Sunbeam 2010 Annual Report Download - page 17

Management’s Discussion and Analysis
Jarden Corporation Annual Report 2010
In July 2010, the Company entered into an amendment to the Company’s receivables purchase agreement (the “Securitization
Facility”) that increased maximum borrowings under the Securitization Facility from $250 million to $300 million and extended the
term for three years until July 2013. Following the renewal, the borrowing rate margin is 2.0% and the unused line fee is 0.95% per
annum. At December 31, 2010, the Securitization Facility had outstanding borrowings totaling $300 million.
Certain foreign subsidiaries of the Company maintain working capital lines of credit with their respective local financial institutions
for use in operating activities. At December 31, 2010, the aggregate amount available under these lines of credit totaled
approximately $88 million.
The Company was not in default of any of its debt covenants (see Note 9 to the consolidated financial statements) as of
December 31, 2010.
In March 2010, the Board authorized a $50 million increase in the Company’s existing stock repurchase program to allow the
Company to repurchase an aggregate of up to $150 million of its common stock. During, 2010, the Company repurchased
approximately 1.4 million shares of its common stock under this stock repurchase program at an average price of $29.62 per share.
At December 31, 2010, approximately $55 million remains available under this stock repurchase program.
In April 2009, the Company completed an equity offering of 12.0 million newly-issued shares of common stock at $17.50 per
share. The net proceeds to the Company, after the payment of underwriting discounts and other expenses of the offering, was
approximately $203 million.
Contractual Obligations and Commercial Commitments
The following table includes aggregate information about the Company’s contractual obligations as of December 31, 2010 and the
periods in which payments are due. Certain of these amounts are not required to be included in its consolidated balance sheets:
The table above does not reflect tax reserves and accrued interest thereon of $51.6 million and $4.1 million, respectively, as the
Company cannot reasonably predict the timing of the settlement of the related tax positions beyond 2011. See Note 12 “Taxes
on Income” to the consolidated financial statements for additional information on the Company’s unrecognized tax benefits at
December 31, 2010.
Commercial commitments are items that the Company could be obligated to pay in the future and are not included in the above
table. At December 31, 2010, the Company had approximately $48 million in standby and commercial letters of credit that expire
through September 2012.
Year(s)
(In millions) Total 1 2-3 4-5 After 5
Debt (1) $ 4,110.1 $ 544.3 $ 385.1 $ 1,130.0 $ 2,050.7
Operating leases 335.4 65.3 105.5 77.4 87.2
Unconditional purchase obligations 65.2 41.3 17.6 5.9 0.4
Other current and non-current obligations 27.6 19.3 1.7 1.7 4.9
Total $ 4,538.3 $ 670.2 $ 509.9 $ 1,215.0 $ 2,143.2
(1) These amounts reflect scheduled principal payments and the expected future interest expense related to the debt at December 31, 2010 that
carries a fixed rate of interest. As of December 31, 2010, approximately $1.9 billion of the Company’s debt is considered fixed-rate debt, by nature
or through use of interest rate swaps. As of December 31, 2010, approximately $1.3 billion of the Company’s debt is considered variable-rate debt,
by nature or through use of interest rate swaps with a weighted average interest rate of approximately 4.7%. For further information regarding
the Company’s debt and interest rate structure, refer to Note 9 – “Debt” and Note 10 – “Derivative Financial Instruments” to the consolidated
financial statements.
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