10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period fromto

Commission File Number: 1-14310

IMATION CORP.

(Exact name of registrant as specified in its charter)

Delaware	41-1838504
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1 Imation Way Oakdale, Minnesota	55128
(Address of principal executive offices)	(Zip Code)

(651) 704-4000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes o No

     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes o No

     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer þ Non-accelerated filer o(Do not check if a smaller reporting company) Smaller reporting companyo

     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes þ No

     Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 42,869,863 shares of Common Stock, par value $0.01 per share, were outstanding August 1, 2014.

IMATION CORP.

TABLE OF CONTENTS

	PAGE
PART I. FINANCIAL INFORMATION	3
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2014 and 2013	3
Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2014 and 2013	4
Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013	5
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2014 and 2013	6
Notes to Condensed Consolidated Financial Statements	7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	20
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	28
ITEM 4. CONTROLS AND PROCEDURES	28
PART II. OTHER INFORMATION	28
ITEM 1. LEGAL PROCEEDINGS	28
ITEM 1A. RISK FACTORS	29
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	29
ITEM 3. DEFAULTS UPON SENIOR SECURITIES	29
ITEM 4. MINE SAFETY DISCLOSURES	30
ITEM 5. OTHER INFORMATION	30
ITEM 6. EXHIBITS	30
SIGNATURE	31
EXHIBIT INDEX	32
EX-10.1
EX-31.1
EX-31.2
EX-32.1
EX-32.2

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

IMATION CORP.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except for per share amounts)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Net revenue	$	178.6		$	211.7		$	357.5		$	436.1
Cost of goods sold	144.7			156.5			289.9			338.8
Gross profit	33.9			55.2			67.6			97.3
Operating expenses:
Selling, general and administrative	44.3			46.5			87.7			95.8
Research and development	4.5			4.3			8.8			9.7
Restructuring and other	5.2			4.4			7.3			6.5
Total	54.0			55.2			103.8			112.0
Operating loss from continuing operations	(20.1		)	—			(36.2		)	(14.7		)
Other (income) expense
Interest income	(0.1		)	—			(0.2		)	—
Interest expense	0.6			0.6			1.2			1.3
Other, net expense (income)	0.8			0.1			1.0			(0.1		)
Total	1.3			0.7			2.0			1.2
Loss from continuing operations before income taxes	(21.4		)	(0.7		)	(38.2		)	(15.9		)
Income tax (benefit) provision	(1.6		)	1.1			(1.6		)	1.5
Loss from continuing operations	(19.8		)	(1.8		)	(36.6		)	(17.4		)
Discontinued operations:
Loss on sale of discontinued businesses, net of income taxes	(1.2		)	—			(1.7		)	—
Loss from operations of discontinued businesses, net of income taxes	(0.4		)	(3.3		)	(0.6		)	(8.8		)
Loss from discontinued operations, net of income taxes	(1.6		)	(3.3		)	(2.3		)	(8.8		)
Net loss	$	(21.4	)	$	(5.1	)	$	(38.9	)	$	(26.2	)
Loss per common share — basic:
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Loss per common share — diluted:
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Weighted average shares outstanding — basic:	41.2			40.5			41.0			40.5
Weighted average shares outstanding — diluted:	41.2			40.5			41.0			40.5

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

3

IMATION CORP.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In millions)

(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Net loss	$	(21.4	)	$	(5.1	)	$	(38.9	)	$	(26.2	)
Other comprehensive income (loss), net of tax:
Net unrealized (losses) gains on derivative financial instruments:
Net holding (losses) gains arising during the period	(0.5		)	1.8			(1.5		)	4.6
Reclassification adjustment for net realized gains included in net loss	(0.1		)	(1.9		)	(0.4		)	(3.2		)
Total net unrealized (losses) gains on derivative financial instruments	(0.6		)	(0.1		)	(1.9		)	1.4
Net pension adjustments:
Liability adjustments for defined benefit plans	0.8			2.0			0.8			2.0
Reclassification of adjustments for defined benefit plans included in net loss	0.8			2.0			0.7			2.4
Total net pension adjustments	1.6			4.0			1.5			4.4
Unrealized foreign currency translation gains (losses)	2.2			(6.7		)	(1.3		)	(10.9		)
Total other comprehensive income (loss), net of tax	3.2			(2.8		)	(1.7		)	(5.1		)
Comprehensive loss	$	(18.2	)	$	(7.9	)	$	(40.6	)	$	(31.3	)

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

4

IMATION CORP.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

(Unaudited)

	June 30,		December 31,
	2014		2013
Assets
Current assets
Cash and cash equivalents	$	114.7	$	132.6
Accounts receivable, net	127.8		163.3
Inventories	85.5		84.3
Other current assets	39.7		48.8
Total current assets	367.7		429.0
Property, plant and equipment, net	48.8		51.6
Intangible assets, net	63.2		68.6
Goodwill	72.7		72.1
Other assets	22.3		20.5
Total assets	$	574.7	$	641.8
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable	$	79.6	$	94.7
Short-term debt	20.0		20.0
Other current liabilities	101.2		116.4
Total current liabilities	200.8		231.1
Other liabilities	38.2		37.5
Total liabilities	239.0		268.6
Commitments and contingencies (Note 15)
Shareholders’ equity	335.7		373.2
Total liabilities and shareholders’ equity	$	574.7	$	641.8

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

5

IMATION CORP.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)

	Six Months Ended
	June 30,
	2014			2013
Cash Flows from Operating Activities:
Net loss	$	(38.9	)	(26.2	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10.9			12.4
Stock-based compensation	3.0			3.2
Other, net	2.1			(1.8	)
Changes in operating assets and liabilities	6.1			4.7
Net cash used in operating activities	(16.8		)	(7.7	)
Cash Flows from Investing Activities:
Capital expenditures	(2.3		)	(3.5	)
Proceeds from purchase price adjustment	—			1.6
Proceeds from sale of disposal group	1.6			0.2
Net cash used in investing activities	(0.7		)	(1.7	)
Cash Flows from Financing Activities:
Purchase of treasury stock	(0.9		)	(2.5	)
Exercise of stock options	0.4			—
Short-term debt repayment	(24.9		)	—
Short-term borrowings	24.5			—
Contingent consideration payments	—			(0.5	)
Net cash used in financing activities	(0.9		)	(3.0	)
Effect of exchange rate changes on cash and cash equivalents	0.5			(1.9	)
Net change in cash and cash equivalents	(17.9		)	(14.3	)
Cash and cash equivalents — beginning of period	132.6			108.7
Cash and cash equivalents — end of period	$	114.7		94.4

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these statements.

6

IMATION CORP.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1 — Basis of Presentation

The interim Condensed Consolidated Financial Statements of Imation Corp. (Imation, the Company, we, us or our) are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of financial position, results of operations, comprehensive loss and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of full year results. The Condensed Consolidated Financial Statements and Notes are presented in accordance with the requirements for Quarterly Reports on Form 10-Q and do not contain certain information included in our annual Consolidated Financial Statements and Notes.

The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses for the reporting periods. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

The December 31, 2013 Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Financial Statements but does not include all disclosures required by U.S. GAAP. This Form 10-Q should be read in conjunction with our Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2013.

The operating results of our former XtremeMac^TM andMemorex^TM consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented. See Note 4 - Acquisitions and Divestitures for further information on these divestitures.

During the second quarter of 2014, we identified an error in our Condensed Consolidated Statement of Comprehensive Loss for the three and six months ended June 30, 2013 (as previously filed in our Quarterly Report on Form 10-Q for the period ended June 30, 2013), relating to presentation of activity associated with our U.S. defined benefit pension plan. The Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2013, the Condensed Consolidated Balance Sheet as of June 30, 2013 and the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2013 (as previously filed in our Quarterly Report on Form 10-Q for the period ended June 30, 2013) were not affected by this error. Additionally, our Statements of Comprehensive Loss as previously filed in our Quarterly Reports on Form 10-Q for the periods ended March 31, 2013 and September 30, 2013 as well as in our Annual Report on Form 10-K for the year ended December 31, 2013 were also not affected by this revision.

We evaluated this error in accordance with the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 99 and No. 108 and determined that the impact of the error was not material to our previously filed financial statements. Therefore, amendments of previously filed reports are not required. However, we have revised our Statement of Comprehensive Loss for the three and six months ended June 30, 2013 presented in this Form 10-Q from amounts previously filed to correctly present activity associated with our U.S. defined benefit pension plan.

The impact of this revision to our Condensed Consolidated Statement of Comprehensive Loss for the three and six months ended June 30, 2013 is summarized as follows:

7

	Three Months Ended						Six Months Ended
	June 30, 2013						June 30, 2013
(In millions)	As Reported			As Revised			As Reported			As Revised
Net loss	$	(5.1	)	$	(5.1	)	$	(26.2	)	$	(26.2	)
Other comprehensive loss, net of tax:
Net unrealized (losses) gains on derivative financial instruments:
Net holding gains arising during the period	1.8			1.8			4.6			4.6
Reclassification adjustment for net realized gains included in net loss	(1.9		)	(1.9		)	(3.2		)	(3.2		)
Total net unrealized (losses) gains on derivative financial instruments	(0.1		)	(0.1		)	1.4			1.4
Net pension adjustments:
Liability adjustments for defined benefit plans	—			2.0			—			2.0
Reclassification adjustment for defined benefit plans included in net loss	0.5			2.0			0.9			2.4
Total net pension adjustments	0.5			4.0			0.9			4.4
Unrealized foreign currency translation losses	(6.7		)	(6.7		)	(10.9		)	(10.9		)
Total other comprehensive loss, net of tax	(6.3		)	(2.8		)	(8.6		)	(5.1		)
Comprehensive loss	$	(11.4	)	$	(7.9	)	$	(34.8	)	$	(31.3	)

This activity associated with our U.S defined benefit pension plan recorded in Accumulated other comprehensive loss was also erroneously disclosed in Note 13 - Shareholders’ Equity presented in our Quarterly Report on Form 10-Q for the period ended June 30, 2013. As only portions of this footnote were impacted and presented below, see the footnote in our Form 10-Q as of June 30, 2013 for the disclosure of activity relating to gains (losses) on derivative financial instruments and foreign currency translation, which were not impacted. The impact to this footnote is summarized as follows:

Accumulated other comprehensive loss and related activity:

	Defined Benefit Plans						Total
(In millions)	As Reported			As Revised			As Reported			As Revised
Balance as of December 31, 2012	$	(27.8	)	$	(27.8	)	$	(74.2	)	$	(74.2	)
Other comprehensive income (loss) before reclassifications, net of tax	—			2.0			(6.3		)	(4.3		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	0.9			2.4			(2.3		)	(0.8		)
Net current-period other comprehensive income (loss)	0.9			4.4			(8.6		)	(5.1		)
Balance as of June 30, 2013	$	(26.9	)	$	(23.4	)	$	(82.8	)	$	(79.3	)

Details of amounts (as revised) that were reclassified from Accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations in which such items were reclassified to during the three and six months ended June 30, 2013 were as follows:

8

	Amounts Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented
	Three Months Ended			Six Months Ended
(In millions)	June 30, 2013			June 30, 2013
Gains on cash flow hedges	$	(3.1	)	$	(5.2	)	Cost of goods sold
Income tax expense	1.2			2.0			Income tax provision
	(1.9		)	(3.2		)
Amortization of net actuarial loss	0.5			0.9			Selling, general and administrative
Pension settlement loss	1.5			1.5			Restructuring and other
Income tax expense	—			—			Income tax provision
	2.0			2.4
Total reclassifications for the period	$	0.1		$	(0.8	)

Note 2 — Recently Issued or Adopted Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance for reporting discontinued operations and disposals of components of an entity. The new guidance requires that a disposal representing a strategic shift, that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale, should be reported as discontinued operations. The new guidance also expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective for interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. This standard will not impact our historical financial position and results of operations, but we will apply this guidance to future dispositions, if any, that qualify for discontinued operations. We have not determined whether we plan on adopting this guidance early if any dispositions were to occur.

In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new guidance will replace all current U.S. GAAP guidance on revenue recognition and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for interim and annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of this new guidance on our financial position and results of operations.

In June 2014, the FASB issued new accounting guidance related to stock compensation. The new guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new guidance is effective for interim and annual periods beginning on or after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings (early adoption is permitted). We are evaluating the impact, if any, of adopting this new guidance on our financial position and results of operations.

Note 3 — (Loss) Earnings per Common Share

Basic (loss) earnings per common share is calculated using the weighted average number of shares outstanding for the period. Diluted (loss) earnings per common share is computed on the basis of the weighted average shares outstanding plus the dilutive effect of our stock-based compensation plans using the “treasury stock” method. Unvested restricted stock and treasury

9

shares are excluded from the calculation of basic weighted average number of common shares outstanding. Once restricted stock vests, it is included in our common shares outstanding.

Potential common shares are excluded from the computation of diluted (loss) earnings per common share when the effect would be anti-dilutive. Stock options are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company's common stock for the period. All potential common shares are anti-dilutive in periods of net loss available to common shareholders.

The following table sets forth the computation of the weighted average basic and diluted (loss) earnings per share:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions, except for per share amounts)	2014			2013			2014			2013
Numerator:
Loss from continuing operations	$	(19.8	)	$	(1.8	)	$	(36.6	)	$	(17.4	)
Loss from discontinued operations, net of income taxes	(1.6		)	(3.3		)	(2.3		)	(8.8		)
Net loss	$	(21.4	)	$	(5.1	)	$	(38.9	)	$	(26.2	)
Denominator:
Weighted average number of common shares outstanding during the period - basic	41.2			40.5			41.0			40.5
Dilutive effect of stock-based compensation plans	—			—			—			—
Weighted average number of diluted shares outstanding during the period - diluted	41.2			40.5			41.0			40.5
Loss per common share — basic
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Loss per common share — diluted
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Anti-dilutive shares excluded from calculation	4.9			6.2			4.7			6.5

Note 4 — Acquisitions and Divestitures

Discontinued Operations

On January 31, 2014, we completed the sale of our XtremeMac consumer electronics business for an estimated $3.1 million of total consideration consisting of $0.3 million of cash consideration, an interest-bearing note receivable consisting of $0.3 million (which matures in 2015) and $2.5 million estimated to be received based on the proceeds the purchase is able to achieve from selling the acquired inventory. The sale of this business resulted in a loss of $0.5 million which was recorded in discontinued operations during the first quarter of 2014. During the three months ended June 30, 2014, we revised downward our estimate of the consideration we expect to receive based on the purchaser's proceeds from selling the acquired inventory by $1.2 million and, accordingly recognized a loss of $1.2 million as a component of discontinued operations for the three and six months ended June 30, 2014. The balance of the receivable associated with the consideration for the disposition of XtremeMac is $1.3 million as of June 30, 2014.

On October 15, 2013, we completed the sale of the Memorex consumer electronics business for $9.3 million of total consideration. We received payments of $1.3 million during the three months ended June 30, 2014 and $0.9 million during the fourth quarter of 2013. The remaining receivable balance associated with the disposition of this business is recorded at an estimated fair value of $5.8 million of which $2.0 million is due during the next twelve months.

These divestitures are part of the acceleration of our strategic transformation that we announced during the fourth quarter of 2012. The operating results for the businesses sold are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented and reflect revenues and expenses that are directly attributable to these

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businesses that have been eliminated from ongoing operations. The consumer storage business under the Memorex and TDK Life on Record^TM brands and the consumer electronics business under the TDK Life on Record brand have been retained.

The key components of discontinued operations were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2014			2013			2014			2013
Net revenue	$	—		$	12.2		$	0.5		$	23.4
Loss on sale of discontinued businesses, before income taxes	(1.2		)	—			(1.7		)	—
Loss from operations of discontinued businesses, before income taxes	(0.4		)	(3.3		)	(0.6		)	(8.8		)
Income tax provision (benefit)	—			—			—			—
Loss from discontinued operations, net of income taxes	$	(1.6	)	$	(3.3	)	$	(2.3	)	$	(8.8	)

Note 5 — Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided as follow:

	June 30,			December 31,
(In millions)	2014			2013
Accounts Receivable
Accounts receivable	$	137.3		$	177.8
Less reserves and allowances1	(9.5		)	(14.5		)
Accounts receivable, net	$	127.8		$	163.3
Inventories
Finished goods	$	78.2		$	76.3
Work in process	2.3			2.9
Raw materials and supplies	5.0			5.1
Total inventories	$	85.5		$	84.3
Property, Plant and Equipment
Property, plant and equipment	$	199.4		$	201.7
Less accumulated depreciation	(150.6		)	(150.1		)
Property, plant and equipment, net	$	48.8		$	51.6

¹Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts.

Other current liabilities (included as a separate line in our Condensed Consolidated Balance Sheets) includes rebates payable of $26.7 million and $33.2 million at June 30, 2014 and December 31, 2013, respectively.

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Note 6 — Intangible Assets and Goodwill

Intangible Assets

The components of our amortizable intangible assets were as follows:

(In millions)	Trade Names			Software			Customer Relationships			Other			Total
June 30, 2014
Gross carrying amount	$	34.3		$	59.5		$	20.4		$	26.3		$	140.5
Accumulated amortization	(11.6		)	(54.8		)	(2.9		)	(8.0		)	(77.3		)
Intangible assets, net	$	22.7		$	4.7		$	17.5		$	18.3		$	63.2
December 31, 2013
Gross carrying amount	$	34.3		$	58.5		$	20.4		$	26.3		$	139.5
Accumulated amortization	(9.2		)	(53.3		)	(2.1		)	(6.3		)	(70.9		)
Intangible assets, net	$	25.1		$	5.2		$	18.3		$	20.0		$	68.6

Other intangible assets, net as of June 30, 2014 consists primarily of $15.0 million of developed technology.

Amortization expense for intangible assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Amortization expense	$	3.2	$	3.3	$	6.4	$	6.9

Based on the intangible assets in service as of June 30, 2014, estimated amortization expense for the remainder of 2014 and each of the next five years is as follows:

(In millions)	2014 (Remainder)		2015		2016		2017		2018
Amortization expense	$	6.2	$	11.9	$	8.5	$	7.7	$	6.3

Goodwill

We test the carrying amount of a reporting unit's goodwill for impairment on an annual basis during the fourth quarter of each year and during an interim period if an event occurs or circumstances change that would warrant impairment testing.

For the first quarter of 2014, we determined we had a triggering event for our Storage Solutions reporting unit as our actual results for the three months ended March 31, 2014 were lower than originally planned, requiring us to review our goodwill for impairment as of March 31, 2014. Revenues that we had expected late in the first quarter did not materialize due to certain temporal factors including delays in hiring of sales force personnel, delays in purchasing from some of our larger customers and continued impacts from reductions in government spending. For the first quarter impairment test, the estimated fair value of the reporting unit exceeded the carrying value in Step 1 of the impairment test by 24.7 percent, resulting in no impairment as of March 31, 2014. This excess of estimated fair value over carrying value is a decrease of 1.0 percentage point from the 25.7 percent excess that resulted in the test performed during the fourth quarter of 2013. In determining the estimated fair value of the reporting unit, we used the income approach, a valuation technique under which we estimate future cash flows using the reporting unit's financial forecasts and the market approach, a valuation technique that provides an estimate of the value of the reporting unit based on a comparison to other similar businesses.

We used forecasted cash flows over a ten year period, a terminal growth rate of 3.0 percent and a discount rate of 13.5 percent. The discount rate reflects the relative risk of achieving cash flows as well as any other specific risks or factors related to the Storage Solutions reporting unit. We calculated the impact of a potential change in our assumptions to determine the impact on the results of the impairment test. Holding all other assumptions constant, an unfavorable change in various components of our projected cash flows of 3.0 percent or less would potentially result in an indication of impairment. Additionally, a decrease in the residual growth rate of less than 2.0 basis points and an increase in the discount rate of less than 1.0 basis point would potentially result in an indication of impairment.

For the second quarter of 2014 the financial results of our Storage Solutions reporting unit were in line with expectations and we continue to believe our longer-term forecast for our Storage Solutions reporting unit generally has not changed and we

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concluded there was no triggering event that would warrant an impairment assessment during the second quarter. We continue to believe significant growth in our storage solutions revenues will occur and we are investing to facilitate this growth with hiring of sales personnel, introducing new products and promoting the Nexsan brand globally. It is reasonably possible that an impairment could be incurred in the future. We will continue to closely monitor our results and expected cash flows in the future to assess whether a goodwill impairment in our Storage Solutions reporting unit may be necessary. The Storage Solutions reporting unit contained $64.7 million of goodwill as of June 30, 2014.

Note 7 — Restructuring and Other Expense

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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2014		2013			2014			2013
Restructuring
Severance and related	$	2.4	$	0.6		$	2.8		$	1.2
Lease termination costs	—		0.5			0.1			0.6
Other	0.8		0.5			0.9			1.3
Total restructuring	$	3.2	$	1.6		$	3.8		$	3.1
Other
Contingent consideration fair value adjustment	—		(0.3		)	—			(0.4		)
Acquisition and integration related costs	—		0.8			—			1.2
Pension settlement/curtailment (Note 9)	0.6		1.5			(0.1		)	1.5
Other1	1.4		0.8			3.6			1.1
Total	$	5.2	$	4.4		$	7.3		$	6.5

¹Other includes consulting fees and certain employee costs.

During the three and six months ended June 30, 2013, severance expense of $0.3 million and $1.4 million, respectively, related to employees directly associated with the XtremeMac and Memorex consumer electronics businesses, was recorded in discontinued operations. See Note 4 - Acquisitions and Divestituresfor more information on our discontinued operations. This expense is excluded from the table above.

2012 Global Process Improvement Restructuring Program

On October 22, 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, excluding the impact of any acquisitions. The GPI Program addressed product line rationalization and infrastructure and included a planned reduction of our global workforce. The majority of these actions were implemented in 2013. Charges related to the GPI Program are primarily recorded as corporate costs and not directly associated with either of our reporting segments.

Since the inception of the 2012 Global Process Improvement Restructuring Program, we have recorded a total of $20.4 million of severance and related expenses, $0.9 million of lease termination and modification costs, $4.2 million of other charges and $5.0 million of inventory write-offs.

Activity related to the 2012 GPI Program accruals was as follows:

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(In millions)	Severance and Related			Lease Termination Costs			Other			Total
Accrued balance at December 31, 2013	$	2.2		$	0.4		$	0.8		$	3.4
Charges	0.4			0.1			0.1			0.6
Usage and payments	(0.9		)	(0.1		)	(0.8		)	(1.8		)
Currency impacts	—			(0.1		)	—			(0.1		)
Accrued balance at March 31, 2014	$	1.7		$	0.3		$	0.1		$	2.1
Charges	2.2			—			0.4			2.6
Usage and payments	(0.9		)	—			(0.2		)	(1.1		)
Currency impacts	—			—			0.1			0.1
Accrued balance at June 30, 2014	$	3.0		$	0.3		$	0.4		$	3.7

Severance and related charges of $0.2 million and Other charges of $0.4 million that were recorded in the three months ended June 30, 2014 were recorded to other accruals and not to the 2012 GPI Program accrual and thus are not included in the table above.

