jarden 2002_AR

2 0 02 A N N U A L R E P O R T

TA B L E O F C O N T E N T S :

1 corporate profile and strategy
2 chairman’s letter
4 branded consumables
6 home vacuum packaging
8 plastic consumables Winners of Jarden's 2002 Annual Report Cover Design contest:
9 other Milton Murphy, Plant Manager, Plastic Consumables and
Connie Phuah, Administrative Assistant, Home Vacuum Packaging
10 selected financial data
12 management’s discussion and analysis
Ball® and are trademarks of Ball Corporation, under
23 financial statements limited license to Jarden Corporation.

C O R P O R AT E P R O F I L E :

Jarden Corporation is a leading provider of niche consumer products used
in the home, under well-known brand names including Ball®, Bernardin®,
Diamond®, FoodSaver®, Forster® and Kerr ®. In North America, Jarden is
the market leader in several categories, including home canning, home
vacuum packaging, kitchen matches, branded retail plastic cutlery and
toothpicks. Jarden also manufactures zinc strip and a wide array of plastic
products for third party consumer product and medical companies, as well
as its own businesses.

C O R P O R AT E S T R AT E G Y:

Our objective is to increase stockholder value by building a world class
consumer products company that enjoys leading market shares of niche
markets for branded consumable products used in and around the home.
We will seek to achieve this objective by leveraging and expanding our
United States and international distribution channels, introducing new
products and pursuing strategic acquisitions.

CHAIRMAN’S LETTER

“In a business where we live by the mantra, ‘Our most
important assets go home every night,’ we are particularly
pleased that our management teams believe in, and are
excited about, our long-term stategy to build a world
class consumer products company.”

PG. 2

DEAR FELLOW SHAREHOLDERS:
I am delighted to report that 2002, by any measure, was the most success-
ful year in the company’s history. Despite a difficult economic climate, every
segment of your company met or exceeded its profitability objectives.

Perhaps more important than short-term financial success, we acquired Tilia during the first half of 2002, the leading
defined a long-term strategic direction for Jarden Corporation manufacturer and marketer of home vacuum packaging
and prepared the foundation for a successful execution of systems under the FoodSaver® brand in North America.
this strategy. Our strategy is clear and consistent; to build This acquisition was a natural extension of Jarden’s market
a world class consumer products company that enjoys leading leading position in another area of home food preservation,
market shares of niche markets for branded consumable home canning. The synergies between these two businesses
products used in and around the home. We believe this have already led to cost efficiencies and increased strength in
strategy has not only created a strong, vibrant platform from marketing, distribution and product development. In addition,
which to grow, but also presents a compelling investment we believe our ability to complete a smooth and swift
opportunity. The nature of niche markets means they are rela- integration plan for the FoodSaver® acquisition bodes well
tively small with attractive operating margins and strong cash for future acquisition integrations.
flows. These markets have often been neglected, providing the
Established Platform for Growth
opportunity for positive market trends from newly invigorat-
The company’s transformation was highlighted by its name
ed management with fresh and creative ideas. We believe that
change to Jarden Corporation from Alltrista at the end of
many of our niche branded consumable markets share similar
May 2002. While the name change was largely symbolic, the
distribution channels which can be leveraged to include new
changes made since September 2001 have had a significant
product introductions as well as more efficient customer
positive impact on the morale of our employees. In a business
service. A number of important milestones in implementing
where we live by the mantra, “Our most important assets go
our strategy were achieved in 2002.
home every night,” we are particularly pleased that our
Expanded into Home Vacuum Packaging management teams believe in, and are excited about, our
Following the significant reorganization and deleveraging of long-term strategy to build a world class consumer products
the company that took place in the fourth quarter of 2001, we company. I believe this rejuvenated spirit has pushed your

Martin E. Franklin
Chairman and
2002 SALES BY SEGMENT: Chief Executive Officer

39% Home Vacuum Packaging
31% Branded Consumables
19% Plastic Consumables
11% Other

PG. 3

company’s people to excel, despite macro economic We have strengthened our management ranks in 2002, not
challenges. To ensure the financial flexibility required for only in sales and marketing, but also in technology through
future growth, your company entered into a newly syndicated the newly filled post of Chief Information Officer. In addition,
$100 million senior credit facility and $150 million ten-year we have welcomed the addition of two experienced independent
senior subordinated notes that provides a non-amortizing directors to our Board, Irwin Simon, Chairman of Hain-
base of capital at favorable rates. These positive changes in Celestial Group, and René-Pierre Azria, Managing Director
your company have resulted in a renewed interest in the of Rothschild Inc. Their insights have already proved
equity of Jarden and should allow us to continue to increase valuable to the company.
the long-term value we can deliver to our shareholders.
Finally, all of the above has led to the start of recognition
Acquired Diamond Brands on Wall Street. Two research houses initiated coverage of
In November 2002, Jarden announced it had entered into a Jarden in 2002 and a third began coverage in January 2003.
definitive asset purchase agreement to acquire the business of The company’s new strategic direction, as well as our strong
Diamond Brands, which was completed during February 2003. financial results, helped Jarden’s shares rise by over 200% in
Diamond Brands is a leading manufacturer and marketer of 2002, a performance that led to Jarden being listed as the
niche consumer products for domestic use including kitchen number one performing stock in 2002 according to Investors
matches, toothpicks, plastic cutlery, straws, clothespins and Business Daily.
wooden crafts, sold primarily under the Diamond® and
We are proud of your company’s performance in 2002. Much
Forster® trademarks. Diamond Brands met our established
of the credit is due to the 1,500 members of the Jarden team
major acquisition criteria: leading market shares of niche
and their outstanding efforts during 2002. We entered 2003
markets in branded consumables used in and around the
with considerable momentum and I look forward to reporting
home, established EBITDA margins in excess of 15% and a
our progress to you as the year unfolds.
purchase price allowing immediate accretion to earnings from
the date of acquisition, before synergies. With the inclusion Yours sincerely,
of Diamond Brands, we have surpassed our internal goal of
generating over 90% of our total revenues from consumer
products related businesses by the end of 2003.

Invested in Organic Growth Martin E. Franklin
To continue organic growth in our business we have allocated
Chairman and
significant incremental marketing funds in 2003 for launching
Chief Executive Officer
and promoting new product introductions. This effort has
been led by our new Chief Marketing Officer, whose role is
to define a strategy to drive organic growth across our
consumer products businesses.

Our Diamond® and Forster® branded
retail plastic cutlery is available in a variety
The Jammin’ Kit is designed as a fun,
of different counts and sizes to suit the
home-based, canning experience for Pickling is a popular home canning
differing needs of our customers.
the whole family. activity and this new kit makes it easy.

PG. 4

Our new “ultimate package”
We offer a variety of different design will provide distribution
Diamond® is the leading brand Our new Salsa Kit is 1 of 9 packaging and types of toothpicks and manufacturing efficiencies
in kitchen matches and is a staple Fresh ‘N Fun kits we now offer. including the inventive Shake A while improving the
product in many homes. Pick® product shown below. presentation to the consumer.

