Memorex 2010 Annual Report Download - page 58

Changes in the 2011 manufacturing redesign restructuring program accruals were as follows:
Severance
and Related Other Total
(In millions)
Accrued balance at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
Charges(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.2 45.4 48.6
Usage(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (45.4) (45.4)
Currency impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — —
Accrued balance at December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.2 $ — $ 3.2
(1) Includes non-cash asset impairment charge of $31.2 million, primarily related to our Weatherford facility, and non-cash
inventory write-offs of $14.2 million. The asset impairment charge was included in restructuring and other expense on
our Consolidated Statements of Operations and inventory write-offs were included in cost of goods sold in our Consoli-
dated Statements of Operations.
2011 Corporate Strategy Restructuring Program
On January 31, 2011, the Board of Directors approved the 2011 corporate strategy restructuring program to
rationalize certain product lines and increase efficiency and gain greater focus in support of our go-forward strategy. Major
components of the program include charges associated with certain benefit plans, improvements to our global sourcing
and distribution network, costs associated with both further rationalization of our product lines as well as evolving skill sets
to align with the new strategy.
This program was anticipated to include approximately $35 million in restructuring and other charges, consisting of
severance and related expenses of approximately $14 million, charges associated with certain benefit plans of $11 million,
lease termination expenses of approximately $5 million, and other charges of approximately $5 million.
During 2010, we recorded severance and related expenses of $3.4 million and a pension curtailment charge of
$0.3 million. In the future, we expect to incur severance and related expenses of approximately $11 million, charges
associated with certain benefit plans of approximately $11 million, lease termination expenses of approximately $5 million,
and other charges of approximately $5 million related to this program. The restructuring is expected to be substantially
complete during 2012.
Changes in the 2011 corporate strategy restructuring program accruals were as follows:
Severance
and Related Other Total
(In millions)
Accrued balance at December 31, 2009 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ —
Charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4 0.3 3.7
Usage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (0.3) (0.3)
Currency impacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — —
Accrued balance at December 31, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.4 $ — $ 3.4
2008 Corporate Redesign Restructuring Program
Our 2008 corporate redesign restructuring program was initiated during the fourth quarter of 2008 to reduce costs by
rationalizing key accounts and products and by simplifying our corporate structure globally. This program was originally
anticipated to include $40 million in restructuring and other charges. In July 2010, our Board of Directors approved an
increase to this program of $3.3 million and any additional amount required for pension settlements over the previously
expensed settlements of $17.4 million. The restructuring was substantially completed as of December 31, 2010. Since the
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)