Note 8 — Stock-Based Compensation

Stock-based compensation consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Stock-based compensation expense	$	1.4	$	1.4	$	3.0	$	3.2

We have stock-based compensation awards consisting of stock options, restricted stock and stock appreciation rights under five plans (collectively, the Stock Plans) which are described in detail in our 2013 Annual Report on Form 10-K. As of June 30, 2014, there were 1,335,572 shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan.

Stock Options

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2013	5,371,538		$	13.11
Granted	61,275		3.72
Exercised	(87,569	)	3.97
Canceled	(331,899	)	25.98
Forfeited	(330,378	)	3.95
Outstanding June 30, 2014	4,682,967		$	12.84
Exercisable as of June 30, 2014	3,897,982		$	14.50

The outstanding options are non-qualified and generally have a term of ten years. The following table summarizes our weighted average assumptions used in the valuation of stock options:

	Six Months Ended June 30,
	2014		2013
Volatility	46.2	%	42.8	%
Risk-free interest rate	1.9	%	1.0	%
Expected life (months)	73		72
Dividend yield	—		—

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As of June 30, 2014, there was $1.2 million of total unrecognized compensation expense related to non-vested stock options granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.4 years.

Restricted Stock

The following table summarizes our restricted stock activity:

	Restricted Stock		Weighted Average Grant Date Fair Value Per Share
Nonvested as of December 31, 2013	1,192,321		$	4.87
Granted	1,086,524		3.72
Grant Adjustments	(4,925	)	3.75
Vested	(697,133	)	5.21
Forfeited	(16,135	)	5.27
Nonvested as of June 30, 2014	1,560,652		$	3.91

The cost of the awards is determined using the fair value of the Company’s common stock on the date of the grant and compensation is recognized on a straight-line basis over the requisite vesting period.

As of June 30, 2014, there was $5.1 million of total unrecognized compensation expense related to non-vested restricted stock granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.9 years.

Stock Appreciation Rights

During the six months ended June 30, 2014, we granted 0.4 million Stock Appreciation Rights (SARs) to certain employees associated with our Nexsan and Mobile Security operations. As of June 30, 2014, we had 3.1 million SARs outstanding for which we have not recorded any related compensation expense based on the applicable accounting rules. We will continue to assess these SARs each quarter to determine if any expense should be recorded.

Note 9 — Retirement Plans

Pension Plans

During the three and six months ended June 30, 2014, we contributed $0.4 million and $0.8 million to our worldwide pension plans, respectively. We presently anticipate contributing $1.0 million to $3.0 million to fund our worldwide pension plans during the remainder of 2014.

In connection with actions taken under our announced restructuring programs, the number of employees accumulating benefits under our pension plan in the United States continues to decline. Participants in our U.S. defined benefit pension plan have the option of receiving cash lump sum payments when exiting the plan, which a number of participants exiting the plan have elected to receive. Lump sum payments for the six months ended June 30, 2014 have exceeded our expected 2014 interest costs. As a result, a partial settlement event occurred during the three months ended June 30, 2014 and we recognized a settlement loss of $0.6 million. A settlement loss of $1.5 million was recognized for the three months ended June 30, 2013. These settlement losses are included in restructuring and other in our Condensed Consolidated Statements of Operations. Additionally, in connection with the settlement and as required by pension accounting, we remeasured the funded status of our U.S. defined benefit plan as of June 30, 2014 and have adjusted the funded status on our Condensed Consolidated Balance Sheets as of June 30, 2014, accordingly.

During the six months ended June 30, 2014, we recorded a curtailment gain in the amount of $0.7 million relating to our pension plan in Japan. This amount was recorded in restructuring and other in our Condensed Consolidated Statements of Operations.

Components of net periodic pension (credit) cost included the following:

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	United States						International					United States						International
	Three Months Ended June 30,											Six Months Ended June 30,
(In millions)	2014			2013			2014			2013		2014			2013			2014			2013
Service cost	$	—		$	—		$	0.1		$	0.1	$	—		$	—		$	0.2		$	0.2
Interest cost	0.8			0.8			0.2			—		1.6			1.5			0.4			—
Expected return on plan assets	(1.2		)	(1.2		)	(0.2		)	—		(2.4		)	(2.5		)	(0.4		)	—
Amortization of net actuarial loss	0.3			0.5			0.1			0.1		0.6			0.9			0.1			0.2
Amortization of prior service credit	—			—			(0.1		)	—		—			—			(0.1		)	—
Net periodic pension (credit) cost	$	(0.1	)	$	0.1		$	0.1		$	0.2	$	(0.2	)	$	(0.1	)	$	0.2		$	0.4
Settlement loss	0.6			1.5			—			—		0.6			1.5			—			—
Curtailment gain	—			—			—			—		—			—			(0.7		)	—
Total pension cost (credit)	$	0.5		$	1.6		$	0.1		$	0.2	$	0.4		$	1.4		$	(0.5	)	$	0.4

Note 10 — Income Taxes

For interim income tax reporting, we are required to estimate our annual effective tax rate and apply it to year-to-date pre-tax ordinary income/loss excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded.

For both the three and six months ended June 30, 2014, we recorded income tax benefit of $1.6 million. For the three and six months ended June 30, 2013, we recorded income tax expense of $1.1 million and $1.5 million, respectively. The income tax benefit for the three months ended June 30, 2014 was driven primarily by the relative mix of income (loss) in the various jurisdictions and discrete events. The effective income tax rate for the three and six months ended June 30, 2014 differs from the U.S. federal statutory rate of 35 percent primarily due to a valuation allowance on various deferred tax assets and the effects of foreign tax rate differential.

We conduct business globally. As a result, we file income tax returns in multiple jurisdictions and are subject to review by various U.S and foreign taxing authorities. Our U.S. federal income tax returns for 2010 through 2013 are subject to examination by the Internal Revenue Service. With few exceptions, we are no longer subject to examination by foreign tax jurisdictions or state and city tax jurisdictions for years before 2006. In the event that we have determined not to file tax returns with a particular state or city, all years remain subject to examination by the tax jurisdiction.

We accrue for the effects of uncertain tax positions and the related potential penalties and interest. Our liability related to uncertain tax positions, which is presented in other liabilities on our Condensed Consolidated Balance Sheets and which includes interest and penalties and excludes certain unrecognized tax benefits that have been netted against deferred tax assets, was $6.3 million and $6.0 million as of June 30, 2014 and December 31, 2013, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of our unrecognized tax positions will increase or decrease during the next twelve months; however it is not possible to reasonably estimate the effect at this time.

Note 11 — Debt

Our Credit Agreement entered into in 2006 and its amendments (the Credit Agreement) and the Credit Agreement entered into in 2013 with a lender in Japan (the Japan Credit Agreement) are both described in Note 11 - Debt of our Annual Report on Form 10-K for the year ended December 31, 2013. As of June 30, 2014, our borrowing capacity under all credit agreements, after consideration of amounts outstanding, was $30.5 million.

As of June 30, 2014, we had $20.0 million of borrowings outstanding under our credit facilities with interest rates ranging from 2.4 percent to 2.8 percent. We are in compliance with our covenant requirements as of June 30, 2014.

Note 12 — Fair Value Measurements

Derivative Financial Instruments

Cash Flow Hedges

We attempt to substantially mitigate the risk that forecasted cash flows denominated in foreign currencies may be adversely affected by changes in the currency exchange rates through the use of option, forward and combination option contracts. Gains and losses related to cash flow hedges are deferred in accumulated other comprehensive loss with a corresponding asset or liability. When the hedged transaction occurs, the gains and losses in accumulated other comprehensive

16

loss are reclassified into the Condensed Consolidated Statements of Operations in the same line as the item being hedged. The following table sets forth our cash flow hedges which are measured at fair value on a recurring basis.

	June 30, 2014							December 31, 2013
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)
Derivative assets
Foreign currency option contracts	$	—	$	0.3		$	—	$	—	$	1.8		$	—
Foreign currency forward contracts	—		0.9			—		—		3.3			—
Derivative liabilities
Foreign currency option contracts	—		—			—		—		(0.2		)	—
Foreign currency forward contracts	—		(0.3		)	—		—		(0.5		)	—
Total net derivative assets	$	—	$	0.9		$	—	$	—	$	4.4		$	—

Other Derivative Instruments

We use foreign currency forward contracts to manage the foreign currency exposure related to our monetary assets and liabilities denominated in foreign currencies. We record the estimated fair value of these forward contracts in other current assets or other current liabilities on our Condensed Consolidated Balance Sheets. Because we do not receive hedge accounting for these derivatives, changes in their value are recognized every reporting period in the Condensed Consolidated Statements of Operations.

For the three months ended June 30, 2014 and 2013, we recorded net foreign currency losses of 0.4 million and gains of $0.1 million, respectively, in other (income) expense in the Condensed Consolidated Statements of Operations. These net (gains) losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of losses of $0.1 million and gains of $0.8 million from the related foreign currency forward contracts for the three months ended June 30, 2014 and 2013, respectively.

For the six months ended June 30, 2014 and 2013, we recorded net foreign currency losses of $0.4 million and gains of $0.6 million, respectively, in other expense (income) in the Condensed Consolidated Statements of Operations. These gains and losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of losses of $0.3 million and gains of $1.1 million from the related foreign currency forward contracts for the six months ended June 30, 2014 and 2013, respectively.

The notional amounts and fair values of our derivative instruments recorded in other current assets and other current liabilities in the Condensed Consolidated Balance Sheets were as follows:

	June 30, 2014							December 31, 2013
			Fair Value							Fair Value
(In millions)	Notional Amount		Other Current Assets		Other Current Liabilities			Notional Amount		Other Current Assets		Other Current Liabilities
Cash flow hedges designated as hedging instruments	$	69.8	$	1.2	$	(0.3	)	$	133.8	$	5.1	$	(0.7	)
Other hedges not receiving hedge accounting	25.9		—		—			29.4		—		—
Total	$	95.7	$	1.2	$	(0.3	)	$	163.2	$	5.1	$	(0.7	)

Note 13 — Shareholders' Equity

Treasury Stock

On May 2, 2012, our Board of Directors authorized a share repurchase program that allowed for the repurchase of 5.0 million shares of common stock, replacing our previous authorization. For the three months ended June 30, 2014 we repurchased 0.3 million shares of common stock for $0.9 million. Since the authorization of this program, we have repurchased 2.1 million shares of common stock for $9.9 million, and as of June 30, 2014 we had remaining authorization to repurchase up to 2.9 million additional shares. The treasury stock held as of June 30, 2014 was acquired at an average price of $19.57 per share.

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Following is a summary of treasury share activity:

	Treasury Shares
Balance as of December 31, 2013	1,121,926
Purchases	260,268
Exercise of stock options	(87,569	)
Restricted stock grants, forfeitures and other	(924,546	)
401(k) matching contribution	(273,032	)
Balance as of June 30, 2014	97,047

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss and related activity consisted of the following:

(In millions)	Gains (Losses) on Derivative Financial Instruments			Defined Benefit Plans			Foreign Currency Translation			Total
Balance as of December 31, 2013	$	2.4		$	(11.6	)	$	(53.6	)	$	(62.8	)
Other comprehensive income (loss) before reclassifications, net of tax1	(1.5		)	0.8			(1.3		)	(2.0		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(0.4		)	0.7			—			0.3
Net current-period other comprehensive income (loss)	(1.9		)	1.5			(1.3		)	(1.7		)
Balance as of June 30, 2014	$	0.5		$	(10.1	)	$	(54.9	)	$	(64.5	)

¹Income tax benefit of $0.9 million was recorded for unrealized losses on derivative financial instruments for the six months ended June 30, 2014.

Details of amounts reclassified from accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2014 are as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented
	Three Months Ended			Six Months Ended
(In millions)	June 30, 2014			June 30, 2014
Gains on cash flow hedges	$	(0.2	)	$	(0.8	)	Cost of goods sold
Income tax expense	0.1			0.4			Income tax provision
	(0.1		)	(0.4		)
Amortization of net actuarial loss	0.2			0.6			Selling, general and administrative
Net pension curtailment/settlement loss (gain)	0.6			(0.1		)	Restructuring and other
Income tax expense	—			0.2			Income tax provision
	0.8			0.7
Total reclassifications for the period	$	0.7		$	0.3

Note 14 — Segment Information

We manage our business through two reporting segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our reporting segments are generally aligned with our key consumer and commercial channels.

We have two major product categories under our CSA segment: Consumer storage media and Audio and accessories. Consumer storage media products include primarily optical products such as DVDs, CDs and Blu-ray^TM disc recordable media as well as flash media. Audio and accessories include primarily headphones, audio electronics and accessories. We have two

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major product categories under our TSS segment: Commercial storage media and Storage and security solutions. Commercial storage media products consist mainly of magnetic data storage tape media and RDX® media. Storage and security solutions includes storage hardware products, services and software for backup and archiving as well as primary storage; encrypted and biometric flash drives and hard disk drives; secure portable desktop solutions; and software solutions, including products which contain various security features such as password authentication, encryption and remote manageability.

We evaluate segment performance based on revenue and operating income (loss). The operating income (loss) reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. Corporate and unallocated amounts include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, intangible asset abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments.

The operating results of our former XtremeMac and Memorex consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations and are not included in segment results for all periods presented. See Note 4 - Acquisitions and Divestitures for further information on these divestitures.

Net revenue and operating income (loss) from continuing operations by segment were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Net revenue
Consumer Storage and Accessories
Consumer storage media	$	84.5	$	107.3	$	174.0	$	221.5
Audio and accessories	10.6		9.6		21.1		17.2
Total Consumer Storage and Accessories	95.1		116.9		195.1		238.7
Tiered Storage and Security Solutions
Commercial storage media	54.0		61.8		105.4		128.7
Storage and security solutions	29.5		33.0		57.0		68.7
Total Tiered Storage and Security Solutions	83.5		94.8		162.4		197.4
Total net revenue	$	178.6	$	211.7	$	357.5	$	436.1

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2014			2013			2014			2013
Operating income (loss) from continuing operations
Consumer Storage and Accessories	$	3.2		$	20.8		$	7.3		$	26.7
Tiered Storage and Security Solutions	(8.5		)	(2.9		)	(17.3		)	(5.9		)
Total segment operating (loss) income	(5.3		)	17.9			(10.0		)	20.8
Corporate and unallocated	(14.8		)	(17.9		)	(26.2		)	(35.5		)
Total operating loss	(20.1		)	—			(36.2		)	(14.7		)
Interest income	(0.1		)	—			(0.2		)	—
Interest expense	0.6			0.6			1.2			1.3
Other, net expense (income)	0.8			0.1			1.0			(0.1		)
Loss from continuing operations before income taxes	$	(21.4	)	$	(0.7	)	$	(38.2	)	$	(15.9	)

Note 15 — Litigation, Commitments and Contingencies

Litigation

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We are the subject of various pending or threatened legal actions in the ordinary course of our business. All such matters are subject to many uncertainties and outcomes that are not predictable with assurance. Additionally, our businesses are subject to allegations of patent infringement by our competitors as well as by non-practicing entities (NPEs), sometimes referred to as “patent trolls,” who may seek monetary settlements from us, our competitors, suppliers and resellers, including the One-Blue litigation described below. Consequently, as of June 30, 2014, we are unable to reasonably estimate the ultimate aggregate amount of any monetary liability or financial impact that we may incur with respect to these matters. While we currently do not believe a loss associated with our litigation matters is probable, it is reasonably possible that the ultimate resolution of these matters could materially affect our financial condition, results of operations and cash flows.

On May 22, 2013, Imation was sued in U.S. District Court for the District of Delaware by five entities: One-Blue, LLC (One-Blue), which is an entity with licensing authority for a pool of patents relating to Blu-ray discs, and four members of One-Blue, Koninklijke Philips N.V., Panasonic Corporation, Pioneer Corporation and Sony Corporation. The plaintiffs allege that Imation's sales of certain Blu-ray discs infringe six patents and seek unspecified damages, treble damages and attorney's fees. On June 13, 2013, Imation filed an Answer, Affirmative Defenses, and Counterclaims, naming various defenses including that plaintiffs are barred, in whole or in part, from any recovery or relief by their refusal to license the patents-in-suit under fair, reasonable, and nondiscriminatory terms. Imation intends to vigorously defend the case. This matter is now in the discovery phase for issues relating to determination of a fair, reasonable, and nondiscriminatory royalty rate. In addition, Imation has a dispute with One-Blue regarding One-Blue's refusal to license its Japanese Blu-ray patents under fair, reasonable, and nondiscriminatory terms in Japan, where Imation's sales of Blu-ray discs are substantially greater than in the U.S. Imation Corporation Japan, Imation's Japanese subsidiary, has sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. Imation has notified its manufacturers of their indemnity obligations that it believes cover a portion of its liability, if any, to One-Blue and the other plaintiffs.

Copyright Levies

During the second quarter of 2014, there were no significant changes or events associated with copyright levies from those previously disclosed in our 2013 Annual Report on Form 10-K or first quarter 2014 Quarterly Report on Form 10-Q.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

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 Nexsan^TM hybrid storage solutions; IronKey^TMmobile 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 Imation^TM, Memorex^TM and TDK Life on Record^TM brands. Imation reaches customers in more than 100 countries through our global distribution network operating through two business segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). As used herein, the terms Imation, Company, we, us or our mean Imation Corp. and its subsidiaries unless the context indicates otherwise.

Executive Summary

Consolidated Results of Operations for the Three Months Ended June 30, 2014

• Net revenue from continuing operations of $178.6 million for the three months ended June 30, 2014 was down 15.6 percent compared with $211.7 million in the same period last year.

• Operating loss from continuing operations was $20.1 million for the three months ended June 30, 2014, compared with breakeven operating results in the same period last year which included the reversal of a $13.6 million accrual for copyright levies as a result of an Italian court ruling (See Note 15 - Litigation, Commitments and Contingencies in our Notes to Condensed Consolidated Financial Statements.)

• Diluted loss per share from continuing operations was $0.48 for the three months ended June 30, 2014 compared with a diluted loss per share of $0.04 for the same period last year.

Consolidated Results of Operations for the Six Months Ended June 30, 2014

• Net revenue from continuing operations of $357.5 million for the six months ended June 30, 2014 was down 18.0 percent compared with $436.1 million in the same period last year.

• Operating loss from continuing operations was $36.2 million for the six months ended June 30, 2014, compared with an operating loss of $14.7 million in the same period last year which included the reversal of a $13.6 million accrual for copyright levies discussed above.

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• Diluted loss per share from continuing operations was $0.89 for the six months ended June 30, 2014 compared with a diluted loss per share of $0.43 for the same period last year.

Cash Flow/Financial Condition for the Six Months Ended June 30, 2014

• Cash and cash equivalents totaled $114.7 million as of June 30, 2014 compared with $132.6 million at December 31, 2013.

• Cash used in operating activities was $16.8 million for the six months ended June 30, 2014 compared with cash used in operating activities of $7.7 million in the same period last year.

Results of Operations

The operating results of our former XtremeMac^TM andMemorex^TM consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations and are not included in segment results for all periods presented. See Note 4 - Acquisitions and Divestitures in our Notes to Condensed Consolidated Financial Statements for further information on these divestitures. The following discussion relates to continuing operations unless indicated otherwise.

Net Revenue

	Three Months Ended						Six Months Ended
	June 30,				Percent Change		June 30,				Percent Change
(Dollars in millions)	2014		2013				2014		2013
Net revenue	$	178.6	$	211.7	(15.6	)%	$	357.5	$	436.1	(18.0	)%

Our worldwide revenue for the three months ended June 30, 2014 decreased compared with the same period last year due to declines in our CSA and TSS reporting segments of 18.6 percent and 11.9 percent, respectively. These revenue declines were driven by a 21.2 percent decline in our consumer storage media products in CSA and a 12.6 percent decline in our commercial storage media products in TSS due to the expected secular declines that our legacy products are experiencing. For the six months ended June 30, 2014 our worldwide revenue decreased compared with the same period last year due to declines in our CSA and TSS reporting segments of 18.3 percent and 17.7 percent, respectively. These revenue declines were driven by a 21.4 percent decline in our consumer storage media products in CSA and an 18.1 percent decline in our commercial storage media products in TSS driven by these same secular declines. Additionally, for the three and six months ended June 30, 2014 revenue in our storage and security solutions products in TSS declined 10.6 percent and 17.0 percent, respectively, reflecting business conditions as further discussed in our segment results.

See Segment Results for further discussion of our reporting segments and our products. Revenue for the three months ended June 30, 2014 compared with the same period last year was not impacted by foreign currency translation while revenue for the six months ended June 30, 2014 compared with the same period last year was negatively impacted by foreign currency translation of 3.0 percent.

Gross Profit

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Gross profit	$	33.9		$	55.2		(38.6	)%	$	67.6		$	97.3		(30.5	)%
Gross margin	19.0		%	26.1		%			18.9		%	22.3		%

Gross profit for the three months ended June 30, 2014 decreased compared with the same period last year due to a $13.6 million reversal of an accrual for Italian copyright levies in the three months ended June 30, 2013 and lower overall revenue. See Note 15 - Litigation, Commitments and Contingencies in our Notes to Condensed Consolidated Financial Statements for more information on the levy reversal. Gross profit during the three months ended June 30, 2013 also included inventory write-offs of $0.7 million related to our restructuring programs, which was driven by the rationalization of certain product lines. Gross profit in our CSA reporting segment decreased $17.2 million in the three months ended June 30, 2014 compared to the same period last year which included the levy reversal. Gross profit in our TSS reporting segment decreased $4.8 million.

Gross profit for the six months ended June 30, 2014 decreased compared with the same period last year due primarily to lower overall revenue and was also impacted by the $13.6 million reversal of an accrual for Italian copyright levies as discussed above. Gross profit during the six months ended June 30, 2013 also included inventory write-offs of $2.8 million related to our restructuring programs, which was driven by the rationalization of certain product lines. Gross profit in our CSA

21

reporting segment decreased $19.5 million in the six months ended June 30, 2014 compared to the prior year which included the levy reversal. Gross profit in our TSS reporting segment decreased $13.0 million due mainly to lower revenues.

Gross margin for the three and six months ended June 30, 2014 decreased compared with the same periods last year. Gross margin in the CSA reporting segment decreased 11.2 points to 19.0 percent and 4.6 points to 19.2 percent, for the three and six months ended June 30, 2014, respectively, driven by the reversal of an accrual for Italian copyright levies during the second quarter of 2013 discussed above. Gross margin in the TSS reporting segment decreased 2.8 points to 18.9 percent and 3.3 points to 18.6 percent, for the three and six months ended June 30, 2014, respectively, from lower revenues and lower gross margin in our storage and security solutions products primarily due to the impact of fixed costs on the lower revenue.

Selling, General and Administrative (SG&A)

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Selling, general and administrative	$	44.3		$	46.5		(4.7	)%	$	87.7		$	95.8		(8.5	)%
As a percent of revenue	24.8		%	22.0		%			24.5		%	22.0		%

SG&A expense decreased for the three and six months ended June 30, 2014 compared with the same periods last year reflecting our continued cost reduction efforts. Our SG&A expense for the three months ended June 30, 2014 associated with our legacy businesses has decreased more than 10.0 percent from the three months ended June 30, 2013. These reductions have more than offset the additional investments in storage and security solutions products. We continue cost reduction efforts in our legacy businesses and in administrative areas and continue to focus our investment in priority growth initiatives for storage and security solutions.

