Memorex 2009 Annual Report Download - page 67

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structure globally. At the onset of this program we anticipated incurring up to $40 million in restructuring and other charges
globally, mainly through cash payments for severance and severance related costs. The majority of the program is
complete with approximately $35 million worth of cumulative costs incurred through December 31, 2009.
During 2009, we also recorded $0.9 million of lease termination costs related to our 2008 cost reduction restructuring
program. This program began in the third quarter of 2008 when our Board of Directors approved the Camarillo, California
restructuring plan as further implementation of our manufacturing strategy. In order to partially mitigate projected declines
in tape gross profits in future years, we ended manufacturing at our Camarillo plant and exited the facility during 2008. We
have focused our manufacturing efforts on magnetic tape coating operations at our existing plant in Weatherford,
Oklahoma.
We also recorded $0.3 million of income through the reversal of lease termination accruals related to previously
announced programs.
The following table summarizes 2009 activity related to our 2008 corporate redesign restructuring program as of
December 31, 2009:
Liability as of
December 31,
2008
Additional
Charges
Currency
Impacts
Cumulative
Usage
Liability as of
December 31,
2009
(In millions)
Severance and severance related . . . . . . . . $3.9 $11.2 $0.5 $(11.3) $4.3
Lease termination costs . . . . . . . . . . . . . . 0.5 1.0 — (1.5) —
The following table summarizes cumulative activity related to our 2008 corporate redesign restructuring program as of
December 31, 2009:
Initial
Period
Program
Amounts
Additional
Charges
Currency
Impacts
Cumulative
Usage
Liability as of
December 31,
2009
(In millions)
Severance and severance related . . . . . . . . . . $4.9 $11.2 $0.5 $(12.3) $4.3
Lease termination costs . . . . . . . . . . . . . . . . . 0.5 1.0 — (1.5) —
Initial
Period
Headcount
Amounts Additions
Cumulative
Reductions
Balance as of
December 31,
2009
Total employees affected . . . . . . . . . . . . . . . . . . . . . . . . 203 88 (232) 59
Other
During 2009, we recorded pension settlement losses, asset impairments and other charges of $11.7 million,
$2.7 million and $0.3 million, respectively, within restructuring and other expense in the Consolidated Statements of
Operations, mainly as a result of the reorganizations associated with our restructuring activities. See Note 10 herein for
further information regarding pension settlements and curtailments.
2008 Activity
Restructuring Programs
During 2008, we recorded $4.9 million and $0.5 million of severance and severance related charges and lease
termination costs, respectively, related to our 2008 corporate redesign restructuring program, initiated during the fourth
quarter of 2008. We recorded $5.2 million and $0.2 million of severance and severance related expense and lease
termination costs, respectively, related to our 2008 cost reduction restructuring program.
During 2008 we recorded $4.2 million for severance and severance related expenses under our TDK Recording
Media restructuring costs program, which began in the third quarter of 2007 in conjunction with the TDK Recording Media
60
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)