SAMSONITE CORP/FL - 10-K Annual Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended January 31, 2000

¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-23214

SAMSONITE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction
of incorporation or organization)

11200 East 45th Avenue

Denver, Colorado

(Address of principal executive offices)

36-3511556

(I.R.S. employer identification no.)

80239

(ZipCode)

Registrant’s telephone number, including area code: (303) 373-2000

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, par value $.01 per share

(Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in part III of this Form 10-K or any amendment to this Form 10-K. ¨

As of April 14, 2000, the registrant had outstanding 19,725,266 shares of Common Stock, par value $.01 per share. The aggregate market value of such Common Stock held by non-affiliates of the registrant, based upon the closing sales price of the Common Stock on April 14, 2000, as reported on the Nasdaq National Market was approximately $39.7 million. Shares of Common Stock held by each officer and director and by each person who owns 5 percent or more of the outstanding Common Stock have been excluded in that such persons may be deemed to be affiliates. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

INDEX

		Page
PART I
Item 1.	Business	3
Item 2.	Properties	10
Item 3.	Legal Proceedings	10
Item 4.	Submission of Matters to a Vote of Security Holders	10

PART II
Item 5.	Market for Registrant’s Common Equity and Related Stockholder Matters	11
Item 6.	Selected Financial Data	12
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	26
Item 8.	Financial Statements and Supplementary Data	27
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	27

PART III
Item 10.	Directors and Executive Officers of the Registrant	28
Item 11.	Executive Compensation	28
Item 12.	Security Ownership of Certain Beneficial Owners and Management	28
Item 13.	Certain Relationships and Related Transactions	28

PART IV
Item 14.	Exhibits, Financial Statement Schedule, and Reports on Form 8-K	29
Signatures		30
Index to Consolidated Financial Statements and Schedule		F-1
Index to Exhibits		E-1

PART I

ITEM 1. BUSINESS

General

We are one of the world’s largest designers, manufacturers and distributors of luggage. We sell our products using a number of quality brand names, including Samsonite® and American Tourister®. With net sales of $767.7 million for our fiscal year ended January 31, 2000, we are a leader in the highly fragmented luggage industry. The vast majority of our competitors have annual luggage sales that are less than 15% of ours.

We offer a broad range of luggage and luggage-related products. These include suitcases, garment bags, business cases, computer cases, casual bags and sports bags. In fiscal year 2000, we began manufacturing and selling luxury luggage, casual bags, clothing, shoes and accessories under Samsonite® Black Label and Hedgren® brands. We also license our brand names for use on products that include travel accessories, leather goods, handbags, clothing and furniture.

We design the vast majority of our products at our research, development and design centers in Europe and the United States. Our products are produced around the world at 13 Samsonite-operated manufacturing facilities or by carefully selected third party suppliers. We sell our products in more than 100 countries at approximately 28,000 retail locations that include department stores, specialty stores, mass merchants, warehouse clubs and catalog showrooms. We also sell certain products through approximately 200 Samsonite-operated stores in the United States, Canada, Latin American, Asia and Europe. In addition, our products are available through approximately 50 of our wholesale customers’ websites.

Our principal corporate office is at 11200 East 45th Avenue, Denver, Colorado 80239, and our telephone number is (303) 373-2000.

Luggage Leader

Our leading position in the global luggage industry is due primarily to:

Widely-Recognized Brand Names. Samsonite and American Tourister are two of the most widely-recognized luggage brand names in the world. Our Lark® brand is also well-recognized in the premium segment of the market. We also license and sell products using the well-known brands Hedgren and Hummer®.

Innovative Quality Products. We design, manufacture and sell innovative, quality products. Consumers know our products to be well-made and durable and to contain features and functions that are innovative. We are an industry leader in new luggage technologies due to our substantial product development efforts. We introduced many of today’s most successful luggage products and features, including molded suitcases on wheels, suitcases with a built-in luggage cart and full-featured structured garment bags.

