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Table of Contents
2005 Restructuring Programs
The activity for the 2005 restructuring programs for the years ended December 31, 2006 and 2005 is presented below:
2006
Category
Beginning
Balance
Adjustments
to the
Provision
During 2006
Utilization
During 2006
Ending Balance
Workforce reductions $ 79.8 $ (2.3) $ (59.4) $ 18.0
Consolidation of excess facilities — 0.1 — 0.1
Total $ 79.8 $ (2.2) $ (59.4) $ 18.2
2005
Category
Initial
Provision
Adjustments
to the
Provision
During 2005
Utilization
During 2005
Ending Balance
Workforce reductions $ 84.1 $ — $ (4.4) $ 79.8
Consolidation of excess facilities 0.4 — (0.4) —
Total $ 84.6 $ — $ (4.8) $ 79.8
The 2005 restructuring programs included two separate reductions in force, one that commenced in the first quarter of 2005 and a second that
commenced in the fourth quarter of 2005, aggregating approximately 1,060 employees. These actions impacted our major business functions and major
geographic regions. Approximately 67% of the affected employees were based in North America, excluding Mexico, and 33% were based in Europe, Latin
America, Mexico and the Asia Pacific region. As of December 31, 2006, the restructuring programs had been substantially completed. The restructuring
programs impacted the Information storage and Content management and archiving segments.
The adjustment to the provision in 2006 is primarily attributable to a decrease in the original number of individuals identified for termination and lower
than expected severance benefits. The remaining cash expenditures relating to workforce reduction are expected to be substantially paid by the end of 2007.
The expected cash impact of the 2005 restructuring charges is $78.3, of which $4.8 was paid in 2005 and $55.3 was paid in 2006.
2004 Restructuring Programs
The activity for the 2004 restructuring programs for the years ended December 31, 2006, 2005 and 2004 is presented below:
2006
Category
Beginning
Balance
Adjustments
to the
Provision
During 2006
Utilization
During 2006
Ending Balance
Workforce reductions $ 5.7 $ (2.2) $ (3.1) $ 0.5
Consolidation of excess facilities 0.1 (0.1) — —
Total $ 5.8 $ (2.3) $ (3.1) $ 0.5
2005
Category
Beginning
Balance
Adjustments
to the
Provision
During 2005
Utilization
During 2005
Ending Balance
Workforce reductions $ 16.4 $ (1.1) $ (9.6) $ 5.7
Consolidation of excess facilities 1.7 (0.5) (1.1) 0.1
Total $ 18.0 $ (1.5) $ (10.7) $ 5.8
2004
Category
Initial
Provision
Adjustments
to the
Provision
During 2004
Utilization
During 2004
Ending Balance