Memorex 2013 Annual Report Download - page 35

Other
Certain amounts recorded in Other are discussed elsewhere in our Notes to Consolidated Financial Statements. See
note references in table above.
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. During 2011, in an effort to increase the salability of the property, we
demolished the building which resulted in a $7.0 million loss on disposal during the period. On October 7, 2011 we entered
into an agreement to sell the land for $10.5 million, contingent upon the change of certain zoning requirements for the land as
well as other standard conditions. The land related to the facility continued to meet the criteria for held for sale accounting
and, therefore, was classified in other current assets on our Consolidated Balance Sheets as of December 31, 2012 at a book
value of $0.2 million. The sale was completed in December 2013, and the related gain of $9.8 million was recorded in
restructuring and other expense during the fourth quarter.
Operating Loss From Continuing Operations
Years Ended December 31, Percent Change
2013 2012 2011 2013 vs. 2012 2012 vs. 2011
(In millions)
Operating loss ..................................... $(20.1) $(318.4) $(20.4) NM NM
As a percent of revenue ............................ (2.3)% (31.6)% (1.7)%
NM - Not meaningful
Operating loss from continuing operations decreased in 2013 compared with 2012 and increased in 2012 compared with
2011 due primarily to intangible asset impairment charges of $251.8 million and a goodwill impairment charge of $23.3 million
recorded in 2012. See discussion above for further information on our 2012 impairment losses. Operating loss in 2013
included the reversal of an accrual of $23.1 million for copyright levies as a result of Italian and French court rulings, a $10.6
million loss related to the settlement of our UK pension plan, a $9.8 million gain on the sale of land at a previously closed
facility and a $2.5 million gain from a litigation settlement.
See Note 9 — Retirement Plans in our Notes to Consolidated Financial Statements for further information on the
pension plan settlement and Note 15 — Litigation, Commitments and Contingencies in our Notes to Consolidated Financial
Statements for more information on the levy reversal.
Other (Income) and Expense
Years Ended December 31, Percent Change
2013 2012 2011 2013 vs. 2012 2012 vs. 2011
(In millions)
Interest income .................................... $(0.2) $(0.5) $(0.9) (60.0)% (44.4)%
Interest expense ................................... 2.5 2.9 3.7 (13.8)% (21.6)%
Other, net ........................................ 0.6 2.6 7.0 (76.9)% (62.9)%
Total ........................................ $2.9 $5.0 $9.8 (42.0)% (49.0)%
As a percent of revenue ............................ 0.3% 0.5% 0.8%
Other expense decreased in 2013 compared with 2012. Interest expense decreased compared with 2012 due to lower
amortization of capitalized fees related to our credit facility. Other, net expense includes foreign currency (gains) losses from
changes in foreign exchange rates on foreign denominated assets and liabilities. Foreign currency gains of $0.5 million and
losses of $1.6 million and $4.6 million were recorded for 2013, 2012 and 2011, respectively, and are net of gains (losses) from
the related foreign currency forward contracts for each year. We attempt to mitigate the exposure to foreign currency volatility
through our hedging program; however, our program is not designed to fully hedge our risk and, as a result, we experience
some volatility in other income, especially in periods of significant foreign currency fluctuation.
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