Sunbeam 2006 Annual Report Download - page 80

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16.REORGANIZATION AND ACQUISITION-RELATED INTEGRATION COSTS
For the years ended December 31,2006 and 2005,the Company recorded the following reorganization and acquisition-
related integration costs:
Employee Other
(in millions) Terminations Charges Impairment Total
2006
Branded consumables $ 0.8$3.7$3.3$7.8
Consumer solutions 10.616.0.—26.6
Outdoor solutions 2.80.1.—2.9
Corporate .—(0.5).—(0.5)
$14.2$19.3$3.3$36.8
Employee Other
Terminations Charges Impairment Total
2005
Branded consumables $ 1.2$0.8$1.3$3.3
Consumer solutions 13.76.5.—20.2
Outdoor solutions .—2.9.—2.9
Corporate 1.2 1.5.—2.7
$16.1$11.7$1.3$29.1
Consumer Solutions Segment Reorganization
As part of the AHI Acquisition and THG Acquisition, it was determined that, due to similarities between the combined
Consumer solutions segment customer base, distribution channels and operations, significant cost savings could be achieved
by integrating certain functions of the businesses, such as distribution and warehousing, information technology and certain
administrative functions. In order to leverage a shared infrastructure, the Company initiated certain reorganization plans
during 2005.During 2006,the Company recorded charges of approximately $11.1million in severance and other employee
benefit-related costs, $4.2million of facility exit costs and $11.8million in other costs related to these plans. Of the $11.1
million related to employee terminations, $10.6million was included in “Reorganization and acquisition-related integration
costs, net” in the Condensed Consolidated Statements of Income, $0.5million was included in the determination of the cost
of the THG Acquisition. Other costs primarily consist of $4.3million of retention bonuses, $4.8million of professional fees,
$1.7million of travel expenses and $0.6million of relocation costs. Other costs areincluded in “Reorganization and acquisi-
tion-related integration costs, net” in the Condensed Consolidated Statements of Income. The initiative is expected to result
in approximately 334 terminations (61 employees wereincluded in the 2005 charge, of which all have been terminated by the
end of 2006) of which approximately 174 wereterminated as of December 31,2006.As of December 31,2006, $11.6million
of severance, other employee benefit-related costs and other costs remain accrued in the Condensed Consolidated Balance
Sheet. The amounts areincluded in “Other current liabilities” and “Other non-current liabilities” for $9.4million and $2.2
million, respectively. The amounts accrued areexpected to be fully paid by the end of fiscal year 2007.
Outdoor Solutions Segment Reorganization
Domestic Salesforce Reorganization
During 2006,the Company made a strategic plan to rationalize its domestic sales platform. In conjunction with this plan,
the Company recorded $1.4million related to employee terminations associated with 12 employees, all of which weretermi-
nated as of December 31,2006,and $0.2million of other costs. As of December 31,2006,approximately $0.9million
remains accrued in Condensed Consolidated Balance Sheet.
Notes to Consolidated Financial Statements
Jarden Corporation 2006 Annual Report
78