Sunbeam 2012 Annual Report Download - page 47

Jarden Corporation Annual Report 2012 45
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2012 (Dollars in millions, except per share data and unless otherwise indicated)
In addition, the Company completed three tuck-in acquisitions during 2010. On October 1, 2010, the Company acquired Aero
Products International, Inc. (“Aero”), a leading provider of premium, air-filled mattresses under brand names including Aero®,
Aerobed® and Aero Sport®. The acquisition of Aero is expected to expand distribution channels, as well as expand the Company’s
current Coleman product offerings of indoor and outdoor air beds and accessories. Aero is reported in the Company’s Outdoor
Solutions segment and is included in the Company’s results of operations from October 1, 2010. On December 17, 2010, the
Company acquired Quickie Manufacturing Corporation (“Quickie”), a leading supplier and distributor of innovative cleaning
tools and supplies. Quickie designs, manufactures and distributes cleaning products including mops, brooms, dusters, dust
pans, brushes, buckets and other supplies, for traditional in-home use, as well as commercial and contractor-grade applications
sold primarily under the leading brands Quickie Original®, Quickie Home-Pro®, Quickie Professional®, Quickie Microban® and
Quickie Green Cleaning®. The Quickie acquisition complements the Mapa Spontex acquisition by combining Quickie’s leading
domestic position in household stick and smallware cleaning supplies with Mapa Spontex’s leading international position in gloves
and sponges and provides the Company with a complete product line in conventional cleaning supplies to offer our retailers
both domestically and internationally. Quickie is reported in the Company’s Branded Consumables segment and is included in
the Company’s results of operations from December 17, 2010. Additionally, during 2010, the Company completed another tuck-in
acquisition. The combined cash purchase price, net of cash acquired, for the Aero and Quickie acquisitions was approximately
$270. All three tuck-in acquisitions were complementary to the Company’s core businesses and from an accounting standpoint
were not significant.
Supplemental pro forma information has not been provided for Mapa Spontex as the acquired operations were a component
of a significantly larger legal entity and separate historical financial statements were not prepared and could not be prepared to
a sufficient level of reliability, as well as be inclusive of all costs necessary to operate the acquired businesses as a stand-alone
operation. As such, the compilation of the requisite historical financial data is impracticable. Supplemental pro forma financial
information for Aero and Quickie have been excluded as they are not material to the consolidated financial position, results of
operations or cash flows of the Company.
For 2012 and 2010, cost of sales includes a charge of $6.0 and $27.4, respectively, for the purchase accounting adjustment for the
elimination of manufacturer’s profit in inventory related to acquisitions.
For 2012 and 2010, SG&A includes $3.5 and $23.1, respectively, in transaction costs related to acquisitions.
4. Inventories
Inventories are stated at the lower-of-cost-or-market with cost being determined principally by the first-in, first-out method, and are
comprised of the following at December 31, 2012 and 2011:
5. Property, Plant and Equipment
Property, plant and equipment, net, is comprised of the following at December 31, 2012 and 2011:
(In millions) 2012 2011
Raw materials and supplies $ 222.4 $ 219.4
Work-in-process 83.3 89.6
Finished goods 1,004.6 965.4
Total $ 1,310.3 $ 1,274.4
(In millions) 2012 2011
Land $ 55.6 $ 47.2
Buildings 354.1 286.7
Machinery and equipment 1,137.2 1,032.4
1,546.9 1,366.3
Less: Accumulated depreciation (868.3) (750.4)
Total $ 678.6 $ 615.9
Depreciation of property, plant and equipment for 2012, 2011 and 2010 was $135, $145 and $127, respectively.