Sunbeam 2010 Annual Report Download - page 55

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2010 (Dollars in millions, except per share data and unless otherwise indicated)
Stockholders’ Equity
In March 2010, the Board authorized a $50 increase in the Company’s existing stock repurchase program to allow the Company
to repurchase an aggregate of up to $150 of its common stock. Under this stock repurchase program, the Company repurchased
approximately 1.4 million and 1.5 million shares of its common stock in 2010 and 2008, respectively, at an average price of $29.62
and $15.12 per share, respectively. There were no shares repurchased in 2009.
In September 2009, the Company announced that the Board had decided to initiate a quarterly cash dividend. In December 2010,
the Board declared a quarterly cash dividend of $0.0825 per share of the Company’s common stock, or $7.3, paid on January 31,
2011 to stockholders of record as of the close of business on January 3, 2011. Cash dividends paid to stockholders in 2010 and 2009
was $28.7 and $6.6, respectively. The actual declaration of any future cash dividends, and the establishment of record and payment
dates, will be subject to final determination by the Board each quarter after its review of the Company’s financial performance.
In April 2009, the Company completed an equity offering of 12.0 million newly-issued shares of common stock at $17.50 per share.
The net proceeds to the Company were approximately $203.
At December 31, 2010, the Company had a common stock warrant (the “Warrant”) outstanding that grants the holder the right
to purchase approximately 2.2 million shares of Jarden common stock at an initial exercise price of $45.32 per share (subject to
adjustment as provided therein). The Warrant must be exercised in full and expires on March 31, 2012. The Company has the option
to require the holder to exercise the Warrant if the closing price of Jarden’s common stock exceeds $50.99 per share (subject to
equitable adjustment for certain transactions) for a period of three consecutive trading days. If the holder of the Note, (see Note 9)
causes Jarden to redeem the Note, then the threshold price for the right of mandatory exercise of the Warrant will be reduced from
the aforementioned $50.99 per share to $45.32 per share.
14. Earnings Per Share Calculation
A computation of the weighted average shares outstanding for 2010, 2009 and 2008 is as follows:
Stock options and warrants to purchase approximately 2.4 million, 2.9 million and 3.1 million shares of the Company’s common stock
at December 31, 2010, 2009 and 2008 had exercise prices that exceeded the average market price of the Company’s common stock
for the three months ended December 31, 2010, 2009 and 2008, respectively. As such, these share-based awards did not affect the
computation of diluted earnings per share.
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. At December 31, 2010, substantially all the domestic pension and
postretirement plans are frozen to new entrants and to future benefit accruals. 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. The pension and postretirement benefit obligations are measured as of December 31 for 2010 and 2009.
(In millions) 2010 2009 2008
Weighted average shares outstanding:
Basic 89.0 84.1 75.2
Dilutive share-based awards (1) 0.8 0.7 —
Diluted 89.8 84.8 75.2
(1) For 2008, excludes 1.1 million potentially dilutive share-based awards as their effect would be anti-dilutive.
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