Memorex 2009 Annual Report Download - page 68

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acquisition and integration. We also recorded $1.4 million of lease termination costs related to this program during the first
quarter of 2008. The TDK Recording Media restructuring program was substantially completed as of December 31, 2008.
During the fourth quarter of 2008 we recorded $0.4 million in lease termination costs related to our 2007 cost
reduction restructuring program. We also recorded $1.1 million of severance and severance related expenses related to
this program during the first quarter of 2008. The 2007 cost reduction restructuring program was substantially completed
as of December 31, 2008.
During 2008, we recorded $2.3 million of lease termination costs related to our 2006 Imation and Memorex
restructuring program, which began in the second quarter of 2006. We recorded $0.7 million during the second quarter of
2008 related to unutilized space in California and $1.6 million in the first quarter of 2008 related to the full settlement of a
leased space no longer utilized in the United Kingdom.
During 2008, we recorded $0.3 million of severance and severance related expenses related to the 2006 Imation and
Memorex restructuring program.
Other
We incurred pension settlement and curtailment losses of $3.2 million and $2.5 million in the second and third
quarters of 2008, respectively, mainly as a result of the reorganizations associated with our restructuring activities. See
Note 10 herein for further information regarding pension settlements and curtailments.
In 2008, we incurred net asset impairment charges of $5.0 million related to the abandonment of certain
manufacturing and R&D assets as a result of the reorganizations discussed above and a TDK post-closing purchase price
adjustment associated with the finalization of certain acquisition-related working capital amounts as negotiated with TDK as
set forth in Note 3 herein.
2007 Activity
Restructuring Programs
During the fourth quarter of 2007, we recorded restructuring charges of $3.3 million for severance and related costs
related to reorganization of certain administrative and sales organizations. During the third quarter of 2007, we recorded
additional restructuring charges of $3.1 million related to reorganization of certain administrative and sales organizations.
The charges in the third quarter of 2007 consisted of estimated severance and severance related expenses of $2.9 million
and lease termination costs of $0.2 million. During the second quarter of 2007, we recorded estimated severance and
severance related expenses of $15.1 million related to our 2007 cost reduction restructuring program for our manufacturing
and R&D organizations.
During the third and fourth quarter of 2007, we recorded severance and other charges of $11.7 million as we
reorganized in conjunction with the TDK Recording Media acquisition and integration. We recorded $9.4 million of these
amounts as adjustments to goodwill in accordance with accounting guidance for the recognition of liabilities in connection
with a purchase business combination. The remaining $2.3 million of restructuring costs related to Imation operations and
were reflected in our Consolidated Statements of Operations as restructuring and other expense.
During the first quarter of 2007, we recorded lease termination costs of $0.4 million related to our 2006 Imation and
Memorex restructuring program, which began in the second quarter of 2006.
Other
In 2007, we incurred asset impairment charges of $8.4 million related to the abandonment of certain manufacturing
and R&D assets as a result of the reorganizations discussed above. We also incurred a pension curtailment loss of
$1.4 million, mainly as a result of the reorganizations discussed above. See Note 10 herein for further information
regarding pension settlements and curtailments.
61
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)