Sunbeam 2005 Annual Report Download - page 79

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Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2005
Information about the expected benefit payments for the Company’s pension and postretirement
plans are as follows (in millions):
Years ended December 31, Pension
Plans Post-retirement
Plans
2006 .................................................... $ 19.0 $ 1.6
2007 .................................................... 38.2 1.6
2008 .................................................... 18.3 1.7
2009 .................................................... 17.9 1.7
2010 .................................................... 17.7 1.8
2011-2015 ................................................ 92.1 10.1
Total ................................................ $203.2 $18.5
A one percentage point increase or one percentage point decrease in healthcare costs would increase or
decrease the benefit obligation under the Company’s postretirement plans by approximately $2.0 million or
$1.7 million, respectively. The effect of either a one percentage point increase or a one percentage point
decrease in health care costs would affect the aggregate annual service and interest costs under the
Company’s postretirement plans by approximately $0.2 million or $0.1 million, respectively.
12. Reorganization and Acquisition-Related Integration Costs
Branded Consumables Segment Reorganization
As part of the AHI Acquisition, during the first quarter of 2005, the Company began implementing a
strategic plan to reorganize its branded consumables segment and thereby 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. Reorganization costs relating to this strategic plan are
currently estimated at approximately $4.2 million, excluding any capital expenditures. During the year
ended December 31, 2005, the Company recorded charges of approximately $1.2 million consisting of
severance and other employee benefit-related costs (including a non-cash charge of $0.6 million) and other
costs of $2.0 million (including $1.3 million of equipment write-offs) which are reflected in “Reorganization
and acquisition-related integration costs” in the Consolidated Statements of Income. During the year
ended December 31, 2005, the Company paid $0.5 million in severance and other employee benefit related
costs and $0.7 million in other costs. As of December 31, 2005, approximately $0.1 million of the charge
recorded remains accrued and is reflected in “Other current liabilities” in the Consolidated Balance Sheets.
The initiative is currently scheduled to be completed in the first quarter of 2006 and all accrued amounts
are expected to be paid during that time period.
Outdoor Solutions Segment Outsourcing
During 2003, Coleman announced its intention to outsource the manufacturing of its outdoor
recreation appliances manufactured at its Lyon, France facility. In 2004, Coleman initiated the outsourcing
activities upon completion of reviews conducted by government and union officials. Other manufacturing
operations in Lyon were unaffected by this move. During the year ended December 31, 2005, the
Company recorded charges of approximately $1.0 of other costs, consisting primarily of costs associated
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