Lexmark 2009 Annual Report Download - page 52

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Liability Rollforward
The following table represents a rollforward of the liability incurred for employee termination benefits in
connection with the 2009 Restructuring Plan. The liability is included in Accrued liabilities on the
Company’s Consolidated Statements of Financial Position.
Employee
Termination
Benefits
Balance at January 1, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —
Costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.7
Payments & other
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.5)
Balance at December 31, 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.2
Costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.8
Payments & other
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (21.0)
Reversals
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2.1)
Balance at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6.9
(1)
Other consists of changes in the liability balance due to foreign currency translations.
(2)
Reversals due to changes in estimates for employee termination benefits
2008 Restructuring Plan
General
To enhance the efficiency of the Company’s inkjet cartridge manufacturing operations, the Company
announced the “2008 Restructuring Plan” on July 22, 2008 that resulted in the closure of one of the
Company’s inkjet supplies manufacturing facilities in Mexico. The 2008 Restructuring Plan was
substantially completed by the end of the first quarter of 2009 and any remaining charges to be
incurred will be immaterial.
Impact to 2009 Financial Results
For the year ended December 31, 2009 the Company reversed $1.5 million of previously accrued
accelerated depreciation costs recorded incorrectly, and incurred project costs of $1.9 million. The
accelerated depreciation reversal and related project costs are included in Cost of revenue on the
Consolidated Statements of Earnings and were incurred in ISD.
Impact to 2008 Financial Results
For the year ended December 31, 2008, the Company incurred charges of $22.8 million for the 2008
Restructuring Plan as follows:
(In Millions)
2008 Action
Restructuring-
related Charges
(Note 4) Project Costs Total
Accelerated depreciation charges/project costs . . . . . . . . . . $18.0 $1.8 $19.8
Employee termination benefit charges/project costs . . . . . . . 3.0 — 3.0
Total restructuring-related charges/project costs . . . . . . . . . . $21.0 $1.8 $22.8
The $19.8 million of accelerated depreciation charges and project costs are included in Cost of revenue,
and the $3.0 million of total employee termination benefit charges are included in Restructuring and related
charges on the Consolidated Statements of Earnings. The Company incurred $22.7 million in ISD and
$0.1 million in All other.
46