Sunbeam 2002 Annual Report Download - page 22

Jarden Corporation
Management’s Discussion and Analysis (Continued)
disposed of. The new standard also superceded the provisions of APB Opinion No. 30 with regard to reporting
the effects of a disposal of a segment of a business and required expected future operating losses from
discontinued operations to be displayed in discontinued operations in the period(s) in which the losses are
incurred. SFAS No. 144 was effective for our business beginning with the first quarter of 2002 and its adoption
did not have a material impact on our results of operations or financial position.
In April 2002, the FASB issued SFAS No. 145, Recision of SFAS Nos. 4, 44 and 64, Amendment of SFAS
No. 13, and Technical Corrections as of April 2000. SFAS No. 145 revises the criteria for classifying the
extinguishment of debt as extraordinary and the accounting treatment of certain lease modifications. SFAS No.
145 is effective in fiscal 2003 and we do not expect it to have a material impact on our consolidated financial
statements. In 2003, we will conform with the requirements of SFAS No. 145 in our Selected Financial Data
disclosure in connection with our early extinguishment of debt that occurred in 1999.
In July 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with Exit or Disposal
Activities. SFAS No. 146 provides guidance on the timing of the recognition of costs associated with exit or
disposal activities. The new guidance requires costs associated with exit or disposal activities to be recognized
when incurred. Previous guidance required recognition of costs at the date of commitment to an exit or disposal
plan. The provisions of the statement are to be adopted prospectively for exit activities after December 31, 2002.
Although SFAS No. 146 may impact the accounting for costs related to exit or disposal activities that we may
enter into in the future, particularly the timing of recognition of these costs, the adoption of the statement will
not have an impact on our present financial condition or results of operations.
In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based Compensation – Transition
and Disclosure. SFAS No. 148 amends SFAS No. 123, Accounting for Stock-Based Compensation, to provide
alternative methods of transition for a voluntary change to the fair value based methods of accounting for
stock-based employee compensation. In addition, SFAS No. 148 amends the disclosure requirements of SFAS
No. 123 to require more prominent disclosures in both annual and interim financial statements about the
method of accounting for stock-based employee compensation and the effect of the method used on reported
results. The additional disclosure requirements of SFAS No. 148 are effective for fiscal years ending after
December 15, 2002. As provided for in SFAS No. 148, we have elected to continue to follow the intrinsic value
method of accounting as prescribed by Accounting Principles Board Opinion No. 25, Accounting for Stock
Issued to Employees, to account for stock options.
Forward-Looking Statements
From time to time, we may make or publish forward-looking statements relating to such matters as
anticipated financial performance, business prospects, technological developments, new products, and similar
matters. Such statements are necessarily estimates reflecting management’s best judgment based on current
information. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements. Such statements are usually identified by the use of words or phrases such as ‘‘believes,’’
‘‘anticipates,’’ ‘‘expects,’’ ‘‘estimates,’’ ‘‘planned,’’ ‘‘outlook’’ and ‘‘goal.’’ Because forward-looking statements
involve risks and uncertainties, our actual results could differ materially. In order to comply with the terms of
the safe harbor, we note that a variety of factors could cause our actual results and experience to differ
materially from the anticipated results or other expectations expressed in forward-looking statements.
While it is impossible to identify all such factors, the risks and uncertainties that may affect the operations,
performance and results of our business include the following:
앫Our significant indebtedness could adversely affect our financial health, and prevent us from fulfilling our
obligations under the New Notes and the New Credit Agreement;
앫We will require a significant amount of cash to service our indebtedness. Our ability to generate cash
depends on many factors beyond our control;
앫Reductions, cancellations or delays in customer purchases would adversely affect our profitability;
앫We may be adversely affected by the financial health of the U.S. retail industry;
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