Lexmark 2011 Annual Report Download - page 103

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Impact to 2011 Financial Results
For the year ended December 31, 2011, the Company incurred charges for the Company’s January
2012 Restructuring Plan as follows:
2011
Accelerated depreciation charges .................................................. $4.5
Employee termination benefit charges .............................................. 3.1
Total restructuring-related charges ................................................. $7.6
Accelerated depreciation charges for the January 2012 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, 2011, the Company
incurred $4.5 million of accelerated depreciation charges in Cost of revenue on the Consolidated
Statements of Earnings.
Employee termination benefit charges for the January 2012 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 year ended December 31, 2011, employee termination benefit
charges of $3.1 million, which include severance, medical and other benefits are included in
Restructuring and related charges on the Consolidated Statements of Earnings.
For the year ended December 31, 2011, the Company incurred restructuring-related charges of $7.6
million related to the January 2012 Restructuring Plan in ISS.
Liability Rollforward
The following table represents a rollforward of the liability incurred for employee termination benefits in
connection with the January 2012 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, 2011 .................................................. $ —
Costs incurred ........................................................... 3.1
Balance at December 31, 2011 ............................................... $3.1
October 2009 Restructuring Plan
General
On October 20, 2009, the Company announced the October 2009 Restructuring Plan as part of its
ongoing plans to improve the efficiency and effectiveness of its operations. The Company continues its
focus on refining its selling and service organization, reducing its general and administrative expenses,
consolidating its cartridge manufacturing capacity, and enhancing the efficiency of its supply chain
infrastructure. The actions taken will reduce cost and expense across the organization, with a focus in
manufacturing and supply chain, service delivery overhead, marketing and sales support, corporate
overhead and development positions as well as reducing cost through consolidation of facilities in
supply chain and cartridge manufacturing. The October 2009 Restructuring Plan is considered
substantially completed and any remaining charges to be incurred are expected to be immaterial.
The October 2009 Restructuring Plan is expected to impact about 770 positions worldwide. Total
pre-tax charges of approximately $70 million are expected for the October 2009 Restructuring Plan
with $69.0 million of total charges incurred to date. The Company expects the total cash cost of the
October 2009 Restructuring Plan to be approximately $57 million.
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