PG. 5

BRANDED CONSUMABLES

We manufacture, market and distribute a broad
line of branded products that includes home canning
jars, jar closures, plastic cutlery, kitchen matches,
toothpicks, food preparation kits, craft items and Jack Metz (President, 2nd from
right) with (from left to right)
Roman Shumny (VP-Marketing),
other accessories marketed under a portfolio of brands, Jim King (VP-Sales), Dave Tolbert
(VP-HR & Admin) and Blair
including the well-known Ball®, Bernardin®, Diamond®, Swogger (Chief Operating Officer).

Forster®, Fruit Fresh® and Kerr® brand names.
Several of our leading branded consumable products and craft stores. Our customers include Ace Hardware,
such as Diamond® kitchen matches and Ball® jars have Albertson’s, Dollar General, Kroger, and Wal-Mart,
been in continuous use for over 100 years. We have among others.
long-standing relationships with a diverse group of
Some of our marketing initiatives include in-store
retail, wholesale and institutional customers in North
coupons, strategically located display cases and the
America. We sell through a wide variety of distribution
new “ultimate package” for home canning jars.
channels, including grocery stores, mass merchants,
department stores, value retailers, hardware stores

Our bags and bag rolls sold for use
with the home vacuum packaging
machines represent a recurring revenue
source and a competitive advantage.

We have created the home vacuum packaging
category at most of our retailers and actively
work with them to promote the FoodSaver®
and home vacuum packaging to consumers.

PG. 6

PG. 7

H O M E V A C U U M PA C K A G I N G

We are the leading provider of home vacuum
packaging machines and accessories under the
FoodSaver® brand. Our accessories include
bags and bag rolls, canisters, jar sealers and
wine stoppers. Linda Graebner (President) with Michael
Whitcomb (Chief Marketing Officer) and
David Brakes (Chief Operating Officer).

We sell through a diverse group of leading wholesale Advertising and brand-building programs will
and retail customers in North America and distributors extend beyond infomercials. We believe that new
in selected international markets. We have successfully product innovation will increasingly capitalize on
penetrated several traditional retail channels including consumer segmentation opportunities in vacuum
mass merchants, warehouse clubs and specialty retailers packaging and in other food preservation categories.
and also sell through direct-to-consumer channels, Our retail position is being reinforced by channel
primarily infomercials. Our customers include Bed Bath marketing initiatives that optimize category volume
and Beyond, Costco, Kohl's, Target and Wal-Mart, and profitability for retailers. Direct marketing
among others. activities are being expanded to reinforce brand loyalty
and sustained usage rates for bags and accessories.
Our marketing department is implementing a strategy
to drive sustained growth over the next few years.

Refrigerator door liners and
Consumer products packaging. Yorker® closures. other plastic parts.

PG. 8

PLASTIC CONSUMABLES

We manufacture, market and distribute
a wide variety of plastic products for
industrial and manufacturing customers
including closures, contact lens packaging,
refrigerator door liners, sport shooting
ammunition components, surgical devices
and syringes.

Many of these products are consumable in nature We also supply plastic products and parts to both our
or represent components of consumer products. branded consumables (plastic cutlery and closures) and
home vacuum packaging (plastic containers) segments.
We sell primarily to major companies in the
healthcare and consumer products industries. Our We focus our sales and marketing efforts in those
customers include CIBA Vision, Johnson & Johnson, markets that require high levels of precision, quality,
Scotts, Whirlpool and Winchester, among others. and engineering expertise.

Penny blanks are primarily made Zinc strip is produced
An array of zinc strip products.
of zinc and coated in copper. in our plant.

PG. 9

OT H E R

We are the largest producer of zinc strip
and fabricated products in the United
States. We are the sole source supplier of
copper plated zinc penny blanks to both
the United States Mint and the Royal
Canadian Mint.

In addition, we manufacture a line of industrial Our sales and marketing team consists of individuals
zinc items used in the plumbing, automotive, electrical with considerable technical background in the field of
component and European architectural markets. Our metallurgy, who focus on leveraging our core capabilities
anti-corrosion zinc Lifejacket® is gaining recognition in zinc metallurgy and electrochemistry to capitalize on
as a cost-effective solution to arrest the corrosion of new market opportunities. The sales and marketing staff
the reinforcement steel within poured concrete work closely with our engineering and technical services
structures (see image to the right). group to deliver products to the customer.

Jarden Corporation
Selected Financial Data
The following table sets forth our selected financial data as of and for the years ended December 31, 2002,
2001, 2000, 1999 and 1998. The selected financial data set forth below has been derived from our audited
consolidated financial statements and related notes for the respective fiscal years. The selected financial data
should be read in conjunction with ‘‘Management’s Discussion and Analysis of Financial Condition and Results
of Operations’’ as well as our consolidated financial statements and notes thereto. These historical results are
not necessarily indicative of the results to be expected in the future.
For the year ended December 31,
2002 2001 2000 1999 1998
(a) (b) (c) (d) (e) (f)
(in thousands, except per share data)

STATEMENT OF OPERATIONS DATA:
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . $368,199 $ 304,978 $357,356 $358,031 $258,489
Costs and expenses:
Cost of sales . . . . . . . . . . . . . . . . . . . . . 216,629 232,634 274,248 256,201 187,295
Selling, general and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . 86,461 53,254 57,342 56,429 38,331
10
PG.
Goodwill amortization . . . . . . . . . . . . — 5,153 6,404 4,605 1,399
Special charges (credits) and
reorganization expenses (g) . . . . . . — 4,978 380 2,314 1,260
Loss (gain) on divestiture of assets
and product lines. . . . . . . . . . . . . . . — 122,887 — (19,678) —
Operating income (loss) . . . . . . . . . . . . . 65,109 (113,928) 18,982 58,160 30,204
Interest expense, net . . . . . . . . . . . . . . . . 12,611 11,791 11,917 8,395 1,822
Income tax provision (benefit) . . . . . . . . 16,189 (40,443) 2,402 19,458 10,785
Minority interest in gain (loss) of
consolidated subsidiary . . . . . . . . . . . — 153 (259) — —
Income (loss) from continuing
operations . . . . . . . . . . . . . . . . . . . . . . 36,309 (85,429) 4,922 30,307 17,597
Loss from discontinued operations . . . . — — — (87) (1,870)
Extraordinary loss from early
extinguishment of debt (net of
income taxes) . . . . . . . . . . . . . . . . . . . — — — (1,028) —
Net income (loss) . . . . . . . . . . . . . . . . . . . $ 36,309 $ (85,429) $ 4,922 $ 29,192 $ 15,727

Basic earnings (loss) per share (h):
operations . . . . . . . . . . . . . . . . . . . . . . $ 2.60 $ (6.71) $ 0.39 $ 2.25 $ 1.24
Loss from discontinued operations . . . . — — — (.01) (.13)
income taxes) . . . . . . . . . . . . . . . . . . . — — — (.07) —
$ 2.60 $ (6.71) $ 0.39 $ 2.17 $ 1.11

Diluted earnings (loss) per share (h):
operations . . . . . . . . . . . . . . . . . . . . . . $ 2.52 $ (6.71) $ 0.39 $ 2.22 $ 1.22
Loss from discontinued operations . . . . — — — (.01) (.13)
income taxes) . . . . . . . . . . . . . . . . . . . — — — (.07) —
$ 2.52 $ (6.71) $ 0.39 $ 2.14 $ 1.09

Jarden Corporation
Selected Financial Data (Continued)

