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18 Jarden Corporation Annual Report 2013
Consolidated Results of Operations
Years Ended December31,
(In millions) 2013 2012  2011
Net sales $7,355.9$6,696.1 $6,679.9
Cost of sales 5,241.2 4,771.7 4,821.9
Gross prot 2,114.7 1,924.4 1,858.0
Selling, general and administrative expenses 1,519.8 1,320.5 1,259.2
Reorganization costs, net 22.0 27.1 23.4
Impairment of goodwill, intangibles and other assets —   —  52.5
Operating earnings 572.9 576.8 522.9
Interest expense, net 195.4 185.3 179.7
Loss on early extinguishment of debt 25.9  —  12.8
Income before taxes 351.6 391.5 330.4
Income tax provision 147.7 147.6 125.7
Net income $203.9$243.9 $204.7
Results of Operations — Comparing 2013 to 2012
Net Sales
Operating Earnings
(Loss)
YearsEndedDecember31,
(In millions) 2013 2012 2013 2012
Outdoor Solutions $2,724.4 $2,692.9$196.1 $250.7
Consumer Solutions 2,040.0 1,940.9 270.0 232.3
Branded Consumables 2,266.6 1,753.1 253.5 209.0
Process Solutions 403.6 377.1 40.4 33.6
Corporate —   — (187.1)(148.8)
Intercompany eliminations (78.7)(67.9)— —
$7,355.9 $6,696.1$572.9 $576.8
Note: Changes in net sales on a currency-neutral basis that are presented hereafter are provided to enhance visibility of the underlying
operations by excluding the impact of foreign currency translation on period-over-period changes.
Net Sales
Net sales for 2013 increased $660 million, or 9.9%, to $7.4 billion versus the prior year. Excluding the impact of acquisitions
(approximately 7%), net sales on a currency-neutral basis increased approximately 4%, primarily due to increased sell-through in certain
product categories, expanded product offerings and increased demand internationally, primarily in Asia and Latin America, in certain
product categories, partially offset by weakness in certain product categories. Unfavorable foreign currency translation accounted for a
decrease in net sales of approximately 2%.
Net sales in the Outdoor Solutions segment increased $31.5 million, or 1.2%. Net sales on a currency-neutral basis increased
approximately 3%, primarily due to increased sales in the camping and outdoor, shing, technical apparel and winter sports businesses,
which provided an increase in net sales of approximately 3%, largely related to new and expanded product offerings, increased point
of sale and distribution for certain products and increase sales in certain international markets, primarily in Asia. Unfavorable foreign
currency translation accounted for a decrease in net sales of approximately 2%.
Net sales in the Consumer Solutions segment increased $99.1 million, or 5.1%. Excluding the impact of acquisitions (approximately 2%),
net sales on a currency-neutral basis increased approximately 6%. The increase is primarily due to increased demand internationally,
primarily in Latin America, which contributed to an increase in net sales of approximately 6%, primarily due to increased point of sale,
improved product distribution and successful pricing strategies. Net sales domestically increased slightly on a year-over-year basis,
Management’s Discussion and Analysis
Jarden Corporation Annual Report 2013