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Jarden Corporation Annual Report 2013 17
assurance that the Company will complete an acquisition in any given year or that any such acquisition will be signicant or successful.
The Company will only pursue a candidate when it is deemed to be scally prudent and that meets the Company’s acquisition criteria.
The Company anticipates that any future acquisitions would be nanced through any combination of cash on hand, operating cash
ow, availability under its existing credit facilities and new capital market offerings.
2013 Activity
On October3, 2013, the Company acquired Yankee Candle, a leading specialty-branded premium scented candle company (the “YCC
Acquisition”). The total value of the YCC Acquisition, including debt assumed and/or repaid, was approximately $1.8 billion, subject to
adjustment. The YCC Acquisition is expected to extend the Company’s portfolio of market-leading, consumer brands in niche, seasonal
staple categories, while creating opportunities in cross-selling and broadening the global distribution platform. The YCC Acquisition,
which is expected to enhance the Company’s overall margin prole, is consistent with the Company’s disciplined acquisition criteria of
purchasing leading, niche consumer-oriented brands with attractive cash ows and strong management. Yankee Candle will be reported
in the Company’s Branded Consumables segment and was included in the Company’s results of operations from October3, 2013.
2012 Activity
During 2012, the Company completed three tuck-in acquisitions that by nature were complementary to the Company’s core businesses
and from an accounting standpoint were not signicant.
2011 Activity
During 2011, the Company did not complete any signicant acquisitions.
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Venezuela Operations
On February8, 2013, the Venezuelan government announced its intention to further devalue the Bolivar relative to the U.S. dollar. As a
result of the devaluation, the ofcial exchange rate changed to 6.30 Bolivars per U.S. dollar for imported goods. As such, beginning in
February 2013, the nancial statements of the Company’s subsidiaries operating in Venezuela are remeasured, and are reected in the
Company’s consolidated nancial statements, at the ofcial exchange rate of 6.30 Bolivars per U.S. dollar. During 2013, the Company
recorded $29.0 million of devaluation-related charges related to its Venezuela operations, which are almost entirely comprised of a
charge related to the write-down of monetary assets due to the change in the ofcial exchange rate. These charges are included in
selling, general and administrative expenses (“SG&A”).
Through December31, 2013, the Venezuelan government had established one ofcial exchange rate for qualifying dividends and
imported goods and services. Transactions at the ofcial exchange rate are subject to approval by the Venezuelan government’s
Foreign Exchange Administrative Commission (“CADIVI”). The nancial statements of the Company’s subsidiaries operating in
Venezuela are remeasured at and are reected in the Company’s consolidated nancial statements at the ofcial exchange rate of 6.30
Bolivars per U.S. dollar, which is the Company’s expected settlement rate at December31, 2013.
In March 2013, CADIVI established a new auction-based exchange rate market program, the Complementary System for Foreign
Currency Administration (“SICAD”). Through December31, 2013, the notional amount of transactions that have been processed through
SICAD programs has been limited, which essentially eliminates the Company’s ability to access any foreign exchange rate other than
the ofcial exchange rate.
On January, 24, 2014, the Venezuelan government announced that, effective immediately, dividends and royalties will be executed
under the SICAD program. Dividends and royalties were previously executed at the ofcial exchange rate of 6.30 Bolivars per U.S.
dollar. The Company expects to continue to use the ofcial exchange rate for all transactions except dividends and royalties. The
Company is evaluating the impact of this announcement to determine the potential charge that could result from remeasuring the
Bolivar-denominated net monetary assets of the Company’s Venezuela operations, as well as the ongoing operational and nancial
impact.
Translating the results of operations for the Companies subsidiaries operating in Venezuela in 2012 using the 6.30 Bolivars per U.S.
dollar ofcial exchange rate versus the actual ofcial exchange rate in effect during 2012 of 4.30 Bolivars per U.S. dollar, would have
reduced the Company’s 2012 consolidated net sales by less than 1%. At December31, 2013, the Company’s subsidiaries operating in
Venezuela have approximately $15 million in cash denominated in U.S. dollars and cash of approximately $99 million held in Bolivars
converted at the ofcial exchange rate. The bolivar-denominated cash in Venezuela comprises substantially all of the net monetary
assets of the Company’s Venezuela operations. There are currency exchange controls in Venezuela which limit the ability of the
Company’s subsidiaries in Venezuelan to distribute or transfer U.S. dollars outside Venezuela.
Management’s Discussion and Analysis
Jarden Corporation Annual Report 2013