As of and for the year ended December 31,
2002 2001 2000 1999 1998
(a) (b) (c) (d) (e) (f)
(in thousands)
OTHER FINANCIAL DATA:
EBITDA (i) . . . . . . . . . . . . . . . . . . . . . . . . $ 75,110 $ 32,734 $ 40,673 $ 58,493 $ 42,012
Cash flows from operations . . . . . . . . . . 69,551 39,857 19,144 22,324 27,388
Depreciation and amortization . . . . . . . 10,001 18,797 21,311 17,697 10,548
Capital expenditures . . . . . . . . . . . . . . . . 9,277 9,707 13,637 16,628 11,909
BALANCE SHEET DATA:
Cash and cash equivalents . . . . . . . . . . . $ 56,779 $ 6,376 $ 3,303 $ 17,394 $ 21,454
Working capital . . . . . . . . . . . . . . . . . . . . 101,557 8,035 22,975 54,611 46,923
Total assets . . . . . . . . . . . . . . . . . . . . . . . 366,765 162,234 310,429 340,364 166,974
Total debt . . . . . . . . . . . . . . . . . . . . . . . . . 216,955 84,875 137,060 140,761 25,715
11
PG.
Total stockholders’ equity . . . . . . . . . . . . 76,764 35,129 118,221 123,025 94,893
(a) The results of Tilia are included from April 1, 2002.
(b) 2002 includes a net release of a $4.4 million tax valuation allowance. Adjusting for the net release of the valuation allowance, the
Company’s diluted earnings per share for 2002 would have been $2.22.
(c) 2001 includes a $121.1 million pretax loss on the sale of thermoforming assets, a $2.3 million pretax charge associated with corporate
restructuring, a $1.4 million pretax loss on the sale of the Company’s interest in Microlin, LLC, $2.6 million of pretax separation costs
related to the management reorganization, $1.4 million of pretax costs to evaluate strategic options, $1.4 million of pretax costs to
exit facilities, a $2.4 million pretax charge for stock option compensation, $4.1 million of pretax income associated with the discharge
of deferred compensation obligations and a $1.0 million pretax gain related to an insurance recovery.
(d) 2000 includes $1.6 million of pretax income associated with the reduction in long-term performance-based compensation, $1.4
million in pretax litigation charges, net of recoveries and $0.6 million of pretax costs to evaluate strategic options.
(e) 1999 includes a $19.7 million pretax gain on the sale of the plastic packaging product line and a $2.3 million pretax charge to exit
a plastic thermoforming facility.
(f) 1998 includes a $1.3 million pretax charge to exit a plastic injection molding facility.
(g) Special charges (credits) and reorganization expenses were comprised of costs to evaluate strategic options, discharge of deferred
compensation obligations, separation costs for former officers, stock option compensation, corporate restructuring costs, costs to exit
facilities, reduction of long-term performance based compensation, litigation charges and items related to our divested thermoforming
operations.
(h) All earnings per share amounts have been adjusted to give effect to a 2-for-1 split of our outstanding shares of common stock that
was effected during the second quarter of 2002.
(i) ‘‘EBITDA’’ is calculated as operating income (loss) plus (i) depreciation and amortization, (ii) special charges (credits) and
reorganization expenses and (iii) loss (gain) on divestiture of assets and product lines. EBITDA is not intended to represent cash flow
from operations as defined by accounting principles generally accepted in the United States and should not be used as an alternative
to net income as an indicator of operating performance or to cash flow as a measure of liquidity. EBITDA is included in this Form 10-K
because it is a basis upon which our management assesses financial performance. While EBITDA is frequently used as a measure of
operations and the ability to meet debt service requirements, it is not necessarily comparable to other similarly titled captions of other
companies due to potential inconsistencies in the method of calculation.
Quarterly Stock Prices
The table below sets forth the high and low sales prices of our common stock as reported on the New York
Stock Exchange for the periods indicated. All prices have been adjusted to reflect the 2-for-1 stock split that
occurred during the second quarter of 2002:
First Second Third Fourth
Quarter Quarter Quarter Quarter
2002
High . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15.00 $19.96 $27.46 $27.70
Low . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.57 $13.25 $18.35 $20.00
2001
High . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7.56 $ 8.07 $ 6.51 $ 8.02
Low . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6.15 $ 5.82 $ 5.35 $ 5.65

Jarden Corporation
Management’s Discussion and Analysis
We are a leading provider of niche, branded consumer products used in the home, under leading brand
names including Ball , Bernardin , Diamond , FoodSaver , Forster and Kerr . In North America, we are the
market leader in several targeted categories, including home canning, branded retail plastic cutlery, kitchen
matches, toothpicks and home vacuum packaging.
We have grown by actively acquiring new brands and expanding our existing brands. Our strategy to
achieve future growth is to acquire new brands, sustain profitable internal growth and expand our international
business.
On April 24, 2002, we completed our acquisition of the business of Tilia International, Inc. and its
subsidiaries (collectively ‘‘Tilia’’), pursuant to an asset purchase agreement (the ‘‘Acquisition’’). Based in San
Francisco, California, Tilia was a developer, manufacturer and marketer of a patented vacuum packaging
system for home use, primarily for food storage, under the FoodSaver brand. The Acquisition was entered into
as part of our plan to pursue growth in branded consumer products. We acquired the business of Tilia for
approximately $145 million in cash and $15 million in seller debt financing. In addition, the Acquisition
includes an earn-out provision with a potential payment in cash or our common stock of up to $25 million
payable in 2005, provided that certain earnings performance targets are met. In conjunction with the
12
PG.
Acquisition, we incurred expenses in the amount of approximately $4.5 million. Due to the Company having
effective control of the business of Tilia as of April 1, 2002, the results of Tilia have been included in the
Company’s results from such date.
Effective November 26, 2001, we sold the assets of our Triangle, TriEnda and Synergy World plastic
thermoforming operations (‘‘TPD Assets’’) to Wilbert, Inc. for $21.0 million in cash, a non-interest bearing
one-year note (‘‘Wilbert Note’’) as well as the assumption of certain identified liabilities. The carrying amount
on the Wilbert Note of $1.6 million was repaid on November 25, 2002. In connection with this sale, we recorded
a pre-tax loss of approximately $121.1 million in 2001. The proceeds from the sale were used to pay down the
Company’s term debt under its old credit agreement.
Effective November 1, 2001, we sold our majority interest in Microlin, LLC (‘‘Microlin’’), a developer of
proprietary battery and fluid delivery technology, for $1,000 in cash plus contingent consideration based upon
future performance through December 31, 2012 and the cancellation of future funding requirements. We
recorded a pretax loss of $1.4 million in 2001 related to the sale.
Pro forma financial information relating to the Acquisition and the sales of TPD Assets and Microlin has
been included in the notes to our consolidated financial statements.
On September 24, 2001, our board of directors appointed Martin E. Franklin as our Chairman and Chief
Executive Officer and Ian G.H. Ashken as our Vice Chairman, Chief Financial Officer and Secretary. Following
this appointment we undertook a new business and management strategy to concentrate on niche, branded
consumer products, which led to the sale of the TPD Assets and the Acquisition. During 2002, we revised our
business segment information to report four business segments: branded consumables, home vacuum
packaging, plastic consumables and other. Prior periods have been reclassified to conform to the current
segment definitions.

