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Net income (loss) was adversely affected by restructuring and litigation charges of $84.9 million and a $138.5 million charge to record a valuation allowance for the majority of the Company’s net deferred tax assets in 2003, and restructuring charges of $42.8 million in 2002 and $74.2 million in 2001. 

Stockholders’ equity for 2003 includes the effect of recognizing the $138.5 million valuation allowance on net deferred tax assets and a $47 million adjustment to the minimum pension liability, net of related tax effects. Stockholders’ equity for 2002 includes the effect of recognizing a minimum pension liability of $406 million, net of related tax effects. 

In 1999, the Company completed a strategic transformation in which it spun-off Teledyne Technologies Incorporated and Water Pik, Inc. and sold certain businesses. The results of the companies spun-off and companies sold are reflected as discontinued operations for all periods presented. The Company recognized extraordinary gains of $130 million, net of $80 million in taxes, in connection with the sales of businesses in 1999. 

At a stockholders’ meeting held in November 1999, the Company’s stockholders approved a one-for-two reverse stock split of the Company’s stock. The reverse stock split was effective immediately following the spin-offs of Teledyne and Water Pik on November 29, 1999. All references to number of shares and per share amounts have been restated to reflect the reverse stock split. 

