Sunbeam 2014 Annual Report Download - page 41

Jarden Corporation Annual Report 2014 39
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: Branded Consumables: Ball®, Bee®, Bernardin®, Bicycle®, Billy
Boy®, Crawford®, Diamond®, Fiona®, First Alert®, First Essentials®, Hoyle®, Kerr®, Lehigh®, Lifoam®, Lillo®, Loew-Cornell®, Mapa®,
NUK®, Pine Mountain®, ProPak®, Quickie®, Spontex®, Tigex® and Yankee Candle®; 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 Outdoor Solutions: Abu Garcia®, AeroBed®, Berkley®, Campingaz®, Coleman®, ExOfcio®, Fenwick®,
Greys®, Gulp!®, Hardy®, Invicta®, K2®, Madshus®, Marker®, Marmot®, Mitchell®, PENN®, Rawlings®, Ride®, Sevylor®, Shakespeare®,
Stearns®, Stren®, Trilene®, Völkl®, Worth® and Zoot®. 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 that reect our
core strategy, often with highly-recognized brands within the categories they serve, 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 2014, 2013 and 2012 are to the Company’s calendar years ended December31, 2014, 2013
and 2012, 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 November24, 2014, 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 $49.7, $95.8 and
$67.1 for 2014, 2013 and 2012, respectively.
Interest expense is net of interest income of $7.2, $6.0 and $6.7 for 2014, 2013 and 2012, 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 2014, 2013 and 2012 were
($2.0), ($6.4) and $1.9, 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.
Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2014 (Dollars in millions, except per share data and unless otherwise indicated)