Memorex 2011 Annual Report Download - page 63

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 7 — Restructuring and Other Expense
The components of our restructuring and other expense included in the Consolidated Statements of Operations were as
follows:
Years Ended December 31,
2011 2010 2009
(In millions)
Restructuring
Severance and related ............................................. $ 7.0 $13.0 $11.2
Lease termination costs ............................................ 3.3 1.7 0.7
Other .......................................................... 1.1 — —
Total restructuring .............................................. 11.4 14.7 11.9
Other
Pension settlement/curtailment ....................................... 2.5 2.8 11.7
Asset impairments ................................................ — 31.2 2.7
Asset disposals .................................................. 7.0 — —
Acquisition and integration related costs ................................ 2.6 — —
Other .......................................................... (2.0) 2.4 0.3
Total ........................................................ $21.5 $51.1 $26.6
2011 Manufacturing Redesign Restructuring Program
On January 13, 2011 the Board of Directors approved the 2011 manufacturing redesign restructuring program of up to
$55 million to rationalize certain product lines and discontinue tape coating operations at our Weatherford, Oklahoma facility
by April 2011 and subsequently close the facility. We signed a strategic agreement with TDK Corporation to jointly develop
and manufacture magnetic tape technologies. Under the agreement, we are collaborating on the research and development
of future tape formats in both companies’ research centers in the United States and Japan and we consolidated tape coating
operations to the TDK Yamanashi manufacturing facility. We also recorded additional inventory write-offs related to this
program due to end of life. This program originally included a total of approximately $50 million in restructuring and other
charges, consisting of severance and related costs of approximately $3 million, asset impairments of approximately $31
million primarily related to the Weatherford facility, inventory write-offs of approximately $14 million and other charges of
approximately $2 million. Therefore this program is substantially complete.
As of June 30, 2011 the Weatherford facility met the held for sale criteria outlined in the accounting guidance for the sale
of a long-lived asset. Accordingly, the book value of the building and property, $3.1 million, was transferred into other current
assets on the Consolidated Balance Sheet and is no longer being depreciated.
During 2011 we recorded restructuring charges of $0.3 million for lease termination and modification costs and site
clean-up expenses of $0.9 million related to this program. We also recorded non-cash inventory write-offs of $7.5 million
related to this program, which are included in cost of goods sold on our Consolidated Statements of Operations. Since the
inception of this program, we have recorded a total of $21.7 million of inventory write-offs, $31.2 million of asset impairment
charges, $3.2 million of severance and related expenses, $0.3 million for lease termination and modification costs and $0.9
million of site clean-up expenses.
During 2010 we recorded restructuring charges of $3.2 million for severance and related expenses and $31.2 million of
asset impairment charges primarily related to the Weatherford facility. We also recorded non-cash inventory write-offs of
$14.2 million related to this program, which are included in cost of goods sold on our Consolidated Statements of Operations.
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