Lexmark 2010 Annual Report Download - page 52

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For the year ended December 31, 2010, the Company incurred charges, including project costs, of
$38.6 million for the Company’s restructuring plans as follows:
(Dollars in Millions)
October 2009
Restructuring-
related
Charges
(Note 5)
Other Actions
Restructuring-
related
Charges
(Note 5)
Project
Costs Total
Accelerated depreciation charges/project costs . . . . . . $3.5 $ 2.4 $13.3 $19.2
Employee termination benefit charges/project costs . . . 1.5 (1.6) 17.0 16.9
Contract termination and lease charges . . . . . . . . . . . . 3.4 (0.9) — 2.5
Total restructuring-related charges/project costs . . . . . . $8.4 $(0.1) $30.3 $38.6
The Company incurred accelerated depreciation charges and project costs of $17.4 million in Cost of
revenue and $1.8 million in Selling, general and administrative on the Consolidated Statements of
Earnings. Total employee termination benefits and contract termination and lease charges (reversals)
of $2.4 million are included in Restructuring and related charges while $17.0 million of related project costs
are included in Selling, general and administrative on the Consolidated Statements of Earnings.
For the year ended December 31, 2010, the Company incurred restructuring and related charges
(reversals) and project costs related to its restructuring plans of $29.4 million in ISS and $9.2 million
in All other.
October 2009 Restructuring Plan
General
Refer to Note 5 of Notes to Consolidated Financial Statements for a description of the Company’s October
2009 Restructuring Plan. The Company expects the October 2009 Restructuring Plan to be principally
completed by the end of the second quarter of 2011.
The October 2009 Restructuring Plan is expected to impact about 770 positions worldwide. Total pre-tax
charges, including project costs, of approximately $105 million are expected for the October 2009
Restructuring Plan, with total cash cost expected to be approximately $95 million.
Lexmark expects the October 2009 Restructuring Plan to generate ongoing savings beginning in 2011 of
approximately $110 million. These ongoing savings should be split approximately 60% to operating
expense and 40% to cost of revenue. Ongoing cash savings of approximately $105 million are expected
beginning in 2011.
Impact to 2010 Financial Results
For the year ended December 31, 2010, the Company incurred charges of $35.1 million for the October
2009 Restructuring Plan as follows:
(Dollars in Millions)
October 2009
Restructuring-
related
Charges
(Note 5)
Project
Costs Total
Accelerated depreciation charges/project costs . . . . . . . . . . . . . $3.5 $11.2 $14.7
Employee termination benefit charges/project costs . . . . . . . . . 1.5 15.5 17.0
Contract termination and lease charges . . . . . . . . . . . . . . . . . . 3.4 — 3.4
Total restructuring-related charges/project costs . . . . . . . . . . . . $8.4 $26.7 $35.1
The Company incurred accelerated depreciation charges and project costs of $12.9 million in Cost of
revenue, and $1.8 million in Selling, general and administrative on the Consolidated Statements of
Earnings. Employee termination benefit and contract termination and lease charges of $4.9 million are
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