Research and Development (R&D)

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Research and development	$	4.5		$	4.3		4.7	%	$	8.8		$	9.7		(9.3	)%
As a percent of revenue	2.5		%	2.0		%			2.5		%	2.2		%

R&D expense increased slightly for the three months ended June 30, 2014 compared with the same period last year from our increased investment in higher margin projects in our storage and security solutions products in TSS, partially offset by a reduction in legacy R&D. R&D expense decreased for the six months ended June 30, 2014 compared with the same period last year reflecting our reduction in legacy R&D spending for the year.

Restructuring and Other

	Three Months Ended						Six Months Ended
	June 30,				Percent Change		June 30,				Percent Change
(Dollars in millions)	2014		2013				2014		2013
Restructuring and other	$	5.2	$	4.4	18.2	%	$	7.3	$	6.5	12.3	%

For the three months ended June 30, 2014, the $5.2 million of restructuring and other expense included restructuring costs of $3.2 million, consisting primarily of severance and related costs. Additionally, we recorded a $0.6 million settlement loss related to our U.S. pension plan and $1.4 million of other costs primarily consisting of professional fees and employee costs. For the three months ended June 30, 2013 the $4.4 million of restructuring and other expense included restructuring costs of $1.6 million consisting of severance and related costs, lease termination costs and other restructuring related charges. Additionally, we recorded a $1.5 million settlement loss related to our U.S. pension plan and incurred acquisition and integration related costs of $0.8 million as well as other net costs of $0.5 million.

For the six months ended June 30, 2014, the $7.3 million of restructuring and other expense included restructuring costs of $3.8 million consisting primarily of severance and related costs. The $0.6 million settlement loss related to our U.S. pension plan recorded in the second quarter was offset by a $0.7 million curtailment gain related to our Japan pension plan recorded in the first quarter netting to a $0.1 million gain related to our pension plans in the six months ended June 30, 2014. We also recorded $3.6 million of other costs for the six months ended June 30, 2014 primarily consisting of employee costs and professional fees. For the six months ended June 30, 2013 the $6.5 million of restructuring and other expense included restructuring costs of $3.1 million consisting of severance and related costs, lease termination costs and other restructuring

22

related charges. Additionally, we recorded a $1.5 million settlement loss related to our U.S. pension plan and incurred acquisition and integration related costs of $1.2 million as well as other net costs of approximately $0.7 million.

Restructuring expense in 2014 and 2013 related to our 2012 Global Process Improvement Restructuring Program. See Note 7 - Restructuring and Other Expense in our Notes to Condensed Consolidated Financial Statements for further details of our restructuring and other expense.

Operating Loss from Continuing Operations

	Three Months Ended							Six Months Ended
	June 30,						Percent Change	June 30,						Percent Change
(Dollars in millions)	2014			2013				2014			2013
Operating loss from continuing operations	$	(20.1	)	$	—		NM	$	(36.2	)	$	(14.7	)	146.3	%
As a percent of revenue	(11.3		)%	—		%		(10.1		)%	(3.4		)%

NM - Not meaningful

Operating loss from continuing operations increased for the three and six months ended June 30, 2014 compared with the same periods last year primarily due to the items discussed above.

Other (Income) Expense

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Interest income	$	(0.1	)	$	—		NM		$	(0.2	)	$	—		NM
Interest expense	0.6			0.6			—	%	1.2			1.3			(7.7	)%
Other, net expense (income)	0.8			0.1			NM		1.0			(0.1		)	NM
Total other expense	$	1.3		$	0.7		85.7	%	$	2.0		$	1.2		66.7	%
As a percent of revenue	0.7		%	0.3		%			0.6		%	0.3		%

NM - Not meaningful

Other, net expense for the three and six months ended June 30, 2014 was up compared with the same periods last year due primarily to losses recorded on transactions denominated in foreign currencies in 2014 compared to gains recorded in 2013.

Income Tax (Benefit) Provision

	Three Months Ended						Six Months Ended
	June 30,					Percent Change	June 30,						Percent Change
(Dollars in millions)	2014			2013			2014			2013
Income tax (benefit) provision	$	(1.6	)	$	1.1	NM	$	(1.6	)	$	1.5		NM
Effective tax rate	7.5		%	NM			4.2		%	(9.4		)%

NM - Not meaningful

The income tax benefit for the three and six months ended June 30, 2014 compared to an income tax provision for the three and six months ended June 30, 2013 was driven primarily by the relative mix of income (loss) in various jurisdictions and discrete events. We maintain a valuation allowance related to our U.S. deferred tax assets and, therefore, no tax benefit was recorded related to our U.S. losses in any of the periods presented.

Loss from Discontinued Operations

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Loss on sale of discontinued businesses, net of income taxes	$	(1.2	)	$	—		—	%	$	(1.7	)	$	—		—	%
Loss from operations of discontinued businesses, net of income taxes	(0.4		)	$	(3.3	)	(87.9	)%	(0.6		)	$	(8.8	)	(93.2	)%
Loss from discontinued operations	$	(1.6	)	$	(3.3	)	(51.5	)%	$	(2.3	)	$	(8.8	)	(73.9	)%

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Loss from discontinued operations represents operations from our former XtremeMac and Memorex consumer electronics businesses. For the three and six months ended June 30, 2014 the loss includes a $1.2 million adjustment to expected proceeds on the sale of the XtremeMac business. The six months ended June 30, 2014 includes a $0.5 million loss on the initial sale of the XtremeMac business which closed on January 31, 2014. The loss for the three and six months ended June 30, 2013 includes $0.3 million and $1.4 million, respectively, of severance related restructuring expense. See Note 4 - Acquisitions and Divestitures in our Notes to Condensed Consolidated Financial Statements for more information on our discontinued operations.

Segment Results

We manage our business through two reporting segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our reporting segments are generally aligned with our key consumer and commercial channels.

We have two major product categories under our CSA reporting segment: consumer storage media and audio and accessories. Consumer storage media products include primarily optical products such as DVDs, CDs and Blu-ray disc recordable media as well as flash media. Audio and accessories include primarily headphones, audio electronics and accessories. We have two major product categories under our TSS reporting segment: commercial storage media and storage and security solutions. Commercial storage media products consist mainly of magnetic data storage tape media and RDXmedia. Storage and security solutions includes storage hardware products, services and software for backup and archiving as well as primary storage; encrypted and biometric flash drives and hard disk drives; secure portable desktop solutions; and software solutions, including products which contain various security features such as password authentication, encryption and remote manageability.

We evaluate segment performance based on revenue and operating income (loss). The operating income (loss) reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. Corporate and unallocated amounts include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, intangible asset abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments.

Information related to our segments is as follows:

Consumer Storage and Accessories

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Net revenue	$	95.1		$	116.9		(18.6	)%	$	195.1		$	238.7		(18.3	)%
Operating income	3.2			20.8			(84.6	)%	7.3			26.7			(72.7	)%
As a percent of revenue	3.4		%	17.8		%			3.7		%	11.2		%

The decrease in CSA revenue for the three and six months ended June 30, 2014 compared with the same periods last year was driven by declines in our consumer storage media products of $22.8 million, or 21.2 percent and $47.5 million, or 21.4 percent, respectively. From a product perspective, revenue declines were primarily due to the expected secular declines of $19.0 million and $40.4 million in optical media products for the three and six months ended June 30, 2014, respectively. Partially offsetting the decrease in revenue from consumer storage media products were 10.4 percent and 22.7 percent increases in revenue from audio and accessories products for the three and six months ended June 30, 2014, respectively, compared to the same periods last year driven by growth in our TDK Life on Record products.

Operating income decreased for the three and six months ended June 30, 2014 compared with the same periods last year driven by the reversal of an accrual for Italian copyright levies of $13.6 million in the second quarter of 2013 and lower gross profit in consumer storage media products in 2014 from lower revenues. For the three months ended June 30, 2014 SG&A and R&D expense were slightly higher than the same period last year and for the six months ended June 30, 2014 SG&A and R&D expense were consistent with the same period last year. We plan to continue our operating expense reduction efforts in this segment.

Tiered Storage and Security Solutions

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	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Net revenue	$	83.5		$	94.8		(11.9	)%	$	162.4		$	197.4		(17.7	)%
Operating loss	(8.5		)	(2.9		)	193.1	%	(17.3		)	(5.9		)	193.2	%
As a percent of revenue	(10.2		)%	(3.1		)%			(10.7		)%	(3.0		)%

The decrease in TSS revenue for the three and six months ended June 30, 2014 compared with the same periods last year was driven primarily by a decline in commercial storage media products, related to the expected secular decline in magnetic tape products of $7.8 million, or 12.6 percent and $23.3 million, or 18.1 percent, respectively. Compared to the same periods last year, storage and security solutions products revenue declined $3.5 million, or 10.6 percent and $11.7 million, or 17.0 percent, for the three and six months ended June 30, 2014, respectively. The decline reflects conditions including delays in hiring of sales force personnel, delays in purchasing from some of our larger customers and impacts from reductions in government spending that we experienced mostly during the first quarter of 2014. We continue to invest in our Nexsan products with hiring of sales personnel, introducing new products and promoting the brand globally. Despite the year over year decline for the second quarter of 2014, we started to see the benefits of our investments in sequential growth as Storage and security solution product revenue of $29.5 million for second quarter of 2014 was up from $27.5 million in the first quarter of 2014 reflecting growth in our Nexsan products in all geographic areas in the second quarter of 2014.

Operating loss increased for the three and six months ended June 30, 2014 compared with the same periods last year. The increase for the three months ended June 30, 2014 was driven by lower gross profit on storage and security solutions products and higher R&D and SG&A reflecting our increased investment in our Nexsan products. The operating loss increase for the six months ended June 30, 2014 was driven by lower gross profit on storage and security solutions products and commercial storage media products partially offset by lower R&D and SG&A for the six months ended June 30, 2014 compared to the prior year.

Corporate and Unallocated

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2014			2013					2014			2013
Operating loss	$	(14.8	)	$	(17.9	)	(17.3	)%	$	(26.2	)	$	(35.5	)	(26.2	)%

The Corporate and Unallocated operating loss decreased for the three and six months ended June 30, 2014 compared with the same periods last year. The decrease reflected inventory write-offs of $0.7 million and $2.8 million related to our restructuring programs recorded in the three and six months ended June 30, 2013, respectively. as well as higher miscellaneous corporate and unallocated costs recorded in 2013.

Impact of Changes in Foreign Currency Rates

We have a market presence in more than 100 countries and we sell products on a local currency basis through a variety of distribution channels. We source optical, flash and other finished goods from manufacturers located primarily in Asia, although much of this sourcing is on a U.S. dollar basis. Additionally, comparisons of revenue and gross profit from foreign countries are subject to various fluctuations due to the impact of translating results at differing exchange rates in different periods.

Changes in foreign currency translation rates did not impact worldwide revenue for the three months ended June 30, 2014 but negatively impacted worldwide revenue by 3.0 percent for the six months ended June 30, 2014. Changes in foreign currency translation rates negatively impacted worldwide revenue by 3.3 percent and 2.8 percent for the three and six months ended June 30, 2013. The impact on profit is more difficult to determine due to the influence of other factors that we believe are also impacted by currency rate changes.

Our foreign currency hedging program attempts to manage some of the foreign currency risks over near term periods, however, these risk management activities cannot ensure that the program will offset more than a portion of the adverse financial impact resulting from unfavorable movements in foreign exchange rates or that medium and longer term effects of exchange rates will not be significant (see Part 1, Item 3. Quantitative and Qualitative Disclosures about Market Risk in this Form 10-Q).

Financial Position

Our cash and cash equivalents balance as of June 30, 2014 was $114.7 million compared to $132.6 million as of December 31, 2013. Cash decreased as negative earnings for the six-month period, variable compensation payments and

25

seasonal rebate payments during the first quarter of 2014 and restructuring payments for the first half of 2014 were only partially offset by improvements in working capital.

Our accounts receivable balance as of June 30, 2014 was $127.8 million, a decrease of $35.5 million from $163.3 million as of December 31, 2013 as a result of lower sales during the period. Days sales outstanding was 60 days as of June 30, 2014, up 4 days from December 31, 2013 which was benefited by seasonally high revenues. Days sales outstanding is calculated using the count-back method, which calculates the number of days of most recent revenue that is reflected in the net accounts receivable balance.

Our inventory balance as of June 30, 2014 was $85.5 million, an increase of $1.2 million from $84.3 million as of December 31, 2013. Days of inventory supply was 60 days as of June 30, 2014, down 1 day from December 31, 2013. Days of inventory supply is calculated using the current period inventory balance divided by an estimate of the inventoriable portion of cost of goods sold expressed in days. The increase in inventory was due to replenishments of inventory from strong sales in the later part of 2013 while days of inventory supply remained consistent.

Liquidity and Capital Resources

Cash Flows Used in Operating Activities:

	Six Months Ended
	June 30,
(Dollars in millions)	2014			2013
Net loss	$	(38.9	)	$	(26.2	)
Adjustments to reconcile net loss to net cash used in operating activities	16.0			13.8
Changes in operating assets and liabilities	6.1			4.7
Net cash used in operating activities	$	(16.8	)	$	(7.7	)

Cash flows from operating activities can fluctuate from period to period as many items can impact cash flows. Cash used in operating activities was $16.8 million for the six months ended June 30, 2014 reflecting negative earnings and variable compensation and seasonal rebate payments in the first quarter of 2014 as well as restructuring payments for the first half of 2014 only partially offset by improvements in working capital. Cash used in operating activities was $7.7 million for the six months ended June 30, 2013 and included restructuring payments of $11.2 million.

Cash Flows (Used in) Provided by Investing Activities:

	Six Months Ended
	June 30,
(Dollars in millions)	2014			2013
Capital expenditures	$	(2.3	)	$	(3.5	)
Proceeds from purchase price adjustment	—			1.6
Proceeds from sale of disposal group	1.6			0.2
Net cash used in investing activities	$	(0.7	)	$	(1.7	)

Cash used in investing activities for the six months ended June 30, 2014 included capital expenditures of $2.3 million, partially offset by proceeds from the sale of our discontinued businesses. Cash used in investing activities for the six months ended June 30, 2013 included capital expenditures of $3.5 million offset by $1.6 million received as a result of a working capital adjustment to the Nexsan purchase price.

Cash Flows Used in Financing Activities:

26

	Six Months Ended
	June 30,
(Dollars in millions)	2014			2013
Purchase of treasury shares	$	(0.9	)	$	(2.5	)
Exercise of stock options	0.4			—
Short-term debt repayment	(24.9		)	—
Short-term borrowings	24.5			—
Contingent consideration payments	—			(0.5		)
Net cash used in financing activities	$	(0.9	)	$	(3.0	)

On May 2, 2012, our Board of Directors authorized a share repurchase program that allowed for the repurchase of 5.0 million shares of common stock, replacing our previous authorization. For the six months ended June 30, 2014 we repurchased 0.3 million shares of common stock for $0.9 million. Since the authorization of this program, we have repurchased 2.1 million shares of common stock for $9.9 million at an average price of $4.71 per share. As of June 30, 2014 we had remaining authorization to repurchase up to 2.9 million additional shares.

Our Credit Agreement entered into in 2006 and its amendments (the Credit Agreement) and the Credit Agreement entered into in 2013 with a lender in Japan (the Japan Credit Agreement) are both described in Note 11 - Debt of our Annual Report on Form 10-K for the year ended December 31, 2013. As of June 30, 2014, our borrowing capacity under all credit agreements, after consideration of amounts outstanding, was $30.5 million.

As of June 30, 2014, we had $20.0 million of borrowings outstanding under our credit facilities with interest rates ranging from 2.4 percent to 2.8 percent. We are in compliance with our covenant requirements as of June 30, 2014.

Our liquidity needs for the remaining six months of 2014 include the following: restructuring payments of approximately $2 million to $7 million, up to $20 million repayment on our credit facility, capital expenditures of approximately $3 million to $8 million, pension funding of approximately $1 million to $3 million, operating lease payments of approximately $3 million, any amounts associated with organic investment opportunities and any amounts associated with the repurchase of common stock under the authorization discussed above. We expect that cash and cash equivalents, together with cash flow from operations and availability of borrowings under our current sources of financing, will provide liquidity sufficient to meet these needs and for our operations.

Contractual Obligations

As of June 30, 2014, there have been no material changes to our contractual obligations as of December 31, 2013 as presented in our Annual Report on Form 10-K for the year ended December 31, 2013.

Copyright Levies

See Note 15 - Litigation, Commitments and Contingencies in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1 herein for further information.

Fair Value Measurements

See Note 12 - Fair Value Measurements in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1 herein for further information.

Critical Accounting Policies and Estimates

A discussion of the Company’s critical accounting policies was provided in Item 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. There were no significant changes to these accounting policies for the first three months of 2014.

Recent Accounting Pronouncements

See Note 2 - Recently Issued or Adopted Accounting Pronouncements in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1 herein for further information.

Forward-Looking Statements and Risk Factors

We may from time to time make written or oral forward-looking statements with respect to our future goals, including statements contained in this Form 10-Q, in our other filings with the Securities and Exchange Commission (SEC) and in our reports to shareholders.

27

Certain information which does not relate to historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words or phrases "is targeting," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "believe," or similar expressions identify "forward looking statements." Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include our ability to successfully implement our strategy; our ability to grow our business in new products with profitable margins and the rate of revenue decline for certain existing products; our ability to meet future revenue growth, gross margin and earnings targets; the ability to quickly develop, source, introduce and deliver differentiated and innovative products; our potential dependence on third parties for new product introductions or technologies in order to introduce our own new products; our ability to successfully implement restructuring plans; foreign currency fluctuations; the ready availability and price of energy and key raw materials or critical components including the effects of natural disasters and our ability to pass along raw materials price increases to our customers; continuing uncertainty in global and regional economic conditions; our ability to identify, value, integrate and realize the expected benefits from any acquisition which has occurred or may occur in connection with our strategy; the possibility that our goodwill and intangible assets or any goodwill or intangible assets that we acquire may become impaired; the ability of our security products to withstand cyber-attacks; changes in European law or practice related to the imposition or collectability of optical levies; the seasonality and volatility of the markets in which we operate; significant changes in discount rates and other assumptions used in the valuation of our pension plans; changes in tax laws, regulations and results of inspections by various tax authorities; our ability to successfully defend our intellectual property rights and the ability or willingness of our suppliers to provide adequate protection against third party intellectual property or product liability claims; the outcome of any pending or future litigation and patent disputes; ability to access financing to achieve strategic objectives and growth due to changes in the capital and credit markets; limitations in our operations that could arise from compliance with the debt covenants in our credit facilities; our ability to retain key employees; increased compliance with changing laws and regulations potentially affecting our operating results; failure to adequately protect our information systems from cyber-attacks and the volatility of our stock price due to our results or market trends, as well as various factors set forth in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2013 and from time to time in our filings with the SEC.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

Except for the paragraph noted below, there has been no material change since our Annual Report on Form 10-K for the year ended December 31, 2013. For further information, see Item 7A. Quantitative and Qualitative Disclosures about Market Risk included in our Annual Report on Form 10-K for the year ended December 31, 2013.

As of June 30, 2014, we had $95.7 million notional amount of foreign currency forward and option contracts of which $25.9 million hedged recorded balance sheet exposures. This compares to $163.2 million notional amount of foreign currency forward and option contracts as of December 31, 2013, of which $29.4 million hedged recorded balance sheet exposures. An immediate adverse change of 10 percent in quarter-end foreign currency exchange rates with all other variables (including interest rates) held constant would reduce the fair value of foreign currency contracts outstanding as of June 30, 2014 by $4.2 million.

Item 4. Controls and Procedures.

Based on an evaluation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)) as of June 30, 2014, the end of the period covered by this report, the President and Chief Executive Officer, Mark E. Lucas, and the Vice President and Chief Financial Officer, Scott J. Robinson, have concluded that the disclosure controls and procedures were effective.

During the quarter ended June 30, 2014, there was no change in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

In the normal course of business, we periodically enter into agreements that incorporate general indemnification language. Performance under these indemnities would generally be triggered by a breach of terms of the contract or by a third-party claim. There have historically been no material losses related to such indemnifications. In accordance with accounting principles generally accepted in the United States of America, we record a liability in our Condensed Consolidated Financial Statements for these actions when a loss is known or considered probable and the amount can be reasonably estimated.

28

We are the subject of various pending or threatened legal actions in the ordinary course of our business. All such matters are subject to many uncertainties and outcomes that are not predictable with assurance. Additionally, our businesses are subject to allegations of patent infringement by our competitors as well as by non-practicing entities (NPEs), sometimes referred to as “patent trolls,” who may seek monetary settlements from us, our competitors, suppliers and resellers, including the One-Blue litigation described below. Consequently, as of June 30, 2014, we are unable to reasonably estimate the ultimate aggregate amount of any monetary liability or financial impact that we may incur with respect to these matters. While we currently do not believe a loss associated with our litigation matters is probable, it is reasonably possible that the ultimate resolution of these matters could materially affect our financial condition, results of operations and cash flows.

On May 22, 2013, Imation was sued in U.S. District Court for the District of Delaware by five entities: One-Blue, LLC (One-Blue), which is an entity with licensing authority for a pool of patents relating to Blu-ray discs, and four members of One-Blue, Koninklijke Philips N.V., Panasonic Corporation, Pioneer Corporation and Sony Corporation. The plaintiffs allege that Imation's sales of certain Blu-ray discs infringe six patents and seek unspecified damages, treble damages and attorney's fees. On June 13, 2013, Imation filed an Answer, Affirmative Defenses, and Counterclaims, naming various defenses including that plaintiffs are barred, in whole or in part, from any recovery or relief by their refusal to license the patents-in-suit under fair, reasonable, and nondiscriminatory terms. Imation intends to vigorously defend the case. This matter is now in the discovery phase for issues relating to determination of a fair, reasonable, and nondiscriminatory royalty rate. In addition, Imation has a dispute with One-Blue regarding One-Blue's refusal to license its Japanese Blu-ray patents under fair, reasonable, and nondiscriminatory terms in Japan, where Imation's sales of Blu-ray discs are substantially greater than in the U.S. Imation Corporation Japan, Imation's Japanese subsidiary, has sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. Imation has notified its manufacturers of their indemnity obligations that it believes cover a portion of its liability, if any, to One-Blue and the other plaintiffs.

See Note 15 - Litigation, Commitments and Contingencies in our Notes to Condensed Consolidated Financial Statements in Part I, Item 1 herein for information on Copyright Levies.

Item 1A. Risk Factors.

There has been no material change in the risk factors set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. For further information, see Item 1A. “Risk Factors” included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 (a) - (b)

Not applicable

(c) Issuer Purchases of Equity Securities

					(c)
				Total Number of	Maximum Number
	(a)	(b)		Shares Purchased	of Shares that May
	Total Number	Average		as Part of Publicly	Yet Be Purchased
	of Shares	Price Paid		Announced Plans	Under the Plan or
Period	Purchased	per Share		or Programs	Programs
April 1, 2014 - April 30, 2014	—	$	—	—	3,147,258
May 1, 2014 - May 31, 2014	91,441	4.18		—	3,147,258
June 1, 2014 - June 30, 2014	246,839	3.52		245,665	2,901,593
Total	338,280	$	3.70	245,665	2,901,593

(a) The purchases in this column include shares repurchased as a part of our publicly announced program and include 92,615 shares that were surrendered to Imation by participants in our stock-based compensation plans (the Plans) to satisfy the tax obligations related to the vesting of restricted stock awards.

