Memorex 2011 Annual Report Download - page 65

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Changes in the 2011 corporate strategy restructuring program accruals were as follows:
Severance
and Related
Lease
Termination
Costs Other Total
(In millions)
Accrued balance at December 31, 2009 ................... $ — $ — $ — $ —
Charges ........................................... 3.4 — 0.3 3.7
Usage ............................................ — — (0.3) (0.3)
Currency impacts .................................... — — — —
Accrued balance at December 31, 2010 ................... $3.4 $ — $ — $ 3.4
Charges ........................................... 7.0 3.0 1.8 11.8
Usage ............................................ (5.7) (2.3) (2.1) (10.1)
Currency impacts .................................... (0.1) (0.1) 0.3 0.1
Accrued balance at December 31, 2011 ................... $4.6 $0.6 $ — $ 5.2
For the year ended December 31, 2011 other includes non-cash inventory write-offs of $1.6 million. Inventory write-offs
were included in cost of goods sold on our Consolidated Statements of Operations.
The restructuring is expected to be substantially complete during 2012.
Prior Programs Substantially Complete
During 2010, we recorded $6.4 million of severance and related expenses, $1.7 million of lease termination costs, $2.5
million of pension settlement and curtailment charges, and $0.2 million of other charges related to our 2008 corporate
redesign restructuring program. This program was initiated during the fourth quarter of 2008 and aligned our cost structure by
reducing SG&A expenses. We reduced costs by rationalizing key accounts and products and by simplifying our corporate
structure globally.
During 2009, we recorded $11.2 million of severance and related expenses, $0.1 million of lease termination costs and
$11.7 million of pension settlement and curtailment charges related to our 2008 corporate redesign restructuring program.
Additionally during 2009, we 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. The 2008
cost reduction restructuring program also included our decision to consolidate the Cerritos, California business operations into
Oakdale, Minnesota. During 2009, we consolidated the previous Cerritos activities into a single headquarters location in order
to achieve better focus, gain efficiencies across brands and channels and reduce cost. We recorded $0.3 million of income
through the reversal of lease termination accruals related to previously announced programs.
Other
During 2011 we recorded additional pension settlement and curtailment losses of $2.5 million within restructuring and
other expense in the Consolidated Statements of Operations as a result of the downsizing associated with our domestic
restructuring activities. See Note 9 to the Consolidated Financial Statements for further information regarding pension
settlements and curtailments.
Our Camarillo, California manufacturing facility ceased operations on December 31, 2008 and the facility, comprised of a
building and property, was classified as held for sale. In an effort to increase the salability of the property, during the three months
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