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Notes to Consolidated Financial Statements
Jarden Corporation 2006 Annual Report
67
In February 2006, a derivative complaint was filed against certain Company officers and the Board of Directors of the
Company in the United States District Court for the Southern District of New York. The Company is named as a nominal
defendant. The complaint alleges, among other things, that the individual defendants violated their fiduciary duties by failing
to disclose material information and/or by misleading the investing public about the Company’s business and financial condi-
tion relating to the THG Acquisition. The complaint seeks damages and other monetary relief against the individual defen-
dants. The Company and the individual defendants filed a motion to dismiss the complaint on June 15,2006.That motion
has been fully briefed, but the Court has not yet issued a decision.
These actions are in the early stages of litigation and an outcome cannot be predicted. Management does not believe that
the outcome of this litigation will have a material adverse effect on the financial position, results of operations or cash flows of
the Company. The Company intends to defend itself vigorously in these actions.
12.TAXES ON INCOME
The components of the provision (benefit) for income taxes attributable to continuing operations were as follows:
Years Ended December 31,
(in millions) 2006 2005 2004
Current income tax expense:
U.S. federal $ 3.4$10.0$14.4
Foreign 34.022.61.9
State and local 2.6 1.9 2.1
Total 40.034.518.4
Deferred income tax expense (benefit):
U.S. federal 37.2(1.2)6.5
State, local and other 5.0(0.2)0.1
Foreign (0.2)1.91.0
Total 42.00.57.6
Total income tax provision $82.0$35.0$26.0
The difference between the federal statutory income tax rate and the Company's effective income tax rate as a percentage
of income from continuing operations is reconciled as follows:
Years Ended December 31,
2006 2005 2004
Federal statutory tax rate 35.0%35.0%35.0%
Increase (decrease) in rates resulting from:
State and local taxes, net 4.04.03.0
Foreign rate differences (2.6) (4.6)0.3
Internal restructuring of domestic legal entities 7.2.—.—
Other .—2.1(0.3)
Effective income tax rate 43.6%36.5%38.0%
Foreign pre-tax income was $109.2million, $77.1million, and $5.1million for the years ended December 31,2006,
2005, and 2004, respectively.