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Selected Financial Data
Jarden Corporation Annual Report 2009
• 2005 includes: purchase accounting adjustments for $22.4 million of the elimination of manufacturer’s profit in inventory charged to cost of
sales, which is the purchase accounting fair value adjustment to inventory associated with acquisitions, $2.5 million of write offs of inventory
related to reorganization and acquisition-related integration initiatives and $29.1 million of reorganization and acquisition-related integration
cost (see item (c) below).
(b) The results of American Household, Inc., The Holmes Group, Inc., Pure Fishing, Inc. and K2 Inc. are included from their dates of acquisition 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, 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 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 generally accepted accounting principles in the United States of America (“GAAP”) that are presented in this Annual
Report A reconciliation of the calculation of Segment Earnings is presented below:
Reconciliation of non-GAAP Measure:
For the Years Ended December 31,
(In millions) 2009 2008 2007 2006 2005
Net income (loss) $ 128.7 $ (58.9) $ 28.1 $ 106.0 $ 60.7
Income tax provision 110.7 26.3 38.5 82.0 35.0
Interest expense, net 147.5 178.7 149.7 112.6 84.2
Loss on early extinguishment of debt — — 15.7 — 6.1
Operating earnings 386.9 146.1 232.0 300.6 186.0
Adjustments to reconcile to Segment Earnings:
Depreciation and amortization 130.3 120.3 96.4 66.4 57.6
Fair value adjustment to inventory — — 118.9 10.4 22.4
Reorganization costs (1) 48.5 59.8 49.6 36.8 29.1
Impairment of goodwill and intangibles 22.9 283.2 — — —
Other integration-related costs — — 4.6 4.5 —
Other adjustments (3) 17.1 — — 0.3 2.5
Segment Earnings (1)(2) $ 605.7 $ 609.4 $ 501.5 $ 419.0 $ 297.6
(1) For 2009, Segment Earnings includes reorganization costs of $3.8 million related to the Consumer Solutions segment.
(2) 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.
(3) Represents executive stock compensation resulting from a strategic review of executive long-term incentive compensation.
(e) In September 2009, the Company announced that the Board had decided to initiate a quarterly cash dividend of $0.075 per share of the
Company’s common stock starting in the third quarter of 2009.
(f) Working capital is defined as current assets (including cash) less current liabilities. For 2009, 2008, 2007, 2006 and 2005, working capital excluding
cash was $676 million, $986 million, $1.0 billion, $637 million and $513 million, respectively.
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