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, 2015

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: 41,756,683 shares of Common Stock, par value $0.01 per share, were outstanding July 31, 2015.

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, 2015 and 2014	3
Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2015 and 2014	4
Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014	5
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2015 and 2014	6
Notes to Condensed Consolidated Financial Statements	7
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	19
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	27
ITEM 4. CONTROLS AND PROCEDURES	27
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	29
ITEM 5. OTHER INFORMATION	29
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,
	2015			2014			2015			2014
Net revenue	$	150.6		$	178.6		$	306.0		$	357.5
Cost of goods sold	121.6			144.7			243.0			289.9
Gross profit	29.0			33.9			63.0			67.6
Operating expenses:
Selling, general and administrative	38.6			44.3			79.6			87.7
Research and development	4.8			4.5			9.6			8.8
Restructuring and other	1.5			5.2			2.7			7.3
Total	44.9			54.0			91.9			103.8
Operating loss from continuing operations	(15.9		)	(20.1		)	(28.9		)	(36.2		)
Other (income) expense:
Interest income	(0.1		)	(0.1		)	(0.2		)	(0.2		)
Interest expense	0.6			0.6			1.2			1.2
Other, net expense	0.8			0.8			1.6			1.0
Total	1.3			1.3			2.6			2.0
Loss from continuing operations before income taxes	(17.2		)	(21.4		)	(31.5		)	(38.2		)
Income tax provision (benefit)	0.2			(1.6		)	0.3			(1.6		)
Loss from continuing operations	(17.4		)	(19.8		)	(31.8		)	(36.6		)
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		)	—			(0.6		)
Loss from discontinued operations, net of income taxes	—			(1.6		)	—			(2.3		)
Net loss	$	(17.4	)	$	(21.4	)	$	(31.8	)	$	(38.9	)
Loss per common share — basic:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Loss per common share — diluted:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Weighted average shares outstanding — basic:	41.1			41.2			41.1			41.0
Weighted average shares outstanding — diluted:	41.1			41.2			41.1			41.0

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,
	2015			2014			2015			2014
Net loss	$	(17.4	)	$	(21.4	)	$	(31.8	)	$	(38.9	)
Other comprehensive (loss) income, net of tax:
Net unrealized gains (losses) on derivative financial instruments:
Net holding gains (losses) arising during the period	2.1			(0.5		)	3.1			(1.5		)
Reclassification adjustment for net realized gains recorded in net loss	(1.3		)	(0.1		)	(3.6		)	(0.4		)
Total net unrealized gains (losses) on derivative financial instruments	0.8			(0.6		)	(0.5		)	(1.9		)
Net pension adjustments:
Liability adjustments for defined benefit plans	—			0.8			—			0.8
Reclassification adjustment for defined benefit plans recorded in net loss	0.2			0.8			0.3			0.7
Total net pension adjustments	0.2			1.6			0.3			1.5
Unrealized foreign currency translation gains (losses)	1.1			2.2			(3.5		)	(1.3		)
Total other comprehensive income (loss), net of tax	2.1			3.2			(3.7		)	(1.7		)
Comprehensive loss	$	(15.3	)	$	(18.2	)	$	(35.5	)	$	(40.6	)

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,
	2015			2014
Assets
Current assets:
Cash and cash equivalents	$	89.8		$	114.6
Accounts receivable, net	103.1			134.4
Inventories	59.5			57.7
Other current assets	22.8			32.7
Total current assets	275.2			339.4
Property, plant and equipment, net	42.4			45.0
Intangible assets, net	51.6			57.9
Goodwill	36.1			36.1
Other assets	18.2			20.8
Total assets	$	423.5		$	499.2
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	78.0		$	95.5
Short-term debt	19.6			18.9
Other current liabilities	79.9			98.2
Total current liabilities	177.5			212.6
Other liabilities	41.6			45.8
Total liabilities	219.1			258.4
Commitments and contingencies (Note 15)
Shareholders’ equity:
Preferred stock, $.01 par value, authorized 25 million shares, none issued and outstanding	—			—
Common stock, $.01 par value, authorized 100 million shares, 42.9 million issued	0.4			0.4
Additional paid-in capital	1,039.7			1,034.6
Retained deficit	(731.7		)	(699.9		)
Accumulated other comprehensive loss	(88.5		)	(84.8		)
Treasury stock, at cost	(15.5		)	(9.5		)
Total shareholders' equity	204.4			240.8
Total liabilities and shareholders’ equity	$	423.5		$	499.2

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,
	2015			2014
Cash Flows from Operating Activities:
Net loss	$	(31.8	)	$	(38.9	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10.6			10.9
Other, net	1.0			5.1
Changes in operating assets and liabilities	(1.3		)	6.1
Net cash used in operating activities	(21.5		)	(16.8		)
Cash Flows from Investing Activities:
Capital expenditures	(1.8		)	(2.3		)
Proceeds from sale of disposal group	0.7			1.6
Proceeds from sale of assets	1.2			—
Net cash provided by (used in) investing activities	0.1			(0.7		)
Cash Flows from Financing Activities:
Purchase of treasury stock	(1.7		)	(0.9		)
Exercise of stock options	—			0.4
Short-term debt repayment	(12.4		)	(24.9		)
Short-term borrowings	12.9			24.5
Net cash used in financing activities	(1.2		)	(0.9		)
Effect of exchange rate changes on cash and cash equivalents	(2.2		)	0.5
Net change in cash and cash equivalents	(24.8		)	(17.9		)
Cash and cash equivalents — beginning of period	114.6			132.6
Cash and cash equivalents — end of period	$	89.8		$	114.7

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, 2014 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, 2014.

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.

Note 2 — Recently Issued or Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board 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. In July 2015, the guidance was revised to be effective for interim and annual periods beginning on or after December 15, 2017. 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 April 2015, the Financial Accounting Standards Board issued new accounting guidance related to debt issuance costs. Under this new standard, debt issuance costs reported on the consolidated balance sheet would be reflected as a direct deduction from the related debt liability rather than as an asset. For Imation, this is effective January 1, 2016, with early adoption permitted. Retroactive application to prior periods is required. As this standard impacts only the classification of certain amounts within the consolidated balance sheet, Imation does not expect this new standard to have a material impact on our financial position and results of operations.

In May 2015, the Financial Accounting Standards Board issued new accounting guidance related to the disclosures for investments in certain entities that calculate net asset value per share (or its equivalent). This standard modifies existing disclosure requirements such that investments for which the practical expedient is used to measure their fair value at net asset value (NAV) would be removed from the fair value hierarchy disclosures. Instead, an entity would be required to include those investments as a reconciling item such that the total fair value amount of investments in the fair value hierarchy disclosure is consistent with the amount on the balance sheet. Changes were also made to the requirements in a sponsor’s employee benefit plan asset disclosures. For Imation, this standard is effective January 1, 2016, with retrospective application required. Early adoption is permitted. As this standard only impacts certain disclosures, it will not impact the Company’s consolidated results of operations and financial condition.

7

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 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)	2015			2014			2015			2014
Numerator:
Loss from continuing operations	$	(17.4	)	$	(19.8	)	$	(31.8	)	$	(36.6	)
Loss from discontinued operations	—			(1.6		)	—			(2.3		)
Net loss	$	(17.4	)	$	(21.4	)	$	(31.8	)	$	(38.9	)
Denominator:
Weighted average number of common shares outstanding during the period - basic	41.1			41.2			41.1			41.0
Dilutive effect of stock-based compensation plans	—			—			—			—
Weighted average number of diluted shares outstanding during the period - diluted	41.1			41.2			41.1			41.0
Loss per common share — basic:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Loss per common share — diluted:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Anti-dilutive shares excluded from calculation	3.3			4.9			3.5			4.7

Note 4 — Acquisitions and Divestitures

Discontinued Operations

On February 13, 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses.

On January 31, 2014, we completed the sale of our XtremeMac consumer electronics business. Total cash consideration was originally estimated at $3.1 million which consisted of $0.3 million of cash consideration, an interest-bearing note receivable of $0.3 million (maturing in December 2015) and $2.5 million to be received based on the proceeds the purchaser was 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 second quarter of 2014, we revised downward our estimate of the consideration we expected to receive by $1.2 million based on the purchaser's proceeds from selling the acquired inventory and, accordingly, recognized a loss of $1.2 million as a component of discontinued operations for the three months ended June 30, 2014. There were no results for discontinued operations for XtremeMac for the three and six months ended June 30, 2015.

8

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 $0.7 million during the six months ended June 30, 2015, $1.9 million during 2014 and $0.9 million during 2013. The remaining receivable balance associated with the disposition of this business is recorded at an estimated fair value of $5.1 million. There were no results for discontinued operations for the Memorex consumer electronics business for the three and six months ended June 30, 2015.

The operating results for these businesses 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 were eliminated from our ongoing operations.

The key components of the results of discontinued operations were as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2015		2014			2015		2014
Net revenue	$	—	$	—		$	—	$	0.5
Loss on sale of discontinued businesses, before income taxes	—		(1.2		)	—		(1.7		)
Loss from operations of discontinued businesses, before income taxes	—		(0.4		)	—		(0.6		)
Income tax provision (benefit)	—		—			—		—
Loss from discontinued operations, net of income taxes	$	—	$	(1.6	)	$	—	$	(2.3	)

Note 5 — Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided as follows:

	June 30,			December 31,
(In millions)	2015			2014
Accounts Receivable:
Accounts receivable	$	110.0		$	143.5
Less reserves and allowances1	(6.9		)	(9.1		)
Accounts receivable, net	$	103.1		$	134.4
Inventories:
Finished goods	$	52.1		$	51.1
Work in process	0.5			0.7
Raw materials and supplies	6.9			5.9
Total inventories	$	59.5		$	57.7
Property, Plant and Equipment:
Property, plant and equipment	$	165.9		$	184.0
Less accumulated depreciation	(123.5		)	(139.0		)
Property, plant and equipment, net	$	42.4		$	45.0

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 $21.6 million and $26.9 million and accrued payroll of $12.0 million and $18.4 million as of June 30, 2015 and December 31, 2014, respectively.

Other liabilities (included as a separate line in our Condensed Consolidated Balance Sheets) includes pension liabilities of $20.8 million and $22.5 million as of June 30, 2015 and December 31, 2014, respectively. 

9

Note 6 — Intangible Assets and Goodwill

Intangible Assets

Intangible assets consist of the following:

(In millions)	Trade Names			Software			Customer Relationships			Other			Total
June 30, 2015
Cost	$	34.2		$	60.0		$	20.0		$	26.3		$	140.5
Accumulated amortization	(16.4		)	(56.5		)	(4.6		)	(11.4		)	(88.9		)
Intangible assets, net	$	17.8		$	3.5		$	15.4		$	14.9		$	51.6
December 31, 2014
Cost	$	34.2		$	60.1		$	20.0		$	26.2		$	140.5
Accumulated amortization	(14.0		)	(55.3		)	(3.7		)	(9.6		)	(82.6		)
Intangible assets, net	$	20.2		$	4.8		$	16.3		$	16.6		$	57.9

Other intangible assets, net as of June 30, 2015 consists primarily of $11.6 million of acquired developed technology.

