Sunbeam 2009 Annual Report Download - page 61

Operating lease commitments at December 31, 2009 are as follows:
(In millions)
Years Ending December 31, Amount
2010 $ 55.1
2011 46.9
2012 39.7
2013 35.3
2014 29.3
Thereafter 88.2
Total $ 294.5
The fixed operating lease commitments detailed above assume that the Company continues the leases through their initial lease
terms. Rent expense, including equipment rentals, was $88.0, $82.9 and $72.0 for 2009, 2008 and 2007, respectively.
Contingencies
The Company is involved in various legal disputes and other legal proceedings that arise from time to time in the ordinary course of
business. In addition, the Company or certain of its subsidiaries have been identified by the United States Environmental Protection Agency
(“EPA”) or a state environmental agency as a Potentially Responsible Party (“PRP”) pursuant to the federal Superfund Act and/or state
Superfund laws comparable to the federal law at various sites. Based on currently available information, the Company does not believe that
the disposition of any of the legal or environmental disputes the Company or its subsidiaries is currently involved in will have a material
adverse effect upon the Company’s consolidated financial condition, results of operations or cash flows. It is possible that, as additional
information becomes available, the impact on the Company of an adverse determination could have a different effect.
Environmental
The Company’s operations are subject to certain federal, state, local and foreign environmental laws and regulations in addition to
laws and regulations regarding labeling and packaging of products and the sales of products containing certain environmentally sensitive
materials.
In addition to ongoing environmental compliance at its operations, the Company also is actively engaged in environmental
remediation activities, the majority of which relate to divested operations and sites. Various of the Company’s subsidiaries have been
identified by the EPA or a state environmental agency as a PRP pursuant to the federal Superfund Act and/or state Superfund laws
comparable to the federal law at various sites (collectively, the “Environmental Sites”). The Company has established reserves to cover the
anticipated probable costs of investigation and remediation, based upon periodic reviews of all sites for which they have, or may have,
remediation responsibility. The Company accrues environmental investigation and remediation costs when it is probable that a liability has
been incurred, the amount of the liability can be reasonably estimated and their responsibility for the liability is established. Generally, the
timing of these accruals coincides with the earlier of formal commitment to an investigation plan, completion of a feasibility study or a
commitment to a formal plan of action. The Company accrues its best estimate of investigation and remediation costs based upon facts
known at such dates and because of the inherent difficulties in estimating the ultimate amount of environmental costs, which are further
described below, these estimates may materially change in the future as a result of the uncertainties described below. Estimated costs,
which are based upon experience with similar sites and technical evaluations, are judgmental in nature and are recorded at discounted
amounts without considering the impact of inflation and are adjusted periodically to reflect changes in applicable laws or regulations,
changes in available technologies and receipt by the Company of new information. It is difficult to estimate the ultimate level of future
environmental expenditures due to a number of uncertainties surrounding environmental liabilities. These uncertainties include the
applicability of laws and regulations, changes in environmental remediation requirements, the enactment of additional regulations,
uncertainties surrounding remediation procedures including the development of new technology, the identification of new sites for which
various of the Company’s subsidiaries could be a PRP, information relating to the exact nature and extent of the contamination at each
Environmental Site and the extent of required cleanup efforts, the uncertainties with respect to the ultimate outcome of issues which may
be actively contested and the varying costs of alternative remediation strategies.
Due to the uncertainty described above, the Company’s ultimate future liability with respect to sites at which remediation has not
been completed may vary from the amounts reserved as of December 31, 2009.
The Company believes that the costs of completing environmental remediation of all sites for which the Company has a remediation
responsibility have been adequately reserved and that the ultimate resolution of these matters will not have a material adverse effect on the
consolidated financial position, results of operations or cash flows of the Company.
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2009 (Dollars in millions, except per share data and unless otherwise indicated)
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