Lexmark 2010 Annual Report Download - page 54

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Impact to 2010 Financial Results
For the year ended December 31, 2010, the Company incurred charges of $3.5 million for the Company’s
Other Restructuring Actions as follows:
(Dollars in Millions)
Other Actions
Restructuring-
related
Charges
(Note 5)
Project
Costs Total
Accelerated depreciation charges/project costs . . . . . . . . . . . . . $ 2.4 $2.0 $ 4.4
Employee termination benefit charges/project costs . . . . . . . . . . (1.6) 1.6 —
Contract termination and lease charges . . . . . . . . . . . . . . . . . . . (0.9) — (0.9)
Total restructuring-related charges/project costs. . . . . . . . . . . . . $(0.1) $3.6 $ 3.5
The Company incurred $4.4 million of accelerated depreciation charges in Cost of revenue on the
Consolidated Statements of Earnings. Employee termination benefit charges and contract termination
and lease charges (reversals) of $(2.5) million are included in Restructuring and related charges, and
$1.6 million of related project costs are included in Selling, general and administrative on the Company’s
Consolidated Statements of Earnings.
For the year ended December 31, 2010, the Company incurred restructuring and related charges and
project costs related to the Company’s Other Restructuring Actions of $2.4 million in ISS and $1.1 million in
All other.
The $0.9 million reversal for contract termination and lease charges is due to the Company’s decision to
reuse a leased building that had earlier been vacated as a result of restructuring actions. The $1.6 million
reversal for employee termination benefits charges is due primarily to a revision in assumptions.
During the second quarter of 2010, the Company sold one of its inkjet supplies manufacturing facilities in
Chihuahua, Mexico for $5.6 million and recognized a $0.5 million pre-tax gain on the sale that is included in
Selling, general and administrative on the Consolidated Statements of Earnings.
Impact to 2009 Financial Results
For the year ended December 31, 2009, the Company incurred charges of $77.8 million for the Company’s
Other Restructuring Actions as follows:
(Dollars in Millions)
Other Actions
Restructuring-
related
Charges
Note 5)
Project
Costs Total
Accelerated depreciation charges/project costs . . . . . . . . . . . . . $35.3 $ 9.2 $44.5
Employee termination benefit charges/project costs . . . . . . . . . 16.8 16.1 32.9
Contract termination and lease charges . . . . . . . . . . . . . . . . . . 0.4 — 0.4
Total restructuring-related charges/project costs . . . . . . . . . . . . $52.5 $25.3 $77.8
The Company incurred $44.4 million of accelerated depreciation charges and project costs in Cost of
revenue and $0.1 million in Selling, general and administrative on the Consolidated Statements of
Earnings. Employee termination benefit and contract termination and lease charges of $17.2 million
are included in Restructuring and related charges, and $16.1 million of related project costs are included in
Selling, general and administrative on the Company’s Consolidated Statements of Earnings.
For the year ended December 31, 2009, the Company incurred restructuring and related charges and
project costs related to the Company’s Other Restructuring Actions of $57.8 million in ISS and $20.0 million
in All other.
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