Graco 2005 Annual Report Download - page 48

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The unaudited consolidated results of operations on a pro forma basis, as though the 2005 acquisition
of DYMO had been completed on January 1, 2004, are as follows for the year ended December 31, (in
millions, except per share amounts):
2005 2004
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $6,548.5 $6,708.1
Income from continuing operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 367.1 $ 85.2
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 262.0 $ (101.5)
Basic earnings (loss) per share
Income from continuing operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1.34 $ 0.31
Net income (loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 0.95 $ (0.37)
These pro forma Ñnancial results have been prepared for comparative purposes only and include
certain adjustments, such as increased interest expense on acquisition debt. They do not reÖect the eÅect
of synergies that are expected to result from integration.
2003
EÅective January 1, 2003, the Company completed its acquisition of American Saw & Mfg. Co.
(""LENOX''), a leading manufacturer of power tool accessories and hand tools marketed under the
LENOX brand. The purchase price was approximately $450 million paid for through the issuance of
commercial paper, plus transaction costs. The transaction structure permits the deduction of goodwill for
tax purposes, which was estimated to be $85 million at the time of acquisition. This acquisition and the
acquisition of American Tool Companies, Inc. (""IRWIN'') in 2002 marked a signiÑcant expansion and
enhancement of the Company's product lines and customer base, launching it squarely into the estimated
$10 billion-plus global markets for hand tools and power tool accessories. Both of these acquisitions are
reported in the Company's Tools & Hardware business segment. The purchase price of the LENOX
acquisition was allocated to the acquired assets and liabilities based on their fair values, with the excess
recorded as goodwill.
FOOTNOTE 3
Discontinued Operations
The following table summarizes the results of businesses reported as discontinued operations for the
years ended December 31, (in millions):
2005 2004 2003
Net sales ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $172.9 $439.9 $1,135.2
Loss from discontinued operations, net of income taxes of
$1.2 million, $(1.6) million and $(53.1) million for 2005, 2004
and 2003, respectively ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ (8.3) $(96.2) $ (264.5)
Loss on disposal of discontinued operations, net of income taxes of
zero and $4.7 million for 2005 and 2004, respectivelyÏÏÏÏÏÏÏÏÏÏ $(96.8) $(90.5) Ì
No amounts related to interest expense have been allocated to discontinued operations.
47