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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2008 (Dollars in millions, except per share data and unless otherwise indicated)
Foreign Exchange
Net Book Value and Other Net Book Value at
(In millions) at December 31, 2006 Acquisitions Adjustments (2) December 31, 2007
Goodwill
Outdoor Solutions $ 236.2 $ 417.2 $ (23.1) $ 630.3
Consumer Solutions 489.7 — (5.5) 484.2
Branded Consumables 497.8 — (1.5) 496.3
$1,223.7 $ 417.2 $ (30.1) $ 1,610.8
(1) Comprised primarily of purchase accounting adjustments based upon the final determination of the K2 purchase price allocation (see Note 3).
(2) The goodwill adjustment in 2007 in the Consumer Solutions and Outdoor Solutions segments primarily relate to the recognition of pre-
acquisition tax contingencies upon the adoption of FIN 48. The adjustment to goodwill in Branded Consumables relates to the recognition of
pre-acquisition tax contingencies upon the adoption FIN 48, impairment charges ($2.9), and the finalization of purchase price allocation, offset
by payments for contingent consideration.
In the fourth quarter of 2008, the Company’s annual impairment test resulted in a non-cash charge of $172 to reflect impairment of
goodwill in the Company’s Branded Consumables and Outdoor Solutions segments. In the Branded Consumables segment the impairment
charge was recorded within the Firelog, Lehigh and United States Playing Cards reporting units. In the Outdoor Solutions segment the
impairment charge was recorded within the Apparel and Footwear reporting unit. The impairment for these reporting units was due to a
decrease in the fair value of forecasted cash flows, reflecting the continued deterioration of macroeconomic conditions, which accelerated
and became apparent during the fourth quarter of 2008 (hereafter referred to as “continued deterioration of macroeconomic conditions”).
Intangibles activity for 2008 and 2007 is as follows:
Gross
Carrying Accumulated Net Book
Amount at Purchase Amortization Value At Amortization
December 31, Accounting Impairment and Foreign December 31, Periods
(In millions) 2007 Additions Adjustments (1) Charge Exchange 2008 (years)
Intangibles
Patents $ 0.1 $ 5.5 $ — $ — $ (0.5) $ 5.1 12–30
Non-compete agreements 1.7 — — — (1.4) 0.3 3–5
Manufacturing process
and expertise 32.0 0.1 (1.2) — (15.7) 15.2 3–7
Brand names 4.3 — (2.4) — (0.4) 1.5 4–10
Customer relationships and
distributor channels 146.2 — (2.3) — (16.4) 127.5 10–25
Trademarks and tradenames 960.4 — (62.3) (110.9) (0.2) 787.0 indefinite
$1,144.7 $5.6 $ (68.2) $ (110.9) $ (34.6) $ 936.6
(1) Comprised primarily of purchase accounting adjustments based upon the final determination of the K2 purchase price allocation (see Note 5).
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