|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the EYE 10-Q filed Aug 9, 2006. Business repositioning costs. In
the three months ended June 30, 2006, we incurred $25.1 million of pre-tax
charges, which included $7.4 million for inventory, manufacturing related and
other charges included in cost of sales and $17.7 million included in operating
expenses. Charges included in operating expenses comprised severance,
relocation and other one-time termination benefits of $11.9 million,
productivity and brand repositioning costs of $4.9 million, asset write-downs
of $0.7 million and contractual obligations of $0.2 million. In the six months
ended June 30, 2006, we incurred $57.5 million of pre-tax charges, which
included $10.5 million for inventory, manufacturing related and other charges
included in cost of sales and $47.0 million included in operating expenses.
Charges included in operating expenses comprised productivity and brand
repositioning costs of $31.1 million, severance, relocation and other one-time
termination benefits of $13.5 million, asset write-downs of $2.1 million and
contractual obligations of $0.3 million.
Following an analysis of our IOL manufacturing capabilities in the second quarter of 2006, we have decided to consolidate certain operations. In addition, we expanded the scope of our eye care rationalization initiatives in order to maximize manufacturing capacity and seize growth opportunities. Together, these separate actions are expected to result in additional charges of approximately $20 million to $25 million in 2006. When combined with the initial estimated charges of $70 million to $80 million, the estimated total charges for the expanded product rationalization and repositioning plan will be approximately $105 million. Through June 30, 2006, we incurred cumulative charges of $99.8 million. We expect to incur additional charges of approximately $5 million in the remainder of 2006. |
| |||||||
