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56 Jarden Corporation Annual Report 2012
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2012 (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 from operations for 2012, 2011 and 2010 is reconciled as follows:
2012 2011 2010
Federal statutory tax rate 35.0% 35.0% 35.0%
Increase (decrease) in rates resulting from:
State and local taxes, net 0.7 1.6 1.8
Foreign rate differences (2.8) (3.1) (3.8)
Non-deductible compensation 0.5 1.0 3.5
Foreign earnings not permanently reinvested 2.3 3.4 6.8
Tax settlements and related adjustments 0.6 — —
Goodwill impairment — 3.4 —
Valuation allowance 0.4 (2.3) (0.3)
Venezuela devaluation and inflationary adjustments and tax exempt income (1.6) (1.5) 5.9
Foreign dividends 1.2 1.3 0.9
Non-deductible transaction costs 0.2 — 3.1
Other 1.2 (0.8) 0.6
Reported income tax rate 37.7% 38.0% 53.5%
Foreign pre-tax income was approximately $213, $250, and $115 for 2012, 2011 and 2010, respectively.
Deferred tax assets (liabilities) at December 31, 2012 and 2011 are comprised of the following:
(In millions) 2012 2011
Intangibles $ (389.4) $ (370.8)
Goodwill (121.1) (110.1)
Financial reporting amount of a subsidiary in excess of tax basis (70.8) (71.6)
Foreign earnings not permanently reinvested (47.3) (45.6)
Property and equipment (6.2) (13.4)
Other (6.5) (6.9)
Gross deferred tax liabilities (641.3) (618.4)
Net operating loss 40.1 40.0
Accounts receivable allowances 12.0 13.3
Inventory valuation 53.8 56.7
Pension and postretirement 35.6 41.5
Stock-based compensation 21.6 17.9
Other compensation and benefits 19.0 21.2
Operating reserves 59.2 60.6
Other 49.1 79.9
Gross deferred tax assets 290.4 331.1
Valuation allowance (28.1) (26.9)
Net deferred tax liability $ (379.0) $ (314.2)