1. 2005 Summary of Reconciling Items
®
®
($ U.S. millions) Q4 05 FY 05
Q1 05 Q2 05 Q3 05
$ 5.3
$ 6.3 $ 16.3
2.7 2.0
$ $
Reorganization costs (1)
Other major-program and integration costs
7.1 5.2 22.9
2.9
7.7
included in SG&A expenses (1)
Operating income items 8.2
14.0 39.2
9.8 7.2
Loss on redemption of senior subordinated notes
and termination of related interest rate swap agreements - - - 8.4
8.4
Pre-tax items
47.6
9.8 14.0 15.6 8.2
Provisions for taxes:
Tax effect on pre-tax items (3.0) (4.4) (2.4)
(4.0) (13.7)
(2)
Favorable tax resolution - - (0.2) (2.4)
(2.2)
Total net of tax 7.4 5.6 $
$ $
6.8 $ 11.6 31.5
$
(1) Special items of $9.8 million in Q1 2005 include costs associated with the Company's outsourcing and optimization plan in North America, comprised of reorganization costs of $0.8 million primarily related to employee termination benefits
for workforce reductions, and $5.0 million charged to selling, general and administrative expenses, primarily comprised of consulting and other transition costs; and costs associated with the integration of Tech Pacific in Asia-Pacific,
comprised of reorganization costs of $1.9 million primarily related to employee termination benefits for workforce reductions and lease exit costs and facility consolidations, and $2.1 million charged to selling, general and administrative
expenses, primarily comprised of incremental depreciation of fixed assets resulting from the reduction in useful lives to coincide with the facility closures, consulting and other transition costs.
Special items of $14.0 million in Q2 2005 include costs associated with the Company's outsourcing and optimization plan in North America, comprised of reorganization costs of $4.9 million primarily related to employee termination
benefits for workforce reductions, and $5.7 million charged to selling, general and administrative expenses, primarily comprised of consulting, retention, and other transition costs; and costs associated with the integration of Tech Pacific in
Asia-Pacific, comprised of reorganization costs of $1.4 million primarily related to employee termination benefits for workforce reductions and lease exit costs and facility consolidations, and $2.0 million charged to selling, general and
administrative expenses, primarily comprised of incremental depreciation of fixed assets resulting from the reduction in useful lives to coincide with the facility closures, consulting and other transition costs; partially offset by net credit
adjustments of less than $0.1 million in Europe for lower than expected costs to settle obligations related to previous actions.
Special items of $7.2 million in Q3 2005 include costs associated with the Company's outsourcing and optimization plan in North America, comprised of reorganization costs of $0.7 million primarily related to employee termination benefits
for workforce reductions and lease exit costs and facility consolidations, and $1. 3 million charged to selling, general and administrative expenses, primarily comprised of consulting, retention, and other transition costs; and costs
associated with the integration of Tech Pacific in Asia-Pacific, comprised of reorganization costs of $4.0 million primarily related to employee termination benefits for workforce reductions and lease exit costs and facility consolidations, and
$1.2 million charged to selling, general and administrative expenses, primarily comprised of consulting and other transition costs; partially offset by net credit adjustments of less than $0.1 million in Europe for lower than expected costs to
settle obligations related to previous actions.
Special items of $8.2 million in Q4 2005 include costs associated with the Company's outsourcing and optimization plan in North America, comprised of reorganization costs of $3.3 million primarily related to employee termination benefits
for workforce reductions and lease exit costs and facility consolidations, and $2.3 million charged to selling, general and administrative expenses, primarily comprised of incremental depreciation of fixed assets resulting from the reduction
in useful lives to coincide with the facility closures, consulting, retention, and other transition costs; and costs associated with the integration of Tech Pacific in Asia-Pacific, comprised of reorganization costs of $2.0 million primarily related
to employee termination benefits for workforce reductions and lease exit costs and facility consolidations, and $0.6 million charged to selling, general and administrative expenses, primarily comprised of consulting and incremental
depreciation of fixed assets resulting from the reduction in useful lives to coincide with the facility closures; partially offset by net credit adjustments of less than $0.1 million in Europe for lower than expected costs to settle obligations
related to previous actions.
(2) Favorable tax resolution represents reversal of previously accrued state income taxes related to gains on the sale of securities in 1999 and 2000.
000000_1
1