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Background and Basis of Presentation
12 Months Ended
Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background and Basis of Presentation
Background and Basis of Presentation
Background
Imation Corp., a Delaware corporation, was formed in 1996 from the spin-off of substantially all of the businesses that comprised the data storage and imaging systems groups of 3M Company. As used in this document, the terms “Imation,” “the Company,” ‘‘we,” “us,” or “our” mean Imation Corp. and its subsidiaries and consolidated entities unless the context indicates otherwise. Imation is a global data storage and data security company. With a 60-year history of technology leadership, the Company's mission is to help organizations store, protect, and connect their digital world. The Company operates in two focused business segments: Tiered Storage and Security Solutions (TSS) and Consumer Storage and Accessories (CSA). We have four major product categories: Storage and Security Solutions and Commercial Storage Media in our TSS business segment and Consumer Storage Media and Audio and Accessories in our CSA segment. Our brands include ImationTM, Nexsan® , IronKey®, TDK Life on RecordTM, TREKTM, and MemorexTM.
Basis of Presentation
The financial statements are presented on a consolidated basis and include the accounts of the Company and our wholly-owned subsidiaries. See Note 2 - Summary of Significant Accounting Policies for further information regarding consolidation. Our Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). All significant inter-company transactions have been eliminated.
During the fourth quarter of 2012, we announced the acceleration of our strategic transformation, including the realignment of our global business into two new business segments, a cost reduction program and our increased focus on data storage and data security including exploring strategic options for our consumer electronics brands and businesses.
The realignment of our global business into two new business segments better aligns the Company with our key consumer and commercial channels. The two business segments consist of Consumer Storage and Accessories (CSA), which focuses mainly on retail channels; and Tiered Storage and Security Solutions (TSS), which focuses mainly on commercial channels. In the first quarter of 2013, we revised our segment reporting to reflect these changes into these two new reporting segments. See Note 14 - Business Segment Information and Geographical Data for more information on our business segments.
In October 2012, the Board of Directors approved our Global Process Improvement Restructuring Program (GPI Program) in order to realign our business structure and 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. See Note 7 - Restructuring and Other Expense for more information on this restructuring program.
During the first quarter of 2013 we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses. The divestiture of our Memorex consumer electronics business occurred on October 15, 2013 and the divestiture of our XtremeMac business occurred on January 31, 2014. See Note 4 - Acquisitions and Divestitures for further information on these divestitures. The results of operations for our XtremeMac™ and Memorex™ consumer electronics businesses are presented in our Consolidated Statements of Operations as discontinued operations for all periods presented. The consumer storage business under the Memorex and TDK Life on Record brands and the consumer electronics business under the TDK Life on Record brand are being retained.