Sunbeam 2011 Annual Report Download - page 45

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Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2011 (Dollars in millions, except per share data and unless otherwise indicated)
restricted share awards with only service conditions, the Company recognizes compensation cost on a straight-line basis over the
explicit service period. For those restricted share awards with market conditions, the Company recognizes compensation cost on
a straight-line basis over the derived service period unless the market condition is satisfied prior to the end of the derived service
period. For performance only awards, the Company recognizes compensation cost on a straight-line basis over the implicit service
period which represents the Company’s best estimates for when the target will be achieved. If it becomes apparent that the
original service periods are no longer accurate, the remaining unrecognized compensation cost will be recognized over the revised
remaining service periods. For restricted share awards that contain both service and market or performance vesting conditions,
compensation cost is recognized over the shorter of the two conditions if only one of the conditions must be met or the longer of
the two conditions if both conditions must be met.
For restricted awards that contain performance or market vesting conditions, the Company excludes these awards from diluted
earning per share computations until the end of the reporting period that the contingency is met.
Pension and Postretirement Benefit Plans
The Company records annual amounts relating to its pension and postretirement benefit plans based on calculations which include
various actuarial assumptions, including discount rates, assumed rates of return, compensation increases, turnover rates and
healthcare cost trend rates. The Company reviews its actuarial assumptions on an annual basis and makes modifications to the
assumptions based on current rates and trends when it is deemed appropriate to do so. The effect of modifications is generally
recorded or amortized over future service periods. The assumptions utilized in recording its obligations under its plans are based on
its experience, market conditions and input from its actuaries and investment advisors.
Reorganization Costs
Reorganization costs include costs associated with exit or disposal activities, including costs for employee and lease terminations,
facility closings or other exit activities. Additionally, these costs may also include expenses directly related to integrating and
reorganizing acquired businesses and include items such as employee retention costs, recruiting costs, asset impairments, certain
moving costs and certain duplicative costs during integration.
2. New Accounting Guidance and Adoption of New Accounting Guidance
New Accounting Guidance
In December 2011, the FASB issued ASU No. 2011-11, “Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). ASU
2011-11 enhances disclosures regarding financial instruments and derivative instruments and requires companies to provide both
net information and gross information for these assets and liabilities in order to enhance comparability between those companies
that prepare their financial statements in accordance with GAAP and those companies that prepare their financial statements in
accordance with International Financial Reporting Standards. ASU 2011-11 is effective for annual reporting periods beginning on or
after January 1, 2013 and interim periods within those annual periods. Since ASU 2011-11 requires only additional disclosures, the
adoption of ASU 2011-11 will not affect the consolidated financial position, results of operations or cash flows of the Company.
In June 2011, the FASB issued ASU 2011-05, “Presentation of Comprehensive Income” (“ASU 2011-05”). ASU 2011-05 requires
companies to present the total of comprehensive income, the components of net income and the components of other
comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive
statements. The provisions of ASU 2011-05 are effective for fiscal years, and interim periods within those years, beginning after
December 15, 2011. Since ASU 2011-05 amends the disclosure requirements concerning comprehensive income, the adoption of
ASU 2011-05 will not affect the consolidated financial position, results of operations or cash flows of the Company. In December
2011, the FASB deferred indefinitely certain provisions of ASU 2011-05 that would require companies to present reclassification
adjustments by component in both the statement where net income is presented and the statement where other comprehensive
income is presented for both interim and annual financial statements.
Adoption of New Accounting Guidance
In September 2011, the FASB issued ASU 2011-08, “Testing Goodwill for Impairment” (“ASU 2011-08”). ASU 2011-08 allows a
company to first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is less
than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. The
more-likely-than-not threshold is defined as having a likelihood of more than 50 percent. The provisions of ASU 2011-08 are effective
for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011 with early adoption
permitted. The Company elected to adopt the provisions of ASU 2011-08 in 2011, which had no impact on the consolidated financial
position, results of operations or cash flows of the Company.
In January 2010, the FASB issued ASU 2010-06, “Fair Value Measurements and Disclosures” (“ASU 2010-06”). ASU 2010-06 requires
companies to provide additional disclosures related to transfers in and out of Level 1 and Level 2 and in the reconciliation of
Level 3 fair value measurements. ASU 2010-06 was effective for the Company for interim and annual reporting periods beginning