Amortization expense for intangible assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2015		2014		2015		2014
Amortization expense	$	3.1	$	3.2	$	6.4	$	6.4

Based on the intangible assets in service as of June 30, 2015, estimated amortization expense for the remainder of 2015 and each of the next four years is as follows:

(In millions)	2015 (Remainder)		2016		2017		2018		2019
Amortization expense	$	5.7	$	9.9	$	8.7	$	6.6	$	6.2

Goodwill

The goodwill balance was $36.1 million as of June 30, 2015. The goodwill is solely contained within our Storage and Security Solutions reporting units. We will monitor our results and expected cash flows in the future to assess whether consideration of a goodwill impairment in our reporting units may be necessary. During the six months ended June 30, 2015, there were no events or indications that, in our judgment, would require an interim assessment of goodwill impairment.

10

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)	2015		2014		2015		2014
Restructuring Expense:
Severance and related	$	0.4	$	2.4	$	0.9	$	2.8
Lease termination costs	—		—		—		0.1
Other	0.1		0.8		0.4		0.9
Total restructuring	$	0.5	$	3.2	$	1.3	$	3.8
Other Expense:
Pension settlement/curtailment (Note 9)	—		0.6		—		(0.1		)
Other1	1.0		1.4		1.4		3.6
Total	$	1.5	$	5.2	$	2.7	$	7.3

¹Other includes consulting fees and certain employee costs.

2012 Global Process Improvement Restructuring Program

In October 2012, the Board of Directors approved our Global Process Improvement (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. We expect to continue our efforts to reduce legacy expenses.

Since the inception of the GPI Program, we have recorded a total of $22.4 million of severance and related expenses, $1.1 million of lease termination and modification costs, $4.9 million of other charges and $9.6 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, 2014	0.8		0.3		0.2		1.3
Charges	0.3		—		0.2		0.5
Usage and payments	(0.6	)	(0.1	)	(0.2	)	(0.9	)
Accrued balance at March 31, 2015	0.5		0.2		0.2		0.9
Charges	0.1		—		0.1		0.2
Usage and payments	(0.1	)	(0.2	)	(0.1	)	(0.4	)
Accrued balance at June 30, 2015	0.5		—		0.2		0.7

In the three months ended June 30, 2015, we also recorded severance and related charges of $0.3 million to other accruals as they were not related to the 2012 GPI Program. In the six months ended June 30, 2015, we recorded severance and related charges of $0.5 million and other charges of $0.1 million to other accruals as they were not related to the 2012 GPI Program. These charges 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)	2015		2014		2015		2014
Stock-based compensation expense	$	0.5	$	1.4	$	1.4	$	3.0

11

We have stock-based compensation awards consisting of stock options, restricted stock and stock appreciation rights under four plans (collectively, the Stock Plans) which are described in detail in our 2014 Annual Report on Form 10-K. As of June 30, 2015, there were 1,988,854 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, 2014	3,897,986		$	13.07
Granted	24,547		3.94
Exercised	(12,381	)	3.84
Canceled	(321,880	)	25.35
Forfeited	(43,497	)	7.36
Outstanding June 30, 2015	3,544,775		$	11.99
Exercisable as of June 30, 2015	3,348,131		$	12.48

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,
	2015		2014
Volatility	46.0	%	46.2	%
Risk-free interest rate	1.9	%	1.9	%
Expected life (months)	73		73
Dividend yield	—		—

As of June 30, 2015, there was $0.2 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 1.3 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, 2014	1,348,917		$	3.81
Granted	862,706		3.97
Grant adjustments	—		—
Vested	(807,239	)	4.19
Forfeited	(867,445	)	3.76
Nonvested as of June 30, 2015	536,939		$	3.57

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.

Effective May 22, 2015, a “Change of Control” occurred under the terms of the Company’s Amended and Restated Severance and Change in Control Agreements and certain incentive award agreements with its executives as a result of the election of three new directors to the Company’s Board of Directors by shareholders at the shareholder meeting on May 20, 2015 (the "May 2015 Change of Control Event"). Upon a change of control, under the terms of the agreements with these

12

executives, certain performance-based restricted shares would immediately vest and be paid out in cash. As a result, 225,347 restricted shares were vested immediately, and a cash payment of $1.0 million was made to settle such awards. The only situation in which such shares would have been settled in cash was pursuant to a change of control. Additionally, 866,820 restricted shares that were subject to vesting in the future were forfeited.

As of June 30, 2015, there was $1.5 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 1.4 years.

Stock Appreciation Rights

During the six months ended June 30, 2015, we granted 2.7 million Stock Appreciation Rights (SARs) to certain employees associated with our Storage Solutions and Mobile Security operations. These awards were issued to incentivize employees to grow revenues. These awards expire on December 31, 2017 and only vest when both stock price and revenue performance conditions specified by the terms of the SARs are met. Additionally, under the terms of the 2015 SARs, any cash payments to an individual under a 2015 vested SAR would reduce any cash payment received under any earlier SAR grant pertaining to that individual, if and when such earlier SAR vests. For the stock price condition, based on the terms of the awards, 50 percent of the SARs could vest if the 30-day average Imation stock price reaches $8 per share or more by December 31, 2017 and the remaining 50 percent of the SARs could vest if the 30-day average Imation stock price reaches $12 per share or more by December 31, 2017. Additionally, for the revenue performance condition, as a condition necessary for vesting, the net revenue of Storage Solutions or Mobile Security (depending on the award) must reach certain specified stretch targets by December 31, 2017. If exercised, the SARs require a cash payment to the holder in an amount based on the Imation stock price at the date of exercise as compared to the stock price at the date of grant. As of June 30, 2015, we had 5.1 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, 2015, we contributed $0.3 million and $0.6 million to our worldwide pension plans, respectively. We presently anticipate contributing up to $0.5 million to fund our worldwide pension plans during the remainder of 2015.

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 to 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)	2015			2014			2015			2014			2015			2014			2015			2014
Service cost	$	—		$	—		$	0.1		$	0.1		$	—		$	—		$	0.2		$	0.2
Interest cost	0.7			0.8			0.1			0.2			1.4			1.6			0.2			0.4
Expected return on plan assets	(1.0		)	(1.2		)	(0.2		)	(0.2		)	(2.0		)	(2.4		)	(0.4		)	(0.4		)
Amortization of net actuarial loss	0.3			0.3			0.1			0.1			0.6			0.6			0.2			0.1
Amortization of prior service credit	—			—			—			(0.1		)	—			—			—			(0.1		)
Net periodic pension (credit) cost	$	—		$	(0.1	)	$	0.1		$	0.1		$	—		$	(0.2	)	$	0.2		$	0.2
Settlement loss	—			0.6			—			—			—			0.6			—			—
Curtailment gain	—			—			—			—			—			—			—			(0.7		)
Total pension (credit) cost	$	—		$	0.5		$	0.1		$	0.1		$	—		$	0.4		$	0.2		$	(0.5	)

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 income/loss excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded.

13

For the three and six months ended June 30, 2015, we recorded income tax expense of $0.2 million and $0.3 million, respectively. For both the three and six months ended June 30, 2014, we recorded income tax benefit of $1.6 million. The change in the income tax expense for the three months ended June 30, 2015 compared to the same period last year is due to valuation allowances established in the current year, which resulted in tax losses not being benefited. The effective income tax rate for the three and six months ended June 30, 2015 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 2011 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 local tax jurisdictions for years before 2008. 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 $1.6 million and $1.9 million as of June 30, 2015 and December 31, 2014, 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

As of June 30, 2015, we had short-term borrowings of $19.6 million with interest rates ranging from 2.6 percent to 2.7 percent. The borrowings were primarily from our credit agreements with various banks in the United States, Europe and Japan. As of June 30, 2015, our remaining borrowing capacity under all credit agreements, after consideration of amounts outstanding, was $19.6 million. We are in compliance with our covenant requirements as of June 30, 2015.

Our Credit Agreement entered into in 2006 as amended (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, 2014. In order to reduce borrowing costs, the maximum amount of borrowings under the Credit Agreement was reduced at the Company's request from $170 million to $100 million on May 28, 2015. The new limit does not impact our borrowing capacity as our borrowing availability under the Credit Agreement is under $100 million. The new sublimits are $80 million in the United States and $20 million in Europe. All other terms of the Credit Agreement remain the same.

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 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, 2015							December 31, 2014
(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 forward contracts	—		0.2			—		—		7.3		—
Derivative liabilities:
Foreign currency forward contracts	—		(0.8		)	—		—		—		—
Total net derivative (liabilities) assets	$	—	$	(0.6	)	$	—	$	—	$	7.3	$	—

14

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 and, 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, 2015 and 2014, we recorded net foreign currency losses of $0.6 million and $0.4 million, respectively, in other (income) expense in the Condensed Consolidated Statements of Operations. These net losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of losses of $0.5 million and $0.1 million from the related foreign currency forward contracts for the three months ended June 30, 2015 and 2014, respectively.

For the six months ended June 30, 2015 and 2014, we recorded net foreign currency losses of $1.2 million and $0.4 million, respectively, in other (income) expense in the Condensed Consolidated Statements of Operations. These net losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of gains of $0.2 million and losses of $0.3 million from the related foreign currency forward contracts for the six months ended June 30, 2015 and 2014, 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, 2015							December 31, 2014
			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	$	52.2	$	0.2	$	(0.8	)	$	86.7	$	7.3	$	—
Other hedges not receiving hedge accounting	0.6		—		—			23.4		—		—
Total	$	52.8	$	0.2	$	(0.8	)	$	110.1	$	7.3	$	—

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, 2015, we repurchased 0.2 million shares of common stock for $1.0 million. Since the authorization of this program, we have repurchased 3.0 million shares of common stock for $13.3 million and, as of June 30, 2015, we had remaining authorization to repurchase up to 2.0 million additional shares. The treasury stock held as of June 30, 2015 was acquired at an average price of $13.23 per share.

Following is a summary of treasury share activity:

	Treasury Shares
Balance as of December 31, 2014	627,796
Purchases	382,448
Exercise of stock options	(12,381	)
Restricted stock grants	(690,662	)
Forfeitures and other	863,743
Balance as of June 30, 2015	1,170,944

15

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, 2014	$	5.1		$	(20.6	)	$	(69.3	)	$	(84.8	)
Other comprehensive income (loss) before reclassifications, net of tax1	3.1			—			(3.5		)	(0.4		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(3.6		)	0.3			—			(3.3		)
Net current period other comprehensive (loss) income	(0.5		)	0.3			(3.5		)	(3.7		)
Balance as of June 30, 2015	$	4.6		$	(20.3	)	$	(72.8	)	$	(88.5	)

¹Income tax benefit of $1.2 million was recorded for unrealized gains on derivative financial instruments for the six months ended June 30, 2015.

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, 2015 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, 2015		June 30, 2015
Gains on cash flow hedges	(2.0	)	(5.3	)	Cost of goods sold
Income tax expense	0.7		1.7		Income tax provision
	(1.3	)	(3.6	)
Amortization of net actuarial loss	0.2		0.4		Selling, general and administrative
Net pension curtailment/settlement loss	—		—		Restructuring and other
Income tax benefit	—		(0.1	)	Income tax provision
	0.2		0.3
Total reclassifications for the period	(1.1	)	(3.3	)

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 includes primarily headphones, audio electronics and accessories. Consumer storage media and audio products and accessories are sold under the Imation^TM, Memorex^TM, TREK^TM and TDK Life on Record brands. 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. Imation’s storage and security solutions portfolio includes Nexsan^TM hybrid storage solutions and IronKey^TMmobile security solutions that address the needs of professionals for storage and archiving, secure data transport and mobile workspaces.

