Sunbeam 2007 Annual Report Download - page 112

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Corporate Reorganization and Acquisition-Related Integration Costs
For 2007, the severance and other employee benefit-related benefits costs ($1.7) and other charges ($3.2),
principally professional fees, are primarily due to the integration of certain corporate functions related to the
Acquisition.
As part of the AHI Acquisition, during 2005 it was determined the two entities would be combined and
certain 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 2006, the Company recorded charges of $0.7 consisting primarily of retention and
travel expenses directly associated with the reorganization. The initiative was completed during the second
quarter of 2006 and resulted in the termination of 21 employees, all of which were terminated during 2006.
During 2006, the Company reversed a $2.4 lease restructuring liability which was initially recorded in the
Corporate segment for unutilized office space. Due to the Consumer Solutions plan to integrate certain functions
within its businesses and the related relocation of employees, the Company determined that this space will now
be utilized. During 2006, the Company also recorded $1.2 of other costs, primarily related to the professional
fees directly attributable to acquisition and integration activities.
The following table sets forth the details and the activity related to reorganization and acquisition-related
integration costs as of and for the years ended December 31, 2007 and 2006 (in millions):
Accrual
Balance at
December 31,
2006
Capitalized
Reorganization
and acquisition
Related costs,
net
Reorganization
and
Acquisition
Related
Costs, net
Cash
Payments
and
Reductions
Non-cash
Reductions
Foreign
Currency
Translations
Accrual
Balance at
December 31,
2007
2007
Severance and other
employee related(1) . . $11.5 $ 3.4 $10.9 $(14.3) $— $ 0.1 $11.6
Other costs ........... 3.4 1.8 30.6 (20.9) — — 14.9
$14.9 $ 5.2 $41.5 $(35.2) $— $ 0.1 $26.5
Impairment ........... 8.1
Total ................ $49.6
Accrual
Balance at
December 31,
2005
Capitalized
Reorganization
and acquisition
Related costs,
net
Reorganization
and
Acquisition
Related
Costs, net
Cash
Payments
and
Reductions
Non-cash
Reductions
Foreign
Currency
Translations
Accrual
Balance at
December 31,
2006
2006
Severance and other
employee related .... $15.9 $— $14.2 $(19.0) $— $ 0.4 $11.5
Other costs ........... 1.6 — 21.7 (19.8) — (0.1) 3.4
$17.5 $— $35.9 $(38.8) $— $ 0.3 $14.9
Impairment ........... 3.3
Reversal purchase
accounting liability . . . (2.4)
Total ................ $36.8
(1) Total headcount underlying these costs is approximately 1,150. At December 31, 2007, approximately 190
employees have not been terminated under the plans.
100