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Impact to 2010 and 2009 Financial Results
For the years ended December 31, 2010 and 2009, the Company incurred charges for the October 2009
Restructuring Plan as follows:
2010 2009
Accelerated depreciation charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.5 $ 6.2
Employee termination benefit charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 52.4
Contract termination and lease charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 1.0
Total restructuring-related charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8.4 $59.6
Accelerated depreciation charges for the October 2009 Restructuring Plan and all of the other
restructuring plans were determined in accordance with FASB guidance on accounting for the
impairment or disposal of long-lived assets. For the year ended December 31, 2010, the Company
incurred $1.7 million of accelerated depreciation charges in Cost of revenue, and $1.8 million are included
in Selling, general and administrative on the Consolidated Statements of Earnings.
Employee termination benefit charges and contract termination and lease charges for the October 2009
Restructuring Plan and all of the other restructuring plans were recorded in accordance with FASB
guidance on employers’ accounting for postemployment benefits and guidance on accounting for costs
associated with exit or disposal activities, as appropriate. For the years ended December 31, 2010 and
2009, employee termination benefit charges, which include severance, medical and other benefits, and
contract termination and lease charges are included in Restructuring and related charges on the
Consolidated Statements of Earnings.
For the year ended December 31, 2010, the Company incurred restructuring-related charges of
$6.4 million in ISS and $2.0 million in All other.
For the year ended December 31, 2009, the Company incurred restructuring-related charges of
$47.9 million in ISS and $11.7 million in All other.
Liability Rollforward
The following table represents a rollforward of the liability incurred for employee termination benefits and
contract termination and lease charges in connection with the October 2009 Restructuring Plan. Of the
total $25.3 million restructuring liability, $20.7 million is included in Accrued liabilities and $4.6 million is
included in Other liabilities on the Company’s Consolidated Statements of Financial Position.
Employee
Termination
Benefits
Contract
Termination &
Lease Charges Total
Balance at January 1, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
Costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.5 1.0 52.5
Payments & Other
(1)
............................. (1.5) — (1.5)
Reversals
(2)
.................................... (0.1) — (0.1)
Balance at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . 49.9 1.0 50.9
Costs incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 4.9 11.1
Payments & Other
(1)
............................. (27.3) (3.4) (30.7)
Reversals
(2)
.................................... (4.6) (1.4) (6.0)
Balance at December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . $ 24.2 $ 1.1 $ 25.3
(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.
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