|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
13-1920657
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
450 Plymouth Road, Suite 300, Plymouth Meeting, PA
|
|
19462
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
¨
|
Accelerated filer
|
x
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
¨
|
|
|
PAGE NO.
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Sales
|
$
|
101,291
|
|
|
$
|
111,477
|
|
|
$
|
146,609
|
|
|
$
|
155,705
|
|
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
69,691
|
|
|
73,686
|
|
|
102,712
|
|
|
105,472
|
|
||||
Selling, general and administrative expenses
|
20,921
|
|
|
20,100
|
|
|
38,495
|
|
|
37,400
|
|
||||
Interest income, net
|
(4
|
)
|
|
(10
|
)
|
|
(93
|
)
|
|
(82
|
)
|
||||
Other (income) expense, net
|
(387
|
)
|
|
48
|
|
|
(478
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
90,221
|
|
|
93,824
|
|
|
140,636
|
|
|
142,790
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
11,070
|
|
|
17,653
|
|
|
5,973
|
|
|
12,915
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income tax expense
|
4,078
|
|
|
6,424
|
|
|
2,267
|
|
|
4,754
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
6,992
|
|
|
$
|
11,229
|
|
|
$
|
3,706
|
|
|
$
|
8,161
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.77
|
|
|
$
|
1.23
|
|
|
$
|
0.41
|
|
|
$
|
0.88
|
|
Diluted
|
$
|
0.77
|
|
|
$
|
1.22
|
|
|
$
|
0.41
|
|
|
$
|
0.87
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
9,076
|
|
|
9,148
|
|
|
9,065
|
|
|
9,245
|
|
||||
Diluted
|
9,107
|
|
|
9,237
|
|
|
9,111
|
|
|
9,345
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends per share of common stock
|
$
|
0.20
|
|
|
$
|
0.18
|
|
|
$
|
0.40
|
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
September 30,
2016 |
|
March 31,
2016 |
|
September 30,
2015 |
||||||
Assets
|
|
|
|
|
|
||||||
Current assets
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
30,241
|
|
|
$
|
19,927
|
|
|
$
|
27,745
|
|
Short-term investments
|
—
|
|
|
59,806
|
|
|
24,929
|
|
|||
Accounts receivable, net of allowances of $1,524, $1,363 and $1,375
|
91,577
|
|
|
45,144
|
|
|
95,080
|
|
|||
Inventories
|
93,701
|
|
|
73,022
|
|
|
79,265
|
|
|||
Other current assets
|
12,741
|
|
|
12,792
|
|
|
10,587
|
|
|||
Total current assets
|
228,260
|
|
|
210,691
|
|
|
237,606
|
|
|||
Property, plant and equipment, net
|
27,204
|
|
|
27,053
|
|
|
25,769
|
|
|||
Deferred income taxes
|
2,363
|
|
|
3,193
|
|
|
4,413
|
|
|||
Other assets
|
|
|
|
|
|
||||||
Goodwill
|
19,677
|
|
|
19,974
|
|
|
15,820
|
|
|||
Intangible assets, net
|
41,160
|
|
|
42,183
|
|
|
31,770
|
|
|||
Other
|
6,657
|
|
|
6,832
|
|
|
5,810
|
|
|||
Total other assets
|
67,494
|
|
|
68,989
|
|
|
53,400
|
|
|||
Total assets
|
$
|
325,321
|
|
|
$
|
309,926
|
|
|
$
|
321,188
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
||||||
Current liabilities
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
27,790
|
|
|
$
|
14,463
|
|
|
$
|
27,165
|
|
Accrued payroll and other compensation
|
7,070
|
|
|
9,016
|
|
|
7,368
|
|
|||
Accrued customer programs
|
3,622
|
|
|
3,275
|
|
|
3,920
|
|
|||
Accrued income taxes
|
551
|
|
|
—
|
|
|
3,173
|
|
|||
Other current liabilities
|
9,823
|
|
|
7,051
|
|
|
9,641
|
|
|||
Total current liabilities
|
48,856
|
|
|
33,805
|
|
|
51,267
|
|
|||
Long-term obligations
|
4,590
|
|
|
4,631
|
|
|
4,295
|
|
|||
Stockholders’ equity
|
271,875
|
|
|
271,490
|
|
|
265,626
|
|
|||
Total liabilities and stockholders’ equity
|
$
|
325,321
|
|
|
$
|
309,926
|
|
|
$
|
321,188
|
|
|
Six Months Ended September 30,
|
||||||
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
3,706
|
|
|
$
|
8,161
|
|
Adjustments to reconcile net income to net cash used for operating activities:
|
|
|
|
||||
Depreciation and amortization
|
4,270
|
|
|
4,102
|
|
||
Accretion of investment discount