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 may include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, corporate expense,

16

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)	2015		2014		2015		2014
Net revenue
Consumer Storage and Accessories:
Consumer Storage Media	$	66.6	$	84.5	$	132.6	$	174.0
Audio and Accessories	9.7		10.6		18.9		21.1
Total Consumer Storage and Accessories	76.3		95.1		151.5		195.1
Tiered Storage and Security Solutions:
Commercial Storage Media	45.3		54.0		93.2		105.4
Storage and Security Solutions	29.0		29.5		61.3		57.0
Total Tiered Storage and Security Solutions	74.3		83.5		154.5		162.4
Total net revenue	$	150.6	$	178.6	$	306.0	$	357.5

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2015			2014			2015			2014
Operating income (loss) from continuing operations
Consumer Storage and Accessories	$	0.7		$	3.2		$	4.6		$	7.3
Tiered Storage and Security Solutions	(6.2		)	(8.5		)	(12.7		)	(17.3		)
Total segment operating loss	(5.5		)	(5.3		)	(8.1		)	(10.0		)
Corporate and unallocated	(10.4		)	(14.8		)	(20.8		)	(26.2		)
Total operating loss	(15.9		)	(20.1		)	(28.9		)	(36.2		)
Interest income	(0.1		)	(0.1		)	(0.2		)	(0.2		)
Interest expense	0.6			0.6			1.2			1.2
Other, net expense	0.8			0.8			1.6			1.0
Loss from continuing operations before income taxes	$	(17.2	)	$	(21.4	)	$	(31.5	)	$	(38.2	)

Note 15 — 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, 2015, 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. 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

17

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. Proceedings in the case have been bifurcated, and the matter is now in the pretrial phase for issues relating to determination of a fair, reasonable and nondiscriminatory royalty rate. 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. 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, sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. On February 18, 2015, the Tokyo District Court rendered a decision in favor of Imation that held One-Blue's sending of warning letters to Imation customers that threatened those customers with certain patent-related actions constituted an illegal "unfair competition practice" and issued a permanent injunction prohibiting One-Blue from sending any such warning letters in the future. One-Blue did not appeal that decision.

SpearPoint Capital Fund LP et al. v. Mark E. Lucas, et al. This shareholder derivative action was filed in Delaware Chancery Court on February 9, 2015. It names as defendants the Company and the members of its Board of Directors. Plaintiffs contend that the defendants paid excessive compensation to the directors. They seek damages for breaches of fiduciary duties, waste of corporate assets and unjust enrichment. They also seek corporate governance reforms related to the Company’s compensation practices. The Directors have responded to the complaint denying all the allegations; the Company, as the nominal defendant, has responded denying the allegations as well. The parties are now engaged in discovery. Trial, should it be necessary, has been scheduled for June 2016.

Following the May 2015 Change of Control Event, on July 6, 2015, Mark Lucas, the Chief Executive Officer of Imation, provided notice to the Company indicating that he believes that his removal from the Company’s Board of Directors as a result of the shareholder vote constitutes “Good Reason” for the termination of his employment under the terms of his Amended and Restated Severance and Change in Control Agreement with the Company dated November 24, 2014 (the “Agreement”) and his performance award agreements with the Company, and that he intends to terminate his employment at an unspecified date not earlier than September 21, 2015. The Company is currently analyzing its planned actions in response to this claim. Under the terms of his Agreement and performance awards, a Change of Control followed by a termination of Mr. Lucas’s employment by the Company without “Cause” or by Mr. Lucas for “Good Reason” would result in a severance payment of $3.6 million. The Company has not recorded a charge or established a liability for this claim as of June 30, 2015.

Copyright Levies

Background and historical developments associated with our copyright levies are discussed in Note 15 - Litigation, Commitments and Contingencies in our Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2014. As of June 30, 2015 and December 31, 2014, we had accrued liabilities of $5.8 million and $9.3 million, respectively, associated with levies for which we are withholding payment. In the first quarter of 2015, we reversed a $2.8 million accrual for copyright levies on optical products as the result of a favorable German court decision retroactively setting levy rates at a level much lower than the rates sought by the German collecting society.

We are subject to several pending or threatened legal actions by the individual European national levy collecting societies in relation to private copyright levies under the Directive. Those actions generally seek payment of the commercial and consumer optical levies withheld by Imation. For example, in the first quarter of 2015, the French levy society, Copie France, filed a new summary proceeding, seeking $8.7 million in withheld levies. Imation believed this claim was without merit, and Copie France voluntarily dismissed the claim in the second quarter of 2015. Imation has corresponding claims in those actions seeking reimbursement of levies improperly collected by those collecting societies. We are subject to threatened actions by certain customers of Imation seeking reimbursement of funds they allege relate to commercial levies that they claim they should not have paid. Although these actions are subject to the uncertainties inherent in the litigation process, based on the information presently available to us, management does not expect that the ultimate resolution of these actions will have a material adverse effect on our financial condition, results of operations or cash flows. We anticipate that additional court decisions may be rendered in 2015 that may directly or indirectly impact our levy exposure in specific European countries which could trigger a review of our levy exposure in those countries.

18

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

Overview

Imation Corp. is a global data storage and 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 segment and Consumer Storage Media and Audio and Accessories in our CSA segment. Our brands include Imation^TM, Nexsan^TM, IronKey^TM, TDK Life on Record, TREK^TM and Memorex^TM. As used in this document, the terms "Imation", "the Company", "we", "us" and "our" mean Imation Corp. and its subsidiaries and consolidated entities unless the context indicates otherwise.

Executive Summary

Consolidated Results of Operations for the Three Months Ended June 30, 2015

• Net revenue from continuing operations of $150.6 million for the three months ended June 30, 2015 was down 15.7 percent compared with $178.6 million in the same period last year. The decrease was due to secular declines in our legacy businesses and currency impacts. Foreign currency exchange rates negatively impacted revenue for the three months ended June 30, 2015 by 8.1 percent compared to the same period last year.

• Operating loss from continuing operations was $15.9 million for the three months ended June 30, 2015 compared with an operating loss of $20.1 million in the same period last year. The improvement of $4.2 million from the prior year period is due to lower operating costs in selling, general and administrative as well as lower restructuring and other expense.

• Diluted loss per share from continuing operations was $0.42 for the three months ended June 30, 2015 compared with a diluted loss per share of $0.48 for the same period last year.

Consolidated Results of Operations for the Six Months EndedJune 30, 2015

• Net revenue from continuing operations of $306.0 million for the six months ended June 30, 2015 was down 14.4 percent compared with $357.5 million in the same period last year. The decrease was due to secular declines in our legacy businesses and currency impacts, which was partially offset by year-over-year growth of 7.5 percent in our Storage and Security Solutions business. Foreign currency exchange rates negatively impacted revenue for the six months ended June 30, 2015 by 7.3 percent compared to the same period last year.

• Operating loss from continuing operations was $28.9 million for the six months ended June 30, 2015 compared with an operating loss of $36.2 million in the same period last year. The improvement of $7.3 million is primarily due to lower operating costs in selling, general and administrative as well as lower restructuring and other expense.

• Diluted loss per share from continuing operations was $0.77 for the six months ended June 30, 2015 compared with a diluted loss per share of $0.89 for the same period last year.

Cash Flow/Financial Condition for the Six Months EndedJune 30, 2015

• Cash and cash equivalents totaled $89.8 million at June 30, 2015 compared with $96.2 million at March 31, 2015 and $114.6 million at December 31, 2014. The anticipated decline in the cash balance reflects the ongoing investment in Storage and Security Solutions growth initiatives and seasonal working capital changes and payments, as well as currency impacts.

• Cash used in operating activities was $21.5 million for the six months ended June 30, 2015 compared with $16.8 million in the same period last year. The increase was primarily due to working capital usage.

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. Our legacy businesses as referred to in the following discussion consist of our Consumer and Commercial Storage Media businesses.

19

Net Revenue

	Three Months Ended						Six Months Ended
	June 30,				Percent Change		June 30,				Percent Change
(Dollars in millions)	2015		2014				2015		2014
Net revenue	$	150.6	$	178.6	(15.7	)%	$	306.0	$	357.5	(14.4	)%

Net revenue for the three months ended June 30, 2015 decreased 15.7 percent compared with the same period last year due to declines in the CSA and TSS business segments of 19.8 percent and 11.0 percent, respectively. Within the TSS segment, Commercial Storage Media revenue decreased 16.1 percent due to the expected secular declines of our legacy magnetic tape business. Storage and Security Solutions revenue declined by 1.7 percent due to negative foreign currency impacts. Within the CSA segment, revenue decreased due to the ongoing declines in optical media products, which were in line with industry trends, along with negative foreign currency impacts. Foreign currency exchange rates negatively impacted revenue for the three months ended June 30, 2015 by 8.1 percent compared to the same period last year.

Net revenue for the six months ended June 30, 2015 decreased 14.4 percent compared with the same period last year due to declines in the CSA and TSS business segments of 22.3 percent and 4.9 percent, respectively. Within the TSS segment, Storage and Security Solutions revenue grew by 7.5 percent. The growth was due to both our Nexsan hybrid storage solutions and IronKey mobile security businesses. Commercial Storage Media revenue decreased 11.6 percent due to the expected secular declines of our legacy magnetic tape business. Within the CSA segment, revenue decreased due to the ongoing declines in optical media products, which were in line with industry trends, along with negative foreign currency impacts. Foreign currency exchange rates negatively impacted revenue for the six months ended June 30, 2015 by 7.3 percent compared to the same period last year.

See Segment Results for further discussion of our reporting segments and products.

Gross Profit

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2015			2014					2015			2014
Gross profit	$	29.0		$	33.9		(14.5	)%	$	63.0		$	67.6		(6.8	)%
Gross margin	19.3		%	19.0		%			20.6		%	18.9		%

Gross profit for the three months ended June 30, 2015 decreased 14.5 percent compared with the same period last year due primarily to lower gross profit in our CSA segment. Gross profit in CSA decreased due to the expected secular declines in our legacy Consumer Storage Media products. Gross profit in TSS was relatively flat compared to the same period last year with increases in our Storage and Security Solutions business offset by the expected declines in our Commercial Storage Media products.

Gross profit for the six months ended June 30, 2015 decreased 6.8 percent compared with the same period last year due to lower gross profit in our CSA segment which was partially offset by higher gross profit in our TSS segment. Gross profit in CSA decreased due to expected secular declines in our legacy Consumer Storage Media products which were partially offset by the reversal of a $2.8 million accrual for copyright levies as a result of a favorable court ruling in Germany. Gross profit in TSS increased due to revenue growth of 7.5 percent in our higher margin Storage and Security Solutions business which was partially offset by expected revenue declines in our Commercial Storage Media products.

Gross margin for the three months ended June 30, 2015 increased slightly compared with the same period last year due to improved margins in our TSS segment which were partially offset by declines in our CSA segment. Gross margins in TSS increased due to improved sourcing costs, lower discounts and our product mix moving towards the higher margin Storage and Security Solutions products. Gross margins in CSA decreased primarily due to negative currency impacts in Japan.

