Sunbeam 2003 Annual Report Download - page 39

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Jarden Corporation
Notes to Consolidated Financial Statements
1. Significant Accounting Policies
Basis of Presentation
The Company is a leading provider of niche consumer products used in and around the home,
under well-known brand names including Ball®, Bernardin®, Crawford®, Diamond®, FoodSaver®,
Forster®, Kerr®, Lehigh®and Leslie-Locke®. The Company’s products include, amongst others,
clothespins, home canning, home vacuum packaging, kitchen matches, plastic cutlery, rope, cord and
twine and toothpicks. The Company also manufactures zinc strip and a wide array of plastic products for
third party consumer product and medical companies, as well as its own businesses. See Business
Segment Information (Note 5).
These consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States. The consolidated financial statements include the
accounts of Jarden Corporation and its subsidiaries (“Company”). All significant intercompany
transactions and balances have been eliminated upon consolidation.
On a stand alone basis, without the consolidation of its subsidiaries, the Company has no
independent assets or operations. The guarantees by its subsidiaries of the 9¾% senior subordinated
notes (“Notes”), which are discussed in Note 9, are full and unconditional and joint and several. The
subsidiaries that are not guarantors of the Notes are minor. There are no significant restrictions on the
Company’s or the guarantors’ ability to obtain funds from their respective subsidiaries by dividend or
loan.
All earnings per share amounts and number of shares outstanding have been retroactively adjusted
to give effect to a 3-for-2 split of the Company’s common stock that was effected in the fourth quarter of
2003.
Certain reclassifications have been made in the Company’s financial statements of prior years to
conform to the current year presentation. These reclassifications have no impact on previously reported
net income (loss).
Use of Estimates
Preparation of the consolidated financial statements requires estimates and assumptions that affect
amounts reported and disclosed in the financial statements and related notes. Actual results could differ
from those estimates.
Revenue Recognition
The Company recognizes revenue when title transfers. In most cases, title transfers at the time
product is shipped to customers. The Company allows customers to return defective or damaged
products as well as certain other products for credit, replacement, or exchange. Revenue is recognized
as the net amount to be received after deducting estimated amounts for product returns, discounts, and
allowances. The Company estimates future product returns based upon historical return rates and its
judgment.
Freight Costs
Freight costs on goods shipped to customers are included in Cost of Sales in the Consolidated
Statements of Operations.
page 37