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LS&CO net incomes improves due to operating sales for Q2
14 Jul '05
5 min read
Long-term incentive compensation expense for the quarter decreased to $4 million compared to $14 million in the 2004 period, reflecting the adoption in early 2005 of a three-year performance measurement period replacing the 18-month period for the previous plan.
Restructuring charges, net of reversals, were $5 million for the second quarter of 2005 versus $26 million in the prior-year period. The 2005 charges were for activities related to the U.S. and European reorganization initiatives that began last year. The 2004 charges reflected costs related to the closure of two manufacturing plants in Spain and U.S. organizational changes.
Operating income for the quarter increased 84 percent to $145 million, or 15 percent of net sales, compared to $79 million, or 8 percent of net sales, for the same period of 2004. The improvement in operating income was primarily driven by the factors noted above as well as increased royalty income from licensees.
Loss on early extinguishment of debt was $43 million for the second quarter. This included $34 million in tender offer and redemption premiums and other fees and expenses related to the repurchase of all of our 2008 notes.
It also included $9 million in unamortized debt discount and capitalized costs. Income tax expense for the quarter was $9 million compared to $3 million in the 2004 period. The increase is primarily attributable to a significant increase in pretax income compared to the samequarter in 2004.
Restructuring charges, net of reversals, were $5 million for the second quarter of 2005 versus $26 million in the prior-year period. The 2005 charges were for activities related to the U.S. and European reorganization initiatives that began last year. The 2004 charges reflected costs related to the closure of two manufacturing plants in Spain and U.S. organizational changes.
Operating income for the quarter increased 84 percent to $145 million, or 15 percent of net sales, compared to $79 million, or 8 percent of net sales, for the same period of 2004. The improvement in operating income was primarily driven by the factors noted above as well as increased royalty income from licensees.
Loss on early extinguishment of debt was $43 million for the second quarter. This included $34 million in tender offer and redemption premiums and other fees and expenses related to the repurchase of all of our 2008 notes.
It also included $9 million in unamortized debt discount and capitalized costs. Income tax expense for the quarter was $9 million compared to $3 million in the 2004 period. The increase is primarily attributable to a significant increase in pretax income compared to the samequarter in 2004.
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