Sunbeam 2007 Annual Report Download - page 81

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In September 2006, the FASB issued SFAS No. 158,“Employers’ Accounting for Defined Benefit Pension
and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R)” (“SFAS 158”).
Among other items, SFAS 158 requires recognition of the overfunded or underfunded status of an entity’s
defined benefit postretirement plan as an asset or liability in the financial statements, requires the measurement
of defined benefit postretirement plan assets and obligations as of the end of the employer’s fiscal year and
requires recognition of the funded status of defined benefit postretirement plans in other comprehensive income.
The effect of the adoption of the recognition and disclosure provisions of SFAS 158 is disclosed in Note 15. The
measurement date provisions of SFAS 158 require the measurement of defined benefit plan assets and
obligations as of the date of the Company’s fiscal year-end statement of financial position. These provisions are
effective for fiscal years ending after December 15, 2008 with earlier application permitted. The Company
expects to adopt the measurement date provisions of SFAS 158 for the year ending December 31, 2008 and
expects to use the second transition approach as defined by SFAS 158. This transition approach allows the
Company to estimate the effects of the change by using of the measurements to be determined as September 30,
2007 and that will be used for the year ended December 31, 2007. The Company does not expect the adoption of
the measurement date provisions of SFAS 158 to have a material affect on the Company’s consolidated statement
of financial position.
3. Acquisitions
2007 Activity
On April 6, 2007 the Company acquired Pure Fishing, a leading global provider of fishing equipment
marketed under well-known fishing brands including Abu-Garcia®, Berkley®, Fenwick®, Gulp!®, Mitchell®,
Stren®and Trilene®. The consideration consisted of $300 in cash, a $100 five year subordinated note with a 2%
coupon and a warrant exercisable into approximately 2.2 million shares of Jarden common stock with an initial
exercise price of $45.32 per share (subject to adjustment as provided therein). The purchase price includes the
fair value of the Note at the date of acquisition of approximately $94. In addition to the upfront purchase price, a
contingent purchase price payment of up to $50 based on the future financial performance of the acquired
business may be paid and at December 31, 2007, $25 of this amount is accrued for payment in 2008. The Pure
Fishing acquisition is consistent with the Company’s strategy of purchasing leading, niche consumer-oriented
brands with attractive cash flows and strong management.
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