Sunbeam 2003 Annual Report Download - page 48

Jarden Corporation
Notes to Consolidated Financial Statements (continued)
require the individuals to secure a life insurance policy having the death benefit equivalent to the
amount of the loan payable to the Company. All accrued interest and principal on the loans are payable
upon the death of the participant and their spouse. The Company recognized $4.1 million of pre-tax
income during 2001 related to the discharge of the deferred compensation obligations.
On September 25, 2001, the Company announced the departure from the Company of Thomas B.
Clark, Chairman, President and Chief Executive Officer, and Kevin D. Bower, Senior Vice President and
Chief Financial Officer. The Board announced the appointment of Martin E. Franklin as Chairman and
Chief Executive Officer and Ian G.H. Ashken as Vice Chairman, Chief Financial Officer and Secretary.
Separation costs associated with this management reorganization were approximately $2.6 million.
During September 2001, options were granted to participants under the Company’s 2001 Stock
Option Plan. Because the options granted under this new plan were still subject to stockholder approval
at the time of grant, the options resulted in a one-time charge of $2.4 million which was recorded in the
fourth quarter of 2001 (see Note 12) following stockholder approval of the 2001 Stock Option Plan on
December 18, 2001.
During the fourth quarter of 2001, the Company incurred corporate restructuring costs in the
amount of $2.3 million. These include costs related to the transitioning of the corporate office function
from Indianapolis, Indiana to Rye, New York and Muncie, Indiana, costs to reincorporate in Delaware
and to hold a special meeting of stockholders, and other costs including professional fees. Of this
amount $0 and $0.6 million remained unpaid as of December 31, 2003 and 2002, respectively.
In August 2001, the Company announced that it would be consolidating its home canning metal
closure production from its Bernardin Ltd. Toronto, Ontario facility into its Muncie, Indiana
manufacturing operation. The total cost to exit the Toronto facility was $0.8 million and included a $0.3
million loss on the sale and disposal of equipment, and $0.5 million of employee severance costs, of
which $0.4 million was paid in 2001. The remaining $0.1 million was paid in 2002. The Company
continues to distribute its home canning products in Canada through Bernardin, Ltd.
During 2001, items recognized related to the divested TPD Assets included a pre-tax gain of $1.0
million in connection with an insurance recovery associated with a property casualty. Also in August
2001, the Company announced that it had vacated its former TPD Assets facility in Independence, Iowa
and integrated personnel and capabilities into its other operating and distribution facilities in the area.
The total cost to exit this Iowa facility was $0.6 million and included $0.4 million in future lease
obligations and an additional $0.2 million of costs related to the leased facility.
7. Inventories
Inventories were comprised of the following:
As of December 31,
2003 2002
(in thousands)
Raw materials and supplies .................................... $ 15,254 $ 6,562
Work in process ............................................. 6,653 7,300
Finished goods .............................................. 83,666 45,601
Total inventories ......................................... $105,573 $59,463
page 46