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38 Jarden Corporation Annual Report 2012
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2012 (Dollars in millions, except per share data and unless otherwise indicated)
1. Business and Significant Accounting Policies
Business
Jarden Corporation and its subsidiaries (hereinafter referred to as the “Company” or “Jarden”) is a leading provider of a
diverse range of consumer products with a portfolio of over 100 trusted, quality brands sold globally. Jarden operates in three
primary business segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, Aero®,
Berkley®, Campingaz® and Coleman®, ExOfficio®, Fenwick®, Gulp!®, Invicta®, K2®, Marker®, Marmot®, Mitchell®, Penn®,
Rawlings®, Shakespeare®, Stearns®, Stren®, Trilene®, Völkl® and Zoot®; Consumer Solutions: Bionaire®, Breville®, Crock-
Pot®, FoodSaver®, Health o meter®, Holmes®, Mr. Coffee®, Oster®, Patton®, Rival®, Seal-a-Meal®, Sunbeam®, VillaWare®
and White Mountain®; and Branded Consumables: Ball®, Bee®, Bernardin®, Bicycle®, Billy Boy®, Crawford®, Diamond®,
Dicon®, Fiona®, First Alert®, First Essentials®, Hoyle®, Kerr®, Lehigh®, Lillo®, Loew Cornell®, Mapa®, NUK®, Pine Mountain®,
Quickie®, Spontex® and Tigex®. The Company’s growth strategy is based on introducing new products, as well as on expanding
existing product categories, which is supplemented through opportunistically acquiring businesses with highly-recognized brands,
innovative products and multi-channel distribution.
Basis of Presentation
The consolidated financial statements include the consolidated accounts of the Company and have been prepared in accordance
with generally accepted accounting principles in the United States of America (“GAAP”).
All significant intercompany transactions and balances have been eliminated upon consolidation. Unless otherwise indicated,
references in the consolidated financial statements to 2012, 2011 and 2010 are to the Company’s calendar years ended
December 31, 2012, 2011 and 2010, respectively.
Certain reclassifications have been made in the Company’s consolidated financial statements of prior years to conform to the current
year presentation. These reclassifications have no impact on previously reported net income.
Supplemental Information
Stock-based compensation costs, which are included in selling, general and administrative expenses (“SG&A”), were $67.1, $23.8
and $24.3 for 2012, 2011 and 2010, respectively.
Interest expense is net of interest income of $6.7, $7.2 and $4.9 for 2012, 2011 and 2010, respectively.
Foreign Operations
The functional currency for most of the Company’s consolidated foreign operations is the local currency. Assets and liabilities are
translated at year-end exchange rates, and income and expenses are translated at average exchange rates during the year. Net
unrealized exchange adjustments arising on the translation of foreign currency financial statements are reported as cumulative
translation adjustments within accumulated other comprehensive income. Foreign currency transaction gains and losses are
included in the results of operation and are generally classified in SG&A. Foreign currency transaction gains/(losses) for 2012, 2011
and 2010, were $1.9, ($11.1) and $8.7, respectively.
The U.S. dollar is the functional currency for certain foreign subsidiaries that conduct their business primarily in U.S. dollars. As such,
monetary items are translated at current exchange rates, and non-monetary items are translated at historical exchange rates.
Venezuela Operations
The Company’s subsidiaries operating in Venezuela are considered under GAAP to be operating in a highly inflationary economy.
As such, the Company’s financial statements of its subsidiaries operating in Venezuela are remeasured as if their functional currency
were the U.S. dollar and gains and losses resulting from the remeasurement of monetary assets and liabilities are reflected in current
earnings. The financial statements of the Company’s subsidiaries operating in Venezuela are remeasured at and are reflected in the
Company’s consolidated financial statements at the official exchange rate of 4.30 Bolivars per U.S. dollar, which is the Company’s
expected settlement rate.
In January 2010, the Venezuelan government announced its intention to devalue its currency (Bolivar) relative to the U.S. dollar. The
official exchange rate for non-essential goods moved to an official exchange rate of 4.30 Bolivars per U.S. dollar. As a result of the
change in the official exchange rate, the results of operations for 2010 include a non-cash charge of approximately $14.0, primarily
reflecting the write-down of monetary assets as of January 1, 2010. This charge is classified in SG&A.
In March 2010, the Securities and Exchange Commission (the “SEC”) provided guidance on certain exchange rate issues specific to
Venezuela. This SEC guidance, in part, requires that any differences between the amounts reported for financial reporting purposes
and actual U.S. dollar-denominated balances that may have existed prior to the application of the highly inflationary accounting
requirements (effective January 1, 2010 for the Company) should be recognized in the income statement. As a result of applying