Gross margin for the six months ended June 30, 2015 increased 1.7 percentage points compared with the same period last year due to improved margins in both our TSS and CSA segments. Gross margins in TSS increased due to improved sourcing costs, lower discounts and our product mix moving towards the higher margins of our Storage and Security Solutions products. Gross margins in CSA improved due to the reversal of a $2.8 million accrual for copyright levies as a result of a favorable court ruling in Germany as well as higher margins in our Consumer Storage Media business.

20

Selling, General and Administrative (SG&A)

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2015			2014					2015			2014
Selling, general and administrative	$	38.6		$	44.3		(12.9	)%	$	79.6		$	87.7		(9.2	)%
As a percent of revenue	25.6		%	24.8		%			26.0		%	24.5		%

SG&A expense decreased for the three and six months ended June 30, 2015 compared with the same periods last year due to lower spending and currency impacts. We reduced legacy and administrative operating costs by $4.2 million and $6.4 million in the three and six months ended June 30, 2015, respectively, in order to operate as a smaller company with more focused product lines and streamlined core operational processes.

Research and Development (R&D)

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2015			2014					2015			2014
Research and development	$	4.8		$	4.5		6.7	%	$	9.6		$	8.8		9.1	%
As a percent of revenue	3.2		%	2.5		%			3.1		%	2.5		%

R&D expense increased for the three and six months ended June 30, 2015 compared with the same periods last year which reflects the Company's increased investment in higher-margin projects in Storage and Security Solutions, partially offset by reductions in our investments in our legacy Commercial Storage Media business.

Restructuring and Other

	Three Months Ended						Six Months Ended
	June 30,				Percent Change		June 30,				Percent Change
(Dollars in millions)	2015		2014				2015		2014
Restructuring and other	$	1.5	$	5.2	(71.2	)%	$	2.7	$	7.3	(63.0	)%

For the three months ended June 30, 2015, the $1.5 million of restructuring and other expense relates to restructuring costs of $0.5 million and other costs of $1.0 million. The $0.5 million of restructuring costs consists of severance and related costs. The $1.0 million of other costs primarily consists of costs associated with our proxy and strategic review processes. For the three months ended June 30, 2014, the $5.2 million of restructuring and other expense related to restructuring costs of $3.2 million, other costs of $1.4 million and a settlement loss of $0.6 million related to our U.S. pension plan. The $3.2 million of restructuring costs consists of severance and related costs. The $1.4 million of other costs primarily consists of employee costs and professional fees.

For the six months ended June 30, 2015, the $2.7 million of restructuring and other expense relates to restructuring costs of $1.3 million and other costs of $1.4 million. The $1.3 million of restructuring costs consists of severance and related costs. The $1.4 million of other costs primarily consists of costs associated with our proxy and strategic review processes. For the six months ended June 30, 2014, the $7.3 million of restructuring and other expense relates to restructuring costs of $3.8 million, other costs of $3.6 million and a $0.1 million gain related to our pension plans. The $3.8 million of restructuring costs consist of severance and related costs. The $3.6 million of other costs primarily consists of employee costs and professional fees. Additionally, the $0.6 million settlement loss related to our U.S. pension plan was partially offset by a $0.7 million curtailment gain related to our Japan pension plan recorded in the first quarter, resulting in a $0.1 million gain in the six months ended June 30, 2014.

Restructuring expense in 2015 and 2014 related to our 2012 Global Process Improvement Restructuring Program. Since January 1, 2013, the program has resulted in the reduction of approximately $109 million in costs related to our legacy businesses, while we continue to invest in our priority growth businesses. We have reduced corporate and legacy business 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 and attempting to monetize certain intellectual property. See Note 7 - Restructuring and Other Expense in our Notes to Condensed Consolidated Financial Statements for further details on our restructuring and other expense.

21

Operating Loss from Continuing Operations

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2015			2014					2015			2014
Operating loss from continuing operations	$	(15.9	)	$	(20.1	)	(20.9	)%	$	(28.9	)	$	(36.2	)	(20.2	)%
As a percent of revenue	(10.6		)%	(11.3		)%			(9.4		)%	(10.1		)%

Operating loss from continuing operations decreased for the three and six months ended June 30, 2015 compared with the same periods last year 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)	2015			2014					2015			2014
Interest income	$	(0.1	)	$	(0.1	)	—	%	$	(0.2	)	$	(0.2	)	—	%
Interest expense	0.6			0.6			—	%	1.2			1.2			—	%
Other, net expense	0.8			0.8			—	%	1.6			1.0			60.0	%
Total other expense	$	1.3		$	1.3		—	%	$	2.6		$	2.0		30.0	%
As a percent of revenue	0.9		%	0.7		%			0.8		%	0.6		%

Other expense for the three months ended June 30, 2015 was flat as compared to the same period last year. Other expense for the six months ended June 30, 2015 increased compared with the same period last year due to higher losses recorded as a result of exchange rate changes on transactions in foreign currencies.

Income Tax Provision (Benefit)

	Three Months Ended							Six Months Ended
	June 30,						Percent Change	June 30,						Percent Change
(Dollars in millions)	2015			2014				2015			2014
Income tax provision (benefit)	$	0.2		$	(1.6	)	NM	$	0.3		$	(1.6	)	NM
Effective tax rate	(1.2		)%	7.5		%		(1.0		)%	4.2		%

NM - Not meaningful

The change in the income tax provision for the three and six months ended June 30, 2015 compared to the same periods last year is due to valuation allowances established in the current year, which resulted in tax losses not being benefited. 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)	2015		2014					2015		2014
Loss on sale of discontinued businesses, net of income taxes	$	—	$	(1.2	)	(100.0	)%	$	—	$	(1.7	)	(100.0	)%
Loss from operations of discontinued businesses, net of income taxes	—		(0.4		)	(100.0	)%	—		(0.6		)	(100.0	)%
Loss from discontinued operations	$	—	$	(1.6	)	(100.0	)%	$	—	$	(2.3	)	(100.0	)%

Loss from discontinued operations represents operations from our former XtremeMac and Memorex consumer electronics businesses. For the three and six months ended June 30, 2015, discontinued operations had no effect. The loss for the three months ended June 30, 2014 includes a $1.2 million adjustment to the expected proceeds on the sale of the XtremeMac business. For the six months ended June 30, 2014, a $0.5 million loss was recorded on the sale of the XtremeMac business

22

which closed on January 31, 2014. See Note 4 - Acquisitions and Divestitures in our Notes to Condensed Consolidated Financial Statements for more information on our discontinued operations.

Segment Results

We operate our business through two focused business segments: Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our business 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 optical products, USB flash drives, flash cards and external hard disk drives. Imation's optical products consist of DVDs, CDs, and Blu-ray recordable media. Audio and Accessories include speakers, headphones 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 Imation Nexsan products as well as Mobile Security, under the Ironkey brand.

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 may include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, corporate expense, 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)	2015			2014					2015			2014
Net revenue	$	76.3		$	95.1		(19.8	)%	$	151.5		$	195.1		(22.3	)%
Operating income	0.7			3.2			(78.1	)%	4.6			7.3			(37.0	)%
As a percent of revenue	0.9		%	3.4		%			3.0		%	3.7		%

The decrease in CSA net revenue for the three and six months ended June 30, 2015 compared with the same periods last year was driven by declines in Consumer Storage Media and Audio and Accessories products and negative foreign currency impacts as we derive the majority of our CSA revenue outside of the United States. CSA revenue declined 19.8 percent and 22.3 percent for the three and six months ended June 30, 2015, respectively. Consumer Storage Media declined $17.9 million, or 21.2 percent, and $41.4 million, or 23.8 percent, for the three and six months ended June 30, 2015, respectively. These decreases were driven by expected secular declines in optical media products and negative foreign currency impacts. Audio and Accessories decreased $0.9 million, or 8.5 percent, and $2.2 million, or 10.4 percent, for the three and six months ended June 30, 2015, respectively, primarily due to negative foreign currency impacts.

Operating income decreased 78.1 percent and 37.0 percent for the three and six months ended June 30, 2015, respectively, compared with the same periods last year driven by lower gross profit in Consumer Storage Media and Audio and Accessories products in 2015 as a result of lower revenues.

Tiered Storage and Security Solutions

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2015			2014					2015			2014
Net revenue	$	74.3		$	83.5		(11.0	)%	$	154.5		$	162.4		(4.9	)%
Operating loss	(6.2		)	(8.5		)	(27.1	)%	(12.7		)	(17.3		)	(26.6	)%
As a percent of revenue	(8.3		)%	(10.2		)%			(8.2		)%	(10.7		)%

The decrease in TSS net revenue of 11.0 percent for the three months ended June 30, 2015 compared with the same period last year was due to a revenue decrease of 16.1 percent in our Commercial Storage Media business and 1.7 percent in our Storage and Security Solutions business. The 4.9 percent decrease in TSS net revenue for the six months ended June 30, 2015 compared to the same period last year was due to an 11.6 percent decrease in our Commercial Storage Media business partially

23

offset by a 7.5 percent increase in our Storage and Security Solutions business. The year to date revenue decline in Commercial Storage Media is due to the expected secular declines of our legacy magnetic tape business. The year to date growth in Storage and Security Solutions revenue was due to both our Nexsan hybrid storage solutions and IronKey mobile security businesses.

The decrease in the operating loss for the three and six months ended June 30, 2015 was driven by higher gross profit in Storage and Security Solutions and lower SG&A expense partially offset by lower gross profit in Commercial Storage Media and higher R&D expense. We aggressively reduced SG&A and R&D expense in our legacy Commercial Storage Media business while we invested in the growing Storage and Security Solutions business.

Corporate and Unallocated

	Three Months Ended								Six Months Ended
	June 30,						Percent Change		June 30,						Percent Change
(Dollars in millions)	2015			2014					2015			2014
Operating loss	$	(10.4	)	$	(14.8	)	(29.7	)%	$	(20.8	)	$	(26.2	)	(20.6	)%

The Corporate and Unallocated operating loss decreased for the three and six months ended June 30, 2015 compared with the same period last year due to reduced restructuring and other expense. For the three months ended June 30, 2015 and 2014, respectively, the operating loss includes the $1.5 million and $5.2 million of restructuring and other expense discussed earlier. For the six months ended June 30, 2015 and 2014, respectively, the operating loss includes the $2.7 million and $7.3 million of restructuring and other expense discussed earlier.

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 exchange rates negatively impacted worldwide revenue by 8.1 percent and 7.3 percent for the three and six months ended June 30, 2015, respectively. Changes in foreign currency exchange 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.

Our foreign currency hedging program attempts to manage some of the foreign currency risks over near term periods, however, the program cannot ensure that the adverse financial impact resulting from unfavorable movements in foreign exchange rates will be entirely offset. It is difficult to predict the longer term effects of exchange rates on revenue and profit (see Part I, 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, 2015 was $89.8 million compared to $96.2 million as of March 31, 2015 and $114.6 million as of December 31, 2014. During the quarter, we received $1.2 million from the sale of our Weatherford, Oklahoma facility. The anticipated decline in cash reflects the ongoing investment in Storage and Security Solutions growth initiatives and seasonal working capital changes and payments, as well as currency effects. Imation repurchased approximately 0.2 million shares of common stock for $1.0 million during the quarter as a result of the Company's "Change of Control" that occurred on May 22, 2015.

