Graco 2005 Annual Report Download - page 50

the Company revised its estimation related to the fair value of this business after winning several line
reviews with a key retailer and reversed the full amount of the impairment charge. In the fourth quarter of
2005, the Company changed its decision to dispose of this business as a result of the aforementioned line
review wins and the identiÑcation of signiÑcant productivity opportunities. The results of this business are
now reÖected in continuing operations.
2004
In January 2004, the Company completed the sale of its Panex Brazilian low-end cookware division
(previously reported in the Other operating segment) and European picture frames businesses (previously
reported in the Home Fashions operating segment).
In April 2004, the Company sold substantially all of its U.S. picture frame business (Burnes), its
Anchor Hocking glassware business and its Mirro cookware business. Under the terms of the agreement
and Ñnal adjustments relating to the transaction, the Company retained the accounts receivable of the
businesses of $76.6 million, and total proceeds, including the retained receivables, as a result of the
transaction were $304 million. The Burnes picture frame business was previously reported in the Home
Fashions operating segment, while the Anchor Hocking and Mirro businesses were previously reported in
the Other operating segment.
In July 2004, the Company completed the sale of Little Tikes Commercial Playground Systems Inc.
(""LTCPS'') to PlayPower, Inc. for approximately $41 million. LTCPS was previously reported in the
Other operating segment, as a unit of the Company's Little Tikes division. LTCPS is a manufacturer of
commercial playground systems and contained playground environments. The Company retained the
consumer portion of its Little Tikes division.
2003
In the fourth quarter of 2003, the Company began exploring various options for certain businesses
previously included in the Home Fashions and Other segments, including evaluating those businesses for
potential sale. As this process progressed, the Company obtained a better indication of the market value of
these businesses and determined that the businesses had a net book value in excess of their fair value. Due
to the apparent decline in value, the Company conducted a new impairment test in the fourth quarter and
recorded impairment charges to write-down the net assets of these businesses to fair value (or implied fair
value of goodwill). As a result, the Company recorded a non-cash pre-tax write-down of $254.9 million on
businesses presented in discontinued operations as follows (in millions):
GoodwillÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $237.0
Other IndeÑnite-lived Intangible AssetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 7.7
Long-Lived Assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 10.2
$254.9
FOOTNOTE 4
Restructuring Costs
In 2005, the Company recorded restructuring costs of $72.2 million, of which $51.3 million relates to
Project Acceleration, and $20.9 million relates to restructuring actions approved prior to the
commencement of Project Acceleration (see below for details).
Project Acceleration
In the third quarter of 2005, the Company announced a global initiative referred to as Project
Acceleration aimed at strengthening and transforming the Company's portfolio. In connection with Project
Acceleration, the Board of Directors of the Company approved a three-year restructuring plan (""the
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