1. 2002 Summary of Reconciling Items
®
®
Q1 02 Q2 02 Q3 02 Q4 02 FY 02
($ U.S. millions)
Reorganization costs(1) $ 71.1
$ 39.5
$ 5.4
3.4 22.8
$ $
Other major-program costs included in:
- 21.1
- 44.0
22.9
Selling, general and administrative expenses (1)
- 1.2
Cost of sales (1) 0.3 1.5
-
116.6
62.7
5.4
Operating income items 3.4 45.1
(6.5) - - - (6.5)
Gain on sale of securities
(3.1) 5.4 45.1 62.7 110.1
Pre-tax items
Provisions for taxes:
(23.2)
Tax effect on pre-tax items 1.1 (2.0) (16.7) (40.8)
Cumulative effect of adoption of a new
-
accounting standard (2) - 280.9
280.9 -
$ 350.2
Total net of tax $ 39.5
3.4
$
$ 278.9 $ 28.4
(1) Reorganization costs of $3.4 ($1.0 in North America, $1.3 in Europe, $0.1 in Asia-Pacific and $1.0 in Latin America) in Q1 02 represent employee termination benefits for
workforce reductions worldwide and lease exit costs for facility consolidations in Europe and Latin America.
Reorganization costs of $5.4 ($2.5 in North America, $1.9 in Europe, $0.4 in Asia-Pacific and $0.6 in Latin America) in Q2 02 represent employee termination benefits for
workforce reductions worldwide and lease exit costs for facility consolidations in North America and Europe.
Major program costs of $45.1 in Q3 02 include reorganization costs of $22.8 ($17.9 in North America, $4.6 in Europe, less than $0.1 in Asia-Pacific and $0.3 in Latin America)
primarily for employee termination benefits for workforce reductions worldwide and lease exit costs for facility consolidations in North America and Europe; $21.1 charged to
selling, general and administrative expenses ($16.4 in North America and $4.7 in Europe), primarily comprised of accelerated depreciation of fixed assets associated with the
planned exit of facilities, consulting fees directly associated with the profit-enhancement plan and certain other related costs; and $1.2 recorded as cost of sales, comprised of
incremental inventory-related costs caused by the exit of certain markets.
Major program costs of $62.7 in Q4 02 include reorganization costs of $39.5 ($34.2 in North America, $4.8 in Europe, less than $0.1 in Asia-Pacific and $0.5 in Latin America)
primarily for employee termination benefits for workforce reductions worldwide and lease exit costs for facility consolidation and other costs related to reorganization activities in
North America and Europe; $22.9 charged to selling, general and administrative expenses ($21.2 in North America, $1.3 in Europe, and $0.4 in Asia Pacific), primarily comprised
of accelerated depreciation of fixed assets associated with the planned exit of facilities, consulting fees directly associated with the profit-enhancement plan and certain other
related costs; and $0.3 recorded as cost of sales in Europe, comprised of incremental inventory-related costs caused by the exit of certain markets.
(2) Adoption of Statement of Financial Accounting Standard No. 142, “Goodwill and Other Intangible Assets.”
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