Lexmark 2009 Annual Report Download - page 98

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For the year ended December 31, 2009, accelerated depreciation charges are included in Cost of revenue,
and employee termination benefit charges are included in Restructuring and related charges on the
Consolidated Statements of Earnings.
For the year ended December 31, 2009, the Company incurred restructuring-related charges of
$2.9 million in PSSD, $36.8 million in ISD and $0.9 million in All other.
Liability Rollforward
The following table represents a rollforward of the liability incurred for employee termination benefits in
connection with the April 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, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ —
Costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4
Payments & Other
(1)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.5)
Reversals
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (0.6)
Balance at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.3
(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.
2009 Restructuring Plan
General
In response to global economic weakening, the Company announced 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. 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 $8.7 million for the 2009
Restructuring Plan as follows:
Accelerated depreciation charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.3
Employee termination benefit charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.4
Total restructuring-related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8.7
For the year ended December 31, 2009, accelerated depreciation charges are included in Cost of revenue,
and employee termination benefit charges are included in Restructuring and related charges on the
Consolidated Statements of Earnings.
For the year ended December 31, 2009, the Company incurred restructuring-related charges of
$5.2 million in PSSD, $0.5 million in ISD and $3.0 million of All other.
Impact to 2008 Financial Results
For the year ended December 31, 2008, the Company incurred charges of $20.2 million for the 2009
Restructuring Plan as follows:
Employee termination benefit charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20.2
Total restructuring-related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20.2
92