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Jarden Corporation Annual Report 2013 37
1. Business and Signicant 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 120 trusted, quality brands sold globally. Jarden operates in three primary business
segments through a number of well recognized brands, including: Outdoor Solutions: Abu Garcia®, AeroBed®, Berkley®, Campingaz®
and Coleman®, ExOfcio®, Fenwick®, Gulp!® Invicta®, K2®, Madshus®, Marker®, Marmot®, Mitchell®, PENN®, Rawlings®, Ride®,
Sevylor®, Shakespeare®, Stearns®, Stren®, Trilene®, Völkl®, Worth® 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®, Lifoam®, Lillo®, Loew Cornell®, Mapa®, NUK®, Pine Mountain®, ProPak®,
Quickie®, Spontex®, Tigex® and Yankee Candle®. 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 nancial 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 signicant intercompany transactions and balances have been eliminated upon consolidation. Unless otherwise indicated, references
in the consolidated nancial statements to 2013, 2012 and 2011 are to the Company’s calendar years ended December31, 2013, 2012 and
2011, respectively.
Certain reclassications have been made in the Company’s consolidated nancial statements of prior years to conform to the current
year presentation. These reclassications have no impact on previously reported net income.
Stock Split
On March18, 2013, the Company consummated a 3-for-2 stock split in the form of a stock dividend of one additional share of common
stock for every two shares of common stock. The Company retained the current par value of $0.01 per share for all shares of common
stock. All references to the number of shares outstanding, issued shares, per share amounts and restricted stock and stock option
data of the Company’s shares of common stock have been restated to reect the effect of the stock split for all periods presented in
the Company’s accompanying consolidated nancial statements and footnotes thereto. Stockholders’ equity has been retroactively
restated to reect the effect of the stock split by reclassifying from additional paid-in capital to common stock, an amount equal to the
par value of the additional shares resulting from the stock split.
Supplemental Information
Stock-based compensation costs, which are included in selling, general and administrative expenses (“SG&A”), were $95.8, $67.1 and
$23.8 for 2013, 2012 and 2011, respectively.
Interest expense is net of interest income of $7.5, $6.7 and $7.2 for 2013, 2012 and 2011, respectively.
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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 nancial statements are reported as cumulative
translation adjustments within accumulated other comprehensive income. Foreign currency transaction gains and losses are included in
the results of operations and are generally classied in SG&A. Foreign currency transaction gains/(losses) for 2013, 2012 and 2011 were
($6.4), $1.9 and ($11.1), 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 inationary economy.
As such, the Company’s nancial 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 reected in current
earnings. The nancial statements of the Company’s subsidiaries operating in Venezuela are remeasured at and are reected in the
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2013 (Dollars in millions, except per share data and unless otherwise indicated)