|
(194
|
)
|
|
(160
|
)
|
||
Provision for accounts receivable allowances
|
2,553
|
|
|
1,530
|
|
||
Deferred tax provision
|
799
|
|
|
745
|
|
||
Share-based compensation expense
|
688
|
|
|
867
|
|
||
Gain on bargain purchase
|
(376
|
)
|
|
—
|
|
||
Loss on sale of assets
|
43
|
|
|
—
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(48,987
|
)
|
|
(54,558
|
)
|
||
Inventory
|
(19,815
|
)
|
|
(13,774
|
)
|
||
Other assets
|
(48
|
)
|
|
(293
|
)
|
||
Accounts payable
|
13,652
|
|
|
13,942
|
|
||
Other accrued liabilities
|
1,683
|
|
|
2,077
|
|
||
Total adjustments
|
(45,732
|
)
|
|
(45,522
|
)
|
||
Net cash used for operating activities
|
(42,026
|
)
|
|
(37,361
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Maturities of investment securities
|
60,000
|
|
|
70,000
|
|
||
Purchase of held-to-maturity investment securities
|
—
|
|
|
(24,924
|
)
|
||
Purchase of a business
|
(1,125
|
)
|
|
—
|
|
||
Purchase of property, plant and equipment
|
(2,831
|
)
|
|
(2,817
|
)
|
||
Purchase of intangibles
|
(100
|
)
|
|
—
|
|
||
Proceeds from sale of fixed assets
|
311
|
|
|
23
|
|
||
Net cash provided by investing activities
|
56,255
|
|
|
42,282
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Dividends paid
|
(3,634
|
)
|
|
(3,321
|
)
|
||
Purchase of treasury stock
|
—
|
|
|
(10,000
|
)
|
||
Exercise of stock options, net of tax withholdings
|
(32
|
)
|
|
—
|
|
||
Payments for tax withholding on net restricted stock settlements
|
(527
|
)
|
|
(518
|
)
|
||
Tax effect on stock awards
|
278
|
|
|
234
|
|
||
Net cash used for financing activities
|
(3,915
|
)
|
|
(13,605
|
)
|
||
Net increase (decrease) in cash and cash equivalents
|
10,314
|
|
|
(8,684
|
)
|
||
Cash and cash equivalents at beginning of period
|
19,927
|
|
|
36,429
|
|
||
Cash and cash equivalents at end of period
|
$
|
30,241
|
|
|
$
|
27,745
|
|
(1)
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
|
September 30, 2016
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||
Raw material
|
$
|
10,919
|
|
|
$
|
11,392
|
|
|
$
|
11,376
|
|
Work-in-process
|
14,474
|
|
|
17,745
|
|
|
13,603
|
|
|||
Finished goods
|
68,308
|
|
|
43,885
|
|
|
54,286
|
|
|||
|
$
|
93,701
|
|
|
$
|
73,022
|
|
|
$
|
79,265
|
|
|
September 30, 2016
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||
Land
|
$
|
2,508
|
|
|
$
|
2,508
|
|
|
$
|
2,508
|
|
Buildings, leasehold interests and improvements
|
34,612
|
|
|
34,317
|
|
|
33,754
|
|
|||
Machinery, equipment and other
|
89,630
|
|
|
87,675
|
|
|
86,722
|
|
|||
|
126,750
|
|
|
124,500
|
|
|
122,984
|
|
|||
Less - Accumulated depreciation and amortization
|
(99,546
|
)
|
|
(97,447
|
)
|
|
(97,215
|
)
|
|||
Net property, plant and equipment
|
$
|
27,204
|
|
|
$
|
27,053
|
|
|
$
|
25,769
|
|
|
Three Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
6,992
|
|
|
$
|
11,229
|
|
|
$
|
3,706
|
|
|
$
|
8,161
|
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding for basic net income per common share
|
9,076
|
|
|
9,148
|
|
|
9,065
|
|
|
9,245
|
|
||||
Effect of dilutive stock options
|
31
|
|
|
89
|
|
|
46
|
|
|
100
|
|
||||
Adjusted weighted average shares outstanding for diluted net income per common share
|
9,107
|
|
|
9,237
|
|
|
9,111
|
|
|
9,345
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share
|
$
|
0.77
|
|
|
$
|
1.23
|
|
|
$
|
0.41
|
|
|
$
|
0.88
|
|
Diluted net income per common share
|
$
|
0.77
|
|
|
$
|
1.22
|
|
|
$
|
0.41
|
|
|
$
|
0.87
|
|
(2)
|
BUSINESS ACQUISITION
|
Inventory
|
$
|
865
|
|
Property, plant and equipment
|
350
|
|
|
Intangible assets
|
500
|
|
|
Total assets acquired
|
1,715
|
|
|
Deferred tax liability
|
(214
|
)
|
|
Net assets acquired
|
$
|
1,501
|
|
(3)
|
SHARE-BASED COMPENSATION
|
|
Stock Options
|
|
RSUs
|
||||||||
|
Six Months Ended September 30,
|
|