Global Manufacturing and Distribution. Our global production network consists of 13 Samsonite-operated manufacturing facilities and carefully-selected third-party suppliers in the Far East, Eastern Europe and the Dominican Republic. Our large size and leading position in the worldwide luggage industry allow us volume-driven purchasing and manufacturing economies. By operating our own facilities to produce hardside luggage and certain softside products, we control manufacturing quality and reduce production lead time and delivery costs. Our global sourcing network also enables us to opportunistically source products from countries with low production costs and favorable currency exchange rates. Our luggage distribution networks in the United States and Europe are the largest and most technologically advanced in the industry.

Our Strategy

Our strategy is to use our worldwide leading position and our substantial existing assets—our strong brands, our quality products and our global capabilities—to gain a larger portion of worldwide luggage and luggage related sales. We intend to do this by:

Expanding Channels of Distribution. We are increasing our presence in channels of distribution where we are under-represented using targeted sales efforts tailored to each channel. For instance, in fiscal year 2000 we began aggressively selling our American Tourister products to specialty stores, department stores, mass merchants and other high-volume merchants (known in Europe as “hyper-markets”). We are also implementing a strategy to use the Internet as an extension of our retail distribution channel and to develop and enhance business to business commerce while minimizing conflicts with our existing channels of distribution.

Expanding Product Offerings. We are increasing our product offerings by designing, manufacturing and selling more casual and sport bags, luxury luggage, computer cases, clothing, shoes and accessories. To do this, we have enlisted the aid of internationally-recognized designers and have created or licensed new upscale brands that include Hummer, Hedgren and Samsonite Black Label.

Creating Innovative Products. Samsonite’s historical success and the strength of its brands are based, in large part, upon continually creating technologically superior, innovative luggage. Recently, we introduced in Europe Ziplite®, an extremely light-weight hardside luggage made from an ultra-thin, flexible polymer, and in the United States Carbon 2010®, a hybrid luggage that possesses the desirable qualities of both hardside and softside luggage.

Continuing International Expansion. We continue to look for opportunities to expand into countries where growing economies and reduced political and trade barriers provide opportunities for long-term growth. We are growing our existing business in a number of emerging foreign markets, including India, China, Latin America and the Pacific Rim.

Improve product marketing execution, including sales and inventory forecasting, brand positioning, product development and customer service. The strength of our brand and product marketing has been key to our historical success. In order to return our operations to historical levels of profitability, we are focusing resources to improve forecasting, brand positioning and advertising, product development and customer service.

Luggage Market

The worldwide luggage market encompasses a wide range of products, product quality and prices. At one end of the market are high-quality, full-featured products that have prestigious brand names, higher prices and selective distribution. Beneath this “luxury” segment is a broad middle market segment in which products are differentiated by features, brand name and price. Within this market segment sales are largest at mid and low prices. Product differentiation decreases and breadth of distribution increases at lower price levels. At the other of end of the luggage market, unbranded products with few differentiating features are sold in significant volumes and at low margins, competing primarily on the basis of price. We sell products into all three segments of the luggage market.

Products

We offer a broad range of products that include softside suitcases, garment bags, hardside suitcases, casual bags, sport bags, business cases, computer cases, clothing, shoes, accessories and other non-luggage products.

Fiscal 2000 Sales Mix by Product Type

*Product Type*
Softside suitcases and garment bags	44	%
Hardside suitcases	27	%
Casual bags	12	%
Business and computer cases	6	%
Footwear and clothing	2	%
Other	9	%

	100	%

Below is our market positioning for each of our principal brands:

Brand Name	Market Positioning	U.S. Consumer	Europe Consumer
Samsonite Black Label	super luxury	very affluent	very affluent
Lark	luxury	affluent	affluent
Samsonite	high-quality, innovative	mid to upper income	affluent
Hedgren	sport luxury	affluent	affluent
American Tourister	quality and value	middle income and value-conscious	middle income and value-conscious

Softside Suitcases and Garment Bags. Approximately 60% of the softside suitcases and garment bags we sell are made by independent suppliers located around the world. We produce the balance of our softside suitcases and garment bags in our own facilities located in several countries. Our softside products are sold under all of our major brands.