Results of Operations – Comparing 2002 to 2001
We reported net sales of $368.2 million in 2002, an increase of 20.7% from net sales of $305.0 million in
2001. From April 1, 2002 onwards, our home vacuum packaging segment, which consists of the newly acquired
Tilia business, generated net sales of $145.3 million. Our branded consumables segment reported net sales of
$112.3 million in 2002 compared to $120.6 million in 2001. Net sales were $8.3 million or 6.9% lower than
2001, principally due to severe drought weather conditions during summer 2002 in the South, Southeast and
West Central regions of the United States. Our plastic consumables segment reported net sales of $70.6 million
in 2002 compared to $139.9 million in 2001. The principal cause of the $69.3 million decrease was the
divestiture of the TPD Assets and Microlin, which accounted for $63.3 million of such change (after adjusting
for $1.2 million of intercompany sales to these businesses). The remaining $6.0 million is principally due to

Jarden Corporation
Management’s Discussion and Analysis (Continued)
lower tooling sales and a contractual sales price reduction to a significant customer. In the other segment, net
sales decreased to $41.0 million in 2002 from $45.5 million in 2001, primarily due to reduced sales to the United
States Mint in connection with its inventory reduction program for all coinage.
We reported operating income of $65.1 million for 2002. These results compare to an operating loss of
$113.9 million for 2001, which included special charges (credits) and reorganization expenses of $5.0 million
and a loss on divestitures of assets and product lines of $122.9 million. All of our segments generated increases
in operating income in 2002 from 2001, with the exception of the other segment, which had a small decrease
but still maintained a constant operating income percentage of net sales in 2002. From April 1, 2002 onwards,
our home vacuum packaging segment, which consists of the newly acquired Tilia business, generated operating
income of $31.7 million. Operating income for our branded consumables and plastic consumables segments
increased by $4.7 million and $14.4 million, respectively, in 2002 compared to 2001. The other factors that
contributed to these favorable operating income results are discussed in the following two paragraphs.
Gross margin percentages on a consolidated basis increased to 41.2% in 2002 from 23.7% in 2001,
reflecting the higher gross margins of the acquired home vacuum packaging business in 2002, the lower gross
margins of the disposed TPD Assets and Microlin businesses in 2001, a $1.5 million charge for slow moving 13
PG.
inventory in the branded consumables segment in 2001 and cost efficiency increases in our plastic consumables
segment. These increases were partially offset by lower gross margins in the branded consumables segment
caused by the lower sales volume.
Selling, general and administrative expenses increased to $86.5 million in 2002 from $53.3 million in
2001, or, as a percentage of net sales increased to 23.5% in 2002 from 17.5% in 2001. This increase was
principally due to the acquisition of the home vacuum packaging business, which accounted for an additional
$46.3 million of selling, general and administrative expenses, and because of company-wide increased
performance-based compensation expenses related to our strong financial performance in 2002. Partially
offsetting this were decreases in selling, general and administrative expenses in our branded consumables,
plastic consumables and other segments. Expenses within the branded consumables segment decreased due to
lower selling expenses associated with the decrease in net sales discussed above. Expenses within our plastic
consumables segment decreased primarily due to the divestiture of TPD Assets and Microlin, which accounted
for $11.7 million of this decline, and lower expenses in the remaining business of the segment.
We incurred net special charges (credits) and reorganization expenses of $5.0 million in 2001, consisting
of $0.8 million in costs to exit facilities, $2.4 million in stock option compensation, $2.3 million in corporate
restructuring costs, $2.6 million in separation costs for former executive officers and $1.4 million of costs to
evaluate strategic options, partially offset by $4.1 million in pre-tax income related to the discharge of certain
deferred compensation obligations and $0.4 million of income for items related to the divested TPD Assets.
As a result of the adoption of SFAS No. 142, we did not record goodwill amortization in 2002. Goodwill
amortization of approximately $5.2 million had been recorded in 2001.
Net interest expense in 2002 was $12.6 million compared to $11.8 million for 2001, primarily due to the
additional indebtedness assumed pursuant to the Acquisition, partially offset by the write-off in 2001 of $1.5
million of previously deferred debt issuance costs in November 2001 in conjunction with the amendment to our
credit facility effected in connection with the TPD Assets sale. During 2002, we had a lower weighted average
interest rate than the prior year, which was more than offset by higher average borrowings outstanding.
Our effective tax rate was 30.8% in 2002 compared to 32.2% in 2001. At December 31, 2001, we had
federal net operating losses that were recorded as a deferred tax asset with a valuation allowance of $5.4
million. Due to the impact of the Job Creation Act and the tax refunds that we received as a result, a net $4.4
million of this valuation allowance was released in 2002 resulting in an income tax provision of $16.2 million.
Our net income for 2002 would have been $31.9 million or $2.22 diluted earnings per share if this valuation
allowance release was excluded. Excluding the release of this valuation allowance, our effective tax rate was
approximately 39.2% in 2002. The effective tax rate in 2001 was lower than the statutory federal rate due to
the valuation allowance described above.

Jarden Corporation
Results of Operations – Comparing 2001 to 2000
We reported consolidated net sales of $305.0 million in 2001, a decrease of 14.7% from net sales of $357.4
million in 2000. Net sales of the branded consumables segment were $120.6 million in 2001 compared to
$120.4 million in 2000. Increased sales in the United States were offset by decreased sales in Canada due to
unfavorable weather conditions and customers carrying higher levels of inventory over from 2000. Net sales
within the plastic consumables segment were $139.9 million in 2001 compared to $179.3 million in 2000. The
decrease of $39.4 million or 22.0% was due primarily to (i) lower demand for industrial thermoformed parts
(part of the divested TPD Assets) in the heavy truck and material handling markets, and (ii) the fact that 2001
did not include December sales for the divested TPD Assets. Net sales of the other segment decreased to $45.5
million in 2001 from $58.8 million in 2000. This decrease of $13.3 million or 22.6% resulted from lower
demand in all of our zinc product lines.
Our operating loss for 2001 was $113.9 million, including special charges (credits) and reorganization
expenses of $5.0 million and a total loss on divestitures of assets and product lines of $122.9 million. These
results compare to operating income for 2000 of $19.0 million. The factors that contributed to these results are
discussed in the following two paragraphs.
14
PG.
Gross margin percentages increased to 23.7% in 2001 from 23.3% in 2000. Gross margin percentages
increased for branded consumables due primarily to cost efficiencies which continued during 2001 as the
benefits of the segment’s SAP system implementation continued to be realized. The plastic consumables
segment gross margin percentages declined from 16% in 2000 to 13% in 2001. This decrease in gross margin
percentage was due primarily to (i) lower sales of plastic thermoformed parts (part of the divested TPD Assets)
resulting in diminished operating efficiencies, and (ii) lower sales volumes causing fixed overhead costs to be
allocated to less sales of injection molded plastic parts. There was an increase in the other segment’s gross
margin percentages from 28% in 2000 to 29% in 2001.
Selling, general and administrative expenses decreased 7.1% to $53.3 million in 2001 from $57.3 million
in 2000, or, as a percentage of sales increased to 17.5% in 2001 from 16.0% in 2000. Branded consumables
expenses decreased primarily due to lower expenses associated with sales and marketing, warehousing and
shipping. Expenses within the plastic consumables segment decreased primarily as a result of the cost savings
realized due to a third quarter 2000 realignment and consolidation of our divested TPD Assets and the fact that
2001 did not include December expenses for the divested TPD Assets. Excluding the TPD Assets, selling, general
and administrative expenses in the remainder of the plastic consumables segment and the other segment
remained relatively constant.
Goodwill amortization decreased from $6.4 million in 2000 to $5.2 million in 2001 due primarily to our
November 2001 sale of the TPD Assets included in the plastic consumables segment.
We incurred net special charges (credits) and reorganization expenses of $5.0 million in 2001, consisting
of $0.8 million in costs to exit facilities, $2.4 million in stock option compensation, $2.3 million in corporate
restructuring costs, $2.6 million in separation costs for former executive officers and $1.4 million of costs to
evaluate strategic options, partially offset by $4.1 million in pre-tax income related to the discharge of certain
deferred compensation obligations and $0.4 million of income for items related to the divested TPD Assets.
Net interest expense in 2001 was $11.8 million compared to $11.9 million for 2000. The effects of lower
average borrowings outstanding and lower interest rates during 2001 were offset by the write-off of $1.5
million of previously deferred debt issuance costs in November 2001 in conjunction with the amendment to our
credit facility effected in connection with the sale of TPD Assets. Our effective interest rate for the year ended
December 31, 2001 was 7.7%. As a result of decreasing interest rates during 2001, our interest rate swaps, which
were at a fixed interest rate of 5.7%, resulted in additional interest expense to us during the year ended
December 31, 2001.
Our effective tax rate was 32.2% for 2001 compared to 34.0% for 2000. The effective rate for 2001 is lower
than the statutory federal rate primarily because it includes a valuation allowance for tax benefits associated
with the loss on the sale of the TPD Assets. The effective rate for 2000 reflects the recognition of a tax benefit
from exiting the Central European home canning test market.

