Lexmark 2011 Annual Report Download - page 59

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Impact to 2010 Financial Results
For the year ended December 31, 2010, the Company incurred charges (reversals), including project
costs, of $38.6 million for the Company’s restructuring plans as follows:
(Dollars in millions)
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 ................... $3.5 $ — $ 3.5 $ 2.4 $ — $ 2.4 $ 5.9
Employee termination benefit
charges ................... 1.5 — 1.5 (1.6) — (1.6) (0.1)
Contract termination and lease
charges ................... 3.4 — 3.4 (0.9) — (0.9) 2.5
Project costs ................. — 26.7 26.7 — 3.6 3.6 30.3
Total restructuring-related
charges/project costs ........ $8.4 $26.7 $35.1 $(0.1) $3.6 $ 3.5 $38.6
The Company incurred accelerated depreciation charges of $4.1 million and $1.8 million, respectively,
in Cost of revenue and Selling, general and administrative on the Consolidated Statements of
Earnings. Employee termination benefit and contract termination and lease charges of $2.4 million are
included in Restructuring and related charges, and $13.3 million and $17.0 million, respectively, of
restructuring-related project costs 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, 2010, the Company incurred restructuring and related charges and
project costs related to the October 2009 Restructuring Plan of $27.0 million in ISS and $8.1 million in
All other. The Company incurred restructuring and related charges (reversals) and project costs related
to the Other Restructuring Actions of $2.4 million in ISS and $1.1 million in All other.
Related to the Company’s Other Restructuring Actions, the $(1.6) million reversal for employee
termination benefit charges is due primarily to revisions in assumptions. 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.
In 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. This gain is included in the $38.6
million total restructuring-related charges presented above as project costs related to the Company’s
Other Restructuring Actions.
Impact to 2009 Financial Results
For the year ended December 31, 2009, the Company incurred charges, including project costs, of
$141.3 million for the Company’s restructuring plans as follows:
(Dollars in millions)
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 .................. $ 6.2 $ — $ 6.2 $35.3 $ — $35.3 $ 41.5
Employee termination benefit
charges .................. 52.4 — 52.4 16.8 — 16.8 69.2
Contract termination and lease
charges .................. 1.0 — 1.0 0.4 — 0.4 1.4
Project costs ................ — 3.9 3.9 — 25.3 25.3 29.2
Total restructuring-related
charges/project costs ....... $59.6 $3.9 $63.5 $52.5 $25.3 $77.8 $141.3
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