Xerox 2008 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2008 Xerox annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Notes to the Consolidated
Financial Statements
(in millions, except per share data and
unless otherwise indicated)
Note 9 – Restructuring and Asset Impairment Charges
The net restructuring and asset impairment charges in the Consolidated Statements of Income totaled $429, $(6) and $385 in 2008,
2007 and 2006, respectively. Detailed information related to restructuring program activity during the three years ended December 31,
2008 is outlined below:
Restructuring Activity
Severance and
Related Costs
Lease Cancellation
and Other Costs
Asset
Impairments(1) Total
Balance December 31, 2005 $ 217 $ 19 $ — $ 236
Restructuring provision 351 39 30 420
Reversals of prior accruals (33) (2) — (35)
Net current year charges(2) 318 37 30 385
Charges against reserve and currency (242) (12) (30) (284)
Balance December 31, 2006 $ 293 $ 44 $ —$ 337
Restructuring provision 27 7 1 35
Reversals of prior accruals (38) (3) — (41)
Net current year charges(2) (11) 4 1 (6)
Charges against reserve and currency (211) (10) (1) (222)
Balance December 31, 2007 $ 71 $ 38 $ — $ 109
Restructuring provision 363 20 53 436
Reversals of prior accruals (6) (1) — (7)
Net current year charges(2) 357 19 53 429
Charges against reserve and currency (108) (25) (53) (186)
Balance December 31, 2008(3) $ 320 $ 32 $ — $ 352
(1) Charges associated with asset impairments represent the write-down of the related assets to their new cost basis and are recorded concurrently with the recognition of the provision.
(2) Represents amount recognized within the Consolidated Statements of Income for the years shown.
(3) We expect to utilize the majority of the December 31, 2008 restructuring balance in 2009.
66 Xerox 2008 Annual Report
• Improving efficiency and effectiveness of infrastructure
• Capturing efficiencies in technical services, managed services
• Optimizing product development and engineering resources.
In addition, related to these activities, we also recorded lease
Ireland; and (ii) the exit from certain leased and owned facilities as
global back-office optimization; continued R&D efficiencies and
productivity improvements; supply chain optimization to ensure,
implementation; and selected off-shoring opportunities. The lease
Income taxes payable
Interest payable