Our accounts receivable balance as of June 30, 2015 was $103.1 million, a decrease of $31.3 million from $134.4 million as of December 31, 2014 as a result of the seasonally strong sales in the fourth quarter of 2014 and the continued secular revenue declines in our legacy businesses. Days sales outstanding (DSO) was 58 days as of June 30, 2015, up 3 days from December 31, 2014 which was benefited by seasonally high revenues. DSO 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, 2015 was $59.5 million, an increase of $1.8 million from $57.7 million as of December 31, 2014. Days of inventory supply was 46 days as of June 30, 2015, up 2 days from December 31, 2014. We expected inventory levels to slightly increase from December 31, 2014. The increase was primarily driven by lower inventory levels as of December 31, 2014 due to strong fourth quarter sales in 2014 as well as the West Coast port labor dispute which delayed some inventory receipts. 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.

Our accounts payable balance as of June 30, 2015 was $78.0 million, a decrease of $17.5 million from $95.5 million as of December 31, 2014. The decrease in accounts payable was mainly due to the seasonal timing of payments.

24

Our other current liabilities balance as of June 30, 2015 was $79.9 million compared to $98.2 million as of December 31, 2014. The decrease of $18.3 million was mainly due to seasonal variable compensation and rebate payments.

Liquidity and Capital Resources

Cash Flows Used in Operating Activities:

	Six Months Ended
	June 30,
(Dollars in millions)	2015			2014
Net loss	$	(31.8	)	$	(38.9	)
Adjustments to reconcile net loss to net cash used in operating activities	11.6			16.0
Changes in operating assets and liabilities	(1.3		)	6.1
Net cash used in operating activities	$	(21.5	)	$	(16.8	)

Cash used in operating activities was $21.5 million for the six months ended June 30, 2015 reflecting negative earnings, our ongoing investment in Storage and Security Solutions growth initiatives and working capital changes. Cash used in operating activities was $16.8 million for the six months ended June 30, 2014 reflecting negative earnings and seasonal variable compensation and rebate payments in the first quarter of 2014 as well as restructuring payments in the first half of 2014, partially offset by improvements in working capital.

Cash Flows Used in Investing Activities:

	Six Months Ended
	June 30,
(Dollars in millions)	2015			2014
Capital expenditures	$	(1.8	)	$	(2.3	)
Proceeds from sale of disposal group	0.7			1.6
Proceeds from sale of assets	1.2			—
Net cash provided by (used in) investing activities	$	0.1		$	(0.7	)

Cash provided by investing activities for the six months ended June 30, 2015 included capital expenditures of $1.8 million partially offset by $1.2 million received from the sale of our Weatherford, Oklahoma facility and proceeds from the sale of our discontinued businesses. 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 Flows Provided by (Used in) Financing Activities:

	Six Months Ended
	June 30,
(Dollars in millions)	2015			2014
Purchase of treasury shares	$	(1.7	)	$	(0.9	)
Exercise of stock options	—			0.4
Short-term debt repayment	(12.4		)	(24.9		)
Short-term borrowings	12.9			24.5
Net cash used in financing activities	$	(1.2	)	$	(0.9	)

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, 2015, we repurchased 0.4 million shares of common stock for $1.7 million at an average price of $4.44. Since the authorization of this program, we have repurchased 3.0 million shares of common stock for $13.3 million at an average price of $13.23 per share. As of June 30, 2015, we had remaining authorization to repurchase up to 2.0 million additional shares.

Our Credit Agreement entered into in 2006 as amended (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, 2014. In order to reduce borrowing costs, the maximum amount of borrowings under the Credit Agreement was reduced at the Company's request from $170 million to $100 million on May 28, 2015. The new limit does not impact our borrowing capacity as our borrowing availability under the Credit Agreement is under $100 million. The

25

new sublimits are $80 million in the United States and $20 million in Europe. All other terms of the Credit Agreement remain the same. As of June 30, 2015, our remaining borrowing capacity under all credit agreements, after consideration of amounts outstanding, was $19.6 million.

As of June 30, 2015, we had $19.6 million of borrowings outstanding under our credit facilities with interest rates ranging from 2.6 percent to 2.7 percent. We are in compliance with our covenant requirements as of June 30, 2015.

Our liquidity needs for the remaining six months of 2015 include the following: restructuring payments of approximately $1 million to $4 million, up to $20 million repayment on our credit facility, capital expenditures of approximately $3 million to $4 million, pension funding of up to $0.5 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, 2015, there have been no material changes to our contractual obligations as presented in our Annual Report on Form 10-K for the year ended December 31, 2014.

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, 2014. There were no significant changes to these accounting policies for the first six months of 2015.

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.

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; the loss of a major customer, partner or reseller; 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

26

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; the effect of the announcement of our review of strategic alternatives; the effect of the transition of our Board of Directors; 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, 2014 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, 2014. 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, 2014.

As of June 30, 2015, we had $52.8 million notional amount of foreign currency forward and option contracts of which $0.6 million hedged recorded balance sheet exposures. This compares to $110.1 million notional amount of foreign currency forward and option contracts as of December 31, 2014 of which $23.4 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, 2015 by $5.7 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, 2015, 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, 2015, 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.

27

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.

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, 2015, 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. 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. Proceedings in the case have been bifurcated, and the matter is now in the pretrial phase for issues relating to determination of a fair, reasonable and nondiscriminatory royalty rate. 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. 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, sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. On February 18, 2015, the Tokyo District Court rendered a decision in favor of Imation that held One-Blue's sending of warning letters to Imation customers that threatened those customers with certain patent-related actions constituted an illegal "unfair competition practice" and issued a permanent injunction prohibiting One-Blue from sending any such warning letters in the future. One-Blue did not appeal that decision.

SpearPoint Capital Fund LP et al. v. Mark E. Lucas, et al. This shareholder derivative action was filed in Delaware Chancery Court on February 9, 2015. It names as defendants the Company and the members of its Board of Directors. Plaintiffs contend that the defendants paid excessive compensation to the directors. They seek damages for breaches of fiduciary duties, waste of corporate assets and unjust enrichment. They also seek corporate governance reforms related to the Company’s compensation practices. The Directors have responded to the complaint denying all the allegations; the Company, as the nominal defendant, has responded denying the allegations as well. The parties are now engaged in discovery. Trial, should it be necessary, has been scheduled for June 2016.

Effective May 22, 2015, a “Change of Control” occurred under the terms of the Company’s Amended and Restated Severance and Change in Control Agreements and certain incentive award agreements with its executives as a result of the election of three new directors to the Company’s Board of Directors by shareholders at the shareholder meeting on May 20, 2015. On July 6, 2015, Mark Lucas, the Chief Executive Officer of Imation, provided notice to the Company indicating that he believes that his removal from the Company’s Board of Directors as a result of the shareholder vote constitutes “Good Reason” for the termination of his employment under the terms of his Amended and Restated Severance and Change in Control Agreement with the Company dated November 24, 2014 (the “Agreement”) and his performance award agreements with the Company, and that he intends to terminate his employment at an unspecified date not earlier than September 21, 2015. The Company is currently analyzing its planned actions in response to this claim. Under the terms of his Agreement and performance awards, a Change of Control followed by a termination of Mr. Lucas’s employment by the Company without “Cause” or by Mr. Lucas for “Good Reason” would result in a severance payment of $3.6 million. The Company has not recorded a charge or established a liability for this claim as of June 30, 2015.

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.

28

Item 1A. Risk Factors.

As a result of subsequent developments, the Company has expanded its discussion of risk factors to include the following:

The Company may face risks associated with the transition of its Board of Directors.Shareholders elected three new directors to the Company's Board of Directors at the Annual Meeting of Shareholders on May 20, 2015, replacing three incumbent directors who had been nominated by the Company for reelection. Following this change, many aspects of the Company's strategies, structure and operating practices have been and will continue to be under review by the Board of Directors and management and may be subject to change. There can be no assurance that any changes on strategies, structure or operating practices resulting from this review will be successfully implemented or result in an increase in the Company's stock price.

For further information on other risk factors, see Item 1A. “Risk Factors” included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

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

 (a) - (b)

Not applicable

(c) Issuer Purchases of Equity Securities

				Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(c) Maximum Number of Shares that May Yet Be Purchased Under the Plan or Programs
	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share
Period
April 1, 2015 - April 30, 2015	—	—		—	2,229,889
May 1, 2015 - May 31, 2015	35,169	4.09		—	2,229,889
June 1, 2015 - June 30, 2015	225,347	4.61		225,347	2,004,542
Total	260,516	$	4.54	225,347	2,004,542

(a) The purchases in this column include shares repurchased as a part of our publicly announced program and include 35,169 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 and 225,347 shares that were repurchased as a result of the Company's "Change of Control" that occurred on May 22, 2015.

(b) The average price paid in this column relates 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 and the purchase of shares as a part of our publicly announced program.

(c) On May 3, 2012, the Company announced that 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. The authorization has no expiration date.

Item 3. Defaults Upon Senior Securities.

 Not Applicable

Item 4. Mine Safety Disclosures.

Not Applicable

Item 5. Other Information.

 Not Applicable

29

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 20, 2015)
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, 2015, filed with the SEC on August 10, 2015, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014, (ii) the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2015 and 2014, (iii) the Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014, 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.

30

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 10, 2015	/s/ Scott J. Robinson
		Scott J. Robinson
		Vice President and Chief Financial Officer (duly authorized officer and principal financial officer)

31

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 20, 2015)
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, 2015, filed with the SEC on August 10, 2015, formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2015 and 2014, (ii) the Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2015 and 2014, (iii) the Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, (iv) the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014, 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

IMATION CORP.

DIRECTORS COMPENSATION PROGRAM

EFFECTIVE MAY 4, 2005
(As amended effective May 20, 2015)

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)    “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.

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

(s)    “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.

(t)    “Quarterly Payment Date” means 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 .

(u)    “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.

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

(w)    “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.

(x)    “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, payable quarterly generally in accordance with the schedule described in (a) and (b) above.

(d)    . Any member of the Board who must travel and interview a Board candidate outside of a regularly scheduled Board meeting shall be entitled to receive compensation 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 interview 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. INTENTIONALLY OMITTED

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 and/or, Non-Executive Chairman Fee 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 and/or, Non-Executive Chairman Fee (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, and/or Non-Executive Chairman Fee, Restricted Stock Units (including fractional Restricted Stock Units) calculated by dividing his or her Basic Fee, Chairperson Fee and/or, Non-Executive Chairman Fee (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 or Non-Executive Chairman Fee 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 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 or the Quarterly Payment Date, is

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 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 20, 2015)

Basic Fee	$50,000
Non-Executive Chairman	$50,000, 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
Interview Fees	$1,500
Annual Stock Based Grants	All Eligible Directors: Dollar value $125,000 in restricted stock Non-Executive Chairman: $50,000 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 ___, 201_.

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

The Basic Fee, Chairperson Fee and Non-Executive Chairman Fee is payable in accordance with the Director Compensation Program.

** 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 2015 is not effective until January 1, 2016). 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 2016 must be made before the end of 2015.)

