This excerpt taken from the EYE 10-Q filed May 10, 2006.
repositioning costs. In the three months ended March 31, 2006, we incurred $32.4 million of pre-tax charges, which included $3.2 million for inventory and manufacturing related charges included in cost of sales and $29.2 million included in operating expenses. Charges included in operating expenses comprised productivity and brand repositioning costs of $26.2 million, severance, relocation and other one-time termination benefits of $1.6 million and asset write-downs of $1.4 million. In connection with the approved product rationalization and repositioning plan, we expect to incur an additional $3 million to $5 million of charges in the first half of 2006, which will be recognized as the services are performed and actions occur. The total charges that are expected to be incurred are within the range previously announced.
Following an analysis of our IOL manufacturing capabilities, we have decided to consolidate certain operations. In addition, we have decided to further expand 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 the remainder of 2006. The estimated total charges for the expanded product rationalization and repositioning plan will be approximately $90 million to $105 million.