Sunbeam 2008 Annual Report Download - page 38

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2008 (Dollars in millions, except per share data and unless otherwise indicated)
1. Business and Significant Accounting Policies
Business
Jarden Corporation and its subsidiaries (hereinafter referred to as the “Company” or “Jarden”) is a leading provider of a broad range
of consumer products. Jarden’s three primary business segments, Outdoor Solutions, Consumer Solutions and Branded Consumables, man-
ufacture or source, market and distribute a number of well recognized brands, including: Outdoor Solutions:Abu Garcia® ,Adio® ,Berkley® ,
Campingaz® ,Coleman® ,Fenwick® ,Gulp!® ,JT® ,K2® ,Marker® ,Marmot® ,Mitchell® ,Penn® ,Planet Earth® ,Rawlings® ,Shakespeare® ,
Sevylor® ,Stearns® ,Stren® ,Trilene® ,Ugly Stik®and Völkl®;Consumer Solutions:Bionaire® ,Crock-Pot® ,FoodSaver® ,Health o meter® ,
Holmes® ,Mr. Coffee® ,Oster® ,Patton® ,Rival® ,Seal-a-Meal® ,Sunbeam®and VillaWare®;and Branded Consumables:Ball® ,Bee® ,Bicycle® ,
Crawford® ,Diamond® ,Dicon® ,First Alert® ,Forster® ,Hoyle® ,Java-Log® ,Kerr® ,Lehigh® ,Leslie-Locke® ,Loew-Cornell®and Pine
Mountain® .In addition to the three primary business segments described above, the Company’s Process Solutions segment manufactures,
markets and distributes a wide variety of plastic and zinc base products.
On August 8, 2007, the Company acquired all of the outstanding shares of K2 Inc. (the “Acquisition”), a leading provider of branded
consumer products in the global sports equipment market (see Note 3). The Company’s results of operations for 2007 include the results of
K2 Inc. (“K2”) from August 8, 2007 (the “Acquisition Date”).
On April 6, 2007, the Company acquired Pure Fishing, Inc. (“Pure Fishing”), a leading global provider of fishing equipment (see Note
3). The Company’s results of operations for 2007 include the results of Pure Fishing from April 6, 2007.
Basis of Presentation
The Consolidated Financial Statements include the consolidated accounts of the Company and have been prepared in accordance
with generally accepted accounting principles in the United States of America (“GAAP”).
All significant intercompany transactions and balances have been eliminated upon consolidation. Unless otherwise indicated,
references in the Consolidated Financial Statements to 2008, 2007 and 2006 are to Jarden’s calendar years ended December 31, 2008, 2007
and 2006, respectively.
Certain reclassifications have been made in the Company’s financial statements of prior years to conform to the current year
presentation. These reclassifications have no impact on previously reported net income.
Foreign Operations
The functional currency for most of the consolidated foreign operations is the local currency. Assets and liabilities are translated at
the year-end exchange rates; income and expenses are translated at average exchange rates during the year. Net unrealized exchange
adjustments arising on the translation of foreign currency financial statements are reported as cumulative translation adjustments within
accumulated other comprehensive income. Foreign currency transaction gains and losses are included in the results of operation and are
generally classified in selling,general and administrativeexpenses.For 2008, $14.3 of foreign currency transaction losses were recorded.
Prior period amounts were not material.
The U.S dollar is the functional currency for certain foreign subsidiaries that conduct their business primarily in U.S. dollars. As
such, monetary items are translated at current exchange rates, and non-monetary items are translated at historical exchange rates.
Use of Estimates
The preparation of the consolidated financial statements in accordance with GAAP requires estimates and assumptions that affect
amounts reported and disclosed in the financial statements and accompanying notes. Actual results could differ materially from those
estimates. Significant accounting estimates and assumptions are used for, but not limited to: the allowance for doubtful accounts; assets
impairments; useful lives of tangible and intangible assets; pension and postretirement liabilities; tax valuation allowances and unrecognized
tax benefits; reserves for sales returns and allowances; product warranty; product liability; excess and obsolete inventory; and litigation and
environmental exposures.
Concentrations of Credit Risk
Substantially all of the Company’s trade receivables are due from retailers and distributors located throughout Asia, Canada, Europe,
Latin America and the United States.Approximately 19%, 20% and 21% of the Company’s consolidated net sales in 2008, 2007 and 2006,
respectively, were to a single customer who purchased product from the Company’s three primary business segments: Outdoor Solutions,
Consumer Solutions and Branded Consumables.
Cash and Cash Equivalents
The Company considers highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Accounts Receivable
The Company provides credit, in the normal course of business, to its customers. The Company maintains an allowance for doubtful
36