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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14. Leases and Commitments
Minimum rental commitments under noncancellable operating leases, primarily for equipment and office facilities at December 31, 2011,
are included in the following table under leases. Purchase obligations include commitments to purchase paper, inventory and other services.
Year Leases
Purchase
Obligations
2012 $109.5 $344.6
2013 96.5 154.4
2014 83.9 126.1
2015 72.1 115.3
2016 55.7 120.4
Later years 148.8 5.7
Sublease rental income (22.2) –
Total $544.3 $866.5
Rent expense was $113.9 in 2011, $113.7 in 2010, and $113.5 in 2009. Plant construction, expansion and modernization projects with an
estimated cost to complete of approximately $554.9 were in progress at December 31, 2011.
NOTE 15. Restructuring Initiatives
2005 and 2009 Restructuring Programs
We launched restructuring programs in late 2005 (the “2005 Restructuring Program”) and in February 2009 (the “2009 Restructuring
Program”). The 2005 and 2009 Restructuring Programs initiatives include:
• enhancement of organizational effectiveness, including efforts to flatten the organization and bring senior management closer to
consumers through a substantial organization downsizing;
• implementation of a global manufacturing strategy through facilities realignment;
• implementation of additional supply chain efficiencies in distribution;
• restructuring our global supply chain operations;
• realigning certain local business support functions to a more regional basis to drive increased efficiencies; and
• streamlining of transactional and other services through outsourcing, moves to lower-cost countries, and reorganizing certain other
functions.
We have approved and announced all of the initiatives that are part of our 2005 and 2009 Restructuring Programs. We expect to record
total restructuring charges and other costs to implement restructuring initiatives of approximately $510 before taxes under the 2005
Restructuring Program. Through December 31, 2011, we have recorded total costs to implement, net of adjustments, of $526.0 ($12.3 in
2011, $3.2 in 2010, $20.1 in 2009, $59.3 in 2008, $157.5 in 2007, $217.1 in 2006 and $56.5 in 2005) for actions associated with our
restructuring initiatives under the 2005 Restructuring Program. We expect to record total restructuring charges and other costs to implement
restructuring initiatives in the range of $300 to $310 before taxes under the 2009 Restructuring Program, with actions to be completed by
2012-2013. We will incur other costs to implement restructuring initiatives such as other professional services and accelerated depreciation.
These future costs are expected to be more than offset by gains on the sales of properties exited due to restructuring initiatives. Through
December 31, 2011, we have recorded total costs to implement, net of adjustments, of $256.0 ($27.7 in 2011, $77.5 in 2010, and $150.8
in 2009) for actions associated with our restructuring initiatives under the 2009 Restructuring Program.