Furniture Brands Contributes 2.3 Million Shares to Pension Plan

May 23, 2010  by in UnCategorized   

By Home Furnishings Business in Financial Reports on May 24, 2010 Furniture Brands International (NYSE: FBN) has made a contribution of 2.3 million shares of its common stock to the company€™s pension plan.

The shares were contributed in a private placement transaction and in consideration for the reduction in future funding obligations to the plan.

Furniture Brands will file a registration statement for the shares contributed to the plan and has appointed an independent fiduciary, Evercore Trust Company, N.A., to be solely responsible for all investment decisions with respect to the shares. Following the contribution, the company has about 50.9 million shares of common stock issued and outstanding.

The company€™s previous contributions to the plan in 2010 have totaled about $5 million. The majority of the 2010 plan contributions are eligible for favorable tax-loss carryback treatment and the company anticipates an additional cash tax refund of about $7 million during 2010. 

€œProactively addressing our pension funding in 2010 creates tax advantages and preserves Furniture Brands€™ financial flexibility as the company invests in the future of our business,€ said Steven Rolls, senior vice president and chief financial officer. 

Furniture Brands International markets its products through a range of retail channels, from mass merchant stores to single-brand and independent dealers to specialized interior designers. Brands under its corporate umbrella are: Broyhill, Lane, Thomasville, Drexel Heritage,   Henredon,  Pearson,  Hickory Chair, Laneventure, and Maitland-Smith.