Sunbeam 2003 Annual Report Download - page 47

Jarden Corporation
Notes to Consolidated Financial Statements (continued)
(1) The Lehigh business and the Diamond Brands wood manufacturing operation and branded product distribution business are
included in the branded consumables segment effective September 2, 2003 and February 1, 2003, respectively.
(2) The consumer solutions segment was created upon the purchase of Tilia, effective April 1, 2002.
(3) The Diamond Brands plastic manufacturing operation is included in the plastic consumables segment effective February 1,
2003.
(4) Effective November 26, 2001 and November 1, 2001, the Company sold the TPD Assets and Microlin, respectively.
(5) Unallocated corporate expenses in 2003 is comprised of a $21.8 million non-cash restricted stock charge and in 2001 are
comprised primarily of special charges and reorganization expenses.
(6) Corporate assets primarily include cash and cash equivalents, amounts relating to benefit plans, deferred tax assets and
corporate facilities and equipment.
(7) Intersegment sales are recorded at cost plus an agreed upon intercompany profit on intersegment sales.
Within the branded consumables segment are three product lines: kitchen products, home
improvement products, and other specialty products. Kitchen products include home canning and
accessories, plastic cutlery, straws, toothpicks, food preparation kits and kitchen matches. Net sales of
kitchen products were $194.4 million, $109.1 million and $116.6 million for 2003, 2002 and 2001,
respectively. Home improvement products include rope, cord and twine, storage and organizational
products for the home and garage and security door and fencing products. Net sales of home
improvement products were $41.0 million for 2003. There were no home improvement product sales in
2002 or 2001. Other specialty products include institutional plastic cutlery and sticks, book and
advertising matches, craft items, laundry care products, lighters and fire starters and other commercial
products. Net sales of other specialty products were $22.5 million, $2.1 million and $3.4 million for 2003,
2002 and 2001, respectively.
One of the Company’s customers accounted for 19.7% and 18.7% of its 2003 and 2002 net
revenues, respectively.
The Company’s major customers are located within North America. Net sales of the Company’s
products in Canada and Mexico were $26.9 million, $29.2 million and $29.7 million in 2003, 2002 and
2001, respectively. Net sales and long-lived assets located outside North America are not material.
6. Special Charges and Reorganization Expenses
The Company incurred net special charges and reorganization expenses of $5.0 million for 2001.
No charges were incurred in 2003 or 2002. This amount is comprised of the following (in millions):
Year Ended
December 31,
2001
(in millions)
Costs to evaluate strategic options ................................ $ 1.4
Discharge of deferred compensation obligations ................... (4.1)
Separation costs for former officers ............................... 2.6
Stock option compensation ..................................... 2.4
Corporate restructuring costs .................................... 2.3
Costs to exit facilities ........................................... 0.8
Items related to divested thermoforming operations ................ (0.4)
$ 5.0
During 2001, certain former officers and participants in the Company’s deferred compensation
plans agreed to forego balances in those plans in exchange for loans from the Company in the same
amounts. The loans, which were completed during 2001, bear interest at the applicable federal rate and
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