This document summarizes reconciling items for 2004 by quarter and fiscal year. It includes reorganization costs, other major program costs, foreign exchange gains and losses, and tax effects. Reorganization costs were credits in Q3 and Q4 2004 due to lower than expected facility consolidation costs. Foreign exchange gains stemmed from a currency contract for an acquisition. A favorable tax resolution in Q3 and Q4 2004 reversed previously accrued federal and state income taxes. The total net tax effect for the fiscal year was a credit of $58.8 million.

1. 2004 Summary of Reconciling Items
®
®
($ U.S. millions) Q1 04 Q2 04 Q3 04 Q4 04 FY 04
Reorganization costs (1) ($ 2.9)
($ 0.4)
0.1 0.1 ($ 2.7)
$ $
Other major-program costs included in:
- - - -
-
Selling, general and administrative expenses
- - -
Cost of sales - -
(2.9)
(0.4)
Operating income items 0.1 0.1 (2.7)
(2)
Foreign exchange gain - - (4.3) (18.8) (23.1)
0.1 0.1 (7.0) (19.2) (26.0)
Pre-tax items
Provisions for taxes:
Tax effect on pre-tax items 6.1 8.3
2.3
(0.0) (0.1)
Favorable tax resolution (3) - - (40.0) (41.1)
(1.1)
($ 58.8)
Total net of tax ($ 14.2)
$ 0.1 $ ($ 44.7)
0.0
(1) Reorganization costs of $0.1 ($0.3 charge in Asia-Pacific and $0.2 credit in North America) in Q1 04 primarily represent employee termination benefits for
workforce reductions in Asia-Pacific and credit adjustments related to previous actions for lower than expected employee termination benefits for workforce
reductions and lease termination costs for facility consolidations in North America.
Reorganization costs of $0.1 ($0.3 charge in North America and $0.2 credit in Europe) in Q2 04 primarily represent adjustments related to previous actions for
higher than expected lease termination costs for facility consolidations in North America and credit adjustments related to previous actions for lower than
expected lease termination costs for facility consolidations in Europe.
Reorganization credit of $2.7 ($2.6 credit in North America and $0.1 credit in Europe) in Q3 04 primarily represent credit adjustments related to previous actions
for lower than expected lease termination costs for facility consolidations for both North America and Europe.
Reorganization credit of $0.4 ($0.7 credit in Europe and $0.3 charge in North America) in Q4 04 primarily represent credit adjustments related to previous
actions for lower than expected lease termination costs for facility consolidations in Europe and adjustments related to previous actions for higher than
expected lease termination costs for facility consolidations in North America.
(2) Foreign exchange gain in Q3 and Q4 04 represents gain related to the forward currency exchange contract of the Company’s Australian dollar denominated
acquisition of Tech Pacific.
(3) Favorable tax resolution in Q3 and Q4 04 represents incomes tax benefit for the reversal of previously accrued federal income taxes related to the gains on the
sale of securities in 2000 and reversal of previously accrued state income taxes related to the gains on the sale of securities in 1999 and 2000. 000000_1
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