Lexmark 2009 Annual Report Download - page 51

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2009 Restructuring Plan
General
In response to global economic weakening, the Company announced a restructuring plan (the “2009
Restructuring Plan”) on January 13, 2009. The 2009 Restructuring Plan impacted about 375 positions
through the end of 2009. The areas impacted include general and administrative functions, supply chain
and sales support, research and development program consolidation, as well as marketing and sales
management. Expected savings are $50.0 million per year, with approximately 95% of the savings
expected to benefit operating expense, and the remaining 5% will impact cost of sales. The 2009
Restructuring Plan was substantially completed by the end of 2009.
Impact to 2009 Financial Results
For the year ended December 31, 2009, the Company incurred charges of $23.8 million for the 2009
Restructuring Plan as follows:
(In Millions)
2009 Action
Restructuring-
related
Charges
(Note 4) Project Costs Total
Accelerated depreciation charges/project costs . . . . . . . . . . . $0.3 $ 4.1 $ 4.4
Employee termination benefit charges/project costs . . . . . . . . 8.4 11.0 19.4
Total restructuring-related charges/project costs . . . . . . . . . . . $8.7 $15.1 $23.8
The Company incurred $4.4 million of accelerated depreciation charges and project costs in Cost of
revenue on the Consolidated Statements of Earnings. Total employee termination benefit charges of
$8.4 million are included in Restructuring and related charges, and $11.0 million of related project costs are
included in Selling, general and administrative on the Consolidated Statements of Earnings.
For the year ended December 31, 2009, the Company incurred restructuring and related charges and
project costs related to the 2009 Restructuring Plan of $10.9 million in PSSD, $1.5 million in ISD and
$11.4 million in All other.
Impact to 2008 Financial Results
The Company incurred charges of $20.2 million related to employee termination benefits in the fourth
quarter of 2008 because the charges were probable and estimable for the 2008 year-end reporting period.
Including the $20.2 million charge in 2008, the Company has incurred $44.0 million of total charges for the
2009 Restructuring Plan.
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