Jarden Corporation
Financial Condition, Liquidity and Capital Resources
During 2002, we made the following changes to our capital resources in connection with the financing of
the Acquisition:
completed an offering of $150 million of 93⁄4% senior subordinated notes (‘‘Notes’’) to qualified
institutional buyers in a private placement pursuant to Rule 144A under the Securities Act of 1933,
which were later wholly exchanged pursuant to an offering for 93⁄4% senior subordinated notes which
are registered under the Securities Act of 1933, as amended (‘‘New Notes’’);
in conjunction with the Notes, entered into a $75 million interest rate swap to receive a fixed rate of
interest and pay a variable rate of interest based upon LIBOR;
refinanced our existing indebtedness with a new $100 million five-year senior secured credit facility,
which included a $50 million term loan facility and a $50 million revolving credit facility (‘‘New
Credit Agreement’’); and
entered into $15 million of seller debt financing.
15
PG.
The Notes were issued at a discount such that we received approximately $147.7 million in net proceeds.
The Notes will mature on May 1, 2012, however, on or after May 1, 2007, we may redeem all or part of the Notes
at any time at a redemption price ranging from 100% to 104.875% of the principal amount, plus accrued and
unpaid interest and liquidated damages, if any. Prior to May 1, 2005, we may redeem up to 35% of the aggregate
principal amount of the Notes with the net cash proceeds from certain public equity offerings at a redemption
price of 109.75% of the principal amount, plus accrued and unpaid interest and liquidated damages, if any.
Interest on the Notes accrues at the rate of 9.75% per annum and is payable semi-annually in arrears on May
1 and November 1, with the first payment having occurred on November 1, 2002.
During December 2002, the Company completed an offering to the holders of the Notes to exchange the
Notes for the New Notes. The New Notes are substantially similar to the Notes except that certain mandatory
redemption provisions and the transfer restrictions applicable to the Notes are not applicable to the New Notes.
In conjunction with the Notes, on April 24, 2002, we entered into a $75 million interest rate swap (‘‘Initial
Swap’’) to receive a fixed rate of interest and pay a variable rate of interest based upon LIBOR. The Initial Swap
had a maturity date that was the same as the Notes. Interest was payable semi-annually in arrears on May 1 and
November 1, commencing on November 1, 2002. The initial effective rate of interest that we established on this
swap was 6.05%. This contract was considered to be an effective hedge against changes in the fair value of our
fixed-rate debt obligation for both tax and accounting purposes.
Effective September 12, 2002, we entered into an agreement, whereby we unwound the Initial Swap and
contemporaneously entered into a new $75 million interest rate swap (‘‘Replacement Swap’’). The Replacement
Swap has the same terms as the Initial Swap, except that we will pay a variable rate of interest based upon 6
month LIBOR in arrears. The spread on this contract is 470 basis points. Based upon this contract, we paid an
effective interest rate of 6.32% on November 1, 2002. In return for unwinding the Initial Swap, we received $5.4
million in cash proceeds, of which $1 million related to accrued interest that was owed to us. The remaining
$4.4 million of proceeds will be amortized over the remaining life of the Notes as a credit to interest expense
and is included in our consolidated balance sheet as an increase to the value of the long-term debt. Such
amortization amount offsets the increased effective rate of interest that we pay on the Replacement Swap. We
have continued to accrue interest on the Replacement Swap at a 6.32% effective rate for the remainder of 2002.
The Replacement Swap is also considered to be an effective hedge against changes in the fair value of our
fixed-rate debt obligation for both tax and accounting purposes. The fair market value of the interest rate swap
as of December 31, 2002 was approximately $2.4 million and is included as an asset within other assets in the
consolidated balance sheet, with a corresponding offset to long-term debt. We are exposed to credit loss in the
event of non-performance by the other party to the Replacement Swap, a large financial institution, however,
we do not anticipate non-performance by the other party.

Jarden Corporation
The New Credit Agreement matures on April 24, 2007. The revolving credit facility and the term loan
facility bear interest at a rate equal to (i) the Eurodollar Rate pursuant to an agreed formula or (ii) a Base Rate
equal to the higher of (a) the Bank of America prime rate and (b) the federal funds rate plus .50%, plus, in each
case, an applicable margin ranging from 2.00% to 2.75% for Eurodollar Rate loans and from .75% to 1.5% for
Base Rate loans.
The New Credit Agreement contains certain restrictions on the conduct of our business, including, among
other things restrictions, generally, on:
incurring debt;
making investments;
exceeding certain agreed upon capital expenditures;
creating or suffering liens;
completing certain mergers;
consolidations and sales of assets and, with permitted exceptions, acquisitions;
16
PG.