Six Months Ended September 30,
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||
Risk-free interest rate
|
1.66
|
%
|
|
1.96
|
%
|
|
1.20
|
%
|
|
1.29
|
%
|
Volatility
|
35.12
|
%
|
|
36.90
|
%
|
|
33.08
|
%
|
|
36.86
|
%
|
Dividend yield
|
2.91
|
%
|
|
2.59
|
%
|
|
2.99
|
%
|
|
2.60
|
%
|
Expected life of option (in years)
|
4.75
|
|
|
4.75
|
|
|
|
|
|
(4)
|
DERIVATIVE FINANCIAL INSTRUMENTS
|
|
|
|
Fair Value of Derivative Instruments
|
||||||
|
|
|
Fair Value
|
||||||
|
Balance Sheet Location
|
|
September 30, 2016
|
|
September 30, 2015
|
||||
Foreign currency forward contracts
|
Other current assets
|
|
$
|
14
|
|
|
$
|
97
|
|
(5)
|
INTANGIBLE ASSETS
|
Balance at March 31, 2016
|
$
|
19,974
|
|
Decrease in goodwill - Blumenthal
|
(297
|
)
|
|
Balance at September 30, 2016
|
$
|
19,677
|
|
|
September 30, 2016
|
|
March 31, 2016
|
|
September 30, 2015
|
||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
||||||||||||
Tradenames and trademarks
|
$
|
15,553
|
|
|
$
|
—
|
|
|
$
|
15,553
|
|
|
$
|
—
|
|
|
$
|
12,953
|
|
|
$
|
—
|
|
Customer relationships
|
39,757
|
|
|
14,940
|
|
|
39,157
|
|
|
13,444
|
|
|
29,957
|
|
|
12,183
|
|
||||||
Patents
|
1,164
|
|
|
767
|
|
|
1,164
|
|
|
708
|
|
|
1,164
|
|
|
650
|
|
||||||
Trademarks
|
403
|
|
|
348
|
|
|
403
|
|
|
333
|
|
|
403
|
|
|
318
|
|
||||||
Non-compete
|
530
|
|
|
192
|
|
|
530
|
|
|
139
|
|
|
530
|
|
|
86
|
|
||||||
|
$
|
57,407
|
|
|
$
|
16,247
|
|
|
$
|
56,807
|
|
|
$
|
14,624
|
|
|
$
|
45,007
|
|
|
$
|
13,237
|
|
Remainder of fiscal 2017
|
$
|
1,681
|
|
Fiscal 2018
|
3,362
|
|
|
Fiscal 2019
|
3,305
|
|
|
Fiscal 2020
|
3,244
|
|
|
Fiscal 2021
|
3,056
|
|
(6)
|
TREASURY STOCK TRANSACTIONS
|
(7)
|
COMMITMENTS AND CONTINGENCIES
|
(8)
|
FAIR VALUE MEASUREMENTS
|
|
|
|
Fair Value Measurements at September 30, 2016 Using
|
||||||||||||
|
September 30, 2016
|
|
Quoted Prices In
Active Markets
for Identical
Assets (Level 1)
|
|
Significant Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
$
|
296
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign exchange contracts
|
14
|
|
|
—
|
|
|
14
|
|
|
—
|
|
||||
Cash surrender value of life insurance policies
|
1,166
|
|
|
—
|
|
|
1,166
|
|
|
—
|
|
||||
Total assets
|
$
|
1,476
|
|
|
$
|
296
|
|
|
$
|
1,180
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plans
|
$
|
296
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total liabilities
|
$
|
296
|
|
|
$
|
296
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurements at March 31, 2016 Using
|
||||||||||||
|
March 31, 2016
|
|
Quoted Prices In
Active Markets
for Identical
Assets (Level 1)
|
|
Significant Other
Observable
Inputs (Level 2)
|
|
Significant
Unobservable
Inputs (Level 3)
|
||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Marketable securities
|
$
|
278
|
|
|
$
|
278
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Cash surrender value of life insurance policies
|
1,153
|
|
|
—
|
|
|
1,153
|
|
|
—
|
|
||||
Total assets
|
$
|
1,431
|
|
|
$
|
278
|
|
|
$
|
1,153
|
|
|
$
|
—
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Deferred compensation plans
|
$
|
278
|
|
|
$
|
278
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total liabilities
|
$
|
278
|
|
|
$
|
278
|
|
|
$
|
—
|
|
|
$
|
—
|
|
(9)
|
RECENT ACCOUNTING PRONOUNCEMENTS
|
|
Less than 1
Year
|
|
1-3
Years
|
|
4-5
Years
|
|
After 5
Years
|
|
Total
|
|||||||
Letters of credit
|
$
|
1,136
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
1,136
|
|
(a)
|
Evaluation of Disclosure Controls and Procedures
