Sunbeam 2008 Annual Report Download - page 60

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2008 (Dollars in millions, except per share data and unless otherwise indicated)
14. Earnings Per Share Calculation
Acomputation of the weighted average shares outstanding is as follows:
Years Ended December 31,
(In millions) 2008 2007 2006
Weighted average shares outstanding:
Basic 75.2 71.9 65.4
Dilutive share-based awards (1) — 1.4 1.1
Diluted 75.2 73.3 66.5
(1) For 2008 excludes 1.1 million potentially dilutive share-based awards as their effect would be antidilutive.
Stock options and warrants to purchase approximately 3.1 million, 3.1 million and 0.1 million shares of the Company’s common stock at
December 31, 2008, 2007 and 2006 had exercise prices that exceeded the average market price of the Company’s common stock for the three
months ended December 31, 2008, 2007 and 2006, respectively. As such, these share-based awards did not affect the computation of diluted
earnings per share.
15. Employee Benefit Plans
The Companymaintains defined benefit pension plans for certain of its employees and provides certain postretirement medical and life
insurance benefits for a portion of its employees. At December 31, 2008, substantially all the domestic pension and postretirement plans are
frozen to new entrants and to future benefit accruals.
For 2008, pursuant to the measurement date provisions of SFAS 158, the pension and postretirement obligations are measured as of
December 31, 2008. For 2007, the pension and postretirement obligations are measured as of September 30 and December 31. For 2006, the pen-
sion and postretirement obligations aremeasured as of September 30, 2006. The pension and postretirement obligations for 2007 measured at
December 31 are the obligations resulting from the acquisitions of K2 and Pure Fishing. For the plans measured as of December 31, the aggregate
benefit obligation and plan assets at December 31, 2007 are $89.1 and $74.8, respectively. Benefit obligations are calculated using generally
accepted actuarial methods. Actuarial gains and losses are amortized using the corridor method over the average remaining service life of its
active employees.
Net Periodic Expense
The components of net periodic pension and postretirement benefit expense for 2008, 2007 and 2006 are as follows:
Pension Benefits
2008 2007 2006
(In millions) Domestic Foreign Total Domestic Foreign Total Domestic Foreign Total
Service cost $ 0.2 $ 1.0 $ 1.2 $ 0.4 $ 0.8 $ 1.2 $ 0.7 $ 0.7 $ 1.4
Interest cost 18.3 1.9 20.2 15.9 1.2 17.1 13.9 0.6 14.5
Expected returnon plan assets (18.5) (1.2) (19.7) (14.7) (0.8) (15.5) (12.5) (0.4) (12.9)
Amortization:
Prior service cost — — — 0.1 — 0.1 0.1 — 0.1
Net actuarial loss — — — 0.2 — 0.2 0.3 0.1 0.4
Net periodic cost — 1.7 1.7 1.9 1.2 3.1 2.5 1.0 3.5
Curtailments and settlements 0.3 (0.1) 0.2 0.9 — 0.9 0.1 (0.2) (0.1)
Total expense $0.3 $ 1.6 $ 1.9 $ 2.8 $ 1.2 $ 4.0 $ 2.6 $ 0.8 $ 3.4
Assumptions
Weighted average assumption
used tocalculatenet
periodic cost:
Discount rate 6.21% 5.37% 6.12% 5.88% 4.95% 5.80% 5.43% 4.51% 5.39%
Expected return on plan assets 8.14% 5.72% 7.94% 8.11% 5.94% 8.00% 8.24% 6.43% 8.18%
Rateof compensation increase — 4.07% 4.07% — 3.80% 3.80% — 3.52% 3.52%
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