declaring dividends;
redeeming or prepaying other debt; and
certain transactions with affiliates.
The New Credit Agreement also requires us to maintain certain financial covenants.
During 2002, we incurred costs in connection with the issuance of the Notes, the New Notes and the New
Credit Agreement of approximately $7.4 million.
The seller debt financing for the Acquisition consists of a non-interest bearing note in the principal
amount of $10 million that is due on March 31, 2003 and a note in the principal amount of $5 million, bearing
interest at 5%, which is due on April 24, 2004. For accounting purposes, we have imputed an interest rate of
5% on the $10 million non-interest bearing note.
Until it was replaced by the New Credit Agreement on April 24, 2002, our senior credit facility, as amended
(‘‘Old Credit Agreement’’), provided for a revolving credit facility of $40 million and a term loan which
amortized periodically as required by the terms of the agreement. Interest on borrowings under the Old Credit
Agreement’s term loan and the revolving credit facilities were based upon fixed increments over adjusted
LIBOR or the agent bank’s alternate borrowing rate as defined in the agreement. The agreement also required
the payment of commitment fees on the unused balance. During the first quarter of 2002, approximately $38
million of tax refunds we received were used to repay a portion of the outstanding amounts under the Old Credit
Agreement.
In May 1999, we entered into a three-year interest rate swap with an initial notional value of $90 million.
The swap effectively fixed the interest rate on approximately 60% of our term debt at a maximum rate of 7.98%
for the three-year period. The swap matured and was terminated in March 2002.
As of December 31, 2002, we had $47.5 million outstanding under the term loan facility of the New Credit
Agreement, with a weighted average interest rate of 4.3%. As of December 31, 2002, we had not drawn down
any of the $50 million available under the revolving credit facility of the New Credit Agreement, although we
have used approximately $4.2 million of availability for the issuance of letters of credit. See ‘‘Recent
Developments’’ below, for a discussion of the recent amendment to our New Credit Agreement.
As a result of the losses arising from the sale of the TPD Assets, we recovered in January 2002
approximately $15.7 million of federal income taxes paid in 1999 and 2000 by utilizing the carryback of a tax
net operating loss generated in 2001. On March 9, 2002, The Job Creation and Workers Assistance Act of 2002
was enacted which provides, in part, for the carryback of 2001 net operating losses for five years instead of the
previous two year period. As a result, we filed for an additional refund of $22.8 million, of which $22.2 million
was received in March 2002 and the remainder was received in April 2002.

Jarden Corporation
Working capital (defined as current assets less current liabilities) increased to approximately $101.6
million at December 31, 2002 from approximately $8.0 million at December 31, 2001 due primarily to:
the working capital of the acquired home vacuum packaging business;
a lower amount of current portion of debt and increased cash on hand amounts caused by our
favorable operating results and the new financing relationships discussed above; and
the receipt of $22.3 million of tax refunds which had not been included in working capital in 2001.
Cash flow generated from operations, excluding net income tax refunds was approximately $31.0 million
for the year ended December 31, 2002.
Capital expenditures were $9.3 million in 2002 compared to $9.7 million for 2001 and are largely related
to maintaining facilities, tooling projects, improving manufacturing efficiencies and a portion of the costs of
the installation of new packaging lines for the branded consumables segment. As of December 31, 2002, we had
capital expenditure commitments in the aggregate for all our segments of approximately $3.9 million, of which
$2.5 million relates to the completion of the new packaging lines for the branded consumables segment. As of
December 31, 2002, our home vacuum packaging segment had committed to purchase $18.5 million of 17
PG.
inventory from various vendors in the year 2003. Additionally, as of December 31, 2002, our other segment had
forward buy contracts for 2003 to purchase zinc ingots in the aggregate amount of approximately $2.5 million,
which are expected to be used in operations in 2003.
We believe that cash generated from our operations and our availability under our senior credit facility, are
adequate to satisfy our working capital and capital expenditure requirements for the foreseeable future.
However, we may raise additional capital from time to time to take advantage of favorable conditions in the
capital markets or in connection with our corporate development activities.
The following table includes aggregate information about our contractual obligations as of December 31,
2002 and the periods in which payments are due. Certain of these amounts are not required to be included in
our consolidated balance sheet:
Payments due by period (in millions)
Less than 1-3 4-5 After
Total 1 Year Years Years 5 Years
Debt (1) $212.5 $ 16.3 $ 25.0 $ 21.2 $150.0
Operating Leases 16.1 5.6 8.4 2.1 —
Unconditional Purchase
Obligations 24.9 24.9 — — —
Other Non-current Obligations 2.8 1.8 1.0 — —
Total Contractual Cash
Obligations $256.3 $ 48.6 $ 34.4 $ 23.3 $150.0

(1) The debt amounts are based on the principal payments that will be due upon their maturity and
exclude approximately $6.6 million of non-debt balances arising from the interest rate swap
transactions described in the notes to our consolidated financial statements.
Commercial commitments are items that we could be obligated to pay in the future:
As of December 31, 2002, we had $4.2 million in standby and commercial letters of credit that all
expire in 2003;
In connection with the Acquisition, we may be obligated to pay an earn-out in cash or our common
stock of up to $25 million in 2005, provided that certain earnings performance targets are met; and
In connection with a contract we have entered into to acquire additional intellectual property, we may
be obligated to pay up to $7.5 million between 2003 and 2009, providing certain contractual
obligations, including the issuance of patents amongst other things, are satisfied.
These amounts are not required to be included in our consolidated balance sheet.

Jarden Corporation
Recent Developments
In January 2003, we filed a shelf registration statement, which was declared effective by the Securities and
Exchange Commission (the ‘‘Commission’’) on January 31, 2003. This shelf registration statement is intended
to facilitate our access to growth capital for future acquisitions and allows us to sell over time up to $150
million of common stock, preferred stock, warrants, debt securities, or any combination of these securities in
one or more separate offerings in amounts, at prices and on terms to be determined at the time of the sale.
On February 7, 2003, we completed our acquisition of the business of Diamond Brands, Incorporated, and
its subsidiaries (‘‘Diamond Brands’’), a manufacturer and distributor of kitchen matches, toothpicks and retail
plastic cutlery under the Diamond® and Forster® trademarks, pursuant to an asset purchase agreement. The
purchase price of this transaction was approximately $86 million in cash, net of cash on hand at Diamond
Brands, paid at closing and a deferred payment in the amount of $6 million payable in cash or our common
stock, at our election, on or before August 7, 2003. In connection with this acquisition, we amended our New
Credit Agreement, increasing our term loan facility by $10 million and our revolving loan facility by $20
million. We used cash on hand and draw downs under our debt facilities to finance the transaction. As of
December 31, 2002, approximately $1.5 million for an escrow deposit and expenses related to the Diamond
18
PG.
Brands acquisition had been capitalized and included in our balance sheet. Following this acquisition and the
effectiveness of our amendment, we had outstanding $57.5 million under our term loan facility and $14 million
under our revolving credit facility. After taking account of the outstanding amount and issued letters of credit,
we had approximately $45.8 million of availability remaining under the revolving credit agreement.

Critical Accounting Policies
Our financial statements are prepared in accordance with accounting principles generally accepted in the
United States, which require us to make judgments, estimates and assumptions that affect the amounts reported
in the financial statements and accompanying notes. The following list of critical accounting policies is not
intended to be a comprehensive list of all our accounting policies. Our significant accounting policies are more
fully described in the notes to our consolidated financial statements. The following represents a summary of our
critical accounting policies, defined as those policies that we believe are the most important to the portrayal of
our financial condition and results of operations, and/or require management’s significant judgments and
estimates:
Revenue recognition and product returns
We recognize revenue when title transfers. In most cases, title transfers at the time product is shipped to
customers. We allow customers to return defective or damaged products as well as certain other products for
credit, replacement, or exchange. Our revenue is recognized as the net amount to be received after deducting
estimated amounts for product returns, discounts, and allowances. We estimate future product returns based
upon historical return rates and our judgment. If these estimates do not properly reflect future returns, they
could be revised.
Accounts receivable
We maintain an allowance for doubtful accounts for estimated losses that may result from the inability of
our customers to make required payments. If the financial condition of our customers were to deteriorate or our
judgment regarding their financial condition was to change negatively, additional allowances may be required
resulting in a charge to income in the period such determination was made. Conversely, if the financial
condition of our customers were to improve or our judgment regarding their financial condition was to change
positively, a reduction in the allowances may be required resulting in an increase in income in the period such
determination was made.
Inventory
We write down our inventory for estimated obsolescence or unmarketable inventory equal to the
difference between the cost of the inventory and the estimated market value based upon assumptions about

