XML 64 R18.htm IDEA: XBRL DOCUMENT v3.19.3
Stockholders' Equity
 12 Months Ended
Sep. 28, 2019
Stockholders' Equity [Abstract]  
Stockholders' Equity
11.  Stockholders’ Equity

Share Repurchases

In August 2018, the Company announced that its Board authorized a $500 million share repurchase program.  Share repurchases will be made through open market purchases, privately negotiated transactions, Rule 10b5-1 plans, or other transactions in accordance with applicable securities laws and in such amounts at such times as we deem appropriate based upon prevailing market and business conditions and other factors.  The share repurchase program has no expiration date and may be suspended at any time.

During fiscal 2019, the Company repurchased approximately 1,512 thousand shares for $72 million, at an average price of $47.64. All share repurchases were immediately retired.  Common stock was reduced by the number of shares retired at $0.01 par value per share. The Company allocates the excess purchase price over par value between additional paid-in capital and retained earnings.

Equity Incentive Plans

In fiscal 2018, the Company amended the 2015 Berry Global Group, Inc. Long-Term Incentive Plan to authorize the issuance of 12.5 million shares, an increase of 5 million shares from the previous authorization.

The Company recognized total share-based compensation expense of $27 million, $23 million, and $20 million for fiscal 2019, 2018, and 2017, respectively.  The intrinsic value of options exercised in fiscal 2019 was $43 million.

Information related to the equity incentive plans as of the fiscal years ended are as follows:


 
2019
    
2018
  
   
Number of Shares
(in thousands)
    
Weighted Average
Exercise Price
    
Number of Shares
(in thousands)
    
Weighted Average
Exercise Price
  
Options outstanding, beginning of period
    
10,744
    
$
32.40
      
10,760
    
$
28.18
  
Options granted
    
2,259
      
47.66
      
1,453
      
54.33
  
Options exercised
    
(2,476
)
    
22.41
      
(1,176
)
    
18.62
  
Options forfeited or cancelled
    
(264
)
    
46.07
      
(293
)
    
41.30
  
Options outstanding, end of period
    
10,263
    
$
37.82
      
10,744
    
$
32.40
  
                                 
Option price range at end of period
  
$
3.04-54.33
            
$
3.04-54.33
          
Options exercisable at end of period
    
4,720
              
5,154
          
Options available for grant at period end
    
5,099
              
7,094
          
Weighted average fair value of options granted during period
  
$
15.34
            
$
17.84
          

The fair value for options granted has been estimated at the date of grant using a Black-Scholes model, generally with the following weighted average assumptions:


  
2019
    
2018
    
2017
  
Risk-free interest rate
    
2.5
%
    
2.7
%
    
2.2
%
Dividend yield
    
0.0
%
    
0.0
%
    
0.0
%
Volatility factor
    
26.3
%
    
26.1
%
    
26.0
%
Expected option life
  
6.5 years
    
6.5 years
    
6.5 years
  

For purposes of the valuation model in fiscal years 2019, 2018, and 2017, the Company used the simplified method due to the lack of historical data upon which to estimate the expected term.

The following table summarizes information about the options outstanding as of fiscal 2019:

Range of
Exercise Prices
    
Number
Outstanding
(in thousands)
    
Intrinsic Value
of Outstanding
(in millions)
  
Weighted
Remaining
Contractual Life
  
Weighted
Exercise Price
    
Number
Exercisable
(in thousands)
    
Intrinsic Value
of Exercisable
(in millions)
    
Unrecognized
Compensation
(in millions)
  
Weighted
Recognition
Period
$
3.04-54.33
      
10,263
    
$
69
  
6.5 years
  
$
37.82
      
4,720
    
$
54
    
$
5
  
2.1 years