Sunbeam 2007 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2007 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 156

  • 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
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156

upon IRS audit related to the pre-acquisition period of an acquired business. At December 31, 2007, the amount
of gross unrecognized tax benefits that, if recognized, would affect the reported tax rate are approximately $31
and the amount of gross unrecognized tax benefits as a result of purchase accounting is approximately $66. The
Company is indemnified for approximately $24 of the gross unrecognized tax benefit from the sellers of acquired
companies.
The Company conducts business globally and, as a result, the Company or its subsidiaries file income tax
returns in the U.S. federal jurisdiction and various state, local, and foreign jurisdictions. In the normal course of
business, the Company or its subsidiaries are subject to examination by tax authorities throughout the world,
including such major jurisdictions as Canada, France, Germany, Hong Kong, Japan, Mexico, Venezuela, and the
United States. The Company is currently under examination for the income tax filings in various state and
foreign jurisdictions.
At December 31, 2007, the Company believes it has no tax positions for which it is reasonably possible that
the total amounts of unrecognized tax benefits may significantly change within twelve months with the exception
of the following:
• Potential settlement by a subsidiary in a foreign jurisdiction for issues arising under audit of the years
beginning April 1, 1999 through March 31, 2002. Settlement of these issues raised under audit was
estimated to be $7.9, all of which has been recorded in the unrecognized tax benefit pursuant to FIN 48.
• The settlement of issues arising from IRS audits for the 2003 and 2004 tax years at an amount estimated
to be $4.5, all of which has been recorded in the unrecognized tax benefit pursuant to FIN 48.
The Company classifies all interest and penalties on uncertain tax positions as income tax expense, which is
consistent with the classification in prior years. As of December 31, 2007, the liability for tax-related interest was
$8.2. Additionally, the 2007 provision for income taxes includes $2 of tax-related interest.
13. Stockholders’ Equity and Share-Based Awards
The Company maintains the Amended and Restated 2003 Stock Incentive Plan, as amended (the “2003
Plan”), which allows for grants of stock options, restricted stock and short-term cash awards. There were
approximately 1.3 million shares available for grant under the 2003 Plan at December 31, 2007.
Stock Options
Prior to 2003, the Company granted stock options to key employees and non-employee directors under the
2001 Stock Option Plan, the 1998 Long-Term Equity Incentive Plan, the 1993 Stock Option Plan and the 1993
and 1996 Stock Option Plans for Non-employee Directors. There are no remaining shares available for grant
under any of these plans as of December 31, 2007.
87