(b) The average price paid in this column related to shares that were surrendered to Imation by participants in the Plans to satisfy the tax obligations related to the vesting of restricted stock awards.

(c) On May 2, 2012, the Company's Board of Directors authorized a share repurchase program that allowed for the repurchase of 5.0 million shares of common stock. The authorization has no expiration date.

Item 3. Defaults Upon Senior Securities.

29

 Not Applicable

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information.

 Not Applicable

Item 6. Exhibits.

 The following documents are filed as part of this report:

Exhibit Number	Description of Exhibit
10.1*	Imation Corp. Director Compensation Program, effective May 4, 2005 (as amended effective May 7, 2014)
10.2*	Form of 2011 Stock Incentive Plan, Performance-Based Cash Award Agreement for Executive Officers for 2014 (incorporated by reference to Exhibit 10.1 of the Form 8-K filed June 16, 2014)
10.3*	Form of 2011 Stock Incentive Plan, Performance-Based Restricted Stock Award Agreement for Executive Officers for 2014 (incorporated by reference to Exhibit 10.2 of the Form 8-K Current Report filed June 16, 2014)
31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from Imation Corp.’s Quarterly Report on Form 10-Q for the period ended June 30, 2014, filed with the SEC on August 7, 2014, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2014 and 2013, (ii) the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2014 and 2013, (iii) the Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2014 and 2013, and (v) the Notes to Condensed Consolidated Financial Statements.

* Items that are management contracts or compensatory plans or arrangements required to be filed as an exhibit pursuant to Item 6 of Form 10-Q.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Imation Corp.
Date:	August 8, 2014	/s/ Scott J. Robinson
		Scott J. Robinson
		Vice President and Chief Financial Officer (duly authorized officer and principal financial officer)

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EXHIBIT INDEX

The following exhibits are filed as part of this report:

Exhibit Number	Description of Exhibit
10.1*	Imation Corp. Director Compensation Program, effective May 4, 2005 (as amended effective May 7, 2014)
10.2*	Form of 2011 Stock Incentive Plan, Performance-Based Cash Award Agreement for Executive Officers for 2014 (incorporated by reference to Exhibit 10.1 of the Form 8-K filed June 16, 2014)
10.3*	Form of 2011 Stock Incentive Plan, Performance-Based Restricted Stock Award Agreement for Executive Officers for 2014 (incorporated by reference to Exhibit 10.2 of the Form 8-K Current Report filed June 16, 2014)
31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101	The following financial information from Imation Corp.’s Quarterly Report on Form 10-Q for the period ended June 30, 2014, filed with the SEC on August 7, 2014, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2014 and 2013, (ii) the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2014 and 2013, (iii) the Condensed Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2014 and 2013, and (v) the Notes to Condensed Consolidated Financial Statements.

* Items that are management contracts or compensatory plans or arrangements required to be filed as an exhibit pursuant to Item 6 of Form 10-Q.

32

EX-10.1

Exhibit 10.1

IMATION CORP.

DIRECTORS COMPENSATION PROGRAM

EFFECTIVE MAY 4, 2005

(As amended effective May 7, 2014)

SECTION 1. PURPOSE

(a) The purpose of the Program is to attract and retain well-qualified persons for service as nonemployee directors of the Company and to promote identity of interest between directors and stockholders of the Company. The Program is designed and intended to comply with Rule 16b-3 under the Securities Exchange Act of 1934, as amended, as such Rule may be amended from time to time, and shall be interpreted in a manner consistent with the requirements thereof, as now or hereafter construed, interpreted and applied by regulations, rulings and cases.

(b) The Program is also intended to comply in form and operation with the requirements of Section 409A of the Code, or an exception thereto.

SECTION 2. DEFINITIONS

The following words and phrases have the meaning indicated below, unless the context clearly indicates otherwise.

(a) “Affiliate” means any entity that, together with the Company, is treated as a single employer under Code section 414(b) or (c). For purposes of determining whether a Termination of Employment has occurred, the term Affiliate will be determined by applying Code section 1563(a)((1), (2) and (3) for purposes of determining a controlled group of corporations under Code section 414(b) and in applying Treas. Reg. Section 1.414(c)-2 for purposes of determining trades or businesses that are under common control for purposes of Code section 414(c), the phrase “at least 50 percent” will be used instead of “at least 80 percent” each place it appears.

(b) “Accounting Date” means the first business day following the annual meeting of stockholders of the Company, or, if no annual meeting is held during a calendar year, it means December 31.

(c) “Basic Fee” means the annual retainer payable on a quarterly basis to an Eligible Director at the annual rate in effect on the Accounting Date for such Eligible Director’s services on the Board (exclusive of any Chairperson Fee, Non-Executive Chairman Fee or Meeting Fees.)

(d) “Board” means the Board of Directors of the Company.

(e) “Chairperson Fee” means the annual retainer payable on a quarterly basis to an Eligible Director at the annual rate in effect on the Accounting Date for such Eligible Director’s services as the chairperson of any committee of the Board.

(f) “Change in Control” has the meaning given it in Section 8(b) to the extent it is consistent with and satisfies the definition of “Change of Control” under Code section 409A.

(g) “Change in Control Price” of the Common Stock shall equal the higher of (i) if applicable, the price paid for the Common Stock in the transaction constituting a Change in Control and (ii) the Fair Market Value of the Common Stock as of the last trading day preceding the date of the Change in Control.

(h) “Code” means the Internal Revenue Code of 1986, as amended, and any applicable regulations or binding rules promulgated thereunder.

(i) “Committee” means the Compensation Committee of the Board.

(j) “Common Stock” means the common stock, par value $.01 per share, of the Company.

(k) “Company” means Imation Corp.

(l) “Dividend Equivalent Credit” has the meaning given it in Section 7(b).

(m) “Election Form” means the Election Form attached as Exhibit B hereto or such other form as may be deemed acceptable by the Secretary of the Company from time to time.

(n) “Eligible Director” means each member of the Board who is not at the time of reference an employee of the Company or any of its subsidiaries.

(o) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

(p) “Fair Market Value” as of any date means, the fair market value as defined under the Stock Plan.

(q) “Meeting Fees” means the amounts payable to an Eligible Director in arrears on any Quarterly Payment Date for attendance at meetings or participation in teleconferences of the Board or any committee of the Board (exclusive of any Basic Fee, Chairperson Fee or Non-Executive Chairman Fee).

(r) “Non-Executive Chairman Fee” means the annual retainer payable on a quarterly basis to the Eligible Director who is selected to be the Non-Executive Chairman at the annual rate in effect on the Accounting Date for such Eligible Director’s services as the Non-Executive Chairman.

(s) “Program” means the Company’s Directors Compensation Program, as amended from time to time.

(t) “Proration Fraction” means a fraction, the numerator of which is the number of days from the date an Eligible Director first becomes an Eligible Director to the date of the next succeeding annual meeting of stockholders and the denominator of which is 365.

(u) “Quarterly Payment Date” means (i) the date established by the Company from time to time for payment, in arrears, of all Meeting Fees earned by Eligible Directors during the preceding calendar quarter, provided such date shall not be later than the fifteenth day of the third month following the end of such calendar quarter or (ii) the date established by the Company from time to time for payment, in advance, of the portion of the Basic Fee, Chairperson Fee and Non-Executive Chairman Fee payable to the Eligible Director for the upcoming calendar quarter, as applicable .

(v) “Restricted Stock Unit” means a right to receive payment of one share of Common Stock in accordance with the conditions set forth in Section 7 hereof or conditions established by the Committee.

(w) “Rule 16b-3” means Rule 16b-3 under the Exchange Act, as such Rule may be amended from time to time.

(x) “Separation from Service” means the individual has ceased to be a member of the Board and has ceased to provide services as an independent contractor (including as a member of any board of directors) of the Company and all Affiliates, or such other change in status that constitutes a “separation from service” under Code section 409A.

(y) Stock Plan” means the then current stock incentive plan of the Company used to grant stock based awards to Eligible Directors.

SECTION 3. ADMINISTRATION

(a) The Program shall be administered by the Committee.

(b) In administering the Program, it will be necessary to follow various laws and regulations. It may be necessary from time to time to change or waive requirements of the Program to conform with the law, to meet special circumstances not anticipated or covered in the Program, or to carry on successful operation of the Program, and in connection therewith, the Committee shall have the full power and authority to:

(i) Prescribe, amend, and rescind rules and regulations relating to the Program, establish procedures deemed appropriate for its administration, interpret the provisions of the Program, remedy ambiguities, and make any and all other determinations not herein specifically authorized which may be necessary or advisable for its effective administration;

(ii) Make any amendments to or modifications of the Program which may be required or necessary to make the Program set forth herein comply with the provisions of any laws, federal or state, or any regulations issued thereunder, and to cause the Company at its expense to take any action related to the Program which may be required under such laws or regulations;

(iii) Contest on behalf of the Eligible Directors or the Company, at the sole discretion of the Committee and at the expense of the Company, any ruling or decision on any issue related to the Program, and conduct any such contest and any resulting litigation to a final determination, ruling, or decision; and

(iv) Grant stock-based awards under the Program, as provided in Section 5 hereof.

(c) Unless otherwise expressly provided in the Program, all designations, determinations, interpretations and other decisions under or with respect to the Program or any award shall be within the sole discretion of the Committee, may be made at any time and shall be final, conclusive and binding upon any Eligible Director or beneficiary, and any employee of the Company.

SECTION 4. FEES/EXPENSES

(a) Each Eligible Director who is first elected to the Board at, or who continues to serve on the Board immediately following an annual meeting of stockholders, is entitled to receive a Basic Fee and a Chairperson Fee for serving as chairperson of a committee of the Board (as applicable). The Basic Fee and Chairperson Fee shall be payable quarterly in advance as follows for Eligible Directors who will continue to serve on the Board for the period the payment is payable:

Payment 1: a prorated payment payable for the period immediately following the annual meeting of stockholders to the end of the calendar quarter

Payment 2,3 and 4: payment as of the last day of the calendar quarter payable for the next calendar quarter

Payment 5: a prorated payment as of the last day of the calendar quarter payable for the period beginning on the first day of the next calendar quarter and ending as of the day the next annual meeting of stockholders

(b) Any Eligible Director who is designated as the Non-Executive Chairman is entitled to receive a Non-Executive Chairman Fee for services as the Non-Executive Chairman. The Non-Executive Chairman Fee shall be payable quarterly in advance as follows as long as the Eligible Director will continue to serve as the Non-Executive Chairman for the period the payment is payable:

Payment 1: a prorated payment payable for the period immediately following the annual meeting of stockholders to the end of the calendar quarter

Payment 2,3 and 4: payment as of the last day of the calendar quarter payable for the next calendar quarter

Payment 5: a prorated payment as of the last day of the calendar quarter payable for the period beginning on the first day of the next calendar quarter and ending as of the day the next annual meeting of stockholders

(c) Each Eligible Director who joins the Board or becomes a chairperson of a committee of the Board or Non-Executive Chairman after the annual meeting of stockholders is entitled to receive a Basic Fee, Chairperson Fee or Non-Executive Chairman Fee (as applicable) multiplied by the Proration Fraction, as of the date such Eligible Director first becomes an Eligible Director, chairperson of a committee of the Board or Non-Executive Chairman.

(d) Each Eligible Director is entitled to receive a Meeting Fee for attendance at a meeting of the Board or a Committee of the Board or participation in a teleconference in lieu of such meeting. The Meeting Fees are payable in arrears on the Quarterly Payment Date. Any member of the Board who interviews a Board candidate shall be entitled to receive compensation in an amount equal to the Meeting Fee for an in person Board meeting for each such interview.

(e) The current rate of the Basic Fee, Chairperson Fee, Non-Executive Chairman Fee and Meeting Fees are set forth on the attached Exhibit A, and may be amended from time to time by the Board or any committee given responsibility for determining Board of Director compensation.

(f) Each Eligible Director is entitled to reimbursement for reasonable travel costs of attending Board and committee meetings and interviews of Board candidates. Such reimbursement shall be payable in cash after receipt of documentation by the Company from such Eligible Director, provided reimbursement is made no later than the end of the calendar year following the calendar year in which the expense was incurred.

SECTION 5. ANNUAL GRANT OF STOCK BASED AWARD

(a) Each Eligible Director who is first elected to the Board at, continues to serve on the Board or is serving as the Non-Executive Chairman of the Board immediately following an annual meeting of stockholders shall be granted a stock based award (i.e., options, restricted stock, etc.) as of the date of such meeting in type, proportion and amount to be determined by the Committee and under, and in accordance with, the terms of the Stock Plan.

(b) Each Eligible Director who joins the Board after an annual meeting of stockholders, shall be granted a stock based award pursuant to this Section 5 as of the date such Eligible Director first becomes an Eligible Director based on the dollar value of the grant made at the time of the immediately preceding annual meeting of stockholders (“Grant”),

multiplied by the Proration Fraction and allocated in the same manner as the Grant. An Eligible Director who is appointed the Non-Executive Chairman of the Board after an annual meeting of stockholders, shall be granted a stock based award pursuant to this Section 5 as of the date such Eligible Director first becomes the Non-Executive Chairman of the Board based on dollar value of the grant made at the time of the immediately preceding annual meeting of stockholders (Non-Executive Grant”), multiplied by the Proration Fraction and allocated in the same manner as the Non-Executive Grant.

(c) Terms and conditions of stock based awards (such as grant price, vesting schedule, etc.) shall be as determined by the Committee and under, and in accordance with, the terms of the Stock Plan.

(d) The amount and composition of the current annual stock based award are set forth on the attached Exhibit A, which may be amended from time to time by the Board or any committee given responsibility for determining Board of Director compensation.

SECTION 6. MATCHING GIFT PROGRAM

Each Eligible Director is entitled to a matching gift from the Company of up to $7,500 per calendar year to qualifying charitable institutions, prorated for any calendar year that Eligible Director joins the Board. Each Eligible Director must submit evidence of such gift to the Company and the Company will send the matching contribution directly to the qualifying charitable institution on behalf of the Eligible Director.

SECTION 7. ELECTIONS TO RECEIVE COMMON STOCK OR RESTRICTED STOCK UNITS

(a) Elections.

(i) Common Stock. Each Eligible Director who is not covered by clause (iii) below, may elect to receive, in lieu of a cash payment for his or her Basic Fee, Chairperson Fee, Non-Executive Chairman Fee and/or Meeting Fees (or a portion thereof, as elected by the Eligible Director), a number of shares of Common Stock (excluding fractional shares, which shall be paid in cash (or carried over to the next payment if an Eligible Director elects to be paid all in Common Stock)), which is calculated by dividing his or her Basic Fee, Chairperson Fee, Non-Executive Chairman Fee and/or Meeting Fees (or a portion thereof), by the Fair Market Value of one share of Common Stock on the Accounting Date or Quarterly Payment Date, as applicable. To be effective, any such election shall be made by submitting a completed and executed Election Form to the Secretary of the Company prior to the relevant Accounting Date or Quarterly Payment Date, as applicable.

(ii) Restricted Stock Units. Each Eligible Director who is not covered by clause (iii) below, may elect to receive, in lieu of cash payment for his or her Basic Fee, Chairperson Fee, Non-Executive Chairman Fee and/or Meeting Fees, Restricted Stock Units (including fractional Restricted Stock Units) calculated by dividing his or her Basic Fee, Chairperson Fee, Non-Executive Chairman Fee and/or Meeting Fees (or a portion thereof, as elected by the Eligible Director) for services to be performed in the following the calendar year by the Fair Market Value of one share of Common Stock on the Accounting Date or Quarterly Payment Date, as applicable. To be effective, any such election relating to the Basic Fee, Chairperson Fee, Non-Executive Chairman Fee or Meeting Fees shall be made by submitting a completed and executed Election Form to the Secretary of the Company prior to the calendar year in which the Eligible Director wishes the election to be in effect and such election shall be irrevocable for such calendar year.

(iii) New Directors. Each Eligible Director who during the preceding twenty-four (24) months has not participated in any deferred compensation arrangement of the Company or any Affiliate that would be treated as a single plan with this Plan under Treas. Reg. Sec. 1.409A-1(c)(2)(i) and who joins the Board between annual meetings of stockholders may elect prior to first becoming an Eligible Director to receive, in lieu of cash payment for his or her Basic Fee, Chairperson Fee and/or Non-Executive Chairman Fee, a number of shares of Common Stock (excluding fractional shares, which shall be paid in cash (or carried over to the next payment if an Eligible Director elects to be paid all in Common Stock)) and/or Restricted Stock Units (including fractional Restricted Stock Units) up to the number which is calculated by (A) multiplying the sum of his or her Basic Fee, Chairperson Fee, Non-Executive Chairman Fee (or a portion thereof, as elected by the Eligible Director) payable with respect to the time prior to the next annual meeting of stockholders which the Eligible Director is first elected to the Board by the Proration Fraction and (B) dividing the product resulting from clause (A) by the Fair Market Value of one share of Common Stock on the date that the Eligible Director becomes an Eligible Director. Each Eligible Director may also elect to receive, in lieu of cash payment for his or her Meeting Fees (or a portion thereof, as elected by the Eligible Director), Common

Stock (excluding fractional shares, which shall be paid in cash (or carried over to the next payment if an Eligible Director elects to be paid all in Common Stock)) Restricted Stock Units (including fractional Restricted Stock Units) calculated by dividing his or her Meeting Fees (or portion thereof) by the Fair Market Value of one share of Common Stock on the Quarterly Payment Date. To be effective, any such election shall be made by submitting a completed and executed Election Form to the Secretary of the Company prior to the date that the Eligible Director becomes a Director, and such Election Form shall be irrevocable on the date he or she first becomes an Eligible Director for that calendar year with respect to any election (or lack of election) to receive Restricted Stock Units.

(b) Restricted Stock Units.

(i) Account. Upon the grant of Restricted Stock Units to an Eligible Director, such units shall be credited to an account established for such Eligible Director. A Restricted Stock Unit shall be treated as granted on the corresponding Accounting Date or last day of the calendar quarter relating to the fees for which the Restricted Stock Units are determined. Each Eligible Director shall receive an annual statement showing the number of Restricted Stock Units that have been credited to the Eligible Director’s account under the Program.

(ii) Dividend Equivalent Credits. An Eligible Director’s account shall be credited with Dividend Equivalent Credits equivalent to the amount of dividends paid by the Company to holders of outstanding shares of Common Stock based on the number of Restricted Stock Units credited to the Eligible Director’s account on the dividend record date for shares of Common Stock. Such Dividend Equivalent Credit shall be converted into an equivalent number of Restricted Stock Units (including fractional Restricted Stock Units) based on the fair market value of one share of Common Stock on the related dividend payment date and such Restricted Stock Units shall be subject to the same distribution timing as the underlying Restricted Stock Units to which the Dividend Equivalent Credits related. If a dividend is paid in cash, each Eligible Director shall be credited, as of each applicable dividend payment date, in accordance with the following formula:

(A X B) / C

in which “A” equals the number of Restricted Stock Units held by the Eligible Director on the dividend record date, “B” equals the cash dividend per share and “C” equals the Fair Market Value per share of Common Stock on the dividend payment date. If a dividend is paid in property other than cash, Dividend Equivalent Credits shall be credited, as of the applicable dividend payment date, in accordance with the formula set forth above, except that “B” shall equal the fair market value per share of the property that the Eligible Director would have received in respect of the number of shares of Common Stock equal to the number of Restricted Stock Units held by the Eligible Director as of the dividend record date, had such shares been owned by the Eligible Director as of the record date for such dividend.

(iii) Time of Payment. All payments in respect of an Eligible Director’s Restricted Stock Units shall be made as soon as practicable but not more than ninety (90) days following the earlier of (A) the Eligible Director’s death (B) the occurrence of a Change in Control, and (C) the specific date (including upon the Eligible Director’s Separation from Service) the Eligible Director has elected to receive payment pursuant to the applicable Election Form pursuant to which such Eligible Director elected to receive such Restricted Stock Units in lieu of cash. If distribution is to be made upon a Separation from Service and the individual is a “specified employee,” as defined under Code section 409A, on the date of such Separation from Service, then no distribution will be made before the date that is six (6) months after the date of the individual’s Separation from Services, or if earlier, upon his or her death.

(iv) Form of Payment. Payment in respect of Restricted Stock Units shall be made in one lump sum payment in the form of shares of Common Stock. For purposes of the preceding sentence, any payment made upon the occurrence of a Change in Control in full or partial payment of Restricted Stock Units shall be made in cash in an amount equal the Change in Control Price multiplied by the number of Restricted Stock Units (including fractional units).

(c) Stock Plan.

All shares of Common Stock and all Restricted Stock Units awarded pursuant to this Section 7 shall be awarded under, and in accordance with, the terms of the Stock Plan. Restricted Stock Units awarded hereunder shall be considered Other Stock-Based Awards under the Plan.

SECTION 8. CHANGE IN CONTROL

(a) For purposes of this Section 8, “Act” shall mean the Securities Exchange Act of 1934.

(b) For purposes of the Program, a “Change in Control” of the Company shall be deemed to have occurred if any one of the following events shall occur:

(i) the consummation of a transaction or series of related transactions during a 12-month period in which a person, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Act) that owns (after application of the attribution rules of Section 318 of the Code) less than 35% of the combined voting power of the Company’s outstanding voting stock prior to such transaction or the first of such series of related transactions), other than the Company or a subsidiary of the Company, or any employee benefit plan of the Company or a subsidiary of the Company, acquires ownership (after application of the attribution rules of Section 318 of the Code) of 35% or more of the combined voting power of the Company’s then outstanding voting stock (other than in connection with a Business Combination in which clauses (1) and (2) of Section 8(b) (iii) apply); or

(ii) a majority of the members of the Company’s Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors prior to the date of the election or appointment; or

(iii) the consummation of a reorganization, merger, statutory share exchange, consolidation or similar transaction involving the Company, a sale or other disposition in a transaction or series of related transactions within a 12-month period of all or substantially all of the Company’s assets or the issuance by the Company of its stock in connection with the acquisition of assets or stock of another entity (each, a “Business Combination”) in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were the owners of the Company’s outstanding voting stock immediately prior to such Business Combination own (after application of the attribution rules of Section 318 of the Code) immediately after the transaction or transactions more than 50% of the combined voting power of the then outstanding voting stock (or comparable equity interests) of the entity resulting from such Business Combination (including an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one of more subsidiaries), and (2) no person, entity or group (other than a direct or indirect parent entity of the Company that, after giving effect to the Business Combination, beneficially owns 100% of the outstanding voting securities (or comparable equity interests) of the entity resulting from the Business Combination) has acquired, during a 12-month period, ownership (after application of the attribution rules of Section 318 of the Code) of 35% or more of the combined voting power of the then outstanding voting stock (or comparable equity interests) of the entity resulting from such Business Combination.

Notwithstanding anything herein stated, no Change in Control shall be deemed to occur unless such event constitutes a change in ownership or effective control, or a change in the ownership of a substantial portion of the assets, of a business under Code section 409A.