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 %

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:

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 10, 2015
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 10, 2015
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, 2015, 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 10, 2015

/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, 2015, 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 10, 2015

/s/ SCOTT J. ROBINSON 

Scott J. Robinson, 

Vice President and Chief Financial Officer 

XML

Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 36.1	$ 36.1

XML

Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance				$ 240.8
Total other comprehensive income (loss), net of tax		$ 2.1	$ 3.2	(3.7)	$ (1.7)
Ending balance		204.4		204.4
Income tax benefit for unrealized gains on derivative financial instruments				1.2
Selling, general and administrative		38.6	44.3	79.6	87.7
Restructuring and other		1.5	5.2	2.7	7.3
Income tax expense (benefit)		0.2	(1.6)	0.3	(1.6)
Net loss		17.4	$ 21.4	31.8	$ 38.9
Gains (Losses) on Derivative Financial Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance				5.1
Other comprehensive income (loss) before reclassifications, net of tax	[1]			3.1
Amounts reclassified from accumulated other comprehensive income (loss), net of tax				(3.6)
Total other comprehensive income (loss), net of tax				(0.5)
Ending balance		4.6		4.6
Defined Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance				(20.6)
Other comprehensive income (loss) before reclassifications, net of tax	[1]			0.0
Amounts reclassified from accumulated other comprehensive income (loss), net of tax				0.3
Total other comprehensive income (loss), net of tax				0.3
Ending balance		(20.3)		(20.3)
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance				(69.3)
Other comprehensive income (loss) before reclassifications, net of tax	[1]			(3.5)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax				0.0
Total other comprehensive income (loss), net of tax				(3.5)
Ending balance		(72.8)		(72.8)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance				(84.8)
Other comprehensive income (loss) before reclassifications, net of tax	[1]			(0.4)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax				(3.3)
Total other comprehensive income (loss), net of tax				(3.7)
Ending balance		(88.5)		(88.5)
Reclassification out of Accumulated Other Comprehensive Income
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Net loss		(1.1)		(3.3)
Reclassification out of Accumulated Other Comprehensive Income | Gains (Losses) on Derivative Financial Instruments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Cost of goods sold		(2.0)		(5.3)
Income tax expense (benefit)		0.7		1.7
Net loss		(1.3)		(3.6)
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Selling, general and administrative		0.2		0.4
Restructuring and other		0.0		0.0
Income tax expense (benefit)		0.0		(0.1)
Net loss		$ 0.2		$ 0.3

[1] Income tax benefit of $1.2 million was recorded for unrealized gains on derivative financial instruments for the six months ended June 30, 2015.

XML

Retirement Plans - Components of Net Periodic Pension (Credit) Cost (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined Benefit Plan Disclosure [Line Items]
Settlement loss	$ 0.0	$ 0.6	$ 0.0	$ (0.1)
United States
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.0	0.0	0.0	0.0
Interest cost	0.7	0.8	1.4	1.6
Expected return on plan assets	(1.0)	(1.2)	(2.0)	(2.4)
Amortization of net actuarial loss	0.3	0.3	0.6	0.6
Amortization of prior service credit	0.0	0.0	0.0	0.0
Net periodic pension (credit) cost	0.0	(0.1)	0.0	(0.2)
Settlement loss	0.0	0.6	0.0	0.6
Curtailment gain	0.0	0.0	0.0	0.0
Total pension (credit) cost	0.0	0.5	0.0	0.4
International
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.1	0.1	0.2	0.2
Interest cost	0.1	0.2	0.2	0.4
Expected return on plan assets	(0.2)	(0.2)	(0.4)	(0.4)
Amortization of net actuarial loss	0.1	0.1	0.2	0.1
Amortization of prior service credit	0.0	(0.1)	0.0	(0.1)
Net periodic pension (credit) cost	0.1	0.1	0.2	0.2
Settlement loss	0.0	0.0	0.0	0.0
Curtailment gain	0.0	0.0	0.0	(0.7)
Total pension (credit) cost	$ 0.1	$ 0.1	$ 0.2	$ (0.5)

XML

Segment Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) segment product_category	Jun. 30, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of reporting segments | segment			2
Segment Reporting Information, Profit (Loss) [Abstract]
Net revenue	$ 150.6	$ 178.6	$ 306.0	$ 357.5
Operating loss	(15.9)	(20.1)	(28.9)	(36.2)
Interest income	(0.1)	(0.1)	(0.2)	(0.2)
Interest expense	0.6	0.6	1.2	1.2
Other, net expense	0.8	0.8	1.6	1.0
Loss from continuing operations before income taxes	(17.2)	(21.4)	(31.5)	(38.2)
Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Operating loss	(5.5)	(5.3)	(8.1)	(10.0)
Corporate and Unallocated
Segment Reporting Information, Profit (Loss) [Abstract]
Operating loss	(10.4)	(14.8)	$ (20.8)	(26.2)
Consumer Storage and Accessories
Segment Reporting Information [Line Items]
Number of major product categories | product_category			2
Segment Reporting Information, Profit (Loss) [Abstract]
Net revenue	76.3	95.1	$ 151.5	195.1
Consumer Storage and Accessories | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Operating loss	0.7	3.2	4.6	7.3
Consumer Storage and Accessories | Consumer Storage Media
Segment Reporting Information, Profit (Loss) [Abstract]
Net revenue	66.6	84.5	132.6	174.0
Consumer Storage and Accessories | Audio and Accessories
Segment Reporting Information, Profit (Loss) [Abstract]
Net revenue	9.7	10.6	$ 18.9	21.1
Tiered Storage and Security Solutions
Segment Reporting Information [Line Items]
Number of major product categories | product_category			2
Segment Reporting Information, Profit (Loss) [Abstract]
Net revenue	74.3	83.5	$ 154.5	162.4
Tiered Storage and Security Solutions | Operating Segments
Segment Reporting Information, Profit (Loss) [Abstract]
Operating loss	(6.2)	(8.5)	(12.7)	(17.3)
Tiered Storage and Security Solutions | Commercial Storage Media
Segment Reporting Information, Profit (Loss) [Abstract]
Net revenue	45.3	54.0	93.2	105.4
Tiered Storage and Security Solutions | Storage and Security Solutions
Segment Reporting Information, Profit (Loss) [Abstract]
Net revenue	$ 29.0	$ 29.5	$ 61.3	$ 57.0

XML

Stock-Based Compensation - Restricted Stock (Details) $ / shares in Units, $ in Millions		6 Months Ended
	May. 22, 2015 USD ($) member shares	Jun. 30, 2015 USD ($) $ / shares shares
Restricted Stock [Roll Forward]
Vested (in shares)		(690,662)
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense related to non-vested stock | $		$ 1.5
Total compensation cost not yet recognized, period for recognition		1 year 4 months 24 days
Restricted Stock [Roll Forward]
Beginning, nonvested (in shares)		1,348,917
Granted (in shares)		862,706
Grant adjustments (in shares)		0
Vested (in shares)		(807,239)
Forfeited (in shares)		(867,445)
Ending, nonvested (in shares)		536,939
Weighted Average Grant Date Fair Value Per Share [Roll Forward]
Beginning, nonvested (in dollars per share) | $ / shares		$ 3.81
Granted (in dollars per share) | $ / shares		3.97
Grants adjustments (in dollars per share) | $ / shares		0.00
Vested (in dollars per share) | $ / shares		4.19
Forfeited (in dollars per share) | $ / shares		3.76
Ending, nonvested (in dollars per share) | $ / shares		$ 3.57
Board Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of new board directors | member	3
Board Member | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash payment to settle awards | $	$ 1.0
Restricted Stock [Roll Forward]
Vested (in shares)	(225,347)
Forfeited (in shares)	(866,820)

XML

(Loss) Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Numerator:
Loss from continuing operations	$ (17.4)	$ (19.8)	$ (31.8)	$ (36.6)
Loss from discontinued operations	0.0	(1.6)	0.0	(2.3)
Net loss	$ (17.4)	$ (21.4)	$ (31.8)	$ (38.9)
Denominator:
Weighted average number of common shares outstanding during the period - basic (in shares)	41.1	41.2	41.1	41.0
Dilutive effect of stock-based compensation plans (in shares)	0.0	0.0	0.0	0.0
Weighted average number of diluted shares outstanding during the period - diluted (in shares)	41.1	41.2	41.1	41.0
Loss per common share — basic:
Continuing operations - basic (in dollars per share)	$ (0.42)	$ (0.48)	$ (0.77)	$ (0.89)
Discontinued operations - basic (in dollars per share)	0.00	(0.04)	0.00	(0.06)
Net loss - basic (in dollars per share)	(0.42)	(0.52)	(0.77)	(0.95)
Loss per common share — diluted:
Continuing operations - diluted (in dollars per share)	(0.42)	(0.48)	(0.77)	(0.89)
Discontinued operations - diluted (in dollars per share)	0.00	(0.04)	0.00	(0.06)
Net loss - diluted (dollars per share)	$ (0.42)	$ (0.52)	$ (0.77)	$ (0.95)
Anti-dilutive shares excluded from calculation (in shares)	3.3	4.9	3.5	4.7

XML

Supplemental Balance Sheet Information (Tables)

6 Months Ended

Jun. 30, 2015

Balance Sheet Related Disclosures [Abstract]

Schedule of Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided as follows:

	June 30,			December 31,
(In millions)	2015			2014
Accounts Receivable:
Accounts receivable	$	110.0		$	143.5
Less reserves and allowances1	(6.9		)	(9.1		)
Accounts receivable, net	$	103.1		$	134.4
Inventories:
Finished goods	$	52.1		$	51.1
Work in process	0.5			0.7
Raw materials and supplies	6.9			5.9
Total inventories	$	59.5		$	57.7
Property, Plant and Equipment:
Property, plant and equipment	$	165.9		$	184.0
Less accumulated depreciation	(123.5		)	(139.0		)
Property, plant and equipment, net	$	42.4		$	45.0

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

XML

Debt (Details) - USD ($)	Jun. 30, 2015	May. 28, 2015	May. 27, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Short-term borrowings	$ 19,600,000			$ 18,900,000
Remaining borrowing capacity	$ 19,600,000
Minimum
Line of Credit Facility [Line Items]
Debt interest rate	2.60%
Maximum
Line of Credit Facility [Line Items]
Debt interest rate	2.70%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 100,000,000	$ 170,000,000
Current borrowing capacity (up to)		100,000,000
United States | Domestic Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity		80,000,000
Europe | Foreign Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 20,000,000

XML

Restructuring and Other Expense - Schedule of Restructuring Reserve Activity (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restructuring Reserve [Roll Forward]
Charges	$ 0.5		$ 3.2	$ 1.3	$ 3.8
Severance and Related
Restructuring Reserve [Roll Forward]
Charges	0.3			0.5
Other
Restructuring Reserve [Roll Forward]
Charges				0.1
2012 Global Processing Improvement Restructuring Program
Restructuring Reserve [Roll Forward]
Accrued balance, beginning	0.9	$ 1.3		1.3
Charges	0.2	0.5
Usage and payments	(0.4)	(0.9)
Accrued balance, ending	0.7	0.9		0.7
2012 Global Processing Improvement Restructuring Program | Severance and Related
Restructuring Reserve [Roll Forward]
Accrued balance, beginning	0.5	0.8		0.8
Charges	0.1	0.3
Usage and payments	(0.1)	(0.6)
Accrued balance, ending	0.5	0.5		0.5
2012 Global Processing Improvement Restructuring Program | Lease Termination Costs
Restructuring Reserve [Roll Forward]
Accrued balance, beginning	0.2	0.3		0.3
Charges	0.0	0.0
Usage and payments	(0.2)	(0.1)
Accrued balance, ending	0.0	0.2		0.0
2012 Global Processing Improvement Restructuring Program | Other
Restructuring Reserve [Roll Forward]
Accrued balance, beginning	0.2	0.2		0.2
Charges	0.1	0.2
Usage and payments	(0.1)	(0.2)
Accrued balance, ending	$ 0.2	$ 0.2		$ 0.2

