Sunbeam 2001 Annual Report Download - page 30

Note: Earnings per share calculations for each
quarter are based on the weighted average num-
ber of shares outstanding for each period, and
the sum of the quarterly amounts may not
necessarily equal the annual earnings per share
amounts.
Note 19. Subsequent Events
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, the
company filed for an additional refund of $22.8
million, of which $22.2 million was received
on March 22, 2002. At December 31, 2001, the
federal net operating losses were recorded as a
deferred tax asset with a valuation allowance of
$5.4 million. This valuation allowance will be
reversed during 2002 resulting in a deferred tax
benefit.
On January 24, 2002, Martin E. Franklin,
Chairman and Chief Executive Officer, and Ian
G.H. Ashken, Vice Chairman, Chief Financial
Officer and Secretary, received loans from the
Company in the amounts of $3.3 million and
$1.6 million, respectively. The purpose of these
loans, which are due on January 23, 2007, is to
exercise non-qualified stock options granted
under the Company’s 2001 Stock Option Plan.
On March 27, 2002, the Company entered
into a definitive asset purchase agreement to
acquire the business of Tilia International, Inc.,
a developer and distributor of home food pres-
ervation products, for $145.0 million cash and
$15.0 million in seller debt financing. In addi-
tion, the agreement includes an earn-out pro-
vision with a total potential payment in cash or
Alltrista common stock of up to $25.0 million
payable in three years, provided that certain
earnings performance targets are met. The ac-
quisition, which is expected to more than
double the Company’s consumer products rev-
enue, is consistent with the Company’s strate-
gic focus on food preservation products and
niche branded kitchen consumables.
The purchase price allocation has not been
completed, but it is anticipated that goodwill
in the amount of approximately $100.9 mil-
lion will be recorded which will not be subject
to amortization. It is also anticipated that am-
ortizable intangible assets amounting to ap-
proximately $5.0 million will be recorded.
Alltrista
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