Restructuring and Other Expense

The components of our restructuring and other expense included in the Consolidated Statements of Operations were as follows:



	Years Ended December 31,
	2011			2010		2009
	(In millions)
Restructuring
Severance and related	$	7.0		$	13.0	$	11.2
Lease termination costs	3.3			1.7		0.7
Other	1.1			—		—
Total restructuring	11.4			14.7		11.9
Other
Pension settlement/curtailment	2.5			2.8		11.7
Asset impairments	—			31.2		2.7
Asset disposals	7.0			—		—
Acquisition and integration related costs	2.6			—		—
Other	(2.0		)	2.4		0.3
Total	$	21.5		$	51.1	$	26.6

2011 Manufacturing Redesign Restructuring Program

On January 13, 2011 the Board of Directors approved the 2011 manufacturing redesign restructuring program of up to $55 million to rationalize certain product lines and discontinue tape coating operations at our Weatherford, Oklahoma facility by April 2011 and subsequently close the facility. We signed a strategic agreement with TDK Corporation to jointly develop and manufacture magnetic tape technologies. Under the agreement, we are collaborating on the research and development of future tape formats in both companies' research centers in the United States and Japan and we consolidated tape coating operations to the TDK Yamanashi manufacturing facility. We also recorded additional inventory write-offs related to this program due to end of life. This program originally included a total of approximately $50 million in restructuring and other charges, consisting of severance and related costs of approximately $3 million, asset impairments of approximately $31 million primarily related to the Weatherford facility, inventory write-offs of approximately $14 million and other charges of approximately $2 million. Therefore this program is substantially complete.

As of June 30, 2011 the Weatherford facility met the held for sale criteria outlined in the accounting guidance for the sale of a long-lived asset. Accordingly, the book value of the building and property, $3.1 million, was transferred into other current assets on the Consolidated Balance Sheet and is no longer being depreciated.

During 2011 we recorded restructuring charges of $0.3 million for lease termination and modification costs and site clean-up expenses of $0.9 million related to this program. We also recorded non-cash inventory write-offs of $7.5 million related to this program, which are included in cost of goods sold on our Consolidated Statements of Operations. Since the inception of this program, we have recorded a total of $21.7 million of inventory write-offs, $31.2 million of asset impairment charges, $3.2 million of severance and related expenses, $0.3 million for lease termination and modification costs and $0.9 million of site clean-up expenses.

During 2010 we recorded restructuring charges of $3.2 million for severance and related expenses and $31.2 million of asset impairment charges primarily related to the Weatherford facility. We also recorded non-cash inventory write-offs of $14.2 million related to this program, which are included in cost of goods sold on our Consolidated Statements of Operations.

Changes in the 2011 manufacturing redesign restructuring program accruals were as follows:



(In millions)	Severance and Related			Lease Termination Costs			Other			Total
Accrued balance at December 31, 2009	$	—		$	—		$	—		$	—
Charges	3.2			—			45.4			48.6
Usage	—			—			(45.4		)	(45.4		)
Currency impacts	—			—			—			—
Accrued balance at December 31, 2010	$	3.2		$	—		$	—		$	3.2
Charges	—			0.3			8.4			8.7
Usage	(3.0		)	(0.3		)	(8.4		)	(11.7		)
Currency Impacts	—			—			—			—
Accrued balance at December 31, 2011	$	0.2		$	—		$	—		$	0.2

For the year ended December 31, 2011, non-cash inventory write-offs of $7.5 million and $0.9 million of site clean-up costs are included in other. For the year ended December 31, 2010 a non-cash asset impairment charge of $31.2 million, primarily related to our Weatherford Facility, and non-cash inventory write-offs of $14.2 million are included in other in the table above.

2011 Corporate Strategy Restructuring Program

On January 31, 2011 the Board of Directors approved the 2011 corporate strategy restructuring program to rationalize certain product lines, increase efficiency and gain greater focus in support of our go-forward strategy. Major components of the program include 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. This program originally included a total of approximately $35 million in restructuring and other charges, consisting of severance and related expenses of approximately $14 million, charges associated with certain benefit plans of approximately $11 million, lease termination expenses of approximately $5 million and other charges of approximately $5 million.