. As of the end of the period covered by this report, the Company’s management, with the participation of the Company’s President and Chief Executive Officer and Vice President – Finance and Interim Chief Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures in accordance with Rule 13a-15 of the Securities Exchange Act of 1934 (the “Exchange Act”). Based upon that evaluation, the President and Chief Executive Officer and Vice President – Finance and Interim Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective in providing reasonable assurance that information required to be disclosed by the Company in reports that it files under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (ii) accumulated and communicated to our management, including the President and Chief Executive Officer and Vice President – Finance and Interim Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure.
|
(b)
|
Changes in Internal Controls
. There was no change in the Company’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) as promulgated by the Securities and Exchange Commission under the Exchange Act) during the
second
quarter of fiscal year
2017
that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
|
*10.1
|
CSS Industries, Inc. Change of Control Severance Pay Plan for Executive Management (as amended through August 1, 2016).
|
*10.2
|
Summary of Sales Commission Arrangement for Carey Edwards adopted August 1, 2016.
|
10.3
|
CSS Industries, Inc. 2013 Equity Compensation Plan, as amended and restated effective August 2, 2016 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on August 5, 2016).
|
*10.4
|
Form of Grant Instrument for Restricted Stock Units granted to Non-Employee Directors on August 2, 2016 under the Company's 2013 Equity Compensation Plan.
|
*Exhibit 31.1
|
Certification of the Chief Executive Officer of CSS Industries, Inc. required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
*Exhibit 31.2
|
Certification of the Chief Financial Officer of CSS Industries, Inc. required by Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
*Exhibit 32.1
|
Certification of the Chief Executive Officer of CSS Industries, Inc. required by Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U. S. C. Section 1350.
|
*Exhibit 32.2
|
Certification of the Chief Financial Officer of CSS Industries, Inc. required by Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U. S. C. Section 1350.
|
*101.INS
|
XBRL Instance Document.
|
*101.SCH
|
XBRL Schema Document.
|
*101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
*101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
*101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
CSS INDUSTRIES, INC.
|
||
|
(Registrant)
|
||
|
|
|
|
Date: October 25, 2016
|
By:
|
|
/s/ Christopher J. Munyan
|
|
|
|
Christopher J. Munyan
|
|
|
|
President and Chief Executive Officer
|
|
|
|
(principal executive officer)
|
|
|
|
|
Date: October 25, 2016
|
By:
|
|
/s/ David F. McHugh
|
|
|
|
David F. McHugh
|
|
|
|
Vice President – Finance and Interim Chief Financial Officer
|
|
|
|
(principal financial and accounting officer)
|
1.
|
Plan Name:
CSS Industries, Inc. Change of Control Severance Pay Plan for Executive Management
|
2.
|
Plan Number:
507
|
3.
|
Plan Sponsor:
CSS Industries, Inc.
|
4.
|
Employer Identification Number:
13-1920657
|
5.
|
Type of Plan:
Welfare Benefit – Severance Pay Plan
|
6.
|
Plan Administrator:
Change of Control Severance Pay Plan Administrator
|
7.
|
Agent for Service of Legal Process:
The Plan Administrator at the address above.
|
8.
|
Sources of Contributions:
The Plan is unfunded and CSS and the Participating Subsidiaries pay all Plan benefits from their assets.
|
9.
|
Type of Administration:
The Plan is administered by the Plan Administrator with benefits provided in accordance with the provisions of this Plan document.
|
10.
|
Recordkeeping:
The Plan and its records are kept on a fiscal year basis, April 1 through March 31. For the first plan year, the records are kept on the short plan year for the period between May 27, 2009 and March 31, 2010.