SECTION 9. AMENDMENT; TERMINATION

The Board may at any time and from time to time alter, amend, suspend, or terminate the Program in whole or in part; provided, however, that no amendment which requires stockholder approval in order for the exemptions available under Rule 16b-3 to be applicable to the Program and the Eligible Directors shall be effective unless the same shall be approved by the stockholders of the Company entitled to vote thereon.

SECTION 10. RIGHTS OF ELIGIBLE DIRECTORS

Nothing contained in the Program or with respect to any grant shall interfere with or limit in any way the right of the stockholders of the Company to remove any Eligible Director from the Board pursuant to the bylaws of the Company, nor confer upon any Eligible Director any right to continue in the service of the Company as a director.

SECTION 11. GENERAL RESTRICTIONS

(a) Investment Representations. The Company may require any Eligible Director to whom Common Stock is issued, as a condition of receiving such Common Stock, to give written assurances in substance and form satisfactory to the Company and its counsel to the effect that such person is acquiring the Common Stock for his or her own account for

investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Company deems necessary or appropriate in order to comply with federal and applicable state securities laws.

(b) Compliance with Securities Laws. Each issuance shall be subject to the requirement that, if at any time counsel to the Company shall determine that the listing, registration or qualification of the shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental or regulatory body, is necessary as a condition of, or in connection with, the issuance of shares thereunder, such issuance may not be accepted or exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Committee. Nothing herein shall be deemed to require the Company to apply for or to obtain such listing, registration or qualification.

(c) Nontransferability. Except as otherwise provided by the Committee, Restricted Stock Units under this Program shall not be transferable by an Eligible Director other than by the laws of descent and distribution.

(d) No Acceleration of Distribution of Restricted Stock Units. The distribution of Restricted Stock Units may not be accelerated, including upon termination of the Program, if such acceleration would cause the distribution to become subject to tax under Code Section 409A.

SECTION 12. WITHHOLDING

The Company may defer making payments or delivering shares of Common Stock under the Program for up to 30 days to ensure that satisfactory arrangements have been made for the payment of any federal, state or local income or employment taxes that the Company reasonably determines in its sole discretion are required to be withheld with respect to such payment or delivery.

SECTION 13. GOVERNING LAW

The Program and all rights hereunder shall be construed in accordance with and governed by the internal law, and not the law of conflicts, of the State of Delaware.

SECTION 14. UNFUNDED PROGRAM

The Program shall be unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The Program shall not establish any fiduciary relationship between the Company and any Eligible Director or other person. To the extent any person holds any rights by virtue of a grant under the Program, such right shall be no greater than the right of an unsecured general creditor of the Company.

SECTION 15. HEADINGS

The headings of sections and subsections herein are included solely for convenience of reference and shall not affect the meaning of any of the provisions of the Program.

EXHIBIT A

FEES

(as of May 8, 2013)

Basic Fee	$ 50,000
Non-Executive Chairman	$ 87,500, in addition to the Basic Fee for service as a member of the Board of Directors.
Committee Chair	Audit & Finance: $25,000 Compensation: $15,000 Nominating & Governance: $10,000
Board Meetings/Teleconferences	$ 1,500/$1,000
Audit & Finance Meetings/Teleconferences	$ 1,500/$1,000
Compensation Committee Meetings/Teleconferences	$ 1,500/$1,000
Nomination & Governance Meetings/Teleconferences	$ 1,500/$1,000
Annual Stock Based Grants	All Eligible Directors: Dollar value $175,000 in restricted stock Non-Executive Chairman: $87,500 in restricted stock, in addition to the Annual Stock Based Grant for service as a member of the Board of Directors

EXHIBIT B

IMATION CORP.

DIRECTORS COMPENSATION PROGRAM

ELECTION FORM

THIS ELECTION is made by _________ (the “Eligible Director”), effective as of the ___ day of ___, 200_.

WHEREAS, Imation Corp., a Delaware corporation (the “Company”) has a director compensation program (the “Program”);

WHEREAS, the Eligible Director has the option under the Program to receive Common Stock and/or Restricted Stock Units in lieu of payment of certain cash compensation for service as a director of the Company;

NOW, THEREFORE, in accordance with the terms and conditions of the Program, the Eligible Director hereby agrees as follows:

The Program

This Election is entered into pursuant to the Program, which is incorporated herein by reference and made a part hereof. The Eligible Director hereby acknowledges receipt of a copy of the Program. All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Program.

Basic Fee, Chairperson Fee and Non-Executive Chairman Fee (“Annual Grant”)

The Basic Fee, Chairperson Fee and Non-Executive Chairman Fee is payable (and prorated) on the date first elected to the Board of Directors (if other than at an annual meeting of stockholders). Thereafter, the Basic Fee, Chairperson Fee and Non-Executive Chairman Fee is payable on each Accounting Date following the Annual Meeting of Stockholders.

** Special Tax Rules Relating to Election to Receive Restricted Stock Units

Due to Internal Revenue Code Section 409A relating to the taxation of deferred compensation, an election to receive Restricted Stock Units under the Program can only be made for services performed and payments to be received following the calendar year in which the election is made (e.g., an election made in 2013 is not effective until January 1, 2014). Also, the election must remain in effect for the ENTIRE calendar year. Any change in or termination of the election can only be made the year before it is to go in effect (e.g., a change for 2014 must be made before the end of 2013.)

Subject to the terms and conditions of the Program, the Eligible Director hereby elects to receive the Basic Fee, the Chairperson and Non-Executive Chairman Fee, if applicable, in the following manner:

BASIC FEE

___ % Election to receive Common Stock in lieu of Cash

___ % Election to receive Restricted Stock Units in lieu of Cash**

___ % Election to receive Cash

Total: 100 %

CHAIRPERSON FEE: (if applicable)

___ % Election to receive Common Stock in lieu of Cash

___ % Election to receive Restricted Stock Units in lieu of Cash**

___ % Election to receive Cash

Total: 100 %

MEETING FEES:

Subject to the terms and conditions of the Program, the Eligible Director elects to receive Meeting Fees compensation in the following manner, with such fees payable on each Quarterly Payment Date:

___ % Election to receive Common Stock in lieu of Cash

___ % Election to receive Restricted Stock Units in lieu of Cash**

___ % Election to receive Cash

Total: 100 %

NON-EXECUTIVE CHAIRMAN FEE: (if applicable)

___ % Election to receive Common Stock in lieu of Cash

___ % Election to receive Restricted Stock Units in lieu of Cash**

___ % Election to receive Cash

Total: 100 %

DISTRIBUTION ELECTION FOR RESTRICTED STOCK UNITS:(Must be completed if Eligible Director has made an Election to Receive Restricted Stock Units.)

The Eligible Director hereby elects to receive payment of his or her Restricted Stock Units on the earlier to occur of a Change in Control, his or her death or the following date:

___ ___-year anniversary of the grant date (please specify)

___ The date the Eligible Director incurs a “separation from service” with Company (within the meaning of Section 409A of the Internal Revenue Code).

___ Other (please specify date only): ___________________________

Term of Election

This Election will remain in effect until terminated or changed by the Eligible Director pursuant to written notice to the Secretary of the Company or filing of a new Election Form. Note: A change or termination of an Election to receive Restricted Stock Units will not become effective until January 1 of the calendar year following the calendar year the change or termination is filed with the Secretary of the Company.

IN WITNESS WHEREOF, the Eligible Director has entered into this Election on the day and year first above written, and the Company has accepted this Election as of such day and year.

ELIGIBLE DIRECTOR    

Signature

Accepted and Agreed to by IMATION CORP.

By:    

Title:

M:\Director Compensation\Director Compensation Program Document\Director Compensation Program as Amended FINAL May 2014.doc

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302

of the Sarbanes-Oxley Act of 2002

     I, Mark E. Lucas, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Imation Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a -15(e) and 15d -15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d -15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

August 8, 2014
By:	/s/ MARK E. LUCAS
	Mark E. Lucas,
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302

of the Sarbanes-Oxley Act of 2002

     I, Scott J. Robinson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Imation Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a -15(e) and 15d -15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a -15(f) and 15d -15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

August 8, 2014
By:	/s/ SCOTT J. ROBINSON
	Scott J. Robinson,
	Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

     In connection with the Quarterly Report of Imation Corp. (the “Company”) on Form 10-Q for the period ended June 30, 2014, as filed with the Securities and Exchange Commission (the “Report”), I, Mark E. Lucas, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)  The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 8, 2014

/s/ MARK E. LUCAS  

Mark E. Lucas, 

President and Chief Executive Officer 

EX-32.2

Exhibit 32.2

Certification Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

     In connection with the Quarterly Report of Imation Corp. (the “Company”) on Form 10-Q for the period ended June 30, 2014, as filed with the Securities and Exchange Commission (the “Report”), I, Scott J. Robinson, Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 8, 2014

/s/ SCOTT J. ROBINSON 

Scott J. Robinson, 

Vice President and Chief Financial Officer 

XML

Intangible Assets and Goodwill - Goodwill (Details) (USD $) In Millions, unless otherwise specified						6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2014 Storage Solutions	Jun. 30, 2014 Income Approach Valuation Technique Goodwill
Goodwill [Line Items]
Goodwill impairment test, estimated fair value in excess of carrying value, percentage		24.70%	25.70%	1.00%
Fair value inputs, forecast period						10 years
Fair value inputs, terminal growth rate						3.00%
Goodwill impairment test, decrease of residual growth rate potentially result in indication of impairment (less than 2.0 basis point)						0.02%
Goodwill impairment test, increase of discount rate potentially result in indication of impairment (less than 1.0 basis point)						0.01%
Fair value inputs, discount rate						13.50%
Goodwill	$ 72.7		$ 72.1		$ 64.7

XML

Litigation, Commitments and Contingencies (Details)	0 Months Ended
	May 22, 2013 Patent Entity Member	May 22, 2013 Entity Member
Commitments and Contingencies Disclosure [Abstract]
Number of entities sued in litigation		5
Number of members of One-Blue involved in litigation		4
Number of patents allegedly infringed	6

XML

Debt (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014
Line of Credit Facility [Line Items]
Current borrowing capacity	$ 30.5
Credit agreement amount outstanding	$ 20.0
Minimum
Line of Credit Facility [Line Items]
Debt interest rate	2.40%
Maximum
Line of Credit Facility [Line Items]
Debt interest rate	2.80%

XML

Retirement Plans (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Defined Benefit Plan Disclosure [Line Items]
Employer contributions in current fiscal year	$ 0.4		$ 0.8
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Settlement loss	0.6	1.5	(0.1)	1.5
United States
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	0	0	0	0
Interest cost	0.8	0.8	1.6	1.5
Expected return on plan assets	(1.2)	(1.2)	(2.4)	(2.5)
Amortization of net actuarial loss	0.3	0.5	0.6	0.9
Amortization of prior service credit	0	0	0	0
Net periodic pension (credit) cost	(0.1)	0.1	(0.2)	(0.1)
Settlement loss	0.6	1.5	0.6	1.5
Curtailment gain	0	0	0	0
Total pension cost (credit)	0.5	1.6	0.4	1.4
International
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	0.1	0.1	0.2	0.2
Interest cost	0.2	0	0.4	0
Expected return on plan assets	(0.2)	0	(0.4)	0
Amortization of net actuarial loss	0.1	0.1	0.1	0.2
Amortization of prior service credit	(0.1)	0	(0.1)	0
Net periodic pension (credit) cost	0.1	0.2	0.2	0.4
Settlement loss	0	0	0	0
Curtailment gain	0	0	(0.7)	0
Total pension cost (credit)	0.1	0.2	(0.5)	0.4
Minimum | Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated future employer contributions in current fiscal year			1.0
Maximum | Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated future employer contributions in current fiscal year			$ 3.0

XML

Basis of Presentation - AOCI (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			$ (62.8)
Other comprehensive income (loss) before reclassifications, net of tax			(2.0)	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			0.3
Net current-period other comprehensive income (loss)			(1.7)
Ending Balance	(64.5)		(64.5)
Income tax (benefit) provision	(1.6)	1.1	(1.6)		1.5
Selling, general and administrative	44.3	46.5	87.7		95.8
Net pension curtailment/settlement loss (gain)	(5.2)	(4.4)	(7.3)		(6.5)
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification for the period, net of tax	0.7		0.3
(Gains) Losses on cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			2.4
Other comprehensive income (loss) before reclassifications, net of tax			(1.5)	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			(0.4)
Net current-period other comprehensive income (loss)			(1.9)
Ending Balance	0.5		0.5
(Gains) Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Gains on cash flow hedges	(0.2)		(0.8)
Income tax (benefit) provision	0.1		0.4
Reclassification for the period, net of tax	(0.1)		(0.4)
Defined Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(11.6)
Other comprehensive income (loss) before reclassifications, net of tax			0.8	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			0.7
Net current-period other comprehensive income (loss)			1.5
Ending Balance	(10.1)		(10.1)
Defined Benefit Plans | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Income tax (benefit) provision	0		0.2
Reclassification for the period, net of tax	0.8		0.7
Selling, general and administrative	0.2		0.6
Net pension curtailment/settlement loss (gain)	0.6		(0.1)
As Reported
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance					(74.2)
Other comprehensive income (loss) before reclassifications, net of tax					(6.3)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax					(2.3)
Net current-period other comprehensive income (loss)					(8.6)
Ending Balance		(82.8)			(82.8)
As Reported | Defined Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance					(27.8)
Other comprehensive income (loss) before reclassifications, net of tax					0	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax					0.9
Net current-period other comprehensive income (loss)					0.9
Ending Balance		(26.9)			(26.9)
As revised
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance					(74.2)
Other comprehensive income (loss) before reclassifications, net of tax					(4.3)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax					(0.8)
Net current-period other comprehensive income (loss)					(5.1)
Ending Balance		(79.3)			(79.3)
As revised | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification for the period, net of tax		0.1			(0.8)
As revised | (Gains) Losses on cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Gains on cash flow hedges		(3.1)			(5.2)
Income tax (benefit) provision		1.2			2.0
Reclassification for the period, net of tax		(1.9)			(3.2)
As revised | Defined Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance					(27.8)
Other comprehensive income (loss) before reclassifications, net of tax					2.0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax					2.4
Net current-period other comprehensive income (loss)					4.4
Ending Balance		(23.4)			(23.4)
As revised | Defined Benefit Plans | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Income tax (benefit) provision		0			0
Reclassification for the period, net of tax		2.0			2.4
Selling, general and administrative		0.5			0.9
Net pension curtailment/settlement loss (gain)		$ 1.5			$ 1.5

[1] Income tax benefit of $0.9 million was recorded for unrealized losses on derivative financial instruments for the six months ended June 30, 2014.

XML

Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

The components of our amortizable intangible assets were as follows:

(In millions)	Trade Names			Software			Customer Relationships			Other			Total
June 30, 2014
Gross carrying amount	$	34.3		$	59.5		$	20.4		$	26.3		$	140.5
Accumulated amortization	(11.6		)	(54.8		)	(2.9		)	(8.0		)	(77.3		)
Intangible assets, net	$	22.7		$	4.7		$	17.5		$	18.3		$	63.2
December 31, 2013
Gross carrying amount	$	34.3		$	58.5		$	20.4		$	26.3		$	139.5
Accumulated amortization	(9.2		)	(53.3		)	(2.1		)	(6.3		)	(70.9		)
Intangible assets, net	$	25.1		$	5.2		$	18.3		$	20.0		$	68.6

Schedule of Intangible Asset Amortization Expense

Amortization expense for intangible assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Amortization expense	$	3.2	$	3.3	$	6.4	$	6.9

Schedule of Intangible Assets Estimated Amortization Expense

Based on the intangible assets in service as of June 30, 2014, estimated amortization expense for the remainder of 2014 and each of the next five years is as follows:

(In millions)	2014 (Remainder)		2015		2016		2017		2018
Amortization expense	$	6.2	$	11.9	$	8.5	$	7.7	$	6.3

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Fair Value Measurements - Other Hedges (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended			3 Months Ended																		3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013	Jun. 30, 2014 Foreign currency forward contracts	Jun. 30, 2013 Foreign currency forward contracts	Jun. 30, 2014 Other Current Assets	Dec. 31, 2013 Other Current Assets	Jun. 30, 2014 Other Current Liabilities	Dec. 31, 2013 Other Current Liabilities	Jun. 30, 2014 Hedges designated as hedging instruments Cash flow hedges	Dec. 31, 2013 Hedges designated as hedging instruments Cash flow hedges	Jun. 30, 2014 Hedges designated as hedging instruments Cash flow hedges Other Current Assets	Dec. 31, 2013 Hedges designated as hedging instruments Cash flow hedges Other Current Assets	Jun. 30, 2014 Hedges designated as hedging instruments Cash flow hedges Other Current Liabilities	Dec. 31, 2013 Hedges designated as hedging instruments Cash flow hedges Other Current Liabilities	Jun. 30, 2014 Other hedges not receiving hedge accounting	Dec. 31, 2013 Other hedges not receiving hedge accounting	Jun. 30, 2014 Other hedges not receiving hedge accounting Other Current Assets	Dec. 31, 2013 Other hedges not receiving hedge accounting Other Current Assets	Jun. 30, 2014 Other hedges not receiving hedge accounting Other Current Liabilities	Dec. 31, 2013 Other hedges not receiving hedge accounting Other Current Liabilities	Jun. 30, 2014 Other Expense	Jun. 30, 2013 Other Expense	Jun. 30, 2014 Other Expense	Jun. 30, 2013 Other Expense
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net foreign currency gain (loss)																						$ (0.4)	$ 0.1
Gain (loss) on foreign currency contracts	(0.3)	1.1		(0.1)	0.8																			(0.4)	0.6
Notional Amount	95.7		163.2							69.8	133.8					25.9	29.4
Derivative assets fair value						1.2	5.1					1.2	5.1					0	0
Derivative liabilities fair value								$ (0.3)	$ (0.7)					$ (0.3)	$ (0.7)					$ 0	$ 0

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Stock-Based Compensation (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014 plan	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 1.4	$ 1.4	$ 3.0	$ 3.2
Number of share-based compensation plans			5
Stock Incentive Plan 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	1,335,572		1,335,572
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (shares)			400,000
Non-option equity instruments outstanding, number of shares	3,100,000		3,100,000

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Supplemental Balance Sheet Information (Details) (USD $) In Millions, unless otherwise specified	Jun. 30, 2014		Dec. 31, 2013
Accounts Receivable
Accounts receivable	$ 137.3		$ 177.8
Less reserves and allowances	(9.5)	[1]	(14.5)	[1]
Accounts receivable, net	127.8		163.3
Inventories
Finished goods	78.2		76.3
Work in process	2.3		2.9
Raw materials and supplies	5.0		5.1
Total inventories	85.5		84.3
Property, Plant and Equipment
Property, plant and equipment	199.4		201.7
Less accumulated depreciation	(150.6)		(150.1)
Property, plant and equipment, net	48.8		51.6
Rebates payable	$ 26.7		$ 33.2

[1] Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts.

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Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			$ (62.8)
Other comprehensive income (loss) before reclassifications, net of tax			(2.0)	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			0.3
Net current-period other comprehensive income (loss)			(1.7)
Ending Balance	(64.5)		(64.5)
Income tax (benefit) expense for gains on derivative financial instruments			(0.9)
Income tax (benefit) provision	(1.6)	1.1	(1.6)		1.5
Selling, general and administrative	44.3	46.5	87.7		95.8
Net pension curtailment/settlement loss (gain)	(5.2)	(4.4)	(7.3)		(6.5)
Defined Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(11.6)
Other comprehensive income (loss) before reclassifications, net of tax			0.8	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			0.7
Net current-period other comprehensive income (loss)			1.5
Ending Balance	(10.1)		(10.1)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			(53.6)
Other comprehensive income (loss) before reclassifications, net of tax			(1.3)	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			0
Net current-period other comprehensive income (loss)			(1.3)
Ending Balance	(54.9)		(54.9)
(Gains) Losses on cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning Balance			2.4
Other comprehensive income (loss) before reclassifications, net of tax			(1.5)	[1]
Amounts reclassified from accumulated other comprehensive income (loss), net of tax			(0.4)
Net current-period other comprehensive income (loss)			(1.9)
Ending Balance	0.5		0.5
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Reclassification for the period, net of tax	0.7		0.3
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Income tax (benefit) provision	0		0.2
Selling, general and administrative	0.2		0.6
Net pension curtailment/settlement loss (gain)	0.6		(0.1)
Reclassification for the period, net of tax	0.8		0.7
Reclassification out of Accumulated Other Comprehensive Income | (Gains) Losses on cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Gains on cash flow hedges	(0.2)		(0.8)
Income tax (benefit) provision	0.1		0.4
Reclassification for the period, net of tax	$ (0.1)		$ (0.4)

[1] Income tax benefit of $0.9 million was recorded for unrealized losses on derivative financial instruments for the six months ended June 30, 2014.

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income tax (benefit) provision	$ (1.6)	$ 1.1	$ (1.6)	$ 1.5
Federal statutory income tax rate	35.00%		35.00%
Unrecognized tax benefits	$ 6.3		$ 6.3		$ 6.0

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Acquisitions and Divestitures (Notes)

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Discontinued Operations

On January 31, 2014, we completed the sale of our XtremeMac consumer electronics business for an estimated $3.1 million of total consideration consisting of $0.3 million of cash consideration, an interest-bearing note receivable consisting of $0.3 million (which matures in 2015) and $2.5 million estimated to be received based on the proceeds the purchase is able to achieve from selling the acquired inventory. The sale of this business resulted in a loss of $0.5 million which was recorded in discontinued operations during the first quarter of 2014. During the three months ended June 30, 2014, we revised downward our estimate of the consideration we expect to receive based on the purchaser's proceeds from selling the acquired inventory by $1.2 million and, accordingly recognized a loss of $1.2 million as a component of discontinued operations for the three and six months ended June 30, 2014. The balance of the receivable associated with the consideration for the disposition of XtremeMac is $1.3 million as of June 30, 2014.

On October 15, 2013, we completed the sale of the Memorex consumer electronics business for $9.3 million of total consideration. We received payments of $1.3 million during the three months ended June 30, 2014 and $0.9 million during the fourth quarter of 2013. The remaining receivable balance associated with the disposition of this business is recorded at an estimated fair value of $5.8 million of which $2.0 million is due during the next twelve months.

These divestitures are part of the acceleration of our strategic transformation that we announced during the fourth quarter of 2012. The operating results for the businesses sold are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented and reflect revenues and expenses that are directly attributable to these businesses that have been eliminated from ongoing operations. The consumer storage business under the Memorex and TDK Life on Record^TM brands and the consumer electronics business under the TDK Life on Record brand have been retained.

