Lexmark 2011 Annual Report Download - page 58

2009 Restructuring Plan, with total cash cost expected to be approximately $108 million. Lexmark expects the
October 2009 Restructuring Plan to generate ongoing savings beginning in 2012 of approximately $110 million
with ongoing cash savings beginning in 2012 of approximately $105 million. These ongoing savings should be
split approximately 60% to operating expense and 40% to cost of revenue. Including $98.6 million of charges
incurred in 2010 and 2009, the Company has incurred $116.0 million of total charges for the October 2009
Restructuring Plan.
Refer to Note 5 of the Notes to the Consolidated Financial Statements for a rollforward of the liability incurred
for the January 2012 Restructuring Plan, the October 2009 Restructuring Plan and the Other Restructuring
Actions.
Impact to 2011 Financial Results
For the year ended December 31, 2011, the Company incurred charges (reversals), including project costs, of
$29.9 million for the Company’s restructuring plans as follows:
(Dollars in millions)
January
2012
Restruc
turing-
related
Charges
(Note 5)
January
2012
Restructuring-
related
Project
Costs
January
2012
Total
October
2009
Restructuring-
related
Charges
(Note 5)
October
2009
Restructuring-
related
Project
Costs
October
2009
Total
Other
Actions
Restructuring-
related
Charges
(Note 5)
Other
Actions
Restructuring-
related
Project
Costs
Other
Actions
Total Total
Accelerated depreciation
charges .............. $4.5 $— $4.5 $ 2.3 $ — $ 2.3 $0.1 $— $0.1 $ 6.9
Impairments on long-lived
assets held for sale ..... — — — — — — 4.6 — 4.6 4.6
Employee termination
benefit charges ........ 3.1 — 3.1 (1.2) — (1.2) 0.2 — 0.2 2.1
Contract termination and
lease charges ......... — — — (0.1) — (0.1) — — — (0.1)
Project costs ............ — — — — 16.4 16.4 — — — 16.4
Total restructuring-related
charges/project costs . . . $7.6 $— $7.6 $ 1.0 $16.4 $17.4 $4.9 $— $4.9 $29.9
The Company incurred accelerated depreciation charges of $4.5 million and $2.4 million, respectively, in Cost
of revenue and Selling, general and administrative on the Consolidated Statements of Earnings. Impairment
charges of $4.6 million related to long-lived assets held for sale are included in Selling, general and
administrative, and total employee termination benefit and contract termination and lease charges of $2.0
million are included in Restructuring and related charges on the Consolidated Statements of Earnings.
Restructuring-related project costs of $0.7 million and $15.7 million, respectively, are included in Cost of
revenue and Selling, general and administrative on the Company’s Consolidated Statements of Earnings.
For the year ended December 31, 2011, the Company incurred restructuring and related charges and project
costs related to the January 2012 Restructuring Plan of $7.6 million in ISS. The Company incurred
restructuring and related charges and project costs related to the October 2009 Restructuring Plan of $7.5
million in ISS and $9.9 million in All other. The Company incurred restructuring and related charges and project
costs related to the Other Restructuring Actions of $1.5 million in ISS and $3.4 million in All other.
In 2011, the Company recorded impairment charges of $1.0 million related to its manufacturing facility in
Juarez, Mexico, and $3.6 million related to one of its support facilities in Orleans, France for which the current
fair values had fallen below the carrying values. The asset impairment charges are included in Selling, general
and administrative on the Company’s Consolidated Statements of Earnings. Subsequent to the impairment
charge, the Juarez, Mexico facility was sold and the Company recognized a $0.6 million pre-tax gain on the
sale that is included in Selling, general and administrative on the Company’s Consolidated Statements of
Earnings. This gain is included in the $29.9 million total restructuring-related charges presented above as
project costs related to the Company’s Other Restructuring Actions.
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