Sunbeam 2005 Annual Report Download - page 84

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Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2005
(c) The outdoor solutions segment was created upon the purchase of the Coleman business with the AHI
Acquisition, effective January 24, 2005.
(d) For the year ended December 31, 2005 the operating earnings of the branded consumables, consumer
solutions and outdoor solutions segments reflect $0.2 million, $12.4 million and $9.8 million, respectively,
of purchase accounting adjustments for manufacturers profit in acquired inventory that had the effect of
reducing the operating earnings as presented. Additionally, the consumer solutions and outdoor solutions
segments reflect $1.6 million and $0.9 million, respectively, of write offs of inventory relating to
reorganization and acquisition-related integration initiatives that had the effect of reducing the operating
earnings as presented for the year ended December 31, 2005.
(e) Intersegment sales are recorded at cost plus an agreed upon profit on sales.
(f) For the year ended December 31, 2005, unallocated costs include $29.1 million (see Note 12) of
reorganization and acquisition-related integration costs, and for the years ended December 31, 2005, 2004
and 2003, $62.4, $32.4 and $21.8 million, respectively, of non-cash compensation related to the issuance of
stock options and restricted shares of Company common stock to employees and Directors of the Company.
(g) Corporate assets primarily include purchase price paid in excess of fair value of tangible assets for the
AHI Acquisition and the THG Acquisition (see Note 3), cash and cash equivalents, amounts relating to
benefit plans, deferred tax assets and corporate facilities and equipment.
Within the branded consumables segment are four product lines: kitchen products, home
improvement products, playing cards products and other specialty products. Kitchen products include food
preparation kits, home canning and accessories, kitchen matches, plastic cutlery, straws and toothpicks.
Home improvement products include rope, cord and twine, storage and organizational products for the
home and garage and security door and fencing products. Playing cards products include children’s card
games, collectible tins and playing cards products. Other specialty products include arts and crafts
paintbrushes, book and advertising matches, institutional plastic cutlery and sticks, laundry care products,
lighters and fire starters, other craft items, other commercial products and puzzles.
Net sales of these products in 2005, 2004 and 2003 were as follows (in millions):
Years Ended
December 31,
2005 2004 2003
Kitchen products ........................................... $208.0 $205.8 $194.4
Home improvement products ................................ 152.7 138.1 41.0
Playing cards products ...................................... 122.5 80.5 —
Other specialty products .................................... 77.0 48.7 22.5
Total branded consumables net sales ...................... $560.2 $473.1 $257.9
The Company’s sales are principally within the United States. The Company’s international
operations are mainly based in Europe, Canada, Latin America and Japan. Net sales of the Company’s
products outside of the United States were approximately $773 million, $78.6 million and $38.6 million for
the years ended December 31, 2005, 2004 and 2003, respectively, or on a percentage basis approximately
23.8%, 8.8% and 6.6% of the Company’s net sales for each of the same periods.
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