We sell numerous softside products with innovative proprietary features. These include the Ultravalet® garment bag that has a unique wrinkle-free folding system and is available on wheels and the EZ Big Wheel® system that allows very easy passage over carpets and rough surfaces.

Hardside Suitcases. We manufacture most of our hardside suitcases in our own factories. Our hardside luggage is sold globally under the Samsonite brand. In the United States and Europe, our hardside luggage is also sold under the American Tourister brand. In Europe and the United States, hardside products are offered in several lines under each brand. Each line includes a variety of sizes and styles to suit differing consumer needs.

Our hardside suitcases have proprietary features that include the patented Piggyback® system that incorporates a luggage cart, an extendable handle and a strap allowing additional bags to be attached and transported, and our EZ Cart® system that has four wheels to support the weight of the case and a push handle to provide optimum stability and mobility.

In fiscal year 2000 we introduced two unique products in the hardside area that include important proprietary designs and features. The first is Ziplite, a hardside luggage taking the form of a sleek pod that zips shut, rather than latching shut, and that is made of a thin, light-weight polymer which is laminated to an attractive textile using a patented process. The second is Carbon 2010, a hybrid of hardside and softside luggage for which patents are pending. Carbon 2010 possesses the features that are sought after in each of hardside luggage and softside luggage. The bottom of a Carbon 2010 suitcase is a shell of light, rugged ABS that provides structure to the bag and helps protect the contents. The top half is attractive, high quality DuPont® Cordura® Plus fabric with zippered pockets for easy access and organization and adjustable cinch straps for security and capacity control.

Casual and Sport Bags. The worldwide market for casual and sport bags is larger than the market we have historically sold our products into, that being luggage and business cases (suitcases, garment bags, business cases and computer cases). The casual and sport bag market includes backpacks, shoulder packs, “fanny” packs, unstructured bags, athletic bags, school bags, duffle bags, ladies’ handbags, other types of bags and containers for eyeglasses, pencils and pens. We entered this market in a modest way in the last several years with the Samsonite Sport® and Trunk & Co.® product lines. We decided in fiscal year 2000 to expand significantly our business in this important market and did so by introducing products under our licensed Hedgren, Hummer and Wild California™ brands. We believe that by offering these consumers a number of product lines having varying styles and price points, we have the opportunity to capture a larger portion of this market.

Business and Computer Cases. We sell a variety of business and computer cases under our Samsonite and American Tourister brand names. We design and manufacture most of the hardside briefcases we offer. We design and have our suppliers manufacture our softside briefcases and computer cases. In addition, we license our brands to experienced business case producers for the sale of certain of these products in the United States.

Luxury Products. In the first quarter of fiscal year 2001, we created our Specialty Products Groupe, which designs, manufactures and sells super-premium luggage, casual and sport bags, clothing, shoes and accessories under the brands Samsonite Black Label, Hedgren and Samsonite. Our Samsonite Black Label and Hedgren premium product lines each operate under the creative direction of its own internationally-recognized designer. Our first offerings in each of our luxury lines were very well received by the fashion world and the press.

Licensed Products. We license our luggage brand names and certain apparel brand names, which include McGregor®, Botany 500® and Bert Pulitzer®, to third parties for the sale of a variety of products. Our licensees are selected for competency in their product categories and usually sell parallel lines of products under other brands. Our licensed products include leather business and computer cases, apparel, furniture, travel accessories, photo and audio storage gear, personal leather goods, ladies handbags, umbrellas, binoculars, pet carriers, auto accessories, cellular phone cases, school bags and children’s products.

Product Development. We devote significant resources to new product design and development. We use market research to identify consumers’ needs and style preferences and develop products that meet those needs and preferences. We employ designers and development engineers and work with outside designers to ensure a continuous flow of new product ideas based on developments and trends in consumer preferences and in technologies. We believe that our intensive product design and development and our emphasis on innovative features distinguish us from our competitors worldwide.

Distribution

Our products are sold in more than 100 countries around the world from the retail locations of others, from our own stores and over the Internet.

