Memorex 2012 Annual Report Download - page 30

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Restructuring and Other
The components of our restructuring and other expense included in the Consolidated Statements of Operations were as
follows:
Years Ended December 31,
2012 2011 2010
(In millions)
Restructuring
Severance and related ........................................................ $16.9 $ 7.0 $13.0
Lease termination costs ....................................................... 0.6 3.3 1.7
Other ..................................................................... 2.2 1.1 —
Gain on sale of fixed assets held for sale ........................................... (0.7) — —
Total restructuring .......................................................... 19.0 11.4 14.7
Other
Contingent consideration fair value adjustment (Note 4) ................................ (8.6) — —
Intangible asset abandonment (Note 6) ............................................ 1.9 — —
Acquisition and integration related costs ........................................... 3.7 2.6 —
Pension settlement/curtailment (Note 9) ........................................... 2.4 2.5 2.8
Asset disposals .............................................................. — 7.0 —
Asset impairments ........................................................... — — 31.2
Other ..................................................................... 2.7 (2.0) 2.4
Total ................................................................... $21.1 $21.5 $51.1
2012 Global Processing Improvement Restructuring Program
On October 22, 2012, the Board of Directors approved the Global Processing Improvement Restructuring Program (GPI
Program) relating to the realignment of our business structure and reduction of our operating expenses in excess of 25
percent over time. This program addresses product line rationalization and infrastructure, and is anticipated to include a
reduction of approximately 20 percent of our global workforce. As it pertains to this restructuring program, we anticipate we
will incur cash payments up to $40 million, with total charges to our Statement of Operations between $50 million and $60
million (excluding charges associated with goodwill and intangible asset impairments), the majority of which will occur in 2013.
This restructuring action is anticipated to include between $15 million and $25 million for severance and one-time termination
benefits, between $5 million and $15 million for asset impairments, excluding goodwill and intangible asset impairments
recorded in 2012, and between $20 million and $25 million for other charges. This program was required due to current and
future expected revenue declines. These actions are being implemented beginning in 2013.
During 2012, we recorded restructuring charges of $14.9 million associated with this program. These charges were
primarily associated with severance related activity and were included in restructuring and other in our Consolidated
Statements of Operations.
2011 Corporate Strategy Restructuring Program
On January 31, 2011, the Board of Directors approved the 2011 Corporate Strategy Restructuring Program (2011
Corporate Program) to rationalize certain product lines, increase efficiency and gain greater focus in support of our go-forward
strategy. Major components of the program included 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. Since the inception of this program, we have recorded a total of $13.4 million of
severance and related expenses, $3.5 million of lease termination and modification costs, $1.6 million of inventory write-offs,
$0.3 million related to a pension curtailment charge and $0.9 million of other charges. Inventory write-offs are included in cost
of goods sold in our Consolidated Statements of Operations. At December 31, 2012, we had approximately $15 million of
authorized spending amounts remaining related to this program. At December 31, 2012, this remaining authorization was
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