The key components of discontinued operations were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2014			2013			2014			2013
Net revenue	$	—		$	12.2		$	0.5		$	23.4
Loss on sale of discontinued businesses, before income taxes	(1.2		)	—			(1.7		)	—
Loss from operations of discontinued businesses, before income taxes	(0.4		)	(3.3		)	(0.6		)	(8.8		)
Income tax provision (benefit)	—			—			—			—
Loss from discontinued operations, net of income taxes	$	(1.6	)	$	(3.3	)	$	(2.3	)	$	(8.8	)

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Stock-Based Compensation - Stock Options Activity (Details) (USD $) In Millions, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Stock Options [Roll Forward]
Outstanding December 31, 2013 (shares)	5,371,538
Granted (shares)	61,275
Exercised (shares)	(87,569)
Canceled (shares)	(331,899)
Forfeited (shares)	(330,378)
Outstanding June 30, 2014 (shares)	4,682,967
Exercisable as of June 30, 2014 (shares)	3,897,982
Weighted Average Exercise Price [Roll Forward]
Outstanding December 31, 2013 (dollars per share)	$ 13.11
Granted (dollars per share)	$ 3.72
Exercised (dollars per share)	$ 3.97
Canceled (dollars per share)	$ 25.98
Forfeited (dollars per share)	$ 3.95
Outstanding June 30, 2014 (dollars per share)	$ 12.84
Exercisable as of June 30, 2014 (dollars per share)	$ 14.50
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options expiration term	10 years
Total unrecognized compensation expense related to non-vested stock	$ 1.2
Total compensation cost not yet recognized, period for recognition	1 year 5 months

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following table sets forth our cash flow hedges which are measured at fair value on a recurring basis.

	June 30, 2014							December 31, 2013
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)
Derivative assets
Foreign currency option contracts	$	—	$	0.3		$	—	$	—	$	1.8		$	—
Foreign currency forward contracts	—		0.9			—		—		3.3			—
Derivative liabilities
Foreign currency option contracts	—		—			—		—		(0.2		)	—
Foreign currency forward contracts	—		(0.3		)	—		—		(0.5		)	—
Total net derivative assets	$	—	$	0.9		$	—	$	—	$	4.4		$	—

Schedule of Derivative Instruments

The notional amounts and fair values of our derivative instruments recorded in other current assets and other current liabilities in the Condensed Consolidated Balance Sheets were as follows:

	June 30, 2014							December 31, 2013
			Fair Value							Fair Value
(In millions)	Notional Amount		Other Current Assets		Other Current Liabilities			Notional Amount		Other Current Assets		Other Current Liabilities
Cash flow hedges designated as hedging instruments	$	69.8	$	1.2	$	(0.3	)	$	133.8	$	5.1	$	(0.7	)
Other hedges not receiving hedge accounting	25.9		—		—			29.4		—		—
Total	$	95.7	$	1.2	$	(0.3	)	$	163.2	$	5.1	$	(0.7	)

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Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Schedule of Net Benefit Costs

Components of net periodic pension (credit) cost included the following:

	United States						International					United States						International
	Three Months Ended June 30,											Six Months Ended June 30,
(In millions)	2014			2013			2014			2013		2014			2013			2014			2013
Service cost	$	—		$	—		$	0.1		$	0.1	$	—		$	—		$	0.2		$	0.2
Interest cost	0.8			0.8			0.2			—		1.6			1.5			0.4			—
Expected return on plan assets	(1.2		)	(1.2		)	(0.2		)	—		(2.4		)	(2.5		)	(0.4		)	—
Amortization of net actuarial loss	0.3			0.5			0.1			0.1		0.6			0.9			0.1			0.2
Amortization of prior service credit	—			—			(0.1		)	—		—			—			(0.1		)	—
Net periodic pension (credit) cost	$	(0.1	)	$	0.1		$	0.1		$	0.2	$	(0.2	)	$	(0.1	)	$	0.2		$	0.4
Settlement loss	0.6			1.5			—			—		0.6			1.5			—			—
Curtailment gain	—			—			—			—		—			—			(0.7		)	—
Total pension cost (credit)	$	0.5		$	1.6		$	0.1		$	0.2	$	0.4		$	1.4		$	(0.5	)	$	0.4

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Stock-Based Compensation - Fair Value Assumptions (Details) (Stock Options)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Volatility	46.20%	42.80%
Risk-free interest rate	1.90%	1.00%
Expected life (months)	73 months	72 months
Dividend yield	0.00%	0.00%

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Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Schedule of Treasury Stock by Class

Following is a summary of treasury share activity:

	Treasury Shares
Balance as of December 31, 2013	1,121,926
Purchases	260,268
Exercise of stock options	(87,569	)
Restricted stock grants, forfeitures and other	(924,546	)
401(k) matching contribution	(273,032	)
Balance as of June 30, 2014	97,047

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss and related activity consisted of the following:

(In millions)	Gains (Losses) on Derivative Financial Instruments			Defined Benefit Plans			Foreign Currency Translation			Total
Balance as of December 31, 2013	$	2.4		$	(11.6	)	$	(53.6	)	$	(62.8	)
Other comprehensive income (loss) before reclassifications, net of tax1	(1.5		)	0.8			(1.3		)	(2.0		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(0.4		)	0.7			—			0.3
Net current-period other comprehensive income (loss)	(1.9		)	1.5			(1.3		)	(1.7		)
Balance as of June 30, 2014	$	0.5		$	(10.1	)	$	(54.9	)	$	(64.5	)

¹Income tax benefit of $0.9 million was recorded for unrealized losses on derivative financial instruments for the six months ended June 30, 2014.

Reclassification Out Of Accumulated Other Comprehensive Income

Details of amounts reclassified from accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2014 are as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented
	Three Months Ended			Six Months Ended
(In millions)	June 30, 2014			June 30, 2014
Gains on cash flow hedges	$	(0.2	)	$	(0.8	)	Cost of goods sold
Income tax expense	0.1			0.4			Income tax provision
	(0.1		)	(0.4		)
Amortization of net actuarial loss	0.2			0.6			Selling, general and administrative
Net pension curtailment/settlement loss (gain)	0.6			(0.1		)	Restructuring and other
Income tax expense	—			0.2			Income tax provision
	0.8			0.7
Total reclassifications for the period	$	0.7		$	0.3

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Schedule of Revenue and Operating Income, by Segment

Net revenue and operating income (loss) from continuing operations by segment were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Net revenue
Consumer Storage and Accessories
Consumer storage media	$	84.5	$	107.3	$	174.0	$	221.5
Audio and accessories	10.6		9.6		21.1		17.2
Total Consumer Storage and Accessories	95.1		116.9		195.1		238.7
Tiered Storage and Security Solutions
Commercial storage media	54.0		61.8		105.4		128.7
Storage and security solutions	29.5		33.0		57.0		68.7
Total Tiered Storage and Security Solutions	83.5		94.8		162.4		197.4
Total net revenue	$	178.6	$	211.7	$	357.5	$	436.1

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2014			2013			2014			2013
Operating income (loss) from continuing operations
Consumer Storage and Accessories	$	3.2		$	20.8		$	7.3		$	26.7
Tiered Storage and Security Solutions	(8.5		)	(2.9		)	(17.3		)	(5.9		)
Total segment operating (loss) income	(5.3		)	17.9			(10.0		)	20.8
Corporate and unallocated	(14.8		)	(17.9		)	(26.2		)	(35.5		)
Total operating loss	(20.1		)	—			(36.2		)	(14.7		)
Interest income	(0.1		)	—			(0.2		)	—
Interest expense	0.6			0.6			1.2			1.3
Other, net expense (income)	0.8			0.1			1.0			(0.1		)
Loss from continuing operations before income taxes	$	(21.4	)	$	(0.7	)	$	(38.2	)	$	(15.9	)

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(Loss) Earnings per Common Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

(Loss) Earnings per Common Share

(Loss) Earnings per Common Share

Basic (loss) earnings per common share is calculated using the weighted average number of shares outstanding for the period. Diluted (loss) earnings per common share is computed on the basis of the weighted average shares outstanding plus the dilutive effect of our stock-based compensation plans using the “treasury stock” method. Unvested restricted stock and treasury shares are excluded from the calculation of basic weighted average number of common shares outstanding. Once restricted stock vests, it is included in our common shares outstanding.

Potential common shares are excluded from the computation of diluted (loss) earnings per common share when the effect would be anti-dilutive. Stock options are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company's common stock for the period. All potential common shares are anti-dilutive in periods of net loss available to common shareholders.

The following table sets forth the computation of the weighted average basic and diluted (loss) earnings per share:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions, except for per share amounts)	2014			2013			2014			2013
Numerator:
Loss from continuing operations	$	(19.8	)	$	(1.8	)	$	(36.6	)	$	(17.4	)
Loss from discontinued operations, net of income taxes	(1.6		)	(3.3		)	(2.3		)	(8.8		)
Net loss	$	(21.4	)	$	(5.1	)	$	(38.9	)	$	(26.2	)
Denominator:
Weighted average number of common shares outstanding during the period - basic	41.2			40.5			41.0			40.5
Dilutive effect of stock-based compensation plans	—			—			—			—
Weighted average number of diluted shares outstanding during the period - diluted	41.2			40.5			41.0			40.5
Loss per common share — basic
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Loss per common share — diluted
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Anti-dilutive shares excluded from calculation	4.9			6.2			4.7			6.5

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Basis of Presentation Basis of Presentation (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net loss	$ (21.4)	$ (5.1)	$ (38.9)	$ (26.2)
Net unrealized (losses) gains on derivative financial instruments:
Net holding (losses) gains arising during the period	(0.5)	1.8	(1.5)	4.6
Reclassification adjustment for net realized gains included in net loss	(0.1)	(1.9)	(0.4)	(3.2)
Total net unrealized (losses) gains on derivative financial instruments	(0.6)	(0.1)	(1.9)	1.4
Net pension adjustments:
Liability adjustments for defined benefit plans	0.8	2.0	0.8	2.0
Reclassification of adjustments for defined benefit plans included in net loss	0.8	2.0	0.7	2.4
Total net pension adjustments	1.6	4.0	1.5	4.4
Unrealized foreign currency translation gains (losses)	2.2	(6.7)	(1.3)	(10.9)
Total other comprehensive income (loss), net of tax	3.2	(2.8)	(1.7)	(5.1)
Comprehensive loss	(18.2)	(7.9)	(40.6)	(31.3)
As Reported
Net loss		(5.1)		(26.2)
Net unrealized (losses) gains on derivative financial instruments:
Net holding (losses) gains arising during the period		1.8		4.6
Reclassification adjustment for net realized gains included in net loss		(1.9)		(3.2)
Total net unrealized (losses) gains on derivative financial instruments		(0.1)		1.4
Net pension adjustments:
Liability adjustments for defined benefit plans		0		0
Reclassification of adjustments for defined benefit plans included in net loss		0.5		0.9
Total net pension adjustments		0.5		0.9
Unrealized foreign currency translation gains (losses)		(6.7)		(10.9)
Total other comprehensive income (loss), net of tax		(6.3)		(8.6)
Comprehensive loss		(11.4)		(34.8)
As revised
Net loss		(5.1)		(26.2)
Net unrealized (losses) gains on derivative financial instruments:
Net holding (losses) gains arising during the period		1.8		4.6
Reclassification adjustment for net realized gains included in net loss		(1.9)		(3.2)
Total net unrealized (losses) gains on derivative financial instruments		(0.1)		1.4
Net pension adjustments:
Liability adjustments for defined benefit plans		2.0		2.0
Reclassification of adjustments for defined benefit plans included in net loss		2.0		2.4
Total net pension adjustments		4.0		4.4
Unrealized foreign currency translation gains (losses)		(6.7)		(10.9)
Total other comprehensive income (loss), net of tax		(2.8)		(5.1)
Comprehensive loss		$ (7.9)		$ (31.3)

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Restructuring and Other Expense (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended				6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
Restructuring and Related Activities [Abstract]
Severance and related	$ 2.4		$ 0.6		$ 2.8		$ 1.2
Lease termination costs	0		0.5		0.1		0.6
Other	0.8		0.5		0.9		1.3
Total restructuring	3.2		1.6		3.8		3.1
Contingent consideration fair value adjustment	0		(0.3)		0		(0.4)
Acquisition and integration related costs	0		0.8		0		1.2
Pension settlement/curtailment (Note 9)	0.6		1.5		(0.1)		1.5
Other	1.4	[1]	0.8	[1]	3.6	[1]	1.1	[1]
Total	5.2		4.4		7.3		6.5
Severance related to discontinued operations			$ 0.3				$ 1.4

[1] Other includes consulting fees and certain employee costs.

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Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting Information [Line Items]
Net revenue	$ 178.6	$ 211.7	$ 357.5	$ 436.1
Operating Income (Loss)	(20.1)	0	(36.2)	(14.7)
Interest income	(0.1)	0	(0.2)	0
Interest expense	0.6	0.6	1.2	1.3
Other, net expense (income)	0.8	0.1	1.0	(0.1)
Loss from continuing operations before income taxes	(21.4)	(0.7)	(38.2)	(15.9)
Operating Segments
Segment Reporting Information [Line Items]
Operating Income (Loss)	(5.3)	17.9	(10.0)	20.8
Corporate and Unallocated
Segment Reporting Information [Line Items]
Operating Income (Loss)	(14.8)	(17.9)	(26.2)	(35.5)
Consumer Storage and Accessories
Segment Reporting Information [Line Items]
Net revenue	95.1	116.9	195.1	238.7
Consumer Storage and Accessories | Operating Segments
Segment Reporting Information [Line Items]
Operating Income (Loss)	3.2	20.8	7.3	26.7
Consumer Storage and Accessories | Consumer storage media
Segment Reporting Information [Line Items]
Net revenue	84.5	107.3	174.0	221.5
Consumer Storage and Accessories | Audio and accessories
Segment Reporting Information [Line Items]
Net revenue	10.6	9.6	21.1	17.2
Tiered Storage and Security Solutions
Segment Reporting Information [Line Items]
Net revenue	83.5	94.8	162.4	197.4
Tiered Storage and Security Solutions | Operating Segments
Segment Reporting Information [Line Items]
Operating Income (Loss)	(8.5)	(2.9)	(17.3)	(5.9)
Tiered Storage and Security Solutions | Commercial storage media
Segment Reporting Information [Line Items]
Net revenue	54.0	61.8	105.4	128.7
Tiered Storage and Security Solutions | Storage and security solutions
Segment Reporting Information [Line Items]
Net revenue	$ 29.5	$ 33.0	$ 57.0	$ 68.7

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Condensed Consolidated Statements of Operations (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]
Net revenue	$ 178.6	$ 211.7	$ 357.5	$ 436.1
Cost of goods sold	144.7	156.5	289.9	338.8
Gross profit	33.9	55.2	67.6	97.3
Operating expenses:
Selling, general and administrative	44.3	46.5	87.7	95.8
Research and development	4.5	4.3	8.8	9.7
Restructuring and other	5.2	4.4	7.3	6.5
Total	54.0	55.2	103.8	112.0
Operating loss from continuing operations	(20.1)	0	(36.2)	(14.7)
Other (income) expense
Interest income	(0.1)	0	(0.2)	0
Interest expense	0.6	0.6	1.2	1.3
Other, net expense (income)	0.8	0.1	1.0	(0.1)
Total	1.3	0.7	2.0	1.2
Loss from continuing operations before income taxes	(21.4)	(0.7)	(38.2)	(15.9)
Income tax (benefit) provision	(1.6)	1.1	(1.6)	1.5
Loss from continuing operations	(19.8)	(1.8)	(36.6)	(17.4)
Discontinued operations:
Loss on sale of discontinued businesses, net of income taxes	(1.2)	0	(1.7)	0
Loss from operations of discontinued businesses, net of income taxes	(0.4)	(3.3)	(0.6)	(8.8)
Loss from discontinued operations, net of income taxes	(1.6)	(3.3)	(2.3)	(8.8)
Net loss	$ (21.4)	$ (5.1)	$ (38.9)	$ (26.2)
Loss per common share — basic:
Continuing operations (in dollars per share)	$ (0.48)	$ (0.04)	$ (0.89)	$ (0.43)
Discontinued operations (in dollars per share)	$ (0.04)	$ (0.08)	$ (0.06)	$ (0.22)
Net loss - basic (in dollars per share)	$ (0.52)	$ (0.13)	$ (0.95)	$ (0.65)
Loss per common share — diluted:
Continuing operations (in dollars per share)	$ (0.48)	$ (0.04)	$ (0.89)	$ (0.43)
Discontinued operations (in dollars per share)	$ (0.04)	$ (0.08)	$ (0.06)	$ (0.22)
Net loss - diluted (dollars per share)	$ (0.52)	$ (0.13)	$ (0.95)	$ (0.65)
Weighted average shares outstanding - basic (in shares)	41.2	40.5	41.0	40.5
Weighted average shares outstanding - diluted (in shares)	41.2	40.5	41.0	40.5

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Stock-Based Compensation - Restricted Stock (Details) (Restricted Stock, USD $) In Millions, except Share data, unless otherwise specified	6 Months Ended
	Jun. 30, 2014
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to non-vested stock	$ 5.1
Total compensation cost not yet recognized, period for recognition	1 year 10 months 24 days
Restricted Stock [Roll Forward]
Nonvested as of December 31, 2013 (shares)	1,192,321
Granted (shares)	1,086,524
Grant Adjustments (shares)	(4,925)
Vested (shares)	(697,133)
Forfeited (shares)	(16,135)
Nonvested as of June 30, 2014 (shares)	1,560,652
Weighted Average Grant Date Fair Value Per Share [Roll Forward]
Nonvested as of December 31, 2013 (dollars per share)	$ 4.87
Granted (dollars per share)	$ 3.72
Grants Adjustments (dollars per share)	$ 3.75
Vested (dollars per share)	$ 5.21
Forfeited (dollars per share)	$ 5.27
Nonvested as of June 30, 2014 (dollars per share)	$ 3.91

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Basis of Presentation

6 Months Ended

Jun. 30, 2014

Basis of Presentation [Abstract]

Basis of Presentation

Basis of Presentation

The interim Condensed Consolidated Financial Statements of Imation Corp. (Imation, the Company, we, us or our) are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of financial position, results of operations, comprehensive loss and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of full year results. The Condensed Consolidated Financial Statements and Notes are presented in accordance with the requirements for Quarterly Reports on Form 10-Q and do not contain certain information included in our annual Consolidated Financial Statements and Notes.

The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses for the reporting periods. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

The December 31, 2013 Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Financial Statements but does not include all disclosures required by U.S. GAAP. This Form 10-Q should be read in conjunction with our Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2013.

The operating results of our former XtremeMac^TM andMemorex^TM consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented. See Note 4 - Acquisitions and Divestitures for further information on these divestitures.

During the second quarter of 2014, we identified an error in our Condensed Consolidated Statement of Comprehensive Loss for the three and six months ended June 30, 2013 (as previously filed in our Quarterly Report on Form 10-Q for the period ended June 30, 2013), relating to presentation of activity associated with our U.S. defined benefit pension plan. The Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2013, the Condensed Consolidated Balance Sheet as of June 30, 2013 and the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2013 (as previously filed in our Quarterly Report on Form 10-Q for the period ended June 30, 2013) were not affected by this error. Additionally, our Statements of Comprehensive Loss as previously filed in our Quarterly Reports on Form 10-Q for the periods ended March 31, 2013 and September 30, 2013 as well as in our Annual Report on Form 10-K for the year ended December 31, 2013 were also not affected by this revision.

We evaluated this error in accordance with the Securities and Exchange Commission (SEC) Staff Accounting Bulletin No. 99 and No. 108 and determined that the impact of the error was not material to our previously filed financial statements. Therefore, amendments of previously filed reports are not required. However, we have revised our Statement of Comprehensive Loss for the three and six months ended June 30, 2013 presented in this Form 10-Q from amounts previously filed to correctly present activity associated with our U.S. defined benefit pension plan.

The impact of this revision to our Condensed Consolidated Statement of Comprehensive Loss for the three and six months ended June 30, 2013 is summarized as follows:

	Three Months Ended						Six Months Ended
	June 30, 2013						June 30, 2013
(In millions)	As Reported			As Revised			As Reported			As Revised
Net loss	$	(5.1	)	$	(5.1	)	$	(26.2	)	$	(26.2	)
Other comprehensive loss, net of tax:
Net unrealized (losses) gains on derivative financial instruments:
Net holding gains arising during the period	1.8			1.8			4.6			4.6
Reclassification adjustment for net realized gains included in net loss	(1.9		)	(1.9		)	(3.2		)	(3.2		)
Total net unrealized (losses) gains on derivative financial instruments	(0.1		)	(0.1		)	1.4			1.4
Net pension adjustments:
Liability adjustments for defined benefit plans	—			2.0			—			2.0
Reclassification adjustment for defined benefit plans included in net loss	0.5			2.0			0.9			2.4
Total net pension adjustments	0.5			4.0			0.9			4.4
Unrealized foreign currency translation losses	(6.7		)	(6.7		)	(10.9		)	(10.9		)
Total other comprehensive loss, net of tax	(6.3		)	(2.8		)	(8.6		)	(5.1		)
Comprehensive loss	$	(11.4	)	$	(7.9	)	$	(34.8	)	$	(31.3	)

This activity associated with our U.S defined benefit pension plan recorded in Accumulated other comprehensive loss was also erroneously disclosed in Note 13 - Shareholders’ Equity presented in our Quarterly Report on Form 10-Q for the period ended June 30, 2013. As only portions of this footnote were impacted and presented below, see the footnote in our Form 10-Q as of June 30, 2013 for the disclosure of activity relating to gains (losses) on derivative financial instruments and foreign currency translation, which were not impacted. The impact to this footnote is summarized as follows:

Accumulated other comprehensive loss and related activity:

	Defined Benefit Plans						Total
(In millions)	As Reported			As Revised			As Reported			As Revised
Balance as of December 31, 2012	$	(27.8	)	$	(27.8	)	$	(74.2	)	$	(74.2	)
Other comprehensive income (loss) before reclassifications, net of tax	—			2.0			(6.3		)	(4.3		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	0.9			2.4			(2.3		)	(0.8		)
Net current-period other comprehensive income (loss)	0.9			4.4			(8.6		)	(5.1		)
Balance as of June 30, 2013	$	(26.9	)	$	(23.4	)	$	(82.8	)	$	(79.3	)

Details of amounts (as revised) that were reclassified from Accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations in which such items were reclassified to during the three and six months ended June 30, 2013 were as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented
	Three Months Ended			Six Months Ended
(In millions)	June 30, 2013			June 30, 2013
Gains on cash flow hedges	$	(3.1	)	$	(5.2	)	Cost of goods sold
Income tax expense	1.2			2.0			Income tax provision
	(1.9		)	(3.2		)
Amortization of net actuarial loss	0.5			0.9			Selling, general and administrative
Pension settlement loss	1.5			1.5			Restructuring and other
Income tax expense	—			—			Income tax provision
	2.0			2.4
Total reclassifications for the period	$	0.1		$	(0.8	)

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Acquisitions and Divestitures Discontinued Operations Textual (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended		6 Months Ended	0 Months Ended	3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jan. 31, 2014 XtremeMac Consumer Electronics Business	Jun. 30, 2014 XtremeMac Consumer Electronics Business	Mar. 31, 2014 XtremeMac Consumer Electronics Business	Jun. 30, 2014 XtremeMac Consumer Electronics Business	Oct. 15, 2013 Memorex Consumer Electronics Business	Jun. 30, 2014 Memorex Consumer Electronics Business	Dec. 31, 2013 Memorex Consumer Electronics Business	Jun. 30, 2014 Due During Next Twelve Months Memorex Consumer Electronics Business
Long Lived Assets Held-for-sale [Line Items]
Total consideration from sale of business					$ 3.1				$ 9.3
Proceeds from sale of businesses					0.3					1.3	0.9
Note receivable from sale of business					0.3
Total consideration to be received from sale of business					2.5
Loss on sale of discontinued businesses	1.2	0	1.7	0		1.2	0.5	1.2
Notes receivable from sale of business						$ 1.3		$ 1.3		$ 5.8		$ 2.0

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(Loss) Earnings per Common Share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of the weighted average basic and diluted (loss) earnings per share:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions, except for per share amounts)	2014			2013			2014			2013
Numerator:
Loss from continuing operations	$	(19.8	)	$	(1.8	)	$	(36.6	)	$	(17.4	)
Loss from discontinued operations, net of income taxes	(1.6		)	(3.3		)	(2.3		)	(8.8		)
Net loss	$	(21.4	)	$	(5.1	)	$	(38.9	)	$	(26.2	)
Denominator:
Weighted average number of common shares outstanding during the period - basic	41.2			40.5			41.0			40.5
Dilutive effect of stock-based compensation plans	—			—			—			—
Weighted average number of diluted shares outstanding during the period - diluted	41.2			40.5			41.0			40.5
Loss per common share — basic
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Loss per common share — diluted
Continuing operations	$	(0.48	)	$	(0.04	)	$	(0.89	)	$	(0.43	)
Discontinued operations	(0.04		)	(0.08		)	(0.06		)	(0.22		)
Net loss	(0.52		)	(0.13		)	(0.95		)	(0.65		)
Anti-dilutive shares excluded from calculation	4.9			6.2			4.7			6.5

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Acquisitions and Divestitures Discontinued Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Long Lived Assets Held-for-sale [Line Items]
Loss on sale of discontinued businesses, net of income taxes	$ (1.2)	$ 0	$ (1.7)	$ 0
Loss from operations of discontinued businesses, net of income taxes	(0.4)	(3.3)	(0.6)	(8.8)
Loss from discontinued operations, net of income taxes	(1.6)	(3.3)	(2.3)	(8.8)
XtremeMac and Memorex
Long Lived Assets Held-for-sale [Line Items]
Net revenue	0	12.2	0.5	23.4
Loss on sale of discontinued businesses, net of income taxes	(1.2)	0	(1.7)	0
Loss from operations of discontinued businesses, net of income taxes	(0.4)	(3.3)	(0.6)	(8.8)
Income tax provision (benefit)	0	0	0	0
Loss from discontinued operations, net of income taxes	$ (1.6)	$ (3.3)	$ (2.3)	$ (8.8)

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Supplemental Balance Sheet Information (Tables)

6 Months Ended

Jun. 30, 2014

Supplemental Balance Sheet Information [Abstract]

Supplemental Balance Sheet Disclosures

Additional supplemental balance sheet information is provided as follow:

	June 30,			December 31,
(In millions)	2014			2013
Accounts Receivable
Accounts receivable	$	137.3		$	177.8
Less reserves and allowances1	(9.5		)	(14.5		)
Accounts receivable, net	$	127.8		$	163.3
Inventories
Finished goods	$	78.2		$	76.3
Work in process	2.3			2.9
Raw materials and supplies	5.0			5.1
Total inventories	$	85.5		$	84.3
Property, Plant and Equipment
Property, plant and equipment	$	199.4		$	201.7
Less accumulated depreciation	(150.6		)	(150.1		)
Property, plant and equipment, net	$	48.8		$	51.6

¹Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts.