Jarden Corporation
future demand and market conditions. If actual market conditions are less favorable than those projected by us,
additional inventory write-downs may be required resulting in a charge to income in the period such
determination was made. Conversely, if actual market conditions are more favorable than those projected by us,
a reduction in the write down may be required resulting in an increase in income in the period such
Deferred tax assets
We record a valuation allowance to reduce our deferred tax assets to the amount that we believe is more
likely than not to be realized. While we have considered future taxable income and ongoing prudent and
feasible tax planning strategies in assessing the need for the valuation allowance, in the event we were to
determine that we would not be able to realize all or part of our net deferred tax assets in the future, an
adjustment to the deferred tax assets would be charged to income in the period such determination was made.
Likewise, should we determine that we would be able to realize our deferred tax assets in the future in excess
of our net recorded amount, an adjustment to the deferred tax assets would increase income in the period such
19
PG.
Intangible assets
We have significant intangible assets on our balance sheet that include goodwill, trademarks and other
intangibles fair valued in conjunction with acquisitions. The valuation and classification of these assets and the
assignment of amortizable lives involves significant judgments and the use of estimates. The testing of these
intangibles under established guidelines for impairment also requires significant use of judgment and
assumptions. Our assets are tested and reviewed for impairment on an ongoing basis under the established
accounting guidelines. Changes in business conditions could potentially require adjustments to these asset
valuations.

Contingencies
We are involved in various legal disputes in the ordinary course of business. In addition, the Environ-
mental Protection Agency has designated our Company as a potentially responsible party, along with numerous
other companies, for the clean up of several hazardous waste sites. Based on currently available information,
we do not believe that the disposition of any of the legal or environmental disputes our Company is currently
involved in will require material capital or operating expenditures or will otherwise have a material adverse
effect upon the financial condition, results of operations, cash flows or competitive position of our Company.
It is possible, that as additional information becomes available, the impact on our Company of an adverse
determination could have a different effect.

New Accounting Pronouncements
In July 2001, the Financial Accounting Standards Board (‘‘FASB’’) issued Statements of Financial
Accounting Standards (‘‘SFAS’’) No. 141, Business Combinations, and No. 142, Goodwill and Other Intangible
Assets, effective for fiscal years beginning after December 15, 2001. Under the new rules, goodwill and
intangible assets deemed to have indefinite lives are no longer amortized, but are subject to annual impairment
tests in accordance with the statements. Other intangible assets continue to be amortized over their useful lives.
We applied the new rules on accounting for goodwill and other intangible assets beginning in the first quarter
of 2002. We have performed the required tests of goodwill and indefinite lived intangible assets and, based on
the results, have not recorded any charges related to the adoption of and subsequent conformity with SFAS No.
142. In 2001 and 2000, we recorded goodwill amortization of $5.2 million and $6.4 million, respectively. The
adoption of SFAS No. 141 did not have a material impact on our results of operations or financial position.
In August 2001, the FASB issued SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived
Assets, effective for fiscal years beginning after December 15, 2001. This standard superceded Statement of
Financial Accounting Standard No. 121, Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of, and provided a single accounting model for long-lived assets to be

Jarden Corporation
disposed of. The new standard also superceded the provisions of APB Opinion No. 30 with regard to reporting
the effects of a disposal of a segment of a business and required expected future operating losses from
discontinued operations to be displayed in discontinued operations in the period(s) in which the losses are
incurred. SFAS No. 144 was effective for our business beginning with the first quarter of 2002 and its adoption
did not have a material impact on our results of operations or financial position.
In April 2002, the FASB issued SFAS No. 145, Recision of SFAS Nos. 4, 44 and 64, Amendment of SFAS
No. 13, and Technical Corrections as of April 2000. SFAS No. 145 revises the criteria for classifying the
extinguishment of debt as extraordinary and the accounting treatment of certain lease modifications. SFAS No.
145 is effective in fiscal 2003 and we do not expect it to have a material impact on our consolidated financial
statements. In 2003, we will conform with the requirements of SFAS No. 145 in our Selected Financial Data
disclosure in connection with our early extinguishment of debt that occurred in 1999.
In July 2002, the FASB issued SFAS No. 146, Accounting for Costs Associated with Exit or Disposal
Activities. SFAS No. 146 provides guidance on the timing of the recognition of costs associated with exit or
disposal activities. The new guidance requires costs associated with exit or disposal activities to be recognized
when incurred. Previous guidance required recognition of costs at the date of commitment to an exit or disposal
20
PG.
plan. The provisions of the statement are to be adopted prospectively for exit activities after December 31, 2002.
Although SFAS No. 146 may impact the accounting for costs related to exit or disposal activities that we may
enter into in the future, particularly the timing of recognition of these costs, the adoption of the statement will
not have an impact on our present financial condition or results of operations.
In December 2002, the FASB issued SFAS No. 148, Accounting for Stock-Based Compensation – Transition
and Disclosure. SFAS No. 148 amends SFAS No. 123, Accounting for Stock-Based Compensation, to provide
alternative methods of transition for a voluntary change to the fair value based methods of accounting for
stock-based employee compensation. In addition, SFAS No. 148 amends the disclosure requirements of SFAS
No. 123 to require more prominent disclosures in both annual and interim financial statements about the
method of accounting for stock-based employee compensation and the effect of the method used on reported
results. The additional disclosure requirements of SFAS No. 148 are effective for fiscal years ending after
December 15, 2002. As provided for in SFAS No. 148, we have elected to continue to follow the intrinsic value
method of accounting as prescribed by Accounting Principles Board Opinion No. 25, Accounting for Stock
Issued to Employees, to account for stock options.
Forward-Looking Statements
From time to time, we may make or publish forward-looking statements relating to such matters as
anticipated financial performance, business prospects, technological developments, new products, and similar
matters. Such statements are necessarily estimates reflecting management’s best judgment based on current
information. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking
statements. Such statements are usually identified by the use of words or phrases such as ‘‘believes,’’
‘‘anticipates,’’ ‘‘expects,’’ ‘‘estimates,’’ ‘‘planned,’’ ‘‘outlook’’ and ‘‘goal.’’ Because forward-looking statements
involve risks and uncertainties, our actual results could differ materially. In order to comply with the terms of
the safe harbor, we note that a variety of factors could cause our actual results and experience to differ
materially from the anticipated results or other expectations expressed in forward-looking statements.
While it is impossible to identify all such factors, the risks and uncertainties that may affect the operations,
performance and results of our business include the following:
Our significant indebtedness could adversely affect our financial health, and prevent us from fulfilling our
obligations under the New Notes and the New Credit Agreement;
We will require a significant amount of cash to service our indebtedness. Our ability to generate cash
depends on many factors beyond our control;
Reductions, cancellations or delays in customer purchases would adversely affect our profitability;
We may be adversely affected by the financial health of the U.S. retail industry;

Jarden Corporation
We may be adversely affected by the trend towards retail trade consolidation;
Sales of some of our products are seasonal and weather related;
Competition in our industries may hinder our ability to execute our business strategy, sustain profitability,
or maintain relationships with existing customers;
If we fail to develop new or expand existing customer relationships, our ability to grow our business will
be impaired;
Our operations are subject to a number of Federal, state and local environmental regulations;
We may be adversely affected by remediation obligations mandated by applicable environmental laws;
We depend on key personnel;
We enter into contracts with the United States government and other governments;
Our operating results can be adversely affected by changes in the cost or availability of raw materials;
21
PG.
We may have difficulty in integrating acquired businesses, which may interrupt our business operations;
Continuation of the United States penny as a currency denomination;
Our business could be adversely affected because of risks which are particular to international operations;
We depend on our patents and proprietary rights;
We may be adversely affected by problems that may arise between certain of our vendors, customers, and
transportation services that we rely on and their respective labor unions that represent certain of their
employees;
Certain of our employees are represented by labor unions; and
Any other factors which may be identified from time to time in our periodic Commission filings and other
public announcements.
Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described in the forward-looking statement, we do not
intend to update forward-looking statements.

