Sunbeam 2005 Annual Report Download - page 14

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Selected Financial Data (cont’d)
(a) For 2005, the Company’s operating earnings and earnings before interest, taxes, depreciation and
amortization (“EBITDA”) (see item (h) below) of $186.0 million and $237.7 million, respectively, were
reduced by the following amounts: purchase accounting adjustments for $22.4 million of manufacturer’s
profit in inventory, $2.5 million of write offs of inventory related to reorganization and acquisition-related
integration initiatives, $62.4 million of compensation costs recorded related to the issuance of stock options
and restricted shares of Company common stock to employees and the early adoption of Statement of
Financial Accounting Standards No. 123 (revised 2004) “Share Based Payment,” $29.1 million of
reorganization and acquisition-related integration costs (see item (g) below), and $6.0 million of loss on
early extinguishment of debt.
(b) The results of AHI are included from January 24, 2005; THG from July 18 2005; USPC from June 28,
2004; Lehigh from September 2, 2003; Diamond Brands from February 1, 2003; and Tilia from April 1,
2002; which are the respective dates of acquisition.
(c) 2004 includes a non-cash restricted stock charge of $32.5 million. As a result, the Company’s operating
earnings and EBITDA (see item (h) below) of $96.0 million and $115.2 million, respectively, were each
reduced by such amount.
(d) 2003 includes a non-cash restricted stock charge of $21.9 million. As a result, the Company’s operating
earnings and EBITDA (see item (h) below) of $71.5 million and $86.5 million, respectively, were each
reduced by such amount.
(e) 2002 includes a net release of a $4.4 million tax valuation allowance. As a result, the Company’s net
income of $36.3 million included the benefit of this release.
(f) 2001 includes a $121.1 million loss on the sale of thermoforming assets, a $2.3 million charge associated
with corporate restructuring, a $1.4 million loss on the sale of the Company’s interest in Microlin, LLC,
$2.6 million of separation costs related to the management reorganization (see item (g) below), $1.4 million
of costs to evaluate strategic options, $1.4 million of costs to exit facilities, a $2.4 million charge for stock
option compensation, $4.1 million of income associated with the discharge of deferred compensation
obligations and a $1.0 million gain related to an insurance recovery. As a result, the Company’s operating
loss and EBITDA loss (see item (h) below) of ($114.1) million and ($95.3) million, respectively, were each
reduced by the net of such amounts.
(g) Reorganization and acquisition-related integration costs were comprised of costs to evaluate strategic
options, discharge of deferred compensation obligations, separation costs for former officers, corporate
restructuring costs, costs to exit facilities, reduction of long-term performance based compensation,
litigation charges and items related to our divested thermoforming operations.
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