Sunbeam 2008 Annual Report Download - page 16

Selected Financial Data
Jarden Corporation Annual Report 2008
(b) The results of The United States Playing Card Company, American Household, Inc., The Holmes Group, Inc., Pure Fishing, Inc. and K2 Inc. are
included from their dates of acquisition June 28, 2004, January 24, 2005, July 18, 2005, April 6, 2007 and August 8, 2007, respectively.
(c) Reorganization and acquisition-related integration cost include costs associated with exit or disposal activities, which do not meet the criteria of
discontinued operations, including costs of employee and lease terminations and facility closing or other exit activities. Additionally, these costs
include expenses directly related to integrating and reorganizing acquired businesses and include items such as employee retention, recruiting
costs, certain moving costs, certain duplicative costs during integration and asset impairments.
(d) Segment Earnings represents earnings before interest, taxes and depreciation and amortization, excluding reorganization and acquisition-
related integration costs, impairment of goodwill and intangible assets, the elimination of manufacturer’s profit in inventory, fair value inventory
adjustments, and loss on early extinguishment of debt. This non-GAAP financial measure, is presented in this Annual Report on Form 10-K
because it is a basis upon which the Company’s management has assessed its financial performance in the years presented. Additionally, the
Company uses non-GAAP financial measures because the Company’s credit agreement provides for certain adjustments in calculations used for
determining whether the Company is in compliance with certain credit agreement covenants, including, but not limited to, adjustments relating
to non-cash purchase accounting adjustments, certain reorganization and acquisition-related integration costs, impairment of goodwill and
intangible assets, non-cash stock-based compensation costs and loss on early extinguishment of debt. Segment Earnings should not be considered a
primary measure of the Company’s performance and should be reviewed in conjunction with, and not as substitute for, financial measurements
prepared in accordance with GAAP that are presented in this Annual Report on Form 10-K. A reconciliation of the calculation of Segment
Earnings is presented below:
Reconciliation of non-GAAP Measure:
For the Years Ended December 31,
(In millions) 2008 2007 2006 2005 2004
Net income (loss) $ (58.9) $ 28.1 $ 106.0 $ 60.7 $ 42.4
Income tax provision 26.3 38.5 82.0 35.0 26.0
Interest expense, net 178.7 149.7 112.6 84.2 27.6
Loss on early extinguishment of debt — 15.7 — 6.1 —
Operating earnings 146.1 232.0 300.6 186.0 96.0
Adjustments to reconcile to Segment Earnings:
Depreciation and amortization 120.3 96.4 66.4 57.6 19.2
Fair value adjustment toinventory — 118.9 10.4 22.4 —
Reorganization costs 59.8 49.6 36.8 29.1 —
Impairment of goodwill and intangibles 283.2 — — — —
Other integration-related costs — 4.6 4.5 — —
Impairment/write-off of other assets — — 0.3 2.5 —
Segment Earnings (1) $ 609.4 $ 501.5 $ 419.0 $ 297.6 $ 115.2
(1) During 2008, the Company modified the composition of segment earnings to include stock-based compensation. All prior periods have been
restated to conform to the current presentation.
(e) Working capital is defined as current assets (including cash and cash equivalents) less current liabilities.
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