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Subsequent Event
3 Months Ended
Mar. 03, 2012
Subsequent Event Abstract  
Subsequent Event Disclosure

Note 18: Subsequent Events

On March 5, 2012 we completed the purchase of the global industrial adhesives business of Forbo Group. The Company paid 370,000 Swiss Francs or approximately $393,106 in cash to purchase the Forbo Group subsidiaries that operate the industrial adhesives business and directly purchased certain assets used in the industrial adhesives business that were not owned by the former Forbo Group subsidiaries on a cash-free and debt-free basis. We will apply acquisition method accounting to this business combination at the transaction date, which requires acquired assets and assumed liabilities to be recorded at their respective fair values. Prospectively, the acquired assets and liabilities will be recorded in our Condensed Consolidated Balance Sheets at fair value as of the closing date, the results of operations of the acquired business will be included in our Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Cash Flows beginning in the second quarter of 2012 and all other disclosures pursuant to the guidance for business combinations will be provided in our Form 10-Q for the quarter ended June 2, 2012. Due to the limited time since the acquisition date, the initial accounting for the business combination is incomplete at this time.

On March 5, 2012 we entered into a note purchase agreement under which we agreed to issue $250,000 in 4.12% Senior Notes, Series E, due March 5, 2022 in the U.S. private placement market. The notes were issued at a price equal to the face value. The proceeds from the notes were used to fund a portion of the purchase price for the Company's acquisition of the global industrial adhesives business of Forbo Group.

On March 5, 2012 we entered into a credit agreement with a consortium of financial institutions which established a $200,000 multi-currency revolving credit facility and a $150,000 term loan that we can use to repay existing indebtedness, finance working capital needs, and for general corporate purposes, including the acquisition of the global industrial adhesives business of Forbo Group. On March 5, 2012, the full $150,000 of the term loan was drawn down by us in connection with the closing of our acquisition of the global industrial adhesives business of Forbo Group. The initial interest rate on the term loan was 1.75 percent, which represented the prevailing LIBOR rate plus a spread of 150 basis points. The credit agreement replaces our existing revolving credit facilities and expires on March 5, 2017, at which time the revolving credit loans mature.

 

On March 19, 2012 negotiations were completed with the works council representing two of the EIMEA shared services functions that will be transferred to Mindelo, Portugal. The settlement amounts were communicated to the impacted employees on March 20, 2012. The settlement resulted in additional termination benefits of $1,395, which will be recorded in the second quarter of 2012 as workforce reduction costs in special charges, net.