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This excerpt taken from the EYE 10-K filed Mar 1, 2007. Business repositioning costs. On October 31, 2005, our Board of Directors
approved a product rationalization and repositioning plan covering the
discontinuation of non-strategic cataract surgical and eye care products and
the elimination or redeployment of resources that support these product lines.
The plan also includes organizational changes and potential reductions in force
in manufacturing, sales and marketing associated with these product lines, as
well as organizational changes in research and development and other corporate
functions designed to align the organization with our strategy and strategic
business unit organization. The plan further calls for increasing our
investment in key growth opportunities, specifically our refractive implant
product line and international laser vision correction business, and
accelerating the implementation of productivity initiatives. In 2006, we incurred $62.7 million of pre-tax
charges, which included $16.3 million for inventory, manufacturing related and
other charges included in cost of sales and $46.4 million included in operating
expenses for severance, relocation and other one-time termination benefits of
$13.7 million, productivity and brand repositioning costs of $37.6 million,
offset by net asset disposal gains of $2.8 million and a net credit from
settlement of contractual obligations of $2.1 million. We incurred $42.3 million in pre-tax charges
during the fourth quarter of 2005 which included $12.6 million for inventory,
manufacturing related and other charges included in cost of sales and $29.7
million included in operating expenses for severance, relocation and other
one-time termination benefits of $14.0 million, asset write-downs of $9.2
million, contractual obligations of $2.7 million and accelerated productivity
and brand repositioning costs of $3.8 million. The cumulative charges
incurred of $105.0 million were within the range previously announced. We do not expect to incur additional charges
associated with this plan.
This excerpt taken from the EYE 10-K filed Mar 14, 2006. Business repositioning costs. On October 31,
2005, our Board of Directors approved a product rationalization and
repositioning plan covering the discontinuation of non-strategic cataract
surgical and eye care products and the elimination or redeployment of resources
that support these product lines. The plan also includes organizational changes
and potential reductions in force in manufacturing, sales and marketing
associated with these product lines, as well as organizational changes in
research and development and other corporate functions designed to align the
organization with our strategy and strategic business unit organization. The
plan further calls for increasing our investment in key growth opportunities,
specifically our refractive implant product line and international laser vision
correction business, and accelerating the implementation of productivity
initiatives. We incurred $42.3 million in pre-tax charges during the fourth
quarter of 2005 which included $12.6 million for inventory related charges
included in cost of sales and $29.7 million included in operating expenses for
severance, relocation and other one-time termination benefits of $14.0 million,
asset write-downs of $9.2 million, contractual obligations of $2.7 million and
accelerated productivity and brand repositioning costs of $3.8 million. We
expect to incur an additional $28 million to $38 million in charges in the
first half of 2006. These
costs will be recognized as the services are performed and actions occur.
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