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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)
Impairment charges for 2010, 2009 and 2008 were allocated to the Company’s reporting segments as follows:
Impairments—2010
During the second quarter of 2010, the Company recorded a non-cash charge of $1.0 within the Branded Consumables segment to
reflect the impairment of certain tradenames within this segment’s Arts and Crafts business. 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 due to a decline in
2010 of forecasted sales to a major customer. The remainder of the impairment charges to tradenames during 2010, are primarily
due to a decline in forecasted revenues.
Impairments—2009
In the fourth quarter of 2009, the Company’s impairment test resulted in a non-cash charge of $10.1 to reflect impairment of
intangible assets related to certain of the Company’s tradenames. In the Outdoor Solutions segment, the impairment charge
recorded relates primarily to certain tradenames within this segment’s snow sports business, primarily a result of the abandonment
of a minor tradename. In the Branded Consumables segment, the impairment charge recorded relates to certain tradenames
associated with this segment’s Firelog and Safety and Security businesses. The impairment within the Branded Consumables
segment was due to a decrease in the fair value of forecasted cash flows, resulting from the deterioration of revenues and margins
related to these tradenames.
Impairments—2008
In the fourth quarter of 2008, the Company’s impairment test resulted in a non-cash charge of $111 to reflect impairment of
intangible assets related to certain of the Company’s tradenames. In the Outdoor Solutions segment, the impairment charge
recorded relates primarily to certain tradenames within this segment’s snow sports and paintball businesses. The impairment within
the Outdoor Solutions segment was due to an overall decline in the paintball market, as well as a decrease in the fair value of
forecasted cash flows, resulting from the impact that the continued deterioration of macroeconomic conditions has on such cash
flows. In the Consumer Solutions segment, the impairment charge recorded relates to certain tradenames within this segment’s
small kitchen and household appliance businesses. The impairment within the Consumer Solutions segment is primarily due to:
the Company’s decision to strategically realign certain brand names; increased competition in certain markets; and the impact of
the continued deterioration of macroeconomic conditions. In the Branded Consumables segment the impairment charge recorded
relates to certain tradenames associated with this segment’s Firelog, Lehigh and United States Playing Cards businesses. The
impairment within the Branded Consumables segment was due to a decrease in the fair value of forecasted cash flows, resulting
from the impact that the continued deterioration of macroeconomic conditions has on such cash flows.
(In millions)
Gross
Carrying
Amount at
December 31,
2008 Additions
Impairment
Charge
Accumulated
Amortization
and Foreign
Exchange
Net Book
Value at
December 31,
2009
Amortization
Periods
(years)
Intangibles
Patents $ 5.6 $ 1.6 $ — $ (1.1) $ 6.1 12-30
Non-compete agreements 1.7 2.0 — (2.7) 1.0 1-5
Manufacturing process and expertise 30.9 — — (22.4) 8.5 3-7
Brand names 1.9 1.3 — (0.8) 2.4 4-10
Customer relationships and distributor channels 143.9 7.8 — (23.7) 128.0 10-25
Trademarks and tradenames 787.2 3.9 (10.1) (0.2) 780.8 Indefinite
$ 971.2 $ 16.6 $ (10.1) $ (50.9) $ 926.8
(In millions) 2010 2009 2008
Impairment of intangibles
Outdoor Solutions $ 0.7 $ 0.8 $ 11.7
Consumer Solutions 0.7 — 76.3
Branded Consumables 1.0 9.3 22.9
$ 2.4 $ 10.1 $ 110.9
40