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For the year ended December 31, 2008, the Company incurred restructuring-related charges of
$4.6 million in PSSD, $0.3 million in ISD and $16.6 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.
Impact to 2007 Financial Results
For the year ended December 31, 2007, the Company incurred $30.8 million for the 2007 Restructuring
plan as follows:
Accelerated depreciation charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5.1
Employee termination benefit charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.7
Total restructuring-related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30.8
The $5.1 million of accelerated depreciation charges are included in Cost of revenue and the $25.7 million
of employee termination benefits are included in Restructuring and related charges on the Consolidated
Statements of Earnings. Of the $30.8 million of restructuring-related charges, the Company incurred
$6.5 million in PSSD, $13.9 million in ISD and $10.4 million in All other.
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.
2006 Restructuring
During the first quarter of 2006, the Company approved a plan to restructure its workforce, consolidate
some manufacturing capacity and make certain changes to its U.S. retirement plans (collectively referred
to as the “2006 actions”). Except for approximately 100 positions that were eliminated in 2007, activities
related to the 2006 actions were substantially completed at the end of 2006.
Impact to 2008 Financial Results
For the year ended December 31, 2008, the Company reversed $1.5 million of previously accrued
employee termination benefits, and accrued an additional $0.9 million of contract termination and lease
charges due to a revision in assumptions due to current economic conditions. The net reversal is included
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