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              [html]<thead><tr><td>Reasod investment in brand equity build - ppment of approximately $? million, and</td><td>This was due to the fact that the Company was able to exit a leaste with the lessor at more favorable terms than previously estimated.</td><td>Sation of which approximately 84 million related to a prior acquisition.</td></tr></thead><tbody><tr><td>During the second quarter of zoosts, the Company recorded a pretax charge of $ ta4 million or $ 0.26 per diluted share for a restructure</td><td>istrative expenses include freight expense product development costs, and amortization</td><td>ing plan that involved consolidating physical facilities, discontinuing low - volume product lines, and reductions of workforce. Included in the</td></tr><tr><td>assets. The Selling and Administrative 1 the Notes to Consolidated Financial</td><td>charge was the closedown of three of its office furniture facilities located in Williamoport, Pennsylvania ; Tupelo, Minsippi ; and Santa Ana,</td><td>Comparison regarding the comparative or expense items.</td></tr><tr><td>California. Approximately 5 × 6 members were terminated and received severance due to the closedown of these facilities. During the second</td><td>ARGES</td><td>quarter of 2002, a restructuring credit of approximately $ 2.4 million</td></tr><tr><td>closed two office furniture facilities and α other U. S. manufacturing locations to</td><td>to the fact that the Company was able to exit a lease with a lessor at</td><td>The processes, and reduce overhead costs. ed in Hazleton, Pennsylvania, and Milan, ith the clonur, tha Communy, neorled</td></tr><tr><td>ability to minimize the number of members terminated as compared to the original plan.</td><td>arges or $ o. t7 per diluted share. These</td><td>OPERATING 1NCOME</td></tr><tr><td>of accelerated depreciation of machinery corded in cost of sales, $ 2.4 million of severe</td><td>Operating income increased_t % in 260Q and 16 % in 2002, respectively. The increase in 2003 is due to the additional week, strong sales volume</td><td>cility exit, production relocation, and other restructuring costs. A total of : ya6 members</td></tr><tr><td>in the hearth segment, and improved gross margins in both segments, offset by increased restructuring charges due to additional plant closs -</td><td>The</td><td>sures and consolidations, increased investment in brand building and</td></tr><tr><td>Complete. The Company anticipates additional</td><td>selling initiatives, and increased freight costs. The increase in 2002</td><td>during the first quarter of 2004 related to</td></tr><tr><td>was due to a $ 24 million restructuring charge in 200x compared to a</td><td>Consultants, facility is an owned facility and controlled assets as it is currently being held as</td><td>Ireed intangibles amortization of $ y million incurred in 2001 that is not included in 2002 due to a change in accounting standards.</td></tr><tr><td>Sed in the “ Prepaid expenses and other curveillance, 2004, condensed consolidated balance</td><td>NET INCOME</td><td>Size ( Sensory )</td></tr><tr><td>Net income increased *% in 2009 and 22 ; 0 % in 2002, respectively. Net income in 2003 ; was favorably impacted by increased interest income - due</td><td>To longer being used in the production of</td><td>Table</td></tr><tr><td>Spense for 2003 ineluded $ 1.4 million of</td><td>fo increased investments and decreased interest expense due to reduction</td><td>incurred under the lease contract reduced</td></tr><tr><td>tion in debt. Net income in 2002 was favorably impacted by a decrease in</td><td>There without the that could be reasonably obtained.</td><td>HEG1 ‐ CAg ‐ GAC ADE, IL10 IL1 / LL6A, IL10, LL10, LL10, LL10, LL10, LL10, LL10, LL10, LL10, LL10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L10, L</td></tr><tr><td>Company recorded a pretax charge of</td><td>federal and state tax credits. The Company anticipates that its tax rate</td><td>The shutdown of an office furniture</td></tr><tr><td>1.</td><td>A total of 125 members were terminated</td><td>Table</td></tr><tr><td>> this shutdown. During the second quarter</td><td>Table</td><td>In of approximately $ 0.6 million or $ 0.01</td></tr><tr><td>State</td></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr></tbody>
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