Memorex 2011 Annual Report Download - page 64

Download and view the complete annual report

Please find page 64 of the 2011 Memorex 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 114

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Changes in the 2011 manufacturing redesign restructuring program accruals were as follows:
Severance
and Related
Lease
Termination
Costs Other Total
(In millions)
Accrued balance at December 31, 2009 .................. $ — $ — $ — $ —
Charges .......................................... 3.2 — 45.4 48.6
Usage ........................................... — — (45.4) (45.4)
Currency impacts ................................... — — — —
Accrued balance at December 31, 2010 .................. $3.2 $ — $ — $ 3.2
Charges .......................................... — 0.3 8.4 8.7
Usage ........................................... (3.0) (0.3) (8.4) (11.7)
Currency Impacts ................................... — — — —
Accrued balance at December 31, 2011 .................. $0.2 $ — $ — $ 0.2
For the year ended December 31, 2011, non-cash inventory write-offs of $7.5 million and $0.9 million of site clean-up
costs are included in other. For the year ended December 31, 2010 a non-cash asset impairment charge of $31.2 million,
primarily related to our Weatherford Facility, and non-cash inventory write-offs of $14.2 million are included in other in the
table above.
2011 Corporate Strategy Restructuring Program
On January 31, 2011 the Board of Directors approved the 2011 corporate strategy restructuring program to rationalize
certain product lines, increase efficiency and gain greater focus in support of our go-forward strategy. Major components of the
program include charges associated with certain benefit plans, improvements to our global sourcing and distribution network,
costs associated with further rationalization of our product lines and evolution of our skill sets to align with our announced
strategy. This program originally included a total of approximately $35 million in restructuring and other charges, consisting of
severance and related expenses of approximately $14 million, charges associated with certain benefit plans of approximately $11
million, lease termination expenses of approximately $5 million and other charges of approximately $5 million.
During 2011, we recorded restructuring charges of $7.0 million for severance and related expenses, $3.0 million for
lease termination and modification costs and $0.2 million of other charges. In addition, we also recorded inventory write-offs of
$1.6 million related to the planned rationalization of certain product lines as part of this program, which are included in cost of
goods sold in our Consolidated Statements of Operations. Since the inception of this program, we have recorded a total of
$10.4 million of severance and related expenses, $3.0 million of lease termination and modification costs, $1.6 million of
inventory write-offs, $0.2 million of other charges and $0.3 million related to a pension curtailment charge.
During 2010, we recorded restructuring charges of $3.4 million for severance and related expenses and a pension
curtailment charge of $0.3 million.
61