Related Party Transactions

12 Months Ended

Dec. 31, 2011

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

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.