Xerox 2007 Annual Report Download - page 104

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in millions, except per-share data and unless otherwise indicated)
Additional details about our restructuring programs
are as follows:
Reconciliation to Consolidated Statements
of Cash Flows
Years Ended
December 31,
2007 2006 2005
Charges to reserve ............. $(222) $(284) $(247)
Asset impairments ............. 1 30 15
Effects of foreign currency and
other non-cash .............. (14) (11) 18
Cash payments for
restructurings .............. $(235) $(265) $(214)
Restructuring: In recent years we have initiated a
series of ongoing restructuring initiatives designed to
leverage cost savings resulting from realized productivity
improvements, realign and lower our overall cost structure
and outsource certain internal functions. These initiatives
primarily include severance actions and impact all major
geographies and segments. Recent initiatives include:
• Restructuring activity was minimal in 2007 and the
related charges primarily reflected changes in
estimates in severance costs from previously recorded
actions.
• The 2006 charges primarily relate to the elimination of
approximately 3,400 positions primarily in North
America and Europe. The 2006 actions associated with
these charges primarily include the following: technical
and professional services infrastructure and global
back-office optimization; continued R&D efficiencies
and productivity improvements; supply chain
optimization to ensure, for example, alignment to our
global two-tier model implementation; and selected
off-shoring opportunities. The lease termination and
asset impairment charges primarily related to the
relocation of certain manufacturing operations as well
as an exit from certain leased and owned facilities.
These charges were offset by reversals of $35 primarily
related to changes in estimates in severance costs
from previously recorded actions.
• The 2005 charges primarily related to initiatives to
eliminate approximately 3,900 positions worldwide.
The initiatives in 2005 were focused on cost reductions
in service, manufacturing and back office support
operations primarily within the Office and Production
segments. These charges were offset by reversals of
$27 primarily related to changes in estimates in
severance costs from previously recorded actions.
The following table summarizes the total amount of
costs incurred in connection with these restructuring
programs by segment for the three years ended
December 31, 2007 (in millions):
2007 2006 2005
Production ...................... $(7) $142 $150
Office ........................... 3 127 175
DMO............................ 1 21 22
Other ........................... (3) 95 19
Total Provisions ................. $(6) $385 $366
102