Sunbeam 2011 Annual Report Download - page 56

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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)
11. Commitments and Contingencies
Operating Leases
The Company conducts its operations in various leased facilities under leases that are classified as operating leases for financial
statement purposes. Certain leases provide for payment of real estate taxes, common area maintenance, insurance and certain
other expenses. Lease terms may have escalating rent provisions and rent holidays which are expensed on a straight-line basis over
the term of the lease. Also, certain equipment used in Company operations is leased under operating leases.
Operating lease commitments for the five years following December 31, 2011 and thereafter are as follows:
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 $110, $96.0 and $88.0 for 2011, 2010 and 2009, 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 are currently
involved in will have a material adverse effect upon the consolidated financial condition, results of operations or cash flows of the
Company. 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 relates 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 a 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.
Years Ending December 31,
Amount
(in millions)
2012 $ 66.4
2013 57.9
2014 48.4
2015 42.2
2016 31.9
Thereafter 70.4
Total $ 317.2