United States. Our products are sold in the United States primarily through department stores, luggage specialty stores and national retailers such as JCPenney and Sears. Discount channels, such as mass merchants, warehouse clubs and factory outlets, are increasingly important to the distribution of our products in the United States. Our direct sales force of approximately 55 professionals serve approximately 10,000 stores in the United States.

We also operate approximately 200 retail stores in the United States that distribute Samsonite and American Tourister products designed for these stores, as well as excess, discontinued and obsolete products. Our stores allow us to efficiently balance inventories and test market new products and designs. Our stores also sell a variety of travel-related products.

Europe. Our Samsonite products in Europe are sold through specialty stores and department stores. Our American Tourister brand has been introduced in Europe to balance our retail distribution in each of the primary retail channels and to establish a single pan-European brand name in the discount channel. We service an estimated 11,000 stores in Europe with our direct sales and product demonstration force of approximately 100 persons.

We also sell our products in certain European markets where we do not have a direct sales force, through distributors and agents located in over 20 countries. These distributors and agents, as well as those mentioned under “Elsewhere in the World” below, handle various non-luggage products in addition to our products. Distribution agreements generally provide for mutual exclusivity, whereby distributors do not handle competitors’ luggage products and we do not deal with other distributors or agents in their territory.

We also sell our products through 11 Samsonite-operated stores located throughout Western Europe.

Elsewhere in the World. In markets outside the United States and Western Europe, we sell our products either directly or through agents and distributors or under license. Products sold in these international markets are shipped from the United States, Mexico, Western Europe or Asia depending upon product type and availability. In some instances, we initially entered new markets through third party distributors and subsequently acquired these third party distributors as markets have matured. We have long-standing licensing arrangements to sell our products in Japan, Australia and Canada. We have joint ventures in Singapore, South Korea, India, and China, as well as wholly-owned distribution organizations in Hong Kong and Taiwan. We also have joint ventures in Argentina, Uruguay and Brazil to distribute Samsonite products in those countries as well as other major Latin American markets.

Advertising

We commit substantial resources to brand advertising programs that promote the features, durability and quality of our luggage and travel products under the marketing theme “Samsonite Worldproof®.” In connection with launching a new line of our American Tourister products in the second half of fiscal 2000, we brought back our very popular “gorilla” advertising theme. We are the only luggage maker to advertise on television in the United States and Europe. For the last five fiscal years we have invested, on average, in excess of $50 million annually in national and co-op advertising programs and related promotional activities.

Manufacturing and Sourcing Products

Our global product sourcing network consists of 13 Samsonite-operated manufacturing facilities and various third party suppliers located principally in the Far East, Eastern Europe and the Dominican Republic. By operating our own facilities to produce hardside luggage and more complex softside products, we are able to control manufacturing quality and reduce lead times and delivery costs. Our global sourcing network also enables us to source products from countries with lower production costs and favorable currency exchange rates. Samsonite-operated manufacturing facilities are located in Belgium, France, Hungary, Italy, the Slovak Republic, Mexico, Spain, India, China and the United States.

In fiscal year 2000, approximately 40% of our revenues from softside luggage products were from products manufactured in our own facilities. We purchased the remainder of our softside luggage products from third-party vendors in the Far East, Eastern Europe and the Dominican Republic. We select different third party vendors to take advantage of changes in manufacturing, payment terms and shipping costs. We do not rely on any single third party vendor, the loss of whom would be material to us.

We manufacture most of the hardside luggage products that we sell. Our hardside production facilities are located in Denver, Colorado; Oudenaarde, Belgium; Nashik, India; Hein-Beaumont, France; Ningbo, China; and Mexico City, Mexico.

We maintain a rigorous quality control program for goods manufactured at our own plants and at third party vendor facilities. A prototype of each new product is put through a series of simulation and stress tests. In our manufacturing facilities and our Asian sourcing office, we use quality control inspectors, engineers and lab technicians to perform inspection and laboratory testing on raw materials, parts and finished goods.

