Sunbeam 2010 Annual Report Download - page 62

Notes to Consolidated Financial Statements
Jarden Corporation Annual Report 2010 (Dollars in millions, except per share data and unless otherwise indicated)
Outdoor Solutions Segment Reorganization Costs
In 2009, the Company initiated plans to rationalize the overall cost structure of the Outdoor Solutions segment through headcount
reductions and facility consolidation. These plans consist of restructuring the Company’s domestic and European paintball
operations, realigning distribution and warehouse facilities both domestically and in Europe, rationalizing manufacturing operations
in the Far East and integrating various 2009 tuck-in acquisitions. Prior to 2008, the Company initiated a plan to integrate certain
acquired businesses. This plan includes in part, facility closings and headcount reductions. Employee termination charges for 2009
and 2008 relate to the implementation of these initiatives.
For 2009, other charges include lease and moving costs ($6.2), contract termination fees ($4.3), professional fees ($4.0) and other
costs ($6.3). The impairments charges recorded in 2009 relate to the write-down of certain fixed assets. For 2008, other charges
primarily relate to the integration of acquired businesses and include professional fees ($5.7), contract termination fees ($0.6), lease
and moving costs ($3.7) and other costs ($7.9).
As of December 31, 2010, $0.5 of severance and other employee related costs and $3.3 of other costs (primarily lease and other
contract termination costs) remain accrued for these initiatives.
Consumer Solutions Segment Reorganization Costs
During 2009, the Company initiated plans to rationalize the overall cost structure of the Consumer Solutions segment primarily
through headcount reductions. Employee termination charges for 2009 relate to these plans.
As of December 31, 2010, $6.2 of costs, primarily lease obligations, remain accrued for these initiatives.
Branded Consumables Segment Reorganization Costs
Prior to 2008, the Company initiated plans to consolidate certain non-manufacturing processes across this segment’s platform and
reorganize this segment to facilitate long-term cost savings and improve management and reporting capabilities. Specific cost
savings initiatives include the utilization of certain shared distribution and warehousing services and information systems platforms
and outsourcing the manufacturing of certain kitchen products. Employee termination charges in 2008 primarily relate to these plans.
For 2008, other charges primarily consist of facility closing costs ($0.9) and other costs for professional fees and employee relocation,
primarily related to the consolidation of certain non-manufacturing processes across the segment platform ($2.4).
Process Solutions Segment Reorganization Costs
Prior to 2008, the Company initiated a plan to consolidate manufacturing facilities related to the plastics business. The plan includes
facility closures and headcount reductions. Employee termination and other charges for 2008 primarily relate to this plan.
The impairment charge in 2008 primarily relates to the write down of long-lived assets attributable to a plant closure announced
in 2008.
Corporate Reorganization Costs
For 2008, the severance and other employee benefit-related benefits costs ($4.1) and other charges ($3.5), principally professional
fees, are primarily due to the integration of certain corporate functions related to an acquired business.
60