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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2010 (Dollars in millions, except per share data and unless otherwise indicated)
During the second quarter of 2010, the Company recorded a non-cash charge of $17.3 to reflect impairment of goodwill in the
Company’s Branded Consumables segment. The impairment was due to a decrease in the fair value of forecasted cash flows,
reflecting the deterioration of revenues and margins in this segment’s Arts and Crafts business due to a decline in 2010 of forecasted
sales to a major customer.
In the fourth quarter of 2009, the Company’s impairment test resulted in a non-cash charge of $12.8 to reflect impairment of
goodwill in the Company’s Branded Consumables segment. The impairment charge was recorded within the Arts and Crafts
business unit. The impairment was due to a decrease in the fair value of forecasted cash flows, reflecting the deterioration of
revenues and margins in the business.
In the fourth quarter of 2008, the Company’s annual impairment test resulted in a non-cash charge of $172 to reflect impairment of
goodwill in the Company’s Branded Consumables and Outdoor Solutions segments. In the Branded Consumables segment, the
impairment charge was recorded within the Firelog, Lehigh and United States Playing Cards business units. In the Outdoor Solutions
segment, the impairment charge was recorded within the Apparel and Footwear reporting unit. The impairment for these reporting
units was due to a decrease in the fair value of forecasted cash flows, reflecting the continued deterioration of macroeconomic
conditions, which accelerated and became apparent during the fourth quarter of 2008 (hereafter referred to as “continued
deterioration of macroeconomic conditions”).
Intangibles activity for 2010 and 2009 is as follows:
December 31, 2009
(In millions)
Net Book
Value at
December 31,
2008 Additions
Impairment
Charge
Foreign
Exchange and
Other
Adjustments
Gross
Carrying
Amount
Accumulated
Impairment
Charges
Net
Book
Value
Goodwill
Outdoor Solutions $ 625.6 $ 11.7 $ — $ 23.3 $ 679.1 $ (18.5) $ 660.6
Consumer Solutions 481.1 6.9 — 3.5 491.5 — 491.5
Branded Consumables 347.8 6.9 (12.8) 2.9 511.4 (166.6) 344.8
Process Solutions 21.6 — — (0.1) 21.5 — 21.5
$ 1,476.1 $ 25.5 $ (12.8) $ 29.6 $ 1,703.5 $ (185.1) $ 1,518.4
(In millions)
Gross
Carrying
Amount at
December 31,
2009 Additions
Impairment
Charge
Accumulated
Amortization
and Foreign
Exchange
Net Book
Value at
December 31,
2010
Amortization
Periods
(years)
Intangibles
Patents $ 7.2 $ — $ — $ (1.7) $ 5.5 12-30
Non-compete agreements 3.7 — — (3.6) 0.1 1-5
Manufacturing process and expertise 30.9 11.2 — (28.5) 13.6 3-7
Brand names 3.2 15.1 — (0.9) 17.4 4-10
Customer relationships and distributor channels 151.7 101.9 — (31.4) 222.2 10-35
Trademarks and tradenames 781.0 146.8 (2.4) (1.6) 923.8 Indefinite
$ 977.7 $ 275.0 $ (2.4) $ (67.7) $ 1,182.6
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