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For the year ended December 31, 2012, charges for the 2012 Restructuring Actions were recorded in the Company’s Consolidated
Statements of Earnings as follows:
Selling, Restructuring Impact on
Restructuring- Impact on general and and related Operating
related costs Gross profit administrative charges Income
Accelerated depreciation charges $ 29.5 $ 29.5 $ 19.8 $ – $ 49.3
Impairment of long-lived assets held for
sale 0.6 0.6 – – 0.6
Excess components and other inventory-
related charges 17.7 17.7 – – 17.7
Employee termination benefit charges – – – 31.1 31.1
Contract termination and lease charges – – – 4.2 4.2
Total restructuring charges $ 47.8 $ 47.8 $ 19.8 $ 35.3 $ 102.9
The estimated useful lives of certain long-lived assets changed as a result of the Company’s decision to exit the development and
manufacture of inkjet hardware. Accelerated depreciation and impairment charges for the years ended December 31, 2014, 2013 and
2012 for the 2012 Restructuring Actions and all of the other restructuring actions were determined in accordance with FASB guidance
on accounting for the impairment or disposal of long-lived assets. For the year ended December 31, 2012, the impairment charges
incurred were related to machinery and equipment located in Juarez, Mexico, which was held for sale as of December 31, 2012, and
for which the current fair value had fallen below the carrying value.
The inventory-related charges incurred for the years ended December 31, 2014, 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, 2014, 2013 and 2012, 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. Amounts for employee
termination benefits for the year ended December 31, 2013 included reversals driven by a change in assumptions regarding reductions
in workforce, due to the inclusion of one of the Company’s subsidiaries in the sale of inkjet technology and related assets that closed
in the second quarter of 2013.
For the years ended December 31, 2014, 2013 and 2012, the Company incurred restructuring charges in connection with the 2012
Restructuring Actions in the Company’s segments as follows:
2014 2013 2012
ISS $ 14.1 $ 25.2 $ 84.7
All other 2.9 7.8 17.5
Perceptive Software 10.6 2.9 0.7
Total charges $ 27.6 $ 35.9 $ 102.9
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 total restructuring liability as of December 31, 2014 is included
in Accrued liabilities on the Company’s Consolidated Statements of Financial Position.
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