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Notes to Consolidated Financial Statements
Jarden Corporation 2006 Annual Report
71
For those restricted awards with common stock price thresholds, the weighted average grant date fair values of these awards
were $21.91, $32.40 and $27.66 for the years ended December 31,2006,2005 and 2004,respectively, based on the following
assumptions:
2006 2005 2004
Expected volatility 36.3%41.8%42.8%
Risk-free interest rates 3.5%3.7%3.5%
Derived service periods (in years) 1.45 0.89 1.25
For all other restricted share awards the weighted average grant date fair values $29.29, $46.28 and $22.60 for the years
ended December 31,2006,2005 and 2004, respectively.
For the year ended December 31,2006,the Company recognized $21.6million of compensation cost related to restricted
shares that was recognized in the selling, general and administrative expense in the Consolidated Statements of Income. The
majority of the restricted shares granted during 2006 were primarily performance based awards which vest upon achievement
of certain internal performance measures and fulfillment of the explicit service periods. Additionally, there were 119,667
restricted shares granted which vest on the date certain Jarden common stock prices targets are achieved and explicit service
periods are rendered.
Atotal of 2,175,000 of the restricted shares issued in 2005 were awarded to certain executive officers (the “Executive
Award”) of the Company pursuant to the 2003 Plan. For the year ended December 31,2005,the Company recognized $54.2
million of non-cash compensation related to the entire Executive Award although half of the award was released from restric-
tion. On November 1,2005,the restrictions over the first of two tranches of the Executive Award lapsed. In conjunction with
such lapsing and in accordance with the terms of the 2003 Plan, the holders returned a total of 460,317 shares to the
Company (at an average price of $34.50 per share) in exchange for the Company’s payment of the withholding taxes, calculat-
ed consistent with existing minimum withholding requirements, due upon lapsing. Under SFAS 123r, the derived service
period for the second tranche of the Executive Award was six months from the date of grant; therefore, there is no unearned
compensation cost related to the Executive Award. As of December 31,2005,although the full amount of compensation
expense for the Executive Awardwas recognized in selling, general and administrative costs within the Consolidated
Statements of Income, the restrictions over the second tranche still have not yet lapsed and these shares vest on the date on
which certain Jarden common stock price targets are achieved in accordance with the terms of the related agreements.
In August 2004,the Company’s board of directors (“Board”) approved the granting of an aggregate of 210,000 restricted
shares of the Company’s common stock to three executive officers of the Company. The restrictions on these shares wereto
lapse ratably over a three year period commencing January 1,2005 and would lapse immediately in the event of a change in
control. Following the signing of the AHI transaction during October 2004,the Boardamended the terms of all of the
210,000 restricted shares of common stock issued in August 2004 to lapse immediately. Also in conjunction with the AHI
transaction, during October 2004,the Board accelerated the granting of an aggregate amount of 1,102,500 restricted shares
of common stock under the 2003 Plan to two executive officers of the Company that would otherwise have been granted to
these executive officers in 2005-2007 pursuant to such executives’ employment agreements. The Board approved that the
restrictions on these shares lapsed upon issuance. The Company records non-cash stock-based compensation expense for its
issued and outstanding restricted stock either when the restrictions lapse or ratably over time, when the passage of time is the
only restriction. As such, the Company recorded a non-cash stock-based compensation expense for all these restricted stock
issuances and restriction lapses of approximately $32.4million in the fourth quarter of 2004.The restrictions on 7,500 of
these shares lapsed immediately and the Company recorded a non-cash compensation charge based on the fair market value of
its common stock on the date of grant. The restrictions on the remaining 7,500 of these shares lapse ratably over a four year
period. All of the shares which still have a restriction remaining will have the restrictions lapse immediately upon the event of
achange in control. Also during 2004,the Company issued 105,120 (“2004 Shares”) of restricted stock to certain other offi-
cers and employees. The restrictions on 40,125 of the 2004 Shares lapse ratably over five years of employment with the