Sunbeam 2005 Annual Report Download - page 81

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Jarden Corporation
Notes to Consolidated Financial Statements (cont’d)
December 31, 2005
Corporate Reorganization and Acquisition-Related Integration Costs
As part of the AHI Acquisition, it was determined that certain corporate functions of the two entities
would be combined and redundant functions would be eliminated. Further, certain functions and
responsibilities would be transitioned to the Company’s offices in Florida, while other functions would
transition to the Company’s New York headquarters. During the year ended December 31, 2005, the
Company recorded charges of approximately $2.7 million consisting of $1.2 million in severance and other
employee benefit-related costs and $1.5 million in other costs, which are reflected in “Reorganization and
acquisition-related integration costs” in the Consolidated Statements of Income, of which $2.1 million has
been paid. Other costs consist primarily of recruitment fees, relocation costs and travel expenses directly
associated with the reorganization. The initiative is currently scheduled to be completed by the second
quarter of 2006 and will result in the termination of 21 employees, 15 of which were terminated as of
December 31, 2005. As of December 31, 2005, $0.6 million of employee benefit-related costs and other
costs remain accrued, which are reflected in “Other current liabilities” in the Consolidated Balance Sheets.
The following table sets forth the details and the activity related to reorganization and acquisition-
related integration costs as of and for the year ended December 31, 2005 (in millions):
Severance and
Other
Employee
Benefit-Related
Costs Other
Costs Total
Accrual balance at December 31, 2004 ................. $ — $— $ —
Additions:
Balances assumed upon AHI Acquisition and THG
Acquisition .................................. 11.6 0.7 12.3
Reorganization and acquisition-related integration
costs ........................................ 18.1 11.0 29.1
Foreign currency translation ...................... (0.7) — (0.7)
Deductions:
Cash payments ............................. (12.5) (6.8) (19.3)
Non-cash .................................. (0.6) (3.3) (3.9)
Accrual balance at December 31, 2005 ............. $15.9 $ 1.6 $ 17.5
13. Segment Information
The Company currently reports four business segments: branded consumables, consumer solutions,
outdoor solutions and other. The financial position and operating results from prior periods have been
reclassified to conform with current year presentation as a result of the AHI Acquisition and the inclusion of
the former plastics consumables segment within the other segment.
In the branded consumables segment, the Company markets, distributes and in certain cases
manufactures a broad line of branded products that includes arts and crafts, paintbrushes, children’s card
games, clothespins, collectible tins, food preparation kits, home canning jars, jar closures, kitchen matches,
other craft items, plastic cutlery, playing cards and card accessories, rope, cord and twine, storage and
workshop accessories, toothpicks and other accessories marketed under the Aviator®, Ball®, Bee®,
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