19. Change in Estimate of Insurance Reserves
In July 1997, the Company recorded a $19.3 million change in estimate in its products liability insurance reserves and concurrently paid a $3.1 million premium to an outside insurance company to lower its self-insured retention (i.e., deductible) on its products liability insurance. The net effect of these transactions was an addition to operating income of $16.2 million ($10.4 million after tax or 28 cents per share).