During 2011, we recorded restructuring charges of $7.0 million for severance and related expenses, $3.0 million for lease termination and modification costs and $0.2 million of other charges. In addition, we also recorded inventory write-offs of $1.6 million related to the planned rationalization of certain product lines as part of this program, which are included in cost of goods sold in our Consolidated Statements of Operations. Since the inception of this program, we have recorded a total of $10.4 million of severance and related expenses, $3.0 million of lease termination and modification costs, $1.6 million of inventory write-offs, $0.2 million of other charges and $0.3 million related to a pension curtailment charge.

During 2010, we recorded restructuring charges of $3.4 million for severance and related expenses and a pension curtailment charge of $0.3 million.

Changes in the 2011 corporate strategy restructuring program accruals were as follows:



(In millions)	Severance and Related			Lease Termination Costs			Other			Total
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 ended June 30, 2011 we demolished the building which resulted in a $7.0 million loss on disposal during the period. The land related to the facility continues to meet the criteria for held for sale accounting and, therefore, remains classified in other current assets on the Consolidated Balance Sheet as of December 31, 2011 at a book value of $0.2 million. 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. If these conditions are met, the sale is expected to close in 2013.

Also during 2011 we recorded acquisition and integration related costs as a result of our acquisition activities of $2.6 million within restructuring and other expense in the Consolidated Statements of Operations. Also during 2011 we amended a long-term disability benefit plan, resulting in a $2.0 million gain.

During 2010, other expenses included costs associated with the announced retirement of our former Vice Chairman and Chief Executive Officer, including a severance related charge of $1.4 million and a charge of $0.8 million related to the accelerated vesting of his unvested options and restricted stock.

During 2009 we incurred net asset impairment charges of $2.7 million and other charges of $0.3 million related mainly to the abandonment of certain manufacturing and R&D assets as a result of our restructuring activities.

2011 Activity

The following table summarizes 2011 restructuring and other activity by restructuring program:



	2011 Manufacturing Redesign Program		2011 Corporate Strategy Program		Other			Total
	(In millions)
Restructuring
Severance and related	$	—	$	7.0	$	—		$	7.0
Lease termination costs	0.3		3.0		—			3.3
Other	0.9		0.2		—			1.1
Total restructuring	1.2		10.2		—			11.4
Other
Pension settlement/curtailment	—		—		2.5			2.5
Asset disposals	—		—		7.0			7.0
Acquisition and integration costs	—		—		2.6			2.6
Other	—		—		(2.0		)	(2.0		)
Total	$	1.2	$	10.2	$	10.1		$	21.5

2010 Activity

The following table summarizes 2010 restructuring and other activity by restructuring program:



	2011 Manufacturing Redesign Program		2011 Corporate Strategy Program		2008 Corporate Redesign Program		Other		Total
	(In millions)
Restructuring
Severance and related	$	3.2	$	3.4	$	6.4	$	—	$	13.0
Lease termination costs	—		—		1.7		—		1.7
Total restructuring	3.2		3.4		8.1		—		14.7
Other
Pension settlement/curtailment	—		0.3		2.5		—		2.8
Asset Impairments	31.2		—		—		—		31.2
Other	—		—		0.2		2.2		2.4
Total	$	34.4	$	3.7	$	10.8	$	2.2	$	51.1

2009 Activity

The following table summarizes 2009 restructuring and other activity by restructuring program:



	2008 Corporate Redesign Program		2008 Cost Reduction Program		Other			Total
	(In millions)
Restructuring
Severance and related	$	11.2	$	—	$	—		$	11.2
Lease termination costs	0.1		0.9		(0.3		)	0.7
Other	—		—		—			—
Total restructuring	11.3		0.9		(0.3		)	11.9
Other
Pension settlement/curtailment	11.7		—		—			11.7
Asset impairments	—		—		2.7			2.7
Other	—		—		0.3			0.3
Total	$	23.0	$	0.9	$	2.7		$	26.6