Lexmark 2015 Annual Report Download - page 92

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88
incurred in 2016. The Company expects the total cash costs of the 2015 Restructuring Actions to be approximately $42 million, with
$35 million accrued to date and approximately $7 million remaining to be incurred in 2016.
The Company expects to incur total charges related to the 2015 Restructuring Actions of approximately $13 million in ISS, $8 million
in All other, and $21 million in Enterprise Software.
Impact to 2015 Financial Results
For the year ended December 31, 2015, charges for the 2015 Restructuring Actions were recorded in the Company’s Consolidated
Statements of Earnings as follows:
Selling, general
Restructuring
Impact on
and
and related
Operating
administrative
charges
Income
Accelerated depreciation charges
$
0.4
$
–
$
0.4
Employee termination benefit charges
–
34.9
34.9
Contract termination and lease charges
–
0.1
0.1
Total restructuring charges
$
0.4
$
35.0
$
35.4
For the year ended December 31, 2015, the Company incurred restructuring charges in connection with the 2015 Restructuring
Actions in the Company’s segments as follows:
2015
ISS
$
11.4
Enterprise Software
20.9
All Other
3.1
Total charges
$
35.4
For the year ended December 31, 2015, the Company incurred employee termination benefit charges, which include severance,
medical and other benefits. Accelerated depreciation charges for the 2015 Restructuring Actions and all of the other restructuring
actions were determined to be in accordance with FASB guidance on accounting for the impairment of disposal of long-lived assets.
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 2015 Restructuring Actions.
Contract
Employee
Termination
Termination
& Lease
Benefits
Charges
Total
Balance at January 1, 2015
$
–
$
–
$
–
Costs incurred
34.9
0.1
35.0
Reversals (1)
–
–
–
Total restructuring charges, net
34.9
0.1
35.0
Payments & Other (2)
(6.8)
(0.1)
(6.9)
Balance at December 31, 2015
$
28.1
$
–
$
28.1
(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
As part of Lexmark’s ongoing strategy to increase the focus of its talent and resources on higher usage business platforms, the
Company announced various restructuring actions (“Other Restructuring Actions”) over the past several years. The Other
Restructuring Actions primarily include exiting the development and manufacturing of the Company’s remaining inkjet hardware,
with reductions primarily in the areas of inkjet-related manufacturing, research and development, supply chain, marketing and sales as