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Recently Issued or Adopted Accounting Pronouncements

6 Months Ended

Jun. 30, 2014

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

Recently Issued or Adopted Accounting Pronouncements

Recently Issued or Adopted Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (FASB) issued new accounting guidance for reporting discontinued operations and disposals of components of an entity. The new guidance requires that a disposal representing a strategic shift, that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale, should be reported as discontinued operations. The new guidance also expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective for interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. This standard will not impact our historical financial position and results of operations, but we will apply this guidance to future dispositions, if any, that qualify for discontinued operations. We have not determined whether we plan on adopting this guidance early if any dispositions were to occur.

In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new guidance will replace all current U.S. GAAP guidance on revenue recognition and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for interim and annual periods beginning on or after December 15, 2016 (early adoption is not permitted). The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of this new guidance on our financial position and results of operations.

In June 2014, the FASB issued new accounting guidance related to stock compensation. The new guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new guidance is effective for interim and annual periods beginning on or after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings (early adoption is permitted). We are evaluating the impact, if any, of adopting this new guidance on our financial position and results of operations.

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Condensed Consolidated Statements of Comprehensive Loss (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statement of Comprehensive Income [Abstract]
Net loss	$ (21.4)	$ (5.1)	$ (38.9)	$ (26.2)
Net unrealized (losses) gains on derivative financial instruments:
Net holding (losses) gains arising during the period	(0.5)	1.8	(1.5)	4.6
Reclassification adjustment for net realized gains included in net loss	(0.1)	(1.9)	(0.4)	(3.2)
Total net unrealized (losses) gains on derivative financial instruments	(0.6)	(0.1)	(1.9)	1.4
Net pension adjustments:
Liability adjustments for defined benefit plans	0.8	2.0	0.8	2.0
Reclassification of adjustments for defined benefit plans included in net loss	0.8	2.0	0.7	2.4
Total net pension adjustments	1.6	4.0	1.5	4.4
Unrealized foreign currency translation gains (losses)	2.2	(6.7)	(1.3)	(10.9)
Total other comprehensive income (loss), net of tax	3.2	(2.8)	(1.7)	(5.1)
Comprehensive loss	$ (18.2)	$ (7.9)	$ (40.6)	$ (31.3)

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Fair Value Measurements

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Derivative Financial Instruments

Cash Flow Hedges

We attempt to substantially mitigate the risk that forecasted cash flows denominated in foreign currencies may be adversely affected by changes in the currency exchange rates through the use of option, forward and combination option contracts. Gains and losses related to cash flow hedges are deferred in accumulated other comprehensive loss with a corresponding asset or liability. When the hedged transaction occurs, the gains and losses in accumulated other comprehensive loss are reclassified into the Condensed Consolidated Statements of Operations in the same line as the item being hedged. The following table sets forth our cash flow hedges which are measured at fair value on a recurring basis.

	June 30, 2014							December 31, 2013
(In millions)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Unobservable Inputs (Level 3)
Derivative assets
Foreign currency option contracts	$	—	$	0.3		$	—	$	—	$	1.8		$	—
Foreign currency forward contracts	—		0.9			—		—		3.3			—
Derivative liabilities
Foreign currency option contracts	—		—			—		—		(0.2		)	—
Foreign currency forward contracts	—		(0.3		)	—		—		(0.5		)	—
Total net derivative assets	$	—	$	0.9		$	—	$	—	$	4.4		$	—

Other Derivative Instruments

We use foreign currency forward contracts to manage the foreign currency exposure related to our monetary assets and liabilities denominated in foreign currencies. We record the estimated fair value of these forward contracts in other current assets or other current liabilities on our Condensed Consolidated Balance Sheets. Because we do not receive hedge accounting for these derivatives, changes in their value are recognized every reporting period in the Condensed Consolidated Statements of Operations.

For the three months ended June 30, 2014 and 2013, we recorded net foreign currency losses of 0.4 million and gains of $0.1 million, respectively, in other (income) expense in the Condensed Consolidated Statements of Operations. These net (gains) losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of losses of $0.1 million and gains of $0.8 million from the related foreign currency forward contracts for the three months ended June 30, 2014 and 2013, respectively.

For the six months ended June 30, 2014 and 2013, we recorded net foreign currency losses of $0.4 million and gains of $0.6 million, respectively, in other expense (income) in the Condensed Consolidated Statements of Operations. These gains and losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of losses of $0.3 million and gains of $1.1 million from the related foreign currency forward contracts for the six months ended June 30, 2014 and 2013, respectively.

The notional amounts and fair values of our derivative instruments recorded in other current assets and other current liabilities in the Condensed Consolidated Balance Sheets were as follows:

	June 30, 2014							December 31, 2013
			Fair Value							Fair Value
(In millions)	Notional Amount		Other Current Assets		Other Current Liabilities			Notional Amount		Other Current Assets		Other Current Liabilities
Cash flow hedges designated as hedging instruments	$	69.8	$	1.2	$	(0.3	)	$	133.8	$	5.1	$	(0.7	)
Other hedges not receiving hedge accounting	25.9		—		—			29.4		—		—
Total	$	95.7	$	1.2	$	(0.3	)	$	163.2	$	5.1	$	(0.7	)

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Document and Entity Information Document	6 Months Ended
	Jun. 30, 2014	Aug. 01, 2014
Entity Information [Line Items]
Entity Registrant Name	IMATION CORP
Entity Central Index Key	0001014111
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		42,869,863

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Shareholders' Equity

6 Months Ended

Jun. 30, 2014

Equity [Abstract]

Shareholders' Equity

Shareholders' Equity

Treasury Stock

On May 2, 2012, our Board of Directors authorized a share repurchase program that allowed for the repurchase of 5.0 million shares of common stock, replacing our previous authorization. For the three months ended June 30, 2014 we repurchased 0.3 million shares of common stock for $0.9 million. Since the authorization of this program, we have repurchased 2.1 million shares of common stock for $9.9 million, and as of June 30, 2014 we had remaining authorization to repurchase up to 2.9 million additional shares. The treasury stock held as of June 30, 2014 was acquired at an average price of $19.57 per share.

Following is a summary of treasury share activity:

	Treasury Shares
Balance as of December 31, 2013	1,121,926
Purchases	260,268
Exercise of stock options	(87,569	)
Restricted stock grants, forfeitures and other	(924,546	)
401(k) matching contribution	(273,032	)
Balance as of June 30, 2014	97,047

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss and related activity consisted of the following:

(In millions)	Gains (Losses) on Derivative Financial Instruments			Defined Benefit Plans			Foreign Currency Translation			Total
Balance as of December 31, 2013	$	2.4		$	(11.6	)	$	(53.6	)	$	(62.8	)
Other comprehensive income (loss) before reclassifications, net of tax1	(1.5		)	0.8			(1.3		)	(2.0		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(0.4		)	0.7			—			0.3
Net current-period other comprehensive income (loss)	(1.9		)	1.5			(1.3		)	(1.7		)
Balance as of June 30, 2014	$	0.5		$	(10.1	)	$	(54.9	)	$	(64.5	)

¹Income tax benefit of $0.9 million was recorded for unrealized losses on derivative financial instruments for the six months ended June 30, 2014.

Details of amounts reclassified from accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2014 are as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented
	Three Months Ended			Six Months Ended
(In millions)	June 30, 2014			June 30, 2014
Gains on cash flow hedges	$	(0.2	)	$	(0.8	)	Cost of goods sold
Income tax expense	0.1			0.4			Income tax provision
	(0.1		)	(0.4		)
Amortization of net actuarial loss	0.2			0.6			Selling, general and administrative
Net pension curtailment/settlement loss (gain)	0.6			(0.1		)	Restructuring and other
Income tax expense	—			0.2			Income tax provision
	0.8			0.7
Total reclassifications for the period	$	0.7		$	0.3

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Condensed Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets
Cash and cash equivalents	$ 114.7	$ 132.6
Accounts receivable, net	127.8	163.3
Inventories	85.5	84.3
Other current assets	39.7	48.8
Total current assets	367.7	429.0
Property, plant and equipment, net	48.8	51.6
Intangible assets, net	63.2	68.6
Goodwill	72.7	72.1
Other assets	22.3	20.5
Total assets	574.7	641.8
Current liabilities
Accounts payable	79.6	94.7
Short-term debt	20.0	20.0
Other current liabilities	101.2	116.4
Total current liabilities	200.8	231.1
Other liabilities	38.2	37.5
Total liabilities	239.0	268.6
Commitments and contingencies (Note 15)
Shareholders’ equity	335.7	373.2
Total liabilities and shareholders’ equity	$ 574.7	$ 641.8

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Restructuring and Other Expense

6 Months Ended

Jun. 30, 2014

Restructuring and Related Activities [Abstract]

Restructuring and Other Expense

Restructuring and Other Expense

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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2014		2013			2014			2013
Restructuring
Severance and related	$	2.4	$	0.6		$	2.8		$	1.2
Lease termination costs	—		0.5			0.1			0.6
Other	0.8		0.5			0.9			1.3
Total restructuring	$	3.2	$	1.6		$	3.8		$	3.1
Other
Contingent consideration fair value adjustment	—		(0.3		)	—			(0.4		)
Acquisition and integration related costs	—		0.8			—			1.2
Pension settlement/curtailment (Note 9)	0.6		1.5			(0.1		)	1.5
Other1	1.4		0.8			3.6			1.1
Total	$	5.2	$	4.4		$	7.3		$	6.5

¹Other includes consulting fees and certain employee costs.

During the three and six months ended June 30, 2013, severance expense of $0.3 million and $1.4 million, respectively, related to employees directly associated with the XtremeMac and Memorex consumer electronics businesses, was recorded in discontinued operations. See Note 4 - Acquisitions and Divestituresfor more information on our discontinued operations. This expense is excluded from the table above.

2012 Global Process Improvement Restructuring Program

On October 22, 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, excluding the impact of any acquisitions. The GPI Program addressed product line rationalization and infrastructure and included a planned reduction of our global workforce. The majority of these actions were implemented in 2013. Charges related to the GPI Program are primarily recorded as corporate costs and not directly associated with either of our reporting segments.

Since the inception of the 2012 Global Process Improvement Restructuring Program, we have recorded a total of $20.4 million of severance and related expenses, $0.9 million of lease termination and modification costs, $4.2 million of other charges and $5.0 million of inventory write-offs.

Activity related to the 2012 GPI Program accruals was as follows:

(In millions)	Severance and Related			Lease Termination Costs			Other			Total
Accrued balance at December 31, 2013	$	2.2		$	0.4		$	0.8		$	3.4
Charges	0.4			0.1			0.1			0.6
Usage and payments	(0.9		)	(0.1		)	(0.8		)	(1.8		)
Currency impacts	—			(0.1		)	—			(0.1		)
Accrued balance at March 31, 2014	$	1.7		$	0.3		$	0.1		$	2.1
Charges	2.2			—			0.4			2.6
Usage and payments	(0.9		)	—			(0.2		)	(1.1		)
Currency impacts	—			—			0.1			0.1
Accrued balance at June 30, 2014	$	3.0		$	0.3		$	0.4		$	3.7

Severance and related charges of $0.2 million and Other charges of $0.4 million that were recorded in the three months ended June 30, 2014 were recorded to other accruals and not to the 2012 GPI Program accrual and thus are not included in the table above.

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Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible Assets

The components of our amortizable intangible assets were as follows:

(In millions)	Trade Names			Software			Customer Relationships			Other			Total
June 30, 2014
Gross carrying amount	$	34.3		$	59.5		$	20.4		$	26.3		$	140.5
Accumulated amortization	(11.6		)	(54.8		)	(2.9		)	(8.0		)	(77.3		)
Intangible assets, net	$	22.7		$	4.7		$	17.5		$	18.3		$	63.2
December 31, 2013
Gross carrying amount	$	34.3		$	58.5		$	20.4		$	26.3		$	139.5
Accumulated amortization	(9.2		)	(53.3		)	(2.1		)	(6.3		)	(70.9		)
Intangible assets, net	$	25.1		$	5.2		$	18.3		$	20.0		$	68.6

Other intangible assets, net as of June 30, 2014 consists primarily of $15.0 million of developed technology.

Amortization expense for intangible assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Amortization expense	$	3.2	$	3.3	$	6.4	$	6.9

Based on the intangible assets in service as of June 30, 2014, estimated amortization expense for the remainder of 2014 and each of the next five years is as follows:

(In millions)	2014 (Remainder)		2015		2016		2017		2018
Amortization expense	$	6.2	$	11.9	$	8.5	$	7.7	$	6.3

Goodwill

We test the carrying amount of a reporting unit's goodwill for impairment on an annual basis during the fourth quarter of each year and during an interim period if an event occurs or circumstances change that would warrant impairment testing.

For the first quarter of 2014, we determined we had a triggering event for our Storage Solutions reporting unit as our actual results for the three months ended March 31, 2014 were lower than originally planned, requiring us to review our goodwill for impairment as of March 31, 2014. Revenues that we had expected late in the first quarter did not materialize due to certain temporal factors including delays in hiring of sales force personnel, delays in purchasing from some of our larger customers and continued impacts from reductions in government spending. For the first quarter impairment test, the estimated fair value of the reporting unit exceeded the carrying value in Step 1 of the impairment test by 24.7 percent, resulting in no impairment as of March 31, 2014. This excess of estimated fair value over carrying value is a decrease of 1.0 percentage point from the 25.7 percent excess that resulted in the test performed during the fourth quarter of 2013. In determining the estimated fair value of the reporting unit, we used the income approach, a valuation technique under which we estimate future cash flows using the reporting unit's financial forecasts and the market approach, a valuation technique that provides an estimate of the value of the reporting unit based on a comparison to other similar businesses.

We used forecasted cash flows over a ten year period, a terminal growth rate of 3.0 percent and a discount rate of 13.5 percent. The discount rate reflects the relative risk of achieving cash flows as well as any other specific risks or factors related to the Storage Solutions reporting unit. We calculated the impact of a potential change in our assumptions to determine the impact on the results of the impairment test. Holding all other assumptions constant, an unfavorable change in various components of our projected cash flows of 3.0 percent or less would potentially result in an indication of impairment. Additionally, a decrease in the residual growth rate of less than 2.0 basis points and an increase in the discount rate of less than 1.0 basis point would potentially result in an indication of impairment.

For the second quarter of 2014 the financial results of our Storage Solutions reporting unit were in line with expectations and we continue to believe our longer-term forecast for our Storage Solutions reporting unit generally has not changed and we concluded there was no triggering event that would warrant an impairment assessment during the second quarter. We continue to believe significant growth in our storage solutions revenues will occur and we are investing to facilitate this growth with hiring of sales personnel, introducing new products and promoting the Nexsan brand globally. It is reasonably possible that an impairment could be incurred in the future. We will continue to closely monitor our results and expected cash flows in the future to assess whether a goodwill impairment in our Storage Solutions reporting unit may be necessary. The Storage Solutions reporting unit contained $64.7 million of goodwill as of June 30, 2014.

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Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2014

Business Combinations [Abstract]

Schedule of key components from discontinued operations

The key components of discontinued operations were as follows:

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2014			2013			2014			2013
Net revenue	$	—		$	12.2		$	0.5		$	23.4
Loss on sale of discontinued businesses, before income taxes	(1.2		)	—			(1.7		)	—
Loss from operations of discontinued businesses, before income taxes	(0.4		)	(3.3		)	(0.6		)	(8.8		)
Income tax provision (benefit)	—			—			—			—
Loss from discontinued operations, net of income taxes	$	(1.6	)	$	(3.3	)	$	(2.3	)	$	(8.8	)

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Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

We manage our business through two reporting segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our reporting segments are generally aligned with our key consumer and commercial channels.

We have two major product categories under our CSA segment: Consumer storage media and Audio and accessories. Consumer storage media products include primarily optical products such as DVDs, CDs and Blu-ray^TM disc recordable media as well as flash media. Audio and accessories include primarily headphones, audio electronics and accessories. We have two major product categories under our TSS segment: Commercial storage media and Storage and security solutions. Commercial storage media products consist mainly of magnetic data storage tape media and RDX® media. Storage and security solutions includes storage hardware products, services and software for backup and archiving as well as primary storage; encrypted and biometric flash drives and hard disk drives; secure portable desktop solutions; and software solutions, including products which contain various security features such as password authentication, encryption and remote manageability.

We evaluate segment performance based on revenue and operating income (loss). The operating income (loss) reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. Corporate and unallocated amounts include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, intangible asset abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments.

The operating results of our former XtremeMac and Memorex consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations and are not included in segment results for all periods presented. See Note 4 - Acquisitions and Divestitures for further information on these divestitures.

Net revenue and operating income (loss) from continuing operations by segment were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Net revenue
Consumer Storage and Accessories
Consumer storage media	$	84.5	$	107.3	$	174.0	$	221.5
Audio and accessories	10.6		9.6		21.1		17.2
Total Consumer Storage and Accessories	95.1		116.9		195.1		238.7
Tiered Storage and Security Solutions
Commercial storage media	54.0		61.8		105.4		128.7
Storage and security solutions	29.5		33.0		57.0		68.7
Total Tiered Storage and Security Solutions	83.5		94.8		162.4		197.4
Total net revenue	$	178.6	$	211.7	$	357.5	$	436.1

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2014			2013			2014			2013
Operating income (loss) from continuing operations
Consumer Storage and Accessories	$	3.2		$	20.8		$	7.3		$	26.7
Tiered Storage and Security Solutions	(8.5		)	(2.9		)	(17.3		)	(5.9		)
Total segment operating (loss) income	(5.3		)	17.9			(10.0		)	20.8
Corporate and unallocated	(14.8		)	(17.9		)	(26.2		)	(35.5		)
Total operating loss	(20.1		)	—			(36.2		)	(14.7		)
Interest income	(0.1		)	—			(0.2		)	—
Interest expense	0.6			0.6			1.2			1.3
Other, net expense (income)	0.8			0.1			1.0			(0.1		)
Loss from continuing operations before income taxes	$	(21.4	)	$	(0.7	)	$	(38.2	)	$	(15.9	)

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Income Taxes

6 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For interim income tax reporting, we are required to estimate our annual effective tax rate and apply it to year-to-date pre-tax ordinary income/loss excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded.

For both the three and six months ended June 30, 2014, we recorded income tax benefit of $1.6 million. For the three and six months ended June 30, 2013, we recorded income tax expense of $1.1 million and $1.5 million, respectively. The income tax benefit for the three months ended June 30, 2014 was driven primarily by the relative mix of income (loss) in the various jurisdictions and discrete events. The effective income tax rate for the three and six months ended June 30, 2014 differs from the U.S. federal statutory rate of 35 percent primarily due to a valuation allowance on various deferred tax assets and the effects of foreign tax rate differential.

We conduct business globally. As a result, we file income tax returns in multiple jurisdictions and are subject to review by various U.S and foreign taxing authorities. Our U.S. federal income tax returns for 2010 through 2013 are subject to examination by the Internal Revenue Service. With few exceptions, we are no longer subject to examination by foreign tax jurisdictions or state and city tax jurisdictions for years before 2006. In the event that we have determined not to file tax returns with a particular state or city, all years remain subject to examination by the tax jurisdiction.

We accrue for the effects of uncertain tax positions and the related potential penalties and interest. Our liability related to uncertain tax positions, which is presented in other liabilities on our Condensed Consolidated Balance Sheets and which includes interest and penalties and excludes certain unrecognized tax benefits that have been netted against deferred tax assets, was $6.3 million and $6.0 million as of June 30, 2014 and December 31, 2013, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of our unrecognized tax positions will increase or decrease during the next twelve months; however it is not possible to reasonably estimate the effect at this time.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

Stock-based compensation consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Stock-based compensation expense	$	1.4	$	1.4	$	3.0	$	3.2

We have stock-based compensation awards consisting of stock options, restricted stock and stock appreciation rights under five plans (collectively, the Stock Plans) which are described in detail in our 2013 Annual Report on Form 10-K. As of June 30, 2014, there were 1,335,572 shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan.