Quantitative and Qualitative Disclosures About Market Risk
In general, business enterprises can be exposed to market risks including fluctuations in commodity prices,
foreign currency values, and interest rates that can affect the cost of operating, investing, and financing. The
Company’s exposures to these risks are low. The majority of the Company’s zinc business is conducted on a
tolling basis whereby customers supply zinc to the Company for processing, or supply contracts provide for
fluctuations in the price of zinc to be passed on to the customer. The Company’s plastic consumables business
purchases resin from regular commercial sources of supply and, in most cases, multiple sources. The supply and
demand for plastic resins is subject to cyclical and other market factors. With many of our customers, we have
the ability to pass through price increases with an increase in our selling price and certain of our customers
purchase the resin used in products we manufacture for them.
The Company, from time to time, invests in short-term financial instruments with original maturities
usually less than fifty days. The Company is exposed to short-term interest rate variations with respect to
Eurodollar or Base Rate on its term and revolving debt obligations and 6 month LIBOR in arrears on its interest
rate swap. The spread on the interest rate swap is 470 basis points. Settlements on the interest rate swap are
made on May 1 and November 1, with the first one having been made on November 1, 2002. The Company is
exposed to credit loss in the event of non-performance by the other party to the swap, a large financial
institution, however, the Company does not anticipate non-performance by the other party.

Jarden Corporation
Changes in Eurodollar or LIBOR interest rates would affect the earnings of the Company either positively
or negatively depending on the changes in short-term interest rates. Assuming that Eurodollar and LIBOR rates
each increased 100 basis points over period end rates on the outstanding term debt and interest rate swap, the
Company’s interest expense would have increased by approximately $0.8 million and $0.5 million for 2002 and
2001, respectively. The amounts were determined by considering the impact of the hypothetical interest rates
on the Company’s borrowing cost, short-term investment rates, interest rate swap and estimated cash flow.
Actual changes in rates may differ from the assumptions used in computing this exposure.

The Company does not invest or trade in any derivative financial or commodity instruments, nor does it
invest in any foreign financial instruments.

22
PG.

Jarden Corporation
Report of Independent Auditors

Board of Directors and Shareholders
Jarden Corporation and Subsidiaries

We have audited the accompanying consolidated balance sheets of Jarden Corporation and subsidiaries as of
December 31, 2002 and 2001, and the related consolidated statements of operations, comprehensive income,
stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2002. These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
23
PG.
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the
consolidated financial position of Jarden Corporation and subsidiaries at December 31, 2002 and 2001, and the
consolidated results of their operations and their cash flows for each of the three years in the period ended
December 31, 2002 in conformity with accounting principles generally accepted in the United States.

As discussed in Note 2 to the consolidated financial statements, on January 1, 2002, the Company adopted
Statement of Financial Accounting Standards No. 142, ‘‘Goodwill and Other Intangible Assets’’.

/s/ ERNST & YOUNG LLP

New York, New York
January 30, 2003

Jarden Corporation
Consolidated Statements of Operations
(in thousands, except per share amounts)
Year ended December 31,
2002 2001 2000
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $368,199 $ 304,978 $357,356
Costs and expenses:
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216,629 232,634 274,248
Selling, general and administrative expenses . . . . . . . . . . . . . . . . . . 86,461 53,254 57,342
Goodwill amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 5,153 6,404
Special charges (credits) and reorganization expenses . . . . . . . . . . — 4,978 380
Loss on divestitures of assets and product lines . . . . . . . . . . . . . . . . — 122,887 —
Operating income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,109 (113,928) 18,982
Interest expense, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,611 11,791 11,917
Income (loss) before taxes and minority interest . . . . . . . . . . . . . . . . . 52,498 (125,719) 7,065
Income tax provision (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,189 (40,443) 2,402
24
PG.
Minority interest in gain (loss) of consolidated subsidiary . . . . . . . . . — 153 (259)
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,309 $ (85,429) $ 4,922

Basic earnings (loss) per share:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.60 $ (6.71) $ 0.39

Diluted earnings (loss) per share:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.52 $ (6.71) $ 0.39

Weighted average shares outstanding:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,940 12,726 12,676
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,392 12,726 12,766

The accompanying notes are an integral part of the consolidated financial statements.

Jarden Corporation
Consolidated Balance Sheets
(in thousands, except per share amounts)
December 31,
2002 2001
Assets
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 56,779 $ 6,376
Accounts receivable, net of allowances of $6,095 and $778 . . . . . . . . . . . . . 40,470 14,917
Income taxes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,039 16,252
Inventories, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,463 26,994
Deferred taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,312 4,832
Prepaid expenses and other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,667 3,134
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,730 72,505
Non-current assets:
Property, plant and equipment, at cost
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 782 782
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,109 24,356
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115,637 106,106 25
PG.
141,528 131,244
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (96,291) (87,701)
45,237 43,543
Intangibles, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134,060 15,487
Deferred taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 25,417
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,738 5,282
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $366,765 $162,234

Liabilities and stockholders’ equity
Current liabilities:
Short-term debt and current portion of long-term debt . . . . . . . . . . . . . . . . . $ 16,117 $ 28,500
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,466 14,197
Accrued salaries, wages and employee benefits . . . . . . . . . . . . . . . . . . . . . . . 13,559 9,252
Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,031 12,521
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,173 64,470
Non-current liabilities:
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,838 56,375
Deferred taxes on income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,377 —
Other non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,613 6,260
Total non-current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218,828 62,635
Commitments and contingencies (Notes 13 & 14) — —
Stockholders’ equity:
Common stock ($.01 par value, 50,000 shares authorized, 15,926 and
15,926 shares issued and 14,371 and 12,796 shares outstanding at
December 31, 2002 and 2001, respectively) . . . . . . . . . . . . . . . . . . . . . . . . . 159 159
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,076 41,694
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,033 32,724
Notes receivable for stock purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,109) —
Accumulated other comprehensive loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,463) (1,862)
Less: treasury stock (1,555 and 3,130 shares, at cost, at December 31, 2002
and 2001, respectively) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17,932) (37,586)
Total stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,764 35,129
Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $366,765 $162,234

The accompanying notes are an integral part of the consolidated financial statements.

jarden 2002_AR

More Related Content

jarden 2002_AR