Competition

Competition in the worldwide luggage industry is very fragmented. The vast majority of our competitors have less than 15% of our annual luggage sales. In the United States, we compete based on brand name, consumer advertising, product innovation, product quality, differentiation, customer service and price. In Europe, we compete based on our premium brand name, product design, product quality, access to established distribution channels and new product offerings.

The manufacture of softside luggage is labor intensive but not capital intensive, so that the barriers to entry by competitors in this market segment are relatively low. We have many competitors in the softside luggage market and in all ends of the market. In addition, we compete with various larger retailers, some of whom are our customers, who have the ability to purchase private label softside luggage directly from manufacturers that operate in low labor cost countries. The manufacture of hardside luggage is capital intensive; consequently, barriers to entry are relatively high. Nonetheless, we have several competitors worldwide in the hardside luggage market.

Customers

Our customers include specialty stores featuring luggage products, major department stores that carry luggage, retail chain stores, catalog showrooms, mass merchants, premium sales (sales direct to business), Internet retailers and discounters. We also sell certain products directly to consumers through Samsonite-operated retail stores in the United States and Europe. We do not depend on any single customer for more than 5% of our consolidated revenues.

Trademarks and Patents

Trademarks and patents are important to us. We are the registered owner of Samsonite, American Tourister, Lark and other trademarks. As of January 31, 2000, we had approximately 2,131 trademark registrations and 351 trademark applications pending in the United States and abroad covering luggage, travel equipment, apparel products and retail services. We also own approximately 139 United States patents and approximately 521 patents (patents of inventions, industrial design registrations and utility models) in selected foreign countries. In addition, we have approximately 303 patent applications pending worldwide. We pursue a policy of seeking patent protection where appropriate for inventions embodied in our products. Our patents cover features popularized in our EZ CART, Smart Pocket™, Easy Turn®, Piggyback, Ultravalet and Oyster™ luggage. We have also patented our CPX production technology for making luggage shells. Although some companies have sought to imitate some of our patented products and our trademarks, we have generally been successful in enforcing our worldwide intellectual property rights.

Employees and Labor Relations

At January 31, 2000, we had approximately 7,200 employees worldwide, with approximately 2,000 employees in the United States and approximately 5,200 employees in other countries. In the United States, approximately 500 employees are unionized under a contract that is renewed every three years and was most recently renewed in April 1999. We employ approximately 2,600 workers in our five European manufacturing plants located in Belgium, France, Spain, Italy, the Slovak Republic and Hungary. In Europe, union membership varies from country to country and is not officially known to Samsonite. It is probable that most of our European workers are affiliated with a union. Most European union contracts have a one-year duration. We believe our employee and union relations are satisfactory.

Forward-Looking Statements

Certain statements under “Business,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” “Quantitative and Qualitative Disclosures About Market Risk” and other places in this Annual Report constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be indicated by words such as “may,” “will,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “expect” and similar expressions. Variations on those or similar words, or the negative of those words, also may indicate forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors include, among others, general economic and business conditions, including foreign currency fluctuations; industry capacity; changes in consumer preferences; demographic changes; competition; changes in methods of distribution and technology; changes in political, social and economic conditions and local regulations; general levels of economic growth in emerging market countries such as India, China, Brazil, Argentina and other Asian and South American countries; the loss of significant customers; completion of new product developments within anticipated time frames; changes in interest rates; and other factors that are beyond our control.

ITEM 2. PROPERTIES

The following table sets forth certain information relating to our principal properties and facilities. All of our manufacturing plants, in our opinion, have been adequately maintained and are in good operating condition. We believe that our existing facilities have sufficient capacity, together with sourcing capacity from third parties, to handle our sales volumes for the foreseeable future. The Company’s headquarters in Denver share the same location as a manufacturing facility.

