Sunbeam 2002 Annual Report Download - page 19

Jarden Corporation
Management’s Discussion and Analysis (Continued)
Working capital (defined as current assets less current liabilities) increased to approximately $101.6
million at December 31, 2002 from approximately $8.0 million at December 31, 2001 due primarily to:
앫the working capital of the acquired home vacuum packaging business;
앫a lower amount of current portion of debt and increased cash on hand amounts caused by our
favorable operating results and the new financing relationships discussed above; and
앫the receipt of $22.3 million of tax refunds which had not been included in working capital in 2001.
Cash flow generated from operations, excluding net income tax refunds was approximately $31.0 million
for the year ended December 31, 2002.
Capital expenditures were $9.3 million in 2002 compared to $9.7 million for 2001 and are largely related
to maintaining facilities, tooling projects, improving manufacturing efficiencies and a portion of the costs of
the installation of new packaging lines for the branded consumables segment. As of December 31, 2002, we had
capital expenditure commitments in the aggregate for all our segments of approximately $3.9 million, of which
$2.5 million relates to the completion of the new packaging lines for the branded consumables segment. As of
December 31, 2002, our home vacuum packaging segment had committed to purchase $18.5 million of
inventory from various vendors in the year 2003. Additionally, as of December 31, 2002, our other segment had
forward buy contracts for 2003 to purchase zinc ingots in the aggregate amount of approximately $2.5 million,
which are expected to be used in operations in 2003.
We believe that cash generated from our operations and our availability under our senior credit facility, are
adequate to satisfy our working capital and capital expenditure requirements for the foreseeable future.
However, we may raise additional capital from time to time to take advantage of favorable conditions in the
capital markets or in connection with our corporate development activities.
The following table includes aggregate information about our contractual obligations as of December 31,
2002 and the periods in which payments are due. Certain of these amounts are not required to be included in
our consolidated balance sheet: Payments due by period (in millions)
Total
Less than
1 Year
1-3
Years
4-5
Years
After
5 Years
Debt (1) $212.5 $ 16.3 $ 25.0 $ 21.2 $150.0
Operating Leases 16.1 5.6 8.4 2.1 —
Unconditional Purchase
Obligations 24.9 24.9 — — —
Other Non-current Obligations 2.8 1.8 1.0 — —
Total Contractual Cash
Obligations $256.3 $ 48.6 $ 34.4 $ 23.3 $150.0
(1) The debt amounts are based on the principal payments that will be due upon their maturity and
exclude approximately $6.6 million of non-debt balances arising from the interest rate swap
transactions described in the notes to our consolidated financial statements.
Commercial commitments are items that we could be obligated to pay in the future:
앫As of December 31, 2002, we had $4.2 million in standby and commercial letters of credit that all
expire in 2003;
앫In connection with the Acquisition, we may be obligated to pay an earn-out in cash or our common
stock of up to $25 million in 2005, provided that certain earnings performance targets are met; and
앫In connection with a contract we have entered into to acquire additional intellectual property, we may
be obligated to pay up to $7.5 million between 2003 and 2009, providing certain contractual
obligations, including the issuance of patents amongst other things, are satisfied.
These amounts are not required to be included in our consolidated balance sheet.
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