XML

Supplemental Balance Sheet Information - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Other Current Liabilities
Supplemental Balance Sheet Disclosures [Line Items]
Rebates payable	$ 21.6	$ 26.9
Accrued payroll	12.0	18.4
Other Liabilities
Supplemental Balance Sheet Disclosures [Line Items]
Pension liabilities	$ 20.8	$ 22.5

XML

Fair Value Measurements - Other Hedges (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional Amount	$ 52.8		$ 52.8		$ 110.1
Foreign currency forward contracts
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Gain (loss) on foreign currency contracts	(0.5)	$ (0.1)	0.2	$ (0.3)
Other Current Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets fair value	0.2		0.2		7.3
Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities fair value	(0.8)		(0.8)		0.0
Cash flow hedges designated as hedging instruments | Cash flow hedges
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional Amount	52.2		52.2		86.7
Cash flow hedges designated as hedging instruments | Cash flow hedges | Other Current Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets fair value	0.2		0.2		7.3
Cash flow hedges designated as hedging instruments | Cash flow hedges | Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities fair value	(0.8)		(0.8)		0.0
Other hedges not receiving hedge accounting
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Notional Amount	0.6		0.6		23.4
Other hedges not receiving hedge accounting | Other Current Assets
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative assets fair value	0.0		0.0		0.0
Other hedges not receiving hedge accounting | Other Current Liabilities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative liabilities fair value	0.0		0.0		$ 0.0
Other (Income) Expense
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Net foreign currency loss	$ 0.6	$ 0.4	$ 1.2	$ 0.4

XML

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Employer contributions in current fiscal year	$ 0.3		$ 0.6
International
Defined Benefit Plan Disclosure [Line Items]
Curtailment gain	$ 0.0	$ 0.0	0.0	$ 0.7
Maximum | Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Estimated future employer contributions in current fiscal year (up to)			0.5
Restructuring and other | International
Defined Benefit Plan Disclosure [Line Items]
Curtailment gain			$ 0.7

XML

(Loss) Earnings per Common Share

6 Months Ended

Jun. 30, 2015

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)	2015			2014			2015			2014
Numerator:
Loss from continuing operations	$	(17.4	)	$	(19.8	)	$	(31.8	)	$	(36.6	)
Loss from discontinued operations	—			(1.6		)	—			(2.3		)
Net loss	$	(17.4	)	$	(21.4	)	$	(31.8	)	$	(38.9	)
Denominator:
Weighted average number of common shares outstanding during the period - basic	41.1			41.2			41.1			41.0
Dilutive effect of stock-based compensation plans	—			—			—			—
Weighted average number of diluted shares outstanding during the period - diluted	41.1			41.2			41.1			41.0
Loss per common share — basic:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Loss per common share — diluted:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Anti-dilutive shares excluded from calculation	3.3			4.9			3.5			4.7

XML

Stock-Based Compensation (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) shares	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) plan $ / shares shares	Jun. 30, 2014 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $	$ 500,000	$ 1,400,000	$ 1,400,000	$ 3,000,000
Number of share-based compensation plans | plan			4
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense | $			$ 0
Number of awards granted			2,700,000
Number of awards outstanding	5,100,000		5,100,000
Stock Appreciation Rights (SARs) | Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards vested			50.00%
Number of average consecutive trading days required at trigger stock price			30 days
Minimum stock price required to trigger award vesting | $ / shares			$ 8
Stock Appreciation Rights (SARs) | Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of awards vested			50.00%
Number of average consecutive trading days required at trigger stock price			30 days
Minimum stock price required to trigger award vesting | $ / shares			$ 12
Stock Incentive Plan 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant	1,988,854		1,988,854

XML

Retirement Plans (Tables)

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Pension (Credit) Cost

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)	2015			2014			2015			2014			2015			2014			2015			2014
Service cost	$	—		$	—		$	0.1		$	0.1		$	—		$	—		$	0.2		$	0.2
Interest cost	0.7			0.8			0.1			0.2			1.4			1.6			0.2			0.4
Expected return on plan assets	(1.0		)	(1.2		)	(0.2		)	(0.2		)	(2.0		)	(2.4		)	(0.4		)	(0.4		)
Amortization of net actuarial loss	0.3			0.3			0.1			0.1			0.6			0.6			0.2			0.1
Amortization of prior service credit	—			—			—			(0.1		)	—			—			—			(0.1		)
Net periodic pension (credit) cost	$	—		$	(0.1	)	$	0.1		$	0.1		$	—		$	(0.2	)	$	0.2		$	0.2
Settlement loss	—			0.6			—			—			—			0.6			—			—
Curtailment gain	—			—			—			—			—			—			—			(0.7		)
Total pension (credit) cost	$	—		$	0.5		$	0.1		$	0.1		$	—		$	0.4		$	0.2		$	(0.5	)

XML

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2015

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

Schedule of Stock-Based Compensation

Stock-based compensation consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2015		2014		2015		2014
Stock-based compensation expense	$	0.5	$	1.4	$	1.4	$	3.0

Summary of Stock Option Activity

The following table summarizes our stock option activity:

	Stock Options		Weighted Average Exercise Price
Outstanding December 31, 2014	3,897,986		$	13.07
Granted	24,547		3.94
Exercised	(12,381	)	3.84
Canceled	(321,880	)	25.35
Forfeited	(43,497	)	7.36
Outstanding June 30, 2015	3,544,775		$	11.99
Exercisable as of June 30, 2015	3,348,131		$	12.48

Summary of Weighted Average Assumptions Used in the Valuation of Stock Options

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

	Six Months Ended
	June 30,
	2015		2014
Volatility	46.0	%	46.2	%
Risk-free interest rate	1.9	%	1.9	%
Expected life (months)	73		73
Dividend yield	—		—

Summary of 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, 2014	1,348,917		$	3.81
Granted	862,706		3.97
Grant adjustments	—		—
Vested	(807,239	)	4.19
Forfeited	(867,445	)	3.76
Nonvested as of June 30, 2015	536,939		$	3.57

XML

Litigation, Commitments and Contingencies (Details) $ in Millions		3 Months Ended
	May. 22, 2013 member plaintiff patent	Mar. 31, 2015 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)
Loss Contingencies [Line Items]
Accrued copyright levies			$ 5.8	$ 9.3
Copyright levies accrual reversal		$ 2.8
One-Blue, LLC and Members vs. Imation
Loss Contingencies [Line Items]
Number of plaintiffs | plaintiff	5
Number of members of One-Blue involved in litigation | member	4
Number of patents allegedly infringed | patent	6
French Levy Society vs. Imation | Pending and Threatened Litigation
Loss Contingencies [Line Items]
Damages sought		$ 8.7
Chief Executive Officer | Severance
Loss Contingencies [Line Items]
Estimated loss			$ 3.6

XML

Stock-Based Compensation - Stock Option Activity (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions	Total
Stock Options [Roll Forward]
Exercised (in shares)	(12,381)
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	$ 0.2
Total compensation cost not yet recognized, period for recognition	1 year 3 months 18 days
Stock Options [Roll Forward]
Beginning, outstanding (in shares)	3,897,986
Granted (in shares)	24,547
Exercised (in shares)	(12,381)
Canceled (in shares)	(321,880)
Forfeited (in shares)	(43,497)
Ending, outstanding (in shares)	3,544,775
Exercisable (in shares)	3,348,131
Weighted Average Exercise Price [Roll Forward]
Beginning, outstanding (in dollars per share)	$ 13.07
Granted (in dollars per share)	3.94
Exercised (in dollars per share)	3.84
Canceled (in dollars per share)	25.35
Forfeited (in dollars per share)	7.36
Ending, outstanding (in dollars per share)	11.99
Exercisable (in dollars per share)	$ 12.48

XML

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Schedule of Cash Flow Hedges Measured at Fair Value on a Recurring Basis

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

	June 30, 2015							December 31, 2014
(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 forward contracts	—		0.2			—		—		7.3		—
Derivative liabilities:
Foreign currency forward contracts	—		(0.8		)	—		—		—		—
Total net derivative (liabilities) assets	$	—	$	(0.6	)	$	—	$	—	$	7.3	$	—

Schedule of Notional and Fair Value Amounts 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, 2015							December 31, 2014
			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	$	52.2	$	0.2	$	(0.8	)	$	86.7	$	7.3	$	—
Other hedges not receiving hedge accounting	0.6		—		—			23.4		—		—
Total	$	52.8	$	0.2	$	(0.8	)	$	110.1	$	7.3	$	—

XML

Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2015

Equity [Abstract]

Schedule of Treasury Share Activity

Following is a summary of treasury share activity:

	Treasury Shares
Balance as of December 31, 2014	627,796
Purchases	382,448
Exercise of stock options	(12,381	)
Restricted stock grants	(690,662	)
Forfeitures and other	863,743
Balance as of June 30, 2015	1,170,944

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, 2014	$	5.1		$	(20.6	)	$	(69.3	)	$	(84.8	)
Other comprehensive income (loss) before reclassifications, net of tax1	3.1			—			(3.5		)	(0.4		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(3.6		)	0.3			—			(3.3		)
Net current period other comprehensive (loss) income	(0.5		)	0.3			(3.5		)	(3.7		)
Balance as of June 30, 2015	$	4.6		$	(20.3	)	$	(72.8	)	$	(88.5	)

¹Income tax benefit of $1.2 million was recorded for unrealized gains on derivative financial instruments for the six months ended June 30, 2015.

Schedule of Amounts Reclassified from Accumulated Other Comprehensive Loss

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, 2015 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, 2015		June 30, 2015
Gains on cash flow hedges	(2.0	)	(5.3	)	Cost of goods sold
Income tax expense	0.7		1.7		Income tax provision
	(1.3	)	(3.6	)
Amortization of net actuarial loss	0.2		0.4		Selling, general and administrative
Net pension curtailment/settlement loss	—		—		Restructuring and other
Income tax benefit	—		(0.1	)	Income tax provision
	0.2		0.3
Total reclassifications for the period	(1.1	)	(3.3	)

XML

Recently Issued or Adopted Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Recently Issued or Adopted Accounting Pronouncements

Recently Issued or Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board 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. In July 2015, the guidance was revised to be effective for interim and annual periods beginning on or after December 15, 2017. 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 April 2015, the Financial Accounting Standards Board issued new accounting guidance related to debt issuance costs. Under this new standard, debt issuance costs reported on the consolidated balance sheet would be reflected as a direct deduction from the related debt liability rather than as an asset. For Imation, this is effective January 1, 2016, with early adoption permitted. Retroactive application to prior periods is required. As this standard impacts only the classification of certain amounts within the consolidated balance sheet, Imation does not expect this new standard to have a material impact on our financial position and results of operations.

