,836 | | | | | | 1,785,176 | | | | | | 0 | | |
Mr. P’Pool
|
| | | | 716,795 | | | | | | 719,522 | | | | | | 2,380,014 | | | | | | 479,854 | | |
Mr. Zerillo
|
| | | | 473,585 | | | | | | 598,454 | | | | | | 1,441,526 | | | | | | 408,966 | | |
Name
|
| |
Fees Earned or
Paid in Cash ($) |
| |
Stock Awards
($)(1) |
| |
Total
($) |
| |||||||||
Dr. Costley
|
| | | | 104,500 | | | | | | 145,024 | | | | | | 249,524 | | |
Mr. Byom
|
| | | | 97,000 | | | | | | 145,024 | | | | | | 242,024 | | |
Mr. Coughlin
|
| | | | 40,416 | | | | | | 145,024 | | | | | | 185,440 | | |
Ms. Hopkins
|
| | | | 79,500 | | | | | | 145,024 | | | | | | 224,524 | | |
Mr. Jenness
|
| | | | 93,875 | | | | | | 145,024 | | | | | | 238,899 | | |
Mr. Ricciardi
|
| | | | 79,500 | | | | | | 145,024 | | | | | | 224,524 | | |
Ms. Zier
|
| | | | -0- | | | | | | 36,261 | | | | | | 36,261 | | |
(dollar values in thousands)
|
| |
20 16
|
| |
20 17
|
| |
20 18
|
| |
20 19
|
| |
20 20
|
| |||||||||||||||
GAAP Net Income (Loss)
|
| | | $ | 99,907 | | | | | $ | 69,395 | | | | | $ | 339,570 | | | | | $ | (35,800) | | | | | $ | 142,281 | | |
Interest Expense, net
|
| | | | 85,160 | | | | | | 93,343 | | | | | | 105,879 | | | | | | 105,082 | | | | | | 96,224 | | |
Provision (benefit) for income taxes
|
| | | | 57,278 | | | | | | 41,455 | | | | | | (232,484) | | | | | | (2,255) | | | | | | 48,870 | | |
Depreciation and amortization
|
| | | | 23,676 | | | | | | 25,792 | | | | | | 33,426 | | | | | | 31,779 | | | | | | 28,995 | | |
Non- GAAP EBITDA
|
| | | | 266,021 | | | | | | 229,985 | | | | | | 246,391 | | | | | | 98,806 | | | | | | 316,370 | | |
Inventory step up
|
| | | | 1,387 | | | | | | 1,664 | | | | | | — | | | | | | — | | | | | | — | | |
Costs associated with CEO transition
|
| | | | 1,406 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Integration, transition, legal fees and other
costs associated with acquisitions, divestitures and warehouse transitions |
| | | | 2,401 | | | | | | 19,624 | | | | | | 5,528 | | | | | | 4,442 | | | | | | 10,920 | | |
Tradename impairment
|
| | | | — | | | | | | — | | | | | | 99,924 | | | | | | 229,461 | | | | | | — | | |
Loss on extinguishment of debt
|
| | | | 17,970 | | | | | | 1,420 | | | | | | 2,901 | | | | | | — | | | | | | 2,155 | | |
Loss on disposal of assets
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 382 | | |
Tax adjustment associated with acquisitions
|
| | | | — | | | | | | — | | | | | | 704 | | | | | | — | | | | | | — | | |
Adjustments to EBITDA
|
| | | | 23,164 | | | | | | 74,528 | | | | | | 109,057 | | | | | | 232,619 | | | | | | 13,457 | | |
Non- GAAP Adjusted AIP EBITDA
|
| | | $ | 289,185 | | | | | $ | 304,513 | | | | | $ | 355,448 | | | | | $ | 331,425 | | | | | $ | 329,827 | | |
|
| | |
2019
|
| |
2020
|
| ||||||||||||||||||
(dollar values in thousands, except per share data)
|
| |
Net Income
|
| |
EPS
|
| |
Net Income
|
| |
EPS
|
| ||||||||||||
GAAP Net Income (Loss)
|
| | | $ | (35,800) | | | | | $ | (0.68) | | | | | $ | 142,281 | | | | | $ | 2.78 | | |
Adjustments | | | | | | | | | | | | | | | | | | | | | | | | | |
Integration, Transition, and other costs associated with divesititures
and warehouse transiiton |
| | | | 4,442 | | | | | | 0.08 | | | | | | 9,170 | | | | | | 0.18 | | |
Loss on Disposal of Assets
|
| | | | — | | | | | | — | | | | | | 382 | | | | | | 0.01 | | |
(Gain) loss on divestitures
|
| | | | (1,284) | | | | | | (0.02) | | | | | | — | | | | | | — | | |
Accelerated amortization of debt discounts and debt issue costs
|
| | | | 706 | | | | | | 0.01 | | | | | | — | | | | | | — | | |
Tradename impairment
|
| | | | 229,461 | | | | | | 4.38 | | | | | | — | | | | | | — | | |
Loss on extinguishment of debt
|
| | | | — | | | | | | — | | | | | | 2,155 | | | | | | 0.04 | | |
Tax impact on adjustments
|
| | | | (57,863) | | | | | | (1.10) | | | | | | (2,974) | | | | | | (0.06) | | |
Normalized tax rate adjustment
|
| | | | 6,132 | | | | | | 0.11 | | | | | | 318 | | | | | | 0.01 | | |
Total adjustments
|
| | | | 181,594 | | | | | | 3.46 | | | | | | 9,051 | | | | | | 0.18 | | |
Non- GAAP Adjusted Net Income and Non-GAAP Adjusted EPS
|
| | | $ | 145,794 | | | | | $ | 2.78 | | | | | $ | 151,332 | | | | | $ | 2.96 | | |
(dollar values in millions)
|
| |
FY 2018 to FY 2020 Total
|
| |||
GAAP Total Revenues
|
| | | $ | 2,980.0 | | |
Adjustments for divestiture of Household
|
| | | | 146.5 | | |
Adjusted Total Net Sales used for May 2017 Performance Share Grant Payout
|
| | | $ | 3,126.5 | | |
GAAP Net Income
|
| | | $ | 446.1 | | |
Interest Expense, net
|
| | | | 307.2 | | |
Benefit for income taxes
|
| | | | (185.9) | | |
Depreciation and amortization
|
| | | | 94.2 | | |
Non-GAAP EBITDA
|
| | | | 661.6 | | |
Integration, transition, legal fees and other costs associated with acquisitions, divestitures and warehouse transitions
|
| | | | 20.9 | | |
Goodwill and tradename impairment
|
| | | | 329.4 | | |
Loss on extinguishment of debt
|
| | | | 5.1 | | |
Loss on disposal of assets
|
| | | | 0.4 | | |
Tax adjustment associated with acquisitions
|
| | | | 0.7 | | |
Adjustments for divestiture of Household
|
| | | | 33.9 | | |
Adjustments to EBITDA
|
| | | | 390.4 | | |
Non-GAAP Adjusted EBITDA used for May 2017 Performance Share Grant Payout
|
| | | $ | 1,052.0 | | |