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Impact to 2008 Financial Results
For the year ended December 31, 2008, the Company incurred $50.3 million for the 2007 Restructuring
Plan as presented below:
(In Millions)
2007 Action
Restructuring-
related Charges
(Note 4) Project Costs Total
Accelerated depreciation charges/project costs . . . . . . . . . . $17.3 $13.5 $30.8
Employee termination benefit charges/project costs . . . . . . . (0.7) 15.3 14.6
Contract termination and lease charges . . . . . . . . . . . . . . . . 4.9 — 4.9
Total restructuring-related charges/project costs . . . . . . . . . . $21.5 $28.8 $50.3
$22.7 million and $8.1 million of accelerated depreciation charges and project costs are included in Cost of
revenue and Selling, general and administrative, respectively, on the Consolidated Statements of
Earnings. The $4.2 million of total employee termination benefits and contract termination and lease
charges are included in Restructuring and related charges while the $15.3 million of related project costs
are included in Selling, general and administrative on the Consolidated Statements of Earnings.
For the year ended December 31, 2008, the Company incurred restructuring and related charges and
project costs related to its 2007 Restructuring Plan of $9.2 million in PSSD, $2.9 million in ISD, and
$38.2 million in All other.
During the third quarter of 2008, the Company sold one of its inkjet supplies manufacturing facilities in
Juarez, Mexico for $4.6 million and recognized a $1.1 million pre-tax gain on the sale that is included in
Selling, general and administrative on the Consolidated Statements of Earnings. The $15.3 million of
project costs is the net amount incurred after including the gain recognized on the sale.
Liability Rollforward
The following table presents a rollforward of the liability incurred for employee termination benefits and
contract termination and lease charges in connection with the 2007 Restructuring Plan. Of the total
$16.2 million restructuring liability, $14.9 million is included in Accrued liabilities and $1.3 million is included
in Other liabilities on the Company’s Consolidated Statements of Financial Position.
Employee
Termination
Benefit
Charges
Contract
Termination &
Lease Charges Total
Balance at January 1, 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
Costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.7 — 25.7
Payments & other
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.6) — (4.6)
Balance at December 31, 2007 . . . . . . . . . . . . . . . . . . . . . . . . 21.1 — 21.1
Costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 4.9 12.0
Payments & other
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8.3) (0.7) (9.0)
Reversals
(3)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (7.9) — (7.9)
Balance at December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . $12.0 $ 4.2 $16.2
1)
Other consists of pension related items that were settled through the Company’s pension plans.
2)
Other consists of changes in the liability balance due to foreign currency translations.
3)
Reversals due to changes in estimates for employee termination benefits.
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