Lexmark 2014 Annual Report Download - page 91

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Contract
Employee Termination
Termination & Lease
Benefits Charges Total
Balance at January 1, 2012 $ 3.1 $ – $ 3.1
Costs incurred 31.3 4.7 36.0
Reversals (1) (0.2) (0.5) (0.7)
Total restructuring charges, net 31.1 4.2 35.3
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)
Total restructuring charges, net 9.2 (0.2) 9.0
Payments & Other (2) (17.1) (0.1) (17.2)
Balance at December 31, 2013 9.9 – 9.9
Costs incurred 14.2 3.0 17.2
Reversals (1) (1.1) (0.1) (1.2)
Total restructuring charges, net 13.1 2.9 16.0
Payments & Other (2) (12.2) (0.3) (12.5)
Balance at December 31, 2014 $ 10.8 $ 2.6 $ 13.4
(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 included closing the Company’s inkjet supplies manufacturing facilities in Mexico, consolidating 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 the Company’s research and development programs. In 2014 and 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.
Impact to 2014, 2013 and 2012 Financial Results
For the year ended December 31, 2014, charges for the Company’s Other Restructuring Actions were recorded in the Consolidated
Statements of Earnings as follows:
Restructuring Impact on
and related Operating
charges Income
Employee termination benefit charges $ 1.1 $ 1.1
Contract termination and lease charges 0.8 0.8
Total restructuring charges $ 1.9 $ 1.9
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