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Capitalization
9 Months Ended
Jun. 30, 2012
Capitalization [Abstract]  
Capitalization

Note 5 - Capitalization

 

Common Stock.  During the nine months ended June 30, 2012, the Company issued 442,894 original issue shares of common stock as a result of stock option and SARs exercises and 41,525 original issue shares for restricted stock awards (non-vested stock as defined by the current accounting literature for stock-based compensation).  In addition, the Company issued 118,523 original issue shares of common stock for the Direct Stock Purchase and Dividend Reinvestment Plan.  The Company also issued 11,705 original issue shares of common stock to the non-employee directors of the Company who receive compensation under the Company’s 2009 Non-Employee Director Equity Compensation Plan, as partial consideration for the directors’ services during the nine months ended June 30, 2012.  Holders of stock options, SARs or restricted stock will often tender shares of common stock to the Company for payment of option exercise prices and/or applicable withholding taxes.  During the nine months ended June 30, 2012, 156,961 shares of common stock were tendered to the Company for such purposes.  The Company considers all shares tendered as cancelled shares restored to the status of authorized but unissued shares, in accordance with New Jersey law.

 

Current Portion of Long-Term Debt.  Current Portion of Long-Term Debt at June 30, 2012 consists of $250 million of 5.25% notes that mature in March 2013.  Current Portion of Long-Term Debt at September 30, 2011 consisted of $150 million of 6.70% notes that matured in November 2011.

 

Long-Term Debt.  On December 1, 2011, the Company issued $500.0 million of 4.90% notes due December 1, 2021.  After deducting underwriting discounts and commissions, the net proceeds to the Company amounted to $496.1 million.  The holders of the notes may require the Company to repurchase their notes at a price equal to 101% of the principal amount in the event of a change in control and a ratings downgrade to a rating below investment grade.  The proceeds of this debt issuance were used for general corporate purposes, including refinancing short-term debt that was used to pay the $150 million due at the maturity of the Company’s 6.70% notes in November 2011.