Sunbeam 2008 Annual Report Download - page 42

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2008 (Dollars in millions, except per share data and unless otherwise indicated)
Reorganization and Acquisition-Related Integration Costs
Reorganization and acquisition-related integration costs include costs associated with exit or disposal activities, which do not meet
the criteria of discontinued operations, including costs for employee and lease terminations, 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 costs, recruiting costs, certain moving costs, certain duplicative costs during integration and asset impairments.
New Accounting Standards
In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles” (“SFAS 162”). SFAS 162
provides a framework for selecting accounting principles for financial statements that are presented in conformity with GAAP. The Company
does not expect that the provisions of SFAS 162 will result in a change in accounting practice for the Company.
In May 2008, the FASB issued FASB Staff Position (“FSP”) No. 14-1, “Accounting for Convertible Debt that May be Settled in Cash Upon
Conversion (Including Partial Settlement)” (“FSP 14-1”). FSP 14-1 applies to convertible debt instruments that, by their stated terms, may be
settled in cash (or other assets) upon conversion, including partial cash settlement, unless the embedded conversion option is required to
be separately accounted for as a derivative under SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities”. FSP 14-1
specifies that issuers of such instruments should separately account for the liability and equity components in a manner that will reflect the
entity’s nonconvertible debt borrowing rate when interest cost is recognized in subsequent periods. FSP 14-1 is effective for financial state-
ments issued for fiscal years beginning after December 15, 2008, and interim periods within those fiscal years. The Company does not
expect that the provisions of FSP 14-1 will have a material impact on the consolidated financial position, results of operations or cash flows
of the Company.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities—an amendment of
FASB Statement No. 133” (“SFAS 161”). SFAS 161 requires that a Company with derivative instruments disclose information to enable users of
the financial statements tounderstand: howand whyan entityuses derivative instruments; how derivative instruments and related hedged
items are accounted for; and how derivative instruments and related hedged items affect an entity’s financial position, financial perform-
ance, and cash flows. As such, SFAS 161 requires qualitative disclosures about objectives and strategies for using derivatives, quantitative
disclosures about fair value amounts of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent
features in derivative agreements. SFAS 161 shall be effective for financial statements issued for fiscal years and interim periods beginning
after November 15, 2008. Early application of SFAS 161 is encouraged. Since SFAS 161 requires only additional disclosures concerning deriva-
tives and hedging activities, the adoption of SFAS 161 will not affect the consolidated financial position, results of operations or cash flows of
the Company.
On December 4, 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements, an amendment
of ARB No. 51” (“SFAS 160”). SFAS 160 significantly changes the financial accounting and reporting for noncontrolling (or minority) interests in
consolidated financial statements. The provisions of SFAS 160 in part; establish accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary; clarifies that a noncontrolling interest in a subsidiary is an ownership
interest in the consolidated entity that should be reported as equity in the consolidated financial statements; establishes a single method of
accounting for changes in a parent’s ownership interest in a subsidiary that do not result in deconsolidation; requires that a parent recognize
again or loss in net income when a subsidiaryis deconsolidated; and requires expanded disclosures in the consolidated financial statements
that clearly identify and distinguish between the interests of the parent’s owners and the interests of the noncontrolling owners of a sub-
sidiary.SFAS 160 is effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2008. Earlier
adoption is prohibited. The Company is currently assessing the impact of SFAS 160 on its consolidated financial position and results
of operations.
On December 4, 2007, the FASB issued SFAS No. 141(R), “Business Combinations” (“SFAS 141(R)”). SFAS 141(R) significantly changes the
financial accounting and reporting for business combinations. The provisions of SFAS 141(R) in part include requirements to recognize, with
certain exceptions, 100 percent of the fair values of assets acquired, liabilities assumed, and noncontrolling interests in acquisitions of less
than a 100 percent controlling interest when the acquisition constitutes a change in control of the acquired entity; measure acquirer shares
issued in consideration for a business combination at fair value on the acquisition date; recognize contingent consideration arrangements at
their acquisition-date fair values, with subsequent changes in fair value generally reflected in earnings; expense, as incurred, acquisition-
related transaction costs; capitalizeacquisition-related restructuring costs only if the appropriate accounting criteria are met as of the acqui-
sition date; and recognize changes that result from a business combination transaction in an acquirer’s existing income tax valuation
allowances and tax uncertainty accruals as adjustments to income tax expense. SFAS 141(R) will also require any adjustments related to
pre-existing tax contingencies for prior acquisitions to be recorded in the income statement. SFAS 141(R) is generally effective for business
combination transactions for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or
after December 15, 2008. Earlier adoption is prohibited. The Company will implement the provisions of SFAS 141(R) for business combina-
tions consummated subsequent to December 31, 2008.
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