Sunbeam 2003 Annual Report Download - page 53

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Jarden Corporation
Notes to Consolidated Financial Statements (continued)
Because the interest rates applicable to the senior debt under the Amended Credit Agreement and
the Old Credit Agreement are based on floating rates identified by reference to market rates, the fair
market value of the senior debt as of December 31, 2003 and 2002 approximated its carrying value.
During 2003 and 2002, the Company incurred costs in connection with the issuance of the Notes,
Amended Credit Agreement and Old Credit Agreement of approximately $5.9 million and $7.4 million,
respectively. Such amounts are included in Other Assets on the Consolidated Balance Sheet and are
being amortized over the respective terms of the debt.
Interest paid on the Company’s borrowings during the years ended December 31, 2003, 2002 and
2001 was $17.2 million, $10.5 million and $9.5 million, respectively.
10. Taxes on Income
The components of the provision (benefit) for income taxes attributable to continuing operations
were as follows:
Year ended December 31,
2003 2002 2001
(in thousands)
Current income tax expense (benefit):
U.S. federal .......................................... $ 9,842 $13,513 $(13,978)
Foreign .............................................. 676 692 1,163
State and local ........................................ 2,466 2,813 (500)
Total ............................................ 12,984 17,018 (13,315)
Deferred income tax expense (benefit):
U.S. federal .......................................... 6,485 (340) (33,707)
State, local and other .................................. 602 (489) (4,962)
Foreign .............................................. 417 — —
Total ............................................ 7,504 (829) (38,669)
Income tax benefit applied to goodwill ....................... — — 11,541
Total income tax provision (benefit) ......................... $20,488 $16,189 $(40,443)
Foreign pre-tax income was $3.2 million, $1.8 million, and $0.9 million in 2003, 2002, and 2001,
respectively.
Deferred tax liabilities (assets) are comprised of the following:
As of December 31,
2003 2002
(in thousands)
Property, equipment and intangibles ....................... $(14,682) $ (2,741)
Other ................................................. (2,445) (7,459)
Gross deferred tax liabilities .......................... (17,127) (10,200)
Net operating loss ....................................... 2,726 2,726
Accounts receivable allowances ............................ 1,342 310
Inventory valuation ...................................... 3,097 2,095
Compensation and benefits ............................... 3,961 7,671
Other ................................................. 3,945 2,333
Gross deferred tax assets ............................. 15,071 15,135
Valuation allowance ..................................... (1,000) (1,000)
Net deferred tax (liability) asset ........................... $ (3,056) $ 3,935
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