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The inventory-related charges incurred for the years ended December 31, 2013 and 2012 were determined in accordance with FASB
guidance on inventory and were attributable to the decision to cease manufacturing of inkjet hardware.
For the years ended December 31, 2013, 2012 and 2011, the company incurred employee termination benefit charges, which include
severance, medical and other benefits, and contract termination and lease charges. Charges for the 2012 Restructuring Actions and all
of the other restructuring actions 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, 2013, 2012 and 2011, the Company incurred restructuring charges in connection with the 2012
Restructuring Actions in the Company’s segments as follows:
2013 2012 2011
ISS $ 25.2 $ 84.7 $ 7.6
All other 7.8 17.5 –
Perceptive Software 2.9 0.7 –
Total charges $ 35.9 $ 102.9 $ 7.6
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 2012 Restructuring Actions. The $9.9 million restructuring liability as of December 31, 2013 is
included in Accrued liabilities on the Company’s Consolidated Statements of Financial Position.
Contract
Employee Termination
Termination & Lease
Benefits Charges Total
Balance at January 1, 2011 $ – $ – $ –
Costs incurred 3.1 – 3.1
Balance at December 31, 2011 3.1 – 3.1
Costs incurred 31.3 4.7 36.0
Reversals (1) (0.2) (0.5) (0.7)
Payments & Other (2) (16.4) (3.9) (20.3)
Balance at December 31, 2012 17.8 $ 0.3 18.1
Costs incurred 14.4 – 14.4
Reversals (1) (5.2) (0.2) (5.4)
Payments & Other (2) (17.1) (0.1) (17.2)
Balance at December 31, 2013 $ 9.9 $ – $ 9.9
(1) Reversals due to changes in estimates for employee termination benefits.
(2) Other consists of changes in the liability balance due to foreign currency translations.
Summary of Other Restructuring Actions
General
In response to global economic weakening, to improve the efficiency and effectiveness of its operations, 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 October 2009. The Other
Restructuring Actions include closing the Company’s inkjet supplies manufacturing facilities in Mexico, the consolidating of its
cartridge manufacturing capacity, as well as impacting positions in the Company’s general and administrative functions, supply chain
and sales support, marketing and sales management, and consolidating of the Company’s research and development programs. In the
fourth quarter of 2013 employee termination benefit charges were incurred for actions that were not a part of an announced plan. The
Other Restructuring Actions are considered substantially completed and any remaining charges to be incurred from these actions are
expected to be immaterial.
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