Restructuring and Other Expense

Restructuring expenses generally include severance and related charges, lease termination costs and other costs related to restructuring programs. Employee-related severance charges are largely based upon distributed employment policies and substantive severance plans. Generally, these charges are reflected in the period in which the Board approves the associated actions, the actions are probable and the amounts are estimable which may occur prior to the communication to the affected employee(s). This estimate takes into account all information available as of the date the financial statements are issued. Severance amounts, for which affected employees were required to render service in order to receive benefits at their termination dates, are measured at the date such benefits were communicated to the applicable employees and recognized as expense over the employees’ remaining service periods.

2012 Global Process Improvement Restructuring Program

On October 2012, the Board of Directors approved our GPI Program in order to realign our business structure and significantly reduce operating expenses over time. This restructuring program addressed product line rationalization and infrastructure and included a planned reduction in our global workforce. The majority of these actions were implemented during 2013. The program has taken out over $100 million in legacy costs, while continuing to invest in our priority growth investments. We have reduced corporate overhead and executive staff, and to generate additional savings, Imation has a number of ongoing cost reduction and cash flow initiatives, including listing our corporate headquarters facility for sale.

Programs prior to the 2012 Global Process Improvement Restructuring Program are substantially complete.

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



	Years Ended December 31,
	2014		2013			2012
	(In millions)
Restructuring
Severance and related	$	3.9	$	2.1		$	16.9
Lease termination costs	0.3		0.7			0.6
Other	1.2		2.4			2.2
Total restructuring	$	5.4	$	5.2		$	19.7
Other
Settlement of UK pension plan (Note 9)	0.5		10.6			—
Gain on sale of fixed assets held for sale	—		(9.8		)	(0.7		)
Acquisition and integration related costs	—		2.8			3.7
Pension settlement/curtailment (Note 9)	0.2		2.1			2.4
Contingent consideration fair value adjustment (Note 4)	—		(0.6		)	(8.6		)
Intangible asset abandonment (Note 6)	—		—			1.9
Asset disposals / write down	1.8		—			—
Other	5.7		1.0			2.7
Total	$	13.6	$	11.3		$	21.1

Total restructuring charges of $5.4 million recorded for the year ended December 31, 2014 and $5.2 million for the year ended December 31, 2013 were all related to the GPI Program.

For the year ended December 31, 2012, we recorded total restructuring charges of $19.7 million, which included $14.9 million, primarily related to severance, under the GPI Program and $4.2 million under the 2011 Corporate Program primarily, related to severance and $0.6 million of other restructuring charges under the 2011 Manufacturing Program.

In addition to the restructuring charges recorded in restructuring and other, we recorded inventory write-offs of $4.6 million, $2.7 million and $2.3 million related to the rationalization of certain product lines, for the years ended December 31, 2014, 2013 and 2012, respectively, which are included in cost of goods sold in our Consolidated Statements of Operations.

Since the inception of the GPI Program, we have recorded a total of $21.5 million of severance and related expenses, $9.6 million of inventory write-offs, $1.1 million of lease termination and modification costs, and $4.5 million of other charges.

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



	Severance and Related			Lease Termination Costs			Other			Total
	(In millions)
Accrued balance at December 31, 2012	$	13.8		$	0.1		$	0.8		$	14.7
Transfer from 2011 Corporate Program	1.6			0.4			0.2			2.2
Charges	3.7			0.7			2.4			6.8
Usage	(16.9		)	(0.7		)	(2.5		)	(20.1		)
Currency impacts	—			(0.1		)	(0.1		)	(0.2		)
Accrued balance at December 31, 2013	$	2.2		$	0.4		$	0.8		$	3.4
Charges	3.7			0.1			0.6			4.4
Usage	(5.1		)	(0.2		)	(1.4		)	(6.7		)
Currency impacts	—			—			0.2			0.2
Accrued balance at December 31, 2014	$	0.8		$	0.3		$	0.2		$	1.3

Severance and related charges of $0.2 million, lease termination costs of $0.2 million, and other charges of $0.6 million that were recorded in the 2014 were recorded to other accruals and not to the 2012 GPI Program accrual. These charges are not included in the table above.

December 31, 2013 severance expense of $1.6 million related to employees directly associated with the XtremeMac and Memorex consumer electronics businesses was recorded in discontinued operations. See Note 4 - Acquisitions and Divestitures for more information on our discontinued operations.

Other

Certain amounts recorded in Other are discussed elsewhere in our Notes to Consolidated Financial Statements. See note references in table above.

During the year ended December 31, 2014 we had $1.0 million of asset disposals and write downs related to our Weatherford, Oklahoma facility and miscellaneous disposals of assets of $0.8 million. The $5.7 million of other expenses includes certain employee costs and consulting fees.

During the year ended December 31, 2013 a gain of $9.8 million related to the sale of our Camarillo, California manufacturing facility was recorded.