Sunbeam 2010 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2010 Sunbeam annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 72

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2010 (Dollars in millions, except per share data and unless otherwise indicated)
The difference between the federal statutory income tax rate and the Company’s reported income tax rate as a percentage of
income (loss) from operations is reconciled as follows:
Foreign pre-tax income was approximately $115, $218, and $165 for 2010, 2009 and 2008, respectively.
Deferred tax assets (liabilities) at December 31, 2010 and 2009 are comprised of the following:
The Company continually reviews the adequacy of the valuation allowance. A valuation allowance is recorded if, based on the
weight of available evidence, it is more likely than not that a deferred tax asset will not be realized. This assessment is based on an
evaluation of the level of historical taxable income and projections for future taxable income. During 2010, the Company’s valuation
allowance was increased by $3.2 principally due to the inability to benefit from certain foreign losses attributable to the Company’s
2010 acquisitions.
2010 2009 2008
Federal statutory tax rate 35.0% 35.0% (35.0)%
Increase (decrease) in rates resulting from:
State and local taxes, net 1.8 0.4 (24.3)
Foreign rate differences (3.8) (2.3) (26.0)
Non-deductible compensation 3.5 3.3 12.3
Foreign earnings not permanently reinvested 6.8 10.7 43.2
Tax settlements and related adjustments — (3.6) 1.0
Goodwill impairment — — 102.7
Valuation allowance (0.3) 1.4 7.7
Venezuela devaluation and inflationary adjustments and tax exempt income 5.9 (5.4) (4.1)
Foreign dividends 0.9 7.7 —
Non-deductible transaction costs 3.1 — —
Other 0.6 (1.0) 3.2
Reported income tax rate 53.5% 46.2% 80.7%
(In millions) 2010 2009
Intangibles $ (375.6) $ (298.8)
Goodwill (92.6) (78.2)
Financial reporting amount of a subsidiary in excess of tax basis (71.6) (72.5)
Foreign earnings not permanently reinvested (38.1) (40.5)
Property and equipment (14.8) (5.9)
Other (6.6) (22.7)
Gross deferred tax liabilities (599.3) (518.6)
Net operating loss 73.2 122.3
Accounts receivable allowances 14.7 13.8
Inventory valuation 51.8 40.4
Pension and postretirement 43.0 37.9
Stock-based compensation 10.1 16.9
Other compensation and benefits 19.7 13.6
Operating reserves 57.9 74.4
Other 72.2 83.7
Gross deferred tax assets 342.6 403.0
Valuation allowance (35.3) (32.1)
Net deferred tax liability $ (292.0) $ (147.7)
49