Sunbeam 2003 Annual Report Download - page 30

financial statements. We conformed to the requirements of SFAS No. 145 in our Item 6. Selected
Financial Data disclosure in connection with the 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 were effective for any exit or disposal
activities initiated after December 31, 2002. The adoption of SFAS No. 146 had no impact on our
financial condition or results of operations.
In April 2003, the FASB issued SFAS No. 149, Amendment of Statement 133 on Derivative
Instruments and Hedging Activities. SFAS No. 149 amends and clarifies accounting for derivative
instruments, including certain derivative instruments embedded in other contracts, and for hedging
activities under SFAS No. 133. SFAS No. 149 is generally effective for contracts entered into or modified
and for hedging relationships designed after June 30, 2003. The adoption of SFAS No.149 did not have a
material effect on our present financial condition or results of operations.
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:
• Our significant indebtedness could adversely affect our financial health and prevent us from
fulfilling our debt obligations;
• We will require a significant amount of cash to service our indebtedness. Our ability to generate
cash depends on many factors beyond our control;
• Reductions, cancellations or delays in customer purchases would adversely affect our
profitability;
• We may be adversely affected by the financial health of the U.S. retail industry;
• We may be adversely affected by the trend towards retail trade consolidation;
• Sales of some of our products are seasonal and weather related;
• Competition in our industries may hinder our ability to execute our business strategy, sustain
profitability, or maintain relationships with existing customers;
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Jarden Corporation
Management’s Discusson and Analysis (continued)