|
11.
|
Participating Subsidiaries:
The subsidiaries and affiliates of CSS that participate in the Plan are identified in the attached
Exhibit A
.
|
(i)
|
any “person” (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than persons who are stockholders on the effective date of the Plan) becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of CSS representing more than 50% of the voting power of the then outstanding securities of CSS; provided that a Change of Control shall not be deemed to occur as a result of a change of ownership resulting from the death of a stockholder, and a Change of Control shall not be deemed to occur as a result of a transaction in which CSS becomes a subsidiary of another corporation and in which the stockholders of CSS, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote);
|
(ii)
|
the consummation of a merger or consolidation of CSS with another corporation where the stockholders of CSS, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote); or
|
(iii)
|
the consummation of a sale or other disposition of all or substantially all of the assets of CSS.
|
(i)
|
a material diminution in your authority, duties or responsibilities;
|
(ii)
|
a material diminution in your base compensation;
|
(iii)
|
a material diminution in the authority, duties or responsibilities of the supervisor to whom you are required to report; or
|
(iv)
|
a material change in the geographic location at which you must provide services.
|
1.
|
You voluntary resign, including retirement, for any reason other than Good Reason.
|
2.
|
You are discharged involuntarily for Cause, or the Employer discovers following your Employment Termination Date that you engaged in conduct that constitutes Cause during or after your Employment Termination Date.
|
3
|
You have an individual employment contract that contains a severance pay provision that provides severance in excess of the amount you would be eligible to receive under the Plan.
|
4.
|
Prior to or on your last day of scheduled employment, you die.
|
5.
|
Prior to notification of an Employment Termination Date, you would be entitled to benefits under any then applicable Employer-sponsored long-term disability plan if you were a participant in such plan, subject to the expiration of applicable waiting period.
|
6.
|
Your Employment Termination Date occurs prior to a Change of Control or your Employment Termination Date occurs after the second anniversary of the Change of Control, except in the event in which the occurrence of the Good Reason condition first occurs prior to the second anniversary of the Change of Control.
|
7.
|
You do not execute, or you revoke, the Release.
|
8.
|
You elect in writing to receive severance benefits under another severance pay plan then in effect and under which you may be eligible to receive severance benefits.
|
(i)
|
any accrued and unpaid base pay and benefits due and owing to you for the period prior to your Employment Termination Date;
|
(ii)
|
an amount equal to your Adjusted Compensation multiplied by 1.5 (2.0 in the case of CSS’ Chief Executive Officer); and
|
(iii)
|
a pro rata bonus, based upon the period of time you were employed by the Employer during the Employer’s fiscal year in which the Employment Termination Date occurs, which payment shall be based upon 100% achievement of your target annual bonus opportunity for such fiscal year.
|
1.
|
The Employer determines that you engaged in any of the actions defined above as “Cause,” even if such determination is made following your Employment Termination Date.
|
2.
|
You breach any term of your Release, post-employment agreement, or other agreement relating to your employment.
|
a.
|
set forth the specific reason(s) for the denial of benefits;
|
b.
|
contain specific references to Plan provisions on which the denial is based;
|
c.
|
describe any additional material and information, if any, necessary for the claim for benefits to be perfected, and an explanation of why such material or information is necessary; and
|
d.
|
describe the Plan’s review procedures and the time limits applicable to such procedures, and include a statement of the claimant’s right to bring a civil action under section 502(a) of the ERISA following an adverse benefit determination on review.
|
•
|
Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites, all documents governing the Plan, including a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.
|
•
|
Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including copies of the latest annual report (Form 5500 Series) and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies.
|
ATTEST
|
CSS INDUSTRIES, INC.
|
|
|
(Corporate Seal)
|
|
|
|
_________________________
|
By: ______________________________
|
|
ACCEPTED:
|
|
|
|
|
|
By: ______________________________
|
|
[Name]
(Grantee)
|
/s/ Christopher J. Munyan
|
Christopher J. Munyan,
|
President and Chief Executive Officer
|
(principal executive officer)
|
/s/ David F. McHugh
|
David F. McHugh
|
Vice President – Finance and Interim Chief Financial Officer
|
(principal financial officer)
|
/s/ Christopher J. Munyan
|
Christopher J. Munyan
|
President and Chief Executive Officer
|
(principal executive officer)
|
/s/ David F. McHugh
|
David F. McHugh
|
Vice President – Finance and Interim Chief Financial Officer
|
(principal financial officer)
|