Sunbeam 2005 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2005 Sunbeam annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 92

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92

Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2005
second quarter of 2005. Through December 31, 2005, the Company had repurchased 558,900 shares in the
open market and through a privately negotiated transaction for an average price per share of $34.55.
Additionally, the Company received 460,317 shares (at an average price of $34.50 per share) in return for
payment of the statutory minimum of withholding taxes relating to lapsing of certain shares of the
Executive Award.
10. Earnings Per Share Calculation
A computation of earnings per share is as follows (in millions, except per share data):
Years Ended
December 31,
2005 2004 2003
Net income, as reported ....................................... $60.7 $42.4 $31.8
Paid-in-kind dividends on Series B and C preferred stock ....... (9.7) — —
Charges from beneficial conversions of Series B and Series C
preferred stock ......................................... (38.9) — —
Income available to common stockholders ........................ $12.1 $42.4 $31.8
Weighted average shares outstanding ............................ 52.9 41.0 34.0
Additional shares assuming conversion of stock options and restricted
stock ..................................................... 1.8 1.7 1.3
Weighted average shares outstanding assuming conversion .......... 54.7 42.7 35.3
Earnings per share:
Basic ................................................... $0.23 $1.03 $0.93
Diluted ................................................. $0.22 $0.99 $0.90
11. Employee Benefit Plans
The Company maintains defined benefit pension plans for certain of its employees and provides
certain postretirement medical and life insurance benefits for a portion of its employees. In January 2005, in
connection with the AHI Acquisition, the Company acquired plan assets and assumed the benefit
obligations of the pension and postretirement medical and life insurance plans of AHI. Except for one, all
of the AHI pension plans are frozen to new entrants and to benefit accruals. Also, only one postretirement
medical plan is open to a limited number of new retirees. The other AHI postretirement medical plans are
frozen to new entrants.
In December 2003, the Medicare Prescription Drug, Improvement and Modernization Act of 2003
(“Medicare Act”) was signed into law. The Medicare Act introduced a prescription drug benefit under
Medicare Part D and a federal subsidy to sponsors of retirement health plans that provide a benefit that is
at least actuarially equivalent to Medicare Part D. In May 2004, the FASB issued Staff Position No. FAS
106-2, “Accounting and Disclosure Requirements Related to the Medicare Prescription Drug,
Improvement and Modernization Act of 2003” (“FSP 106-2”). FSP 106-2, which provides guidance on
accounting for the effects of the Medicare Act, requires companies eligible for Federal subsidies under the
Medicare Act to recognize the expected benefit in their determination of the accumulated benefit
obligation for their postretirement plans.
73