Location	Owned or Leased	Approximate Facility Size (thousands of sq. ft.)
Denver, CO	Owned/Leased	1,609
Tucson, AZ	Owned/Leased	68
Jacksonville, FL	Leased	528
Warren, RI	Owned	490
Stratford, Canada	Owned	212
Nogales, Mexico	Leased	275
Mexico City, Mexico	Owned	278
Oudenaarde, Belgium	Owned	649
Ningbo, China	Owned	100
Nashik, India	Owned	743
Torhout, Belgium	Owned	79
Henin-Beaumont, France	Owned	98
Szekszard, Hungary	Owned	81
Tres Cantos, Spain	Owned	37
Saltrio, Italy	Leased	74
Singapore	Leased	13
Hong Kong	Leased	26
Seoul, South Korea	Leased	19
Samorin, Slovak Republic	Owned	43
Buenos Aires, Argentina	Leased	19
Sao Paulo, Brazil	Leased	5

We also maintain numerous sales offices, retail outlets and distribution centers in the United States and abroad.

ITEM 3. LEGAL PROCEEDINGS

Information regarding our legal proceedings is contained in Note 15 to our consolidated financial statements included elsewhere herein and is incorporated herein by reference.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Our common stock, par value $.01 per share (the “Common Stock”), is presently traded on the Nasdaq National Market (the “NNM”) under the symbol “SAMC”. The table below sets forth the high and low per share sale prices for the Common Stock for fiscal years 1999 and 2000 and through April 14, 2000 (as reported on the NNM). The closing price of the Common Stock on the NNM on April 14, 2000 was $5¹ /16 per share.

Fiscal 1999	High	Low
Fiscal quarter ended:
April 30, 1998	37 ⁷ /8	26⁹ /16
July 31, 1998*	33 ⁵ /8	7 ¹ /2
October 31, 1998	8 ⁹ /16	4 ¹ /8
January 31, 1999	9¹⁵ /16	5

Fiscal 2000
Fiscal quarter ended:
April 30, 1999	6 ⁷ /8	4 ⁷ /8
July 31, 1999	6 ³ /4	5
October 31, 1999	7⁹ /16	5 ³ /4
January 31, 2000	6 ³ /4	5 ³ /8

Fiscal 2001
February 1, 2000 through April 14, 2000	6³ /16	4 ⁷ /8

*	On June 24, 1998, we completed our Recapitalization as described under Item 6, Selected Financial Data.

As of April 14, 2000, the number of holders of record of our Common Stock was 90.

All holders of shares of our Common Stock share ratably in any dividends declared by our Board of Directors. Any payment of dividends are at the discretion of our Board of Directors and will depend upon, among other things, the Company’s earnings, financial condition, capital requirements, extent of indebtedness and contractual restrictions with respect to the payment of dividends. The terms of our indebtedness and the certificate of designation for our 13⁷ /8% Senior Redeemable Exchangeable Preferred Stock (the “Senior Redeemable Preferred Stock”) currently restrict us from paying dividends on our Common Stock.

ITEM 6. SELECTED FINANCIAL DATA

The selected historical consolidated financial information presented below is derived from our audited consolidated financial statements.

The selected historical consolidated financial information presented below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the Company’s consolidated financial statements and related notes thereto included elsewhere herein.

	Year Ended January 31,
	1996		1997			1998		1999		2000
	(In thousands, except per share amounts)
Statement of Operations Data
Net Sales	$675,209		741,138			736,875		697,421		767,685
Cost of Goods Sold	414,691		449,333			424,349		413,124		442,325

Gross Profit	260,518		291,805			312,526		284,297		325,360
Selling, General and Administrative Expenses	203,701		233,761			234,257		263,892		261,792
Amortization of Intangible Assets	63,824		31,837			7,101		5,633		5,712
Provision for Restructuring Operations	2,369		10,670			1,866		6,598		—

Operating Income (Loss)	(9,376	)	15,537			69,302		8,174		57,856
Interest Income	4,709		1,419			2,574		2,453		2,022
Interest Expense and Amortization of Debt Issue Costs and Premium	39,974		35,670			19,918		39,954		52,293
Other Income (Expense)—Net	3,967		18,821			28,294		(25,351	)	3,671
Income Tax Expense	9,095		10,389			23,088		26,800		12,576
Minority Interest in Earnings of Subsidiaries	(1,385	)	(1,041	)		(287	)	(840	)	(1,747	)

Income (Loss) from Continuing Operations	(51,154	)	(11,323	)	<