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Jarden Corporation Annual Report 2013 43
net income upon derecognition of a subsidiary or group of assets within a foreign entity. ASU 2013-05 is effective prospectively for
scal years and interim reporting periods within those years, beginning after December15, 2013. Accordingly, the provisions of ASU
2013-05 will be applied prospectively to derecognition events occurring after the effective date.
In February 2013, the FASB issued ASU No.2013-04, “Obligations Resulting From Joint and Several Liability Arrangements for Which
the Total Amount of the Obligation is Fixed at the Reporting Date” (“ASU-2013-04”). ASU No.2013-04 requires an entity to measure
obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this
guidance is xed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement
among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. ASU 2013-04 also
requires an entity to disclose the nature and amount of the obligation, as well as other information about those obligations. ASU 2013-
04 is effective for scal years and interim periods within those years, beginning after December15, 2013. The Company does not expect
the provisions of ASU 2013-04 to have a material effect on the consolidated nancial position, results of operations or cash ows of
the Company.
Adoption of New Accounting Guidance
In February 2013, the FASB issued ASU No.2013-02, “Comprehensive Income” (“ASU 2013-02”). ASU 2013-02 requires new disclosures
related to amounts reclassied out of accumulated other comprehensive income (“AOCI”) by component, as well as disclosures related
to reclassications from AOCI to net income. These disclosures may be presented on the face of the consolidated nancial statements
or in the notes thereto. ASU 2013-02 is effective for reporting periods beginning after December15, 2012. The adoption of ASU 2013-02
had no effect on the consolidated nancial position, results of operations or cash ows of the Company.
In July 2012, the FASB issued ASU No.2012-02, “Testing Indenite-Lived Intangible Assets for Impairment” (“ASU 2012-02”). ASU
2012-02 allows a company to rst assess qualitative factors to determine whether it is more-likely-than-not that an indenite-lived
intangible asset is impaired. The more-likely-than-not threshold is dened as having a likelihood of more than 50 percent. If based
on its qualitative assessment, a company concludes that it is more likely than not that the fair value of an indenite-lived intangible
asset is less than its carrying amount, then quantitative impairment testing is required. However, if a company concludes otherwise,
quantitative impairment testing is not required. ASU 2012-02 is effective for annual and interim impairment tests performed for scal
years beginning after September15, 2012 with early adoption permitted. The Company adopted the provisions of ASU 2012-02 in 2012,
which had no impact on the consolidated nancial position, results of operations or cash ows of the Company.
In December 2011, the FASB issued ASU No.2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). ASU 2011-
11 enhances disclosures regarding nancial instruments and derivative instruments and requires companies to provide both net
information and gross information for these assets and liabilities in order to enhance comparability between those companies that
prepare their nancial statements in accordance with GAAP and those companies that prepare their nancial statements in accordance
with International Financial Reporting Standards. ASU 2011-11 is effective for annual reporting periods beginning on or after January1,
2013 and interim periods within those annual periods. The adoption of ASU 2011-11 had no effect on the consolidated nancial position,
results of operations or cash ows of the Company.
3. Acquisitions
2013 Activity
On October3, 2013, the Company acquired Yankee Candle Investments LLC (“Yankee Candle”), a leading specialty-branded premium
scented candle company for a purchase price of approximately $542 (the “YCC Acquisition”). The total value of the YCC Acquisition,
including debt assumed and/or repaid, was approximately $1.8 billion, subject to adjustment. In addition to the initial cash purchase
price payment, as of December31, 2013, contingent purchase price payments of up to $30.0 may be paid based on the future nancial
performance of the acquired business. The purchase price includes $27.0 for the estimated fair value of this contingent consideration.
The YCC Acquisition is expected to extend the Company’s portfolio of market-leading, consumer brands in niche, seasonal staple
categories, while creating opportunities in cross-selling and broadening the global distribution platform. Yankee Candle is reported
in the Company’s Branded Consumables segment and is included in the Company’s results of operations from October3, 2013. The
Company’s 2013 consolidated statement of operations includes approximately $344 of net sales and approximately $28 of operating
earnings related to Yankee Candle.
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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2013 (Dollars in millions, except per share data and unless otherwise indicated)