Sunbeam 2007 Annual Report Download - page 110

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16. Reorganization and Acquisition-Related Integration Costs
For 2007, 2006 and 2005, the Company recorded the following reorganization and acquisition-related
integration costs (in millions):
Employee
Terminations
Other
Charges Impairment Total
2007
Branded Consumables ......................... $ 2.4 $ 8.0 $4.3 $14.7
Consumer Solutions ........................... 4.2 12.8 — 17.0
Outdoor Solutions ............................ 2.1 6.5 1.1 9.7
Process Solutions ............................. 0.5 0.1 2.2 2.8
Corporate ................................... 1.7 3.2 0.5 5.4
$10.9 $30.6 $ 8.1 $49.6
Employee
Terminations
Other
Charges Impairment Total
2006
Branded Consumables ......................... $ 0.8 $ 3.7 $3.3 $ 7.8
Consumer Solutions ........................... 10.6 16.0 — 26.6
Outdoor Solutions ............................ 2.8 0.1 — 2.9
Corporate ................................... — (0.5) — (0.5)
$14.2 $19.3 $ 3.3 $36.8
Employee
Terminations
Other
Charges Impairment Total
2005
Branded Consumables ......................... $ 1.2 $ 0.8 $1.3 $ 3.3
Consumer Solutions ........................... 13.7 6.5 — 20.2
Outdoor Solutions ............................ — 2.9 — 2.9
Corporate ................................... 1.2 1.5 — 2.7
$16.1 $11.7 $ 1.3 $29.1
Capitalized Reorganization and Acquisition- Related Integration Costs
In connection with the Acquisition, management approved and initiated plans to restructure the operations
of K2. These plans were contemplated at the time of acquisition and include in part, the elimination of certain
duplicative functions and vacating redundant facilities in order to reduce the combined cost structure of the
Company. The capitalized costs incurred during 2007 primarily relate to workforce reductions associated with
the elimination of duplicative functions and other exit costs resulting from the Acquisition. These costs ($5.2)
were recognized as a liability assumed in the Acquisition and are included in the allocation of the cost to acquire
K2 (see Note 3) and are accrued within the Outdoor Solution segment.
Branded Consumables Segment Reorganization
In 2007, the Company initiated a plan to consolidate certain non-manufacturing processes across the
segment platform. This plan includes headcount reduction and facility consolidation. During 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. Employee termination charges in 2007, 2006 and
98