Sunbeam 2006 Annual Report Download - page 75

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14.EARNINGS PER SHARE CALCULATION
Acomputation of earnings per share is as follows:
Years Ended December 31,
(in millions, except per share data) 2006 2005 2004
Net income, as reported $106.0$60.7$42.4
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 allocable to common stockholders $106.0$12.1$42.4
Weighted average shares outstanding 65.452.941.0
Additional shares assuming conversion of stock options and restricted stock 1.11.81.7
Weighted average shares outstanding assuming conversion 66.554.742.7
Earnings per share:
Basic $ 1.62 $0.23 $1.03
Diluted $ 1.59 $0.22 $0.99
15.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.
The pension and postretirement obligations aremeasured as of September 30,for all years presented and arecalculated
using generally accepted actuarial methods. Actuarial gains and losses are amortized using the corridor method over the aver-
age remaining service life of its active employees.
The following table discloses the effect on the Consolidated Balance Sheet of adopting the provisions of SFAS 158 at
December 31,2006.
Before After
Application of Application of
SFAS 158 Adjustments SFAS 158
Accrued pension cost $ (65.6)$(1.0)$(66.6)
Accrued postretirement benefit cost (27.7)8.1(19.6)
Minimum pension liability (6.5)6.5—
Deferred income taxes, net (105.2)(5.9)(111.1)
Accumulated other comprehensive income (18.8) (7.7) (26.5)
Notes to Consolidated Financial Statements
Jarden Corporation 2006 Annual Report
73