Lexmark 2011 Annual Report Download - page 105

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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 $6.7 million restructuring liability, $2.8 million is included in Accrued liabilities and $3.9 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
Costs incurred ....................................... 0.9 0.4 1.3
Payments & Other (1) .................................. (16.3) (1.0) (17.3)
Reversals (2) ......................................... (2.1) (0.5) (2.6)
Balance at December 31, 2011 ........................... $ 6.7 $ — $ 6.7
(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.
Summary of Other Restructuring Actions
General
In response to global economic weakening, to enhance the efficiency of the Company’s inkjet cartridge
manufacturing operations and to reduce the Company’s business support cost and expense structure,
the Company announced various restructuring actions (“Other Restructuring Actions”) from 2006 to
April 2009. The Other Restructuring Actions include the closure of inkjet supplies manufacturing
facilities in Mexico as well as impacting positions in the Company’s general and administrative
functions, supply chain and sales support, marketing and sales management, and consolidation of the
Company’s research and development programs. The Other Restructuring Actions are considered
substantially completed and any remaining charges to be incurred from these actions are expected to
be immaterial.
Impact to 2011, 2010 and 2009 Financial Results
For the years ended December 31, 2011, 2010 and 2009, the Company incurred charges (reversals)
for the Company’s Other Restructuring Actions as follows:
2011 2010 2009
Accelerated depreciation charges ..................................... $0.1 $ 2.4 $35.3
Impairment of long-lived assets held for sale ............................ 4.6 — —
Employee termination benefit charges (reversals) ........................ 0.2 (1.6) 16.8
Contract termination and lease charges (reversals) ....................... — (0.9) 0.4
Total restructuring-related charges (reversals) ........................... $4.9 $(0.1) $52.5
For the year ended December 31, 2011, accelerated depreciation charges of $0.1 million are included
in Selling, general and administrative on the Consolidated Statements of Earnings. For the years
ended December 31, 2010 and 2009, accelerated depreciation charges of $2.4 million and $35.2
million, respectively, are included in Cost of revenue, and zero and $0.1 million, respectively, are
included in Selling, general and administrative on the Consolidated Statements of Earnings.
101