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IMATION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 — Background and Basis of Presentation
Background
Imation Corp., a Delaware corporation, was formed in 1996 as a result of the spin-off of substantially all of the
businesses which comprised the data storage and imaging systems groups of 3M Company. As used herein, the terms
“Imation,” “the Company,” ‘‘we,” “us,” or “our” mean Imation Corp. and its subsidiaries and consolidated entities unless the
context indicates otherwise. Imation is a global data storage and data security company. Our products and solutions help
organizations and individuals store, manage and protect their digital content. Imation’s storage and security portfolio includes
NexsanTM high-density, archive and solid-state optimized unified hybrid storage solutions; IronKeyTM mobile security solutions
that address the needs of professionals for secure data transport and mobile workspaces; and consumer storage solutions,
audio products and accessories sold under the ImationTM, MemorexTM and TDK Life on RecordTM brands. Imation reaches
customers in more than 100 countries through a powerful global distribution network.
Basis of Presentation
The financial statements are presented on a consolidated basis and include the accounts of the Company and our
wholly-owned subsidiaries. See Note 2 — Summary of Significant Accounting Policies for further information regarding
consolidation. Our Consolidated Financial Statements are prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP). All significant inter-company transactions have been eliminated.
The results of operations for our XtremeMac™ and Memorex™ consumer electronics businesses are presented in our
Consolidated Statements of Operations as discontinued operations for all periods presented. See further discussion of these
divestitures in the discussion of our Strategic Transformation below.
During the fourth quarter of 2012, we announced the acceleration of our strategic transformation, including the
realignment of our global business into two new business units, a cost reduction program and our increased focus on data
storage and data security including exploring strategic options for our consumer electronics brands and businesses. As our
traditional media businesses were declining, we determined that we needed to accelerate our business transformation. During
the first quarter of 2013 we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses.
The divestiture of our Memorex consumer electronics business occurred on October 15, 2013 and the divestiture of our
XtremeMac business occurred on January 31, 2014. See Note 4 — Acquisitions and Divestitures for further information on
these divestitures. The consumer storage business under the Memorex and TDK Life on Record brands and the consumer
electronics business under the TDK Life on Record brand are being retained.
The realignment of our global business into two new business units better aligns the Company with our key consumer
and commercial channels. The two business units consist of Consumer Storage and Accessories (CSA), which focuses
mainly on retail channels; and Tiered Storage and Security Solutions (TSS), which focuses on small and medium business,
enterprise and government customers. In the first quarter of 2013, we revised our segment reporting to reflect these changes
into these two new reporting segments. See Note 14 — Business Segment Information and Geographical Data for more
information on our business segments.
In October 2012, the Board of Directors approved our Global Process Improvement Restructuring Program (GPI
Program) in order to realign our business structure and reduce operating expenses in excess of 25 percent over time. This
restructuring program addressed product line rationalization and infrastructure and included a planned reduction in our global
workforce. The majority of these actions were implemented during 2013. See Note 7 — Restructuring and Other Expense for
more information on this restructuring program.
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