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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2008 (Dollars in millions, except per share data and unless otherwise indicated)
The weighted average assumptions used to determine the fair value of options granted is as follows:
2008 2007 2006
Expected volatility 37.7% —% 36.0%
Risk-free interest rates 3.2% —% 3.5%
Expected life (in years) 4.5 — 5.0
During 2008, the Company has granted approximately 0.9 million common stock options (the “Awards”). The weighted average grant
date fair value of each award was $7.44 per share with an aggregate fair value of $6.5 for the grant. The Awards vest ratably over the explicit
service period.
Restricted Shares of Common Stock
The Company issues restricted share awards whose restrictions lapse upon either the passage of time (service vesting), achieving
performance targets, attaining Company common stock price thresholds, or some combination of these restrictions. For those restricted
share awards with common stock price thresholds, the fair values were determined using a Monte Carlo simulation embedded in a lattice
model.The fair value for all other restricted share awards were based on the closing price of the Company’s common stock on the dates
of grant.
Asummary of the Company’s restricted share activity for 2008, 2007 and 2006 is as follows:
Weighted
average
(Shares in thousands) Shares fair value
Outstanding as of December 31, 2005 1,928.6 $ 32.00
Granted 1,207.4 28.56
Released (173.8) 30.63
Cancelled (162.1) 31.98
Outstanding as of December 31, 2006 2,800.1 30.60
Granted 2,057.7 34.94
Released (2,470.6) 31.05
Cancelled (338.5) 31.84
Outstanding as of December 31, 2007 2,048.7 33.98
Granted 277.4 19.51
Released (581.4) 30.18
Cancelled (286.0) 31.13
Outstanding as of December 31, 2008 1,458.7 $ 33.30
For those restricted awards with common stock price thresholds, the weighted average grant date fair values of these awards were
$17.30, $37.34 and $21.91 for the years ended December 31, 2008, 2007 and 2006, respectively, based on the following assumptions:
2008 2007 2006
Expected volatility 37.0% 36.4% 36.3%
Risk-free interest rates 3.3% 4.6% 3.5%
Derived service periods (in years) 2.4 0.6 1.5
For all other restricted share awards the weighted average grant date fair values $19.60, $33.47 and $29.29 for the years ended
December 31, 2008, 2007 and 2006, respectively.
During 2008, the majority of the restricted shares granted were primarily performance based awards which vest upon achievement
of certain internal performance measures and fulfillment of the explicit service periods.
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