Stock Options

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2013	5,371,538		$	13.11
Granted	61,275		3.72
Exercised	(87,569	)	3.97
Canceled	(331,899	)	25.98
Forfeited	(330,378	)	3.95
Outstanding June 30, 2014	4,682,967		$	12.84
Exercisable as of June 30, 2014	3,897,982		$	14.50

The outstanding options are non-qualified and generally have a term of ten years. The following table summarizes our weighted average assumptions used in the valuation of stock options:

	Six Months Ended June 30,
	2014		2013
Volatility	46.2	%	42.8	%
Risk-free interest rate	1.9	%	1.0	%
Expected life (months)	73		72
Dividend yield	—		—

As of June 30, 2014, there was $1.2 million of total unrecognized compensation expense related to non-vested stock options granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.4 years.

Restricted Stock

The following table summarizes our restricted stock activity:

	Restricted Stock		Weighted Average Grant Date Fair Value Per Share
Nonvested as of December 31, 2013	1,192,321		$	4.87
Granted	1,086,524		3.72
Grant Adjustments	(4,925	)	3.75
Vested	(697,133	)	5.21
Forfeited	(16,135	)	5.27
Nonvested as of June 30, 2014	1,560,652		$	3.91

The cost of the awards is determined using the fair value of the Company’s common stock on the date of the grant and compensation is recognized on a straight-line basis over the requisite vesting period.

As of June 30, 2014, there was $5.1 million of total unrecognized compensation expense related to non-vested restricted stock granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.9 years.

Stock Appreciation Rights

During the six months ended June 30, 2014, we granted 0.4 million Stock Appreciation Rights (SARs) to certain employees associated with our Nexsan and Mobile Security operations. As of June 30, 2014, we had 3.1 million SARs outstanding for which we have not recorded any related compensation expense based on the applicable accounting rules. We will continue to assess these SARs each quarter to determine if any expense should be recorded.

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Retirement Plans

6 Months Ended

Jun. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Retirement Plans

Retirement Plans

Pension Plans

During the three and six months ended June 30, 2014, we contributed $0.4 million and $0.8 million to our worldwide pension plans, respectively. We presently anticipate contributing $1.0 million to $3.0 million to fund our worldwide pension plans during the remainder of 2014.

In connection with actions taken under our announced restructuring programs, the number of employees accumulating benefits under our pension plan in the United States continues to decline. Participants in our U.S. defined benefit pension plan have the option of receiving cash lump sum payments when exiting the plan, which a number of participants exiting the plan have elected to receive. Lump sum payments for the six months ended June 30, 2014 have exceeded our expected 2014 interest costs. As a result, a partial settlement event occurred during the three months ended June 30, 2014 and we recognized a settlement loss of $0.6 million. A settlement loss of $1.5 million was recognized for the three months ended June 30, 2013. These settlement losses are included in restructuring and other in our Condensed Consolidated Statements of Operations. Additionally, in connection with the settlement and as required by pension accounting, we remeasured the funded status of our U.S. defined benefit plan as of June 30, 2014 and have adjusted the funded status on our Condensed Consolidated Balance Sheets as of June 30, 2014, accordingly.

During the six months ended June 30, 2014, we recorded a curtailment gain in the amount of $0.7 million relating to our pension plan in Japan. This amount was recorded in restructuring and other in our Condensed Consolidated Statements of Operations.

Components of net periodic pension (credit) cost included the following:

	United States						International					United States						International
	Three Months Ended June 30,											Six Months Ended June 30,
(In millions)	2014			2013			2014			2013		2014			2013			2014			2013
Service cost	$	—		$	—		$	0.1		$	0.1	$	—		$	—		$	0.2		$	0.2
Interest cost	0.8			0.8			0.2			—		1.6			1.5			0.4			—
Expected return on plan assets	(1.2		)	(1.2		)	(0.2		)	—		(2.4		)	(2.5		)	(0.4		)	—
Amortization of net actuarial loss	0.3			0.5			0.1			0.1		0.6			0.9			0.1			0.2
Amortization of prior service credit	—			—			(0.1		)	—		—			—			(0.1		)	—
Net periodic pension (credit) cost	$	(0.1	)	$	0.1		$	0.1		$	0.2	$	(0.2	)	$	(0.1	)	$	0.2		$	0.4
Settlement loss	0.6			1.5			—			—		0.6			1.5			—			—
Curtailment gain	—			—			—			—		—			—			(0.7		)	—
Total pension cost (credit)	$	0.5		$	1.6		$	0.1		$	0.2	$	0.4		$	1.4		$	(0.5	)	$	0.4

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Debt

6 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Debt

Debt

Our Credit Agreement entered into in 2006 and its amendments (the Credit Agreement) and the Credit Agreement entered into in 2013 with a lender in Japan (the Japan Credit Agreement) are both described in Note 11 - Debt of our Annual Report on Form 10-K for the year ended December 31, 2013. As of June 30, 2014, our borrowing capacity under all credit agreements, after consideration of amounts outstanding, was $30.5 million.

As of June 30, 2014, we had $20.0 million of borrowings outstanding under our credit facilities with interest rates ranging from 2.4 percent to 2.8 percent. We are in compliance with our covenant requirements as of June 30, 2014.

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(Loss) Earnings per Common Share (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator [Abstract]
Loss from continuing operations	$ (19.8)	$ (1.8)	$ (36.6)	$ (17.4)
Loss from discontinued operations, net of income taxes	(1.6)	(3.3)	(2.3)	(8.8)
Net loss	$ (21.4)	$ (5.1)	$ (38.9)	$ (26.2)
Denominator [Abstract]
Weighted average number of common shares outstanding during the period - basic	41.2	40.5	41.0	40.5
Dilutive effect of stock-based compensation plans	0	0	0	0
Weighted average number of diluted shares outstanding during the period - diluted	41.2	40.5	41.0	40.5
Loss per common share — basic
Continuing operations (in dollars per share)	$ (0.48)	$ (0.04)	$ (0.89)	$ (0.43)
Discontinued operations (in dollars per share)	$ (0.04)	$ (0.08)	$ (0.06)	$ (0.22)
Net loss - basic (in dollars per share)	$ (0.52)	$ (0.13)	$ (0.95)	$ (0.65)
Loss per common share — diluted
Continuing operations (in dollars per share)	$ (0.48)	$ (0.04)	$ (0.89)	$ (0.43)
Discontinued operations (in dollars per share)	$ (0.04)	$ (0.08)	$ (0.06)	$ (0.22)
Net loss - diluted (dollars per share)	$ (0.52)	$ (0.13)	$ (0.95)	$ (0.65)
Anti-dilutive shares excluded from calculation (in shares)	4.9	6.2	4.7	6.5

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Shareholders' Equity - Treasury Stock (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended	6 Months Ended		26 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	May 02, 2012
Equity [Abstract]
Number of shares authorized to be repurchased					5,000,000
Stock repurchased during period, shares	300,000			2,100,000
Payments for repurchase of common stock	$ 0.9	$ 0.9	$ 2.5	$ 9.9
Remaining number of shares authorized to be repurchased	2,900,000	2,900,000		2,900,000
Average price per share of treasury stock acquired and held		$ 19.57
Movement in Treasury Stock [Roll Forward]
Balance as of December 31, 2013 (shares)		1,121,926
Purchases (shares)		260,268
Exercise of stock options (shares)		(87,569)
Restricted stock grants, forfeitures and other (shares)		(924,546)
401(k) matching contribution (shares)		(273,032)
Balance as of June 30, 2014 (shares)	97,047	97,047		97,047

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Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2014

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss and related activity consisted of the following:

(In millions)	Gains (Losses) on Derivative Financial Instruments			Defined Benefit Plans			Foreign Currency Translation			Total
Balance as of December 31, 2013	$	2.4		$	(11.6	)	$	(53.6	)	$	(62.8	)
Other comprehensive income (loss) before reclassifications, net of tax1	(1.5		)	0.8			(1.3		)	(2.0		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(0.4		)	0.7			—			0.3
Net current-period other comprehensive income (loss)	(1.9		)	1.5			(1.3		)	(1.7		)
Balance as of June 30, 2014	$	0.5		$	(10.1	)	$	(54.9	)	$	(64.5	)

¹Income tax benefit of $0.9 million was recorded for unrealized losses on derivative financial instruments for the six months ended June 30, 2014.

Reclassification Out Of Accumulated Other Comprehensive Income

Details of amounts reclassified from accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2014 are as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented
	Three Months Ended			Six Months Ended
(In millions)	June 30, 2014			June 30, 2014
Gains on cash flow hedges	$	(0.2	)	$	(0.8	)	Cost of goods sold
Income tax expense	0.1			0.4			Income tax provision
	(0.1		)	(0.4		)
Amortization of net actuarial loss	0.2			0.6			Selling, general and administrative
Net pension curtailment/settlement loss (gain)	0.6			(0.1		)	Restructuring and other
Income tax expense	—			0.2			Income tax provision
	0.8			0.7
Total reclassifications for the period	$	0.7		$	0.3

As revised

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Accumulated Other Comprehensive Loss

The impact of this revision to our Condensed Consolidated Statement of Comprehensive Loss for the three and six months ended June 30, 2013 is summarized as follows:

	Three Months Ended						Six Months Ended
	June 30, 2013						June 30, 2013
(In millions)	As Reported			As Revised			As Reported			As Revised
Net loss	$	(5.1	)	$	(5.1	)	$	(26.2	)	$	(26.2	)
Other comprehensive loss, net of tax:
Net unrealized (losses) gains on derivative financial instruments:
Net holding gains arising during the period	1.8			1.8			4.6			4.6
Reclassification adjustment for net realized gains included in net loss	(1.9		)	(1.9		)	(3.2		)	(3.2		)
Total net unrealized (losses) gains on derivative financial instruments	(0.1		)	(0.1		)	1.4			1.4
Net pension adjustments:
Liability adjustments for defined benefit plans	—			2.0			—			2.0
Reclassification adjustment for defined benefit plans included in net loss	0.5			2.0			0.9			2.4
Total net pension adjustments	0.5			4.0			0.9			4.4
Unrealized foreign currency translation losses	(6.7		)	(6.7		)	(10.9		)	(10.9		)
Total other comprehensive loss, net of tax	(6.3		)	(2.8		)	(8.6		)	(5.1		)
Comprehensive loss	$	(11.4	)	$	(7.9	)	$	(34.8	)	$	(31.3	)

Reclassification Out Of Accumulated Other Comprehensive Income

Details of amounts (as revised) that were reclassified from Accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations in which such items were reclassified to during the three and six months ended June 30, 2013 were as follows:

	Amounts Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented
	Three Months Ended			Six Months Ended
(In millions)	June 30, 2013			June 30, 2013
Gains on cash flow hedges	$	(3.1	)	$	(5.2	)	Cost of goods sold
Income tax expense	1.2			2.0			Income tax provision
	(1.9		)	(3.2		)
Amortization of net actuarial loss	0.5			0.9			Selling, general and administrative
Pension settlement loss	1.5			1.5			Restructuring and other
Income tax expense	—			—			Income tax provision
	2.0			2.4
Total reclassifications for the period	$	0.1		$	(0.8	)

Reclassification out of Accumulated Other Comprehensive Income | As revised

Accumulated Other Comprehensive Income (Loss) [Line Items]

Schedule of Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss and related activity:

	Defined Benefit Plans						Total
(In millions)	As Reported			As Revised			As Reported			As Revised
Balance as of December 31, 2012	$	(27.8	)	$	(27.8	)	$	(74.2	)	$	(74.2	)
Other comprehensive income (loss) before reclassifications, net of tax	—			2.0			(6.3		)	(4.3		)
Amounts reclassified from accumulated other comprehensive loss, net of tax	0.9			2.4			(2.3		)	(0.8		)
Net current-period other comprehensive income (loss)	0.9			4.4			(8.6		)	(5.1		)
Balance as of June 30, 2013	$	(26.9	)	$	(23.4	)	$	(82.8	)	$	(79.3	)

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Restructuring and Other Expense (Tables)

6 Months Ended

Jun. 30, 2014

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring and Related Costs

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

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2014		2013			2014			2013
Restructuring
Severance and related	$	2.4	$	0.6		$	2.8		$	1.2
Lease termination costs	—		0.5			0.1			0.6
Other	0.8		0.5			0.9			1.3
Total restructuring	$	3.2	$	1.6		$	3.8		$	3.1
Other
Contingent consideration fair value adjustment	—		(0.3		)	—			(0.4		)
Acquisition and integration related costs	—		0.8			—			1.2
Pension settlement/curtailment (Note 9)	0.6		1.5			(0.1		)	1.5
Other1	1.4		0.8			3.6			1.1
Total	$	5.2	$	4.4		$	7.3		$	6.5

¹Other includes consulting fees and certain employee costs.

2012 Global Processing Improvement Restructuring Program

Restructuring Cost and Reserve [Line Items]

Schedule of Restructuring Reserve by Type of Cost

Activity related to the 2012 GPI Program accruals was as follows:

(In millions)	Severance and Related			Lease Termination Costs			Other			Total
Accrued balance at December 31, 2013	$	2.2		$	0.4		$	0.8		$	3.4
Charges	0.4			0.1			0.1			0.6
Usage and payments	(0.9		)	(0.1		)	(0.8		)	(1.8		)
Currency impacts	—			(0.1		)	—			(0.1		)
Accrued balance at March 31, 2014	$	1.7		$	0.3		$	0.1		$	2.1
Charges	2.2			—			0.4			2.6
Usage and payments	(0.9		)	—			(0.2		)	(1.1		)
Currency impacts	—			—			0.1			0.1
Accrued balance at June 30, 2014	$	3.0		$	0.3		$	0.4		$	3.7

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Fair Value Measurements - Cash Flow Hedges (Details) (Fair Value, Measurements, Recurring, Cash flow hedges, USD $) In Millions, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total net derivative assets	$ 0	$ 0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total net derivative assets	0.9	4.4
Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total net derivative assets	0	0
Foreign currency option contracts | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Foreign currency option contracts | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0.3	1.8
Derivative liabilities	0	(0.2)
Foreign currency option contracts | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Foreign currency forward contracts | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	0	0
Foreign currency forward contracts | Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0.9	3.3
Derivative liabilities	(0.3)	(0.5)
Foreign currency forward contracts | Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative assets	0	0
Derivative liabilities	$ 0	$ 0

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Restructuring and Other Expenses Activity (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		0 Months Ended	3 Months Ended					20 Months Ended	3 Months Ended		20 Months Ended	3 Months Ended			20 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Oct. 22, 2012 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 2012 Global Processing Improvement Restructuring Program	Mar. 31, 2014 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 Severance and Related	Jun. 30, 2014 Severance and Related 2012 Global Processing Improvement Restructuring Program	Mar. 31, 2014 Severance and Related 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 Severance and Related 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 Lease Termination Costs 2012 Global Processing Improvement Restructuring Program	Mar. 31, 2014 Lease Termination Costs 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 Lease Termination Costs 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 Other	Jun. 30, 2014 Other 2012 Global Processing Improvement Restructuring Program	Mar. 31, 2014 Other 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 Other 2012 Global Processing Improvement Restructuring Program	Jun. 30, 2014 Inventory write-offs 2012 Global Processing Improvement Restructuring Program
Restructuring Cost and Reserve [Line Items]
Expected reduction in operating expenses, percent					25.00%
Restructuring cost incurred to date											$ 20.4			$ 0.9				$ 4.2	$ 5.0
Restructuring Reserve [Roll Forward]
Accrued balance, beginning						2.1	3.4		1.7	2.2		0.3	0.4			0.1	0.8
Charges	3.2	1.6	3.8	3.1		2.6	0.6	0.2	2.2	0.4		0	0.1		0.4	0.4	0.1
Usage and payments						(1.1)	(1.8)		(0.9)	(0.9)		0	(0.1)			(0.2)	(0.8)
Currency impacts						0.1	(0.1)		0	0		0	(0.1)			0.1	0
Accrued balance, ending						$ 3.7	$ 2.1		$ 3.0	$ 1.7	$ 3.0	$ 0.3	$ 0.3	$ 0.3		$ 0.4	$ 0.1	$ 0.4

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Condensed Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows from Operating Activities:
Net loss	$ (38.9)	$ (26.2)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10.9	12.4
Stock-based compensation	3.0	3.2
Other, net	2.1	(1.8)
Changes in operating assets and liabilities	6.1	4.7
Net cash used in operating activities	(16.8)	(7.7)
Cash Flows from Investing Activities:
Capital expenditures	(2.3)	(3.5)
Proceeds from purchase price adjustment	0	1.6
Proceeds from sale of disposal group	1.6	0.2
Net cash used in investing activities	(0.7)	(1.7)
Cash Flows from Financing Activities:
Purchase of treasury stock	(0.9)	(2.5)
Exercise of stock options	0.4	0
Short-term debt repayment	(24.9)	0
Short-term borrowings	24.5	0
Contingent consideration payments	0	(0.5)
Net cash used in financing activities	(0.9)	(3.0)
Effect of exchange rate changes on cash and cash equivalents	0.5	(1.9)
Net change in cash and cash equivalents	(17.9)	(14.3)
Cash and cash equivalents — beginning of period	132.6	108.7
Cash and cash equivalents — end of period	$ 114.7	$ 94.4

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Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2014

Supplemental Balance Sheet Information [Abstract]

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided as follow:

	June 30,			December 31,
(In millions)	2014			2013
Accounts Receivable
Accounts receivable	$	137.3		$	177.8
Less reserves and allowances1	(9.5		)	(14.5		)
Accounts receivable, net	$	127.8		$	163.3
Inventories
Finished goods	$	78.2		$	76.3
Work in process	2.3			2.9
Raw materials and supplies	5.0			5.1
Total inventories	$	85.5		$	84.3
Property, Plant and Equipment
Property, plant and equipment	$	199.4		$	201.7
Less accumulated depreciation	(150.6		)	(150.1		)
Property, plant and equipment, net	$	48.8		$	51.6

¹Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts.

Other current liabilities (included as a separate line in our Condensed Consolidated Balance Sheets) includes rebates payable of $26.7 million and $33.2 million at June 30, 2014 and December 31, 2013, respectively.

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

Stock-based compensation consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2014		2013		2014		2013
Stock-based compensation expense	$	1.4	$	1.4	$	3.0	$	3.2

Schedule of Share-based Compensation, Stock Options, Activity

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2013	5,371,538		$	13.11
Granted	61,275		3.72
Exercised	(87,569	)	3.97
Canceled	(331,899	)	25.98
Forfeited	(330,378	)	3.95
Outstanding June 30, 2014	4,682,967		$	12.84
Exercisable as of June 30, 2014	3,897,982		$	14.50

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The following table summarizes our weighted average assumptions used in the valuation of stock options:

	Six Months Ended June 30,
	2014		2013
Volatility	46.2	%	42.8	%
Risk-free interest rate	1.9	%	1.0	%
Expected life (months)	73		72
Dividend yield	—		—

Schedule of Share-based Compensation, Restricted Stock Activity

The following table summarizes our restricted stock activity:

	Restricted Stock		Weighted Average Grant Date Fair Value Per Share
Nonvested as of December 31, 2013	1,192,321		$	4.87
Granted	1,086,524		3.72
Grant Adjustments	(4,925	)	3.75
Vested	(697,133	)	5.21
Forfeited	(16,135	)	5.27
Nonvested as of June 30, 2014	1,560,652		$	3.91

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Intangible Assets and Goodwill - Intangible Assets (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 140.5		$ 140.5		$ 139.5
Accumulated amortization	(77.3)		(77.3)		(70.9)
Intangible assets, net	63.2		63.2		68.6
Amortization expense	3.2	3.3	6.4	6.9
Finite-Lived Intangible Assets, Amortization Expense, Remainder of 2014	6.2		6.2
Finite-Lived Intangible Assets, Amortization Expense, 2015	11.9		11.9
Finite-Lived Intangible Assets, Amortization Expense, 2016	8.5		8.5
Finite-Lived Intangible Assets, Amortization Expense, 2017	7.7		7.7
Finite-Lived Intangible Assets, Amortization Expense, 2018	6.3		6.3
Trade Names
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	34.3		34.3		34.3
Accumulated amortization	(11.6)		(11.6)		(9.2)
Intangible assets, net	22.7		22.7		25.1
Software
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	59.5		59.5		58.5
Accumulated amortization	(54.8)		(54.8)		(53.3)
Intangible assets, net	4.7		4.7		5.2
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	20.4		20.4		20.4
Accumulated amortization	(2.9)		(2.9)		(2.1)
Intangible assets, net	17.5		17.5		18.3
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	26.3		26.3		26.3
Accumulated amortization	(8.0)		(8.0)		(6.3)
Intangible assets, net	18.3		18.3		20.0
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 15.0		$ 15.0

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Litigation, Commitments and Contingencies

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Litigation, Commitments and Contingencies

Litigation, Commitments and Contingencies

Litigation

We are the subject of various pending or threatened legal actions in the ordinary course of our business. All such matters are subject to many uncertainties and outcomes that are not predictable with assurance. Additionally, our businesses are subject to allegations of patent infringement by our competitors as well as by non-practicing entities (NPEs), sometimes referred to as “patent trolls,” who may seek monetary settlements from us, our competitors, suppliers and resellers, including the One-Blue litigation described below. Consequently, as of June 30, 2014, we are unable to reasonably estimate the ultimate aggregate amount of any monetary liability or financial impact that we may incur with respect to these matters. While we currently do not believe a loss associated with our litigation matters is probable, it is reasonably possible that the ultimate resolution of these matters could materially affect our financial condition, results of operations and cash flows.

On May 22, 2013, Imation was sued in U.S. District Court for the District of Delaware by five entities: One-Blue, LLC (One-Blue), which is an entity with licensing authority for a pool of patents relating to Blu-ray discs, and four members of One-Blue, Koninklijke Philips N.V., Panasonic Corporation, Pioneer Corporation and Sony Corporation. The plaintiffs allege that Imation's sales of certain Blu-ray discs infringe six patents and seek unspecified damages, treble damages and attorney's fees. On June 13, 2013, Imation filed an Answer, Affirmative Defenses, and Counterclaims, naming various defenses including that plaintiffs are barred, in whole or in part, from any recovery or relief by their refusal to license the patents-in-suit under fair, reasonable, and nondiscriminatory terms. Imation intends to vigorously defend the case. This matter is now in the discovery phase for issues relating to determination of a fair, reasonable, and nondiscriminatory royalty rate. In addition, Imation has a dispute with One-Blue regarding One-Blue's refusal to license its Japanese Blu-ray patents under fair, reasonable, and nondiscriminatory terms in Japan, where Imation's sales of Blu-ray discs are substantially greater than in the U.S. Imation Corporation Japan, Imation's Japanese subsidiary, has sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. Imation has notified its manufacturers of their indemnity obligations that it believes cover a portion of its liability, if any, to One-Blue and the other plaintiffs.

Copyright Levies

During the second quarter of 2014, there were no significant changes or events associated with copyright levies from those previously disclosed in our 2013 Annual Report on Form 10-K or first quarter 2014 Quarterly Report on Form 10-Q.