Memorex 2011 Annual Report Download - page 93

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Note 16 — Related Party Transactions
As a result of the TDK Recording Media business acquisition, TDK became our largest shareholder and owned
approximately 20 percent of our shares as of December 31, 2011 and 2010. In connection with the acquisition we entered into
a Supply Agreement and a Transition Services Agreement with TDK. Under the Transition Services Agreement, TDK provided
certain services to assist in the transfer of the TDK Recording Media business to Imation.
In 2011, 2010 and 2009 we purchased products and services in the aggregate amounts of approximately $50 million,
$28 million and $64 million, respectively, from TDK or its affiliates. We did not sell products nor provide services to TDK or its
affiliates in 2011, 2010 or 2009. Fees under the Transition Services Agreement were approximately $3 million in 2009. These
transition services were completed in July 2009. Trade payables to TDK or its affiliates were $9.8 million and $6.2 million at
December 31, 2011 and 2010, respectively. No trade receivables from TDK or its affiliates were outstanding as of
December 31, 2011 or December 31, 2010.
On January 13, 2011, the Board of Directors approved a restructuring plan to discontinue tape coating operations at our
Weatherford, Oklahoma facility by April 2011 and subsequently close the facility. We signed a strategic agreement with TDK to
jointly develop and manufacture magnetic tape technologies. Under the agreement, we will collaborate on the research and
development of future tape formats in both companies’ research centers in the U.S. and Japan, while consolidating tape coating
operations to the TDK Yamanashi manufacturing facility. See Note 7 for additional details regarding the restructuring costs.
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