In May 2015, the Financial Accounting Standards Board issued new accounting guidance related to the disclosures for investments in certain entities that calculate net asset value per share (or its equivalent). This standard modifies existing disclosure requirements such that investments for which the practical expedient is used to measure their fair value at net asset value (NAV) would be removed from the fair value hierarchy disclosures. Instead, an entity would be required to include those investments as a reconciling item such that the total fair value amount of investments in the fair value hierarchy disclosure is consistent with the amount on the balance sheet. Changes were also made to the requirements in a sponsor’s employee benefit plan asset disclosures. For Imation, this standard is effective January 1, 2016, with retrospective application required. Early adoption is permitted. As this standard only impacts certain disclosures, it will not impact the Company’s consolidated results of operations and financial condition.

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Schedule of Net Revenue and Operating Income (Loss) 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)	2015		2014		2015		2014
Net revenue
Consumer Storage and Accessories:
Consumer Storage Media	$	66.6	$	84.5	$	132.6	$	174.0
Audio and Accessories	9.7		10.6		18.9		21.1
Total Consumer Storage and Accessories	76.3		95.1		151.5		195.1
Tiered Storage and Security Solutions:
Commercial Storage Media	45.3		54.0		93.2		105.4
Storage and Security Solutions	29.0		29.5		61.3		57.0
Total Tiered Storage and Security Solutions	74.3		83.5		154.5		162.4
Total net revenue	$	150.6	$	178.6	$	306.0	$	357.5

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2015			2014			2015			2014
Operating income (loss) from continuing operations
Consumer Storage and Accessories	$	0.7		$	3.2		$	4.6		$	7.3
Tiered Storage and Security Solutions	(6.2		)	(8.5		)	(12.7		)	(17.3		)
Total segment operating loss	(5.5		)	(5.3		)	(8.1		)	(10.0		)
Corporate and unallocated	(10.4		)	(14.8		)	(20.8		)	(26.2		)
Total operating loss	(15.9		)	(20.1		)	(28.9		)	(36.2		)
Interest income	(0.1		)	(0.1		)	(0.2		)	(0.2		)
Interest expense	0.6			0.6			1.2			1.2
Other, net expense	0.8			0.8			1.6			1.0
Loss from continuing operations before income taxes	$	(17.2	)	$	(21.4	)	$	(31.5	)	$	(38.2	)

XML

Restructuring and Other Expense - Components of Restructuring and Other Expense (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restructuring and Related Activities [Abstract]
Severance and related		$ 0.4	$ 2.4	$ 0.9	$ 2.8
Lease termination costs		0.0	0.0	0.0	0.1
Other		0.1	0.8	0.4	0.9
Total restructuring		0.5	3.2	1.3	3.8
Pension settlement/curtailment (Note 9)		0.0	0.6	0.0	(0.1)
Other	[1]	1.0	1.4	1.4	3.6
Total		$ 1.5	$ 5.2	$ 2.7	$ 7.3

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

XML

Shareholders' Equity - Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended		38 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	May. 02, 2012
Equity [Abstract]
Number of shares authorized to be repurchased					5,000,000
Number shares repurchased	200,000	382,448		3,000,000
Payments for repurchase of common stock	$ 1.0	$ 1.7	$ 0.9	$ 13.3
Remaining number of shares authorized to be repurchased	2,000,000	2,000,000		2,000,000
Average price per share of treasury stock acquired and held				$ 13.23
Movement in Treasury Stock [Roll Forward]
Beginning balance (in shares)		627,796
Purchases (shares)	200,000	382,448		3,000,000
Exercise of stock options (in shares)		(12,381)
Restricted stock grants (in shares)		(690,662)
Forfeitures and other		863,743
Ending balance (in shares)	1,170,944	1,170,944		1,170,944

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Net revenue	$ 150.6	$ 178.6	$ 306.0	$ 357.5
Cost of goods sold	121.6	144.7	243.0	289.9
Gross profit	29.0	33.9	63.0	67.6
Operating expenses:
Selling, general and administrative	38.6	44.3	79.6	87.7
Research and development	4.8	4.5	9.6	8.8
Restructuring and other	1.5	5.2	2.7	7.3
Total	44.9	54.0	91.9	103.8
Operating loss from continuing operations	(15.9)	(20.1)	(28.9)	(36.2)
Other (income) expense:
Interest income	(0.1)	(0.1)	(0.2)	(0.2)
Interest expense	0.6	0.6	1.2	1.2
Other, net expense	0.8	0.8	1.6	1.0
Total	1.3	1.3	2.6	2.0
Loss from continuing operations before income taxes	(17.2)	(21.4)	(31.5)	(38.2)
Income tax provision (benefit)	0.2	(1.6)	0.3	(1.6)
Loss from continuing operations	(17.4)	(19.8)	(31.8)	(36.6)
Discontinued operations:
Loss on sale of discontinued businesses, net of income taxes	0.0	(1.2)	0.0	(1.7)
Loss from operations of discontinued businesses, net of income taxes	0.0	(0.4)	0.0	(0.6)
Loss from discontinued operations, net of income taxes	0.0	(1.6)	0.0	(2.3)
Net loss	$ (17.4)	$ (21.4)	$ (31.8)	$ (38.9)
Loss per common share — basic:
Continuing operations - basic (in dollars per share)	$ (0.42)	$ (0.48)	$ (0.77)	$ (0.89)
Discontinued operations - basic (in dollars per share)	0.00	(0.04)	0.00	(0.06)
Net loss - basic (in dollars per share)	(0.42)	(0.52)	(0.77)	(0.95)
Loss per common share — diluted:
Continuing operations - diluted (in dollars per share)	(0.42)	(0.48)	(0.77)	(0.89)
Discontinued operations - diluted (in dollars per share)	0.00	(0.04)	0.00	(0.06)
Net loss - diluted (dollars per share)	$ (0.42)	$ (0.52)	$ (0.77)	$ (0.95)
Weighted average shares outstanding - basic (in shares)	41.1	41.2	41.1	41.0
Weighted average shares outstanding - diluted (in shares)	41.1	41.2	41.1	41.0

XML

Stock-Based Compensation - Weighted Average Assumptions Used in the Valuation of Stock Options (Details) - Stock Options	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Volatility	46.00%	46.20%
Risk-free interest rate	1.90%	1.90%
Expected life (months)	73 months	73 months
Dividend yield	0.00%	0.00%

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows from Operating Activities:
Net loss	$ (31.8)	$ (38.9)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	10.6	10.9
Other, net	1.0	5.1
Changes in operating assets and liabilities	(1.3)	6.1
Net cash used in operating activities	(21.5)	(16.8)
Cash Flows from Investing Activities:
Capital expenditures	(1.8)	(2.3)
Proceeds from sale of disposal group	0.7	1.6
Proceeds from sale of assets	1.2	0.0
Net cash provided by (used in) investing activities	0.1	(0.7)
Cash Flows from Financing Activities:
Purchase of treasury stock	(1.7)	(0.9)
Exercise of stock options	0.0	0.4
Short-term debt repayment	(12.4)	(24.9)
Short-term borrowings	12.9	24.5
Net cash used in financing activities	(1.2)	(0.9)
Effect of exchange rate changes on cash and cash equivalents	(2.2)	0.5
Net change in cash and cash equivalents	(24.8)	(17.9)
Cash and cash equivalents — beginning of period	114.6	132.6
Cash and cash equivalents — end of period	$ 89.8	$ 114.7

XML

Acquisitions and Divestitures - Schedule of Key Components of Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations, net of income taxes	$ 0.0	$ (1.6)	$ 0.0	$ (2.3)
Discontinued Operations | XtremeMac and Memorex
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue	0.0	0.0	0.0	0.5
Loss on sale of discontinued businesses, before income taxes	0.0	(1.2)	0.0	(1.7)
Loss from operations of discontinued businesses, before income taxes	0.0	(0.4)	0.0	(0.6)
Income tax provision (benefit)	0.0	0.0	0.0	0.0
Loss from discontinued operations, net of income taxes	$ 0.0	$ (1.6)	$ 0.0	$ (2.3)

XML

Recently Issued or Adopted Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Recently Issued or Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board 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. In July 2015, the guidance was revised to be effective for interim and annual periods beginning on or after December 15, 2017. 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 April 2015, the Financial Accounting Standards Board issued new accounting guidance related to debt issuance costs. Under this new standard, debt issuance costs reported on the consolidated balance sheet would be reflected as a direct deduction from the related debt liability rather than as an asset. For Imation, this is effective January 1, 2016, with early adoption permitted. Retroactive application to prior periods is required. As this standard impacts only the classification of certain amounts within the consolidated balance sheet, Imation does not expect this new standard to have a material impact on our financial position and results of operations.

In May 2015, the Financial Accounting Standards Board issued new accounting guidance related to the disclosures for investments in certain entities that calculate net asset value per share (or its equivalent). This standard modifies existing disclosure requirements such that investments for which the practical expedient is used to measure their fair value at net asset value (NAV) would be removed from the fair value hierarchy disclosures. Instead, an entity would be required to include those investments as a reconciling item such that the total fair value amount of investments in the fair value hierarchy disclosure is consistent with the amount on the balance sheet. Changes were also made to the requirements in a sponsor’s employee benefit plan asset disclosures. For Imation, this standard is effective January 1, 2016, with retrospective application required. Early adoption is permitted. As this standard only impacts certain disclosures, it will not impact the Company’s consolidated results of operations and financial condition.

XML

Supplemental Balance Sheet Information - Schedule of Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions		Jun. 30, 2015	Dec. 31, 2014
Accounts Receivable:
Accounts receivable		$ 110.0	$ 143.5
Less reserves and allowances	[1]	(6.9)	(9.1)
Accounts receivable, net		103.1	134.4
Inventories:
Finished goods		52.1	51.1
Work in process		0.5	0.7
Raw materials and supplies		6.9	5.9
Total inventories		59.5	57.7
Property, Plant and Equipment:
Property, plant and equipment		165.9	184.0
Less accumulated depreciation		(123.5)	(139.0)
Property, plant and equipment, net		$ 42.4	$ 45.0

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

XML

Acquisitions and Divestitures (Tables)

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Schedule of Key Components of Discontinued Operations

The key components of the results of discontinued operations were as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2015		2014			2015		2014
Net revenue	$	—	$	—		$	—	$	0.5
Loss on sale of discontinued businesses, before income taxes	—		(1.2		)	—		(1.7		)
Loss from operations of discontinued businesses, before income taxes	—		(0.4		)	—		(0.6		)
Income tax provision (benefit)	—		—			—		—
Loss from discontinued operations, net of income taxes	$	—	$	(1.6	)	$	—	$	(2.3	)

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [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, 2014 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, 2014.

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.

XML

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (17.4)	$ (21.4)	$ (31.8)	$ (38.9)
Net unrealized gains (losses) on derivative financial instruments:
Net holding gains (losses) arising during the period	2.1	(0.5)	3.1	(1.5)
Reclassification adjustment for net realized gains recorded in net loss	(1.3)	(0.1)	(3.6)	(0.4)
Total net unrealized gains (losses) on derivative financial instruments	0.8	(0.6)	(0.5)	(1.9)
Net pension adjustments:
Liability adjustments for defined benefit plans	0.0	0.8	0.0	0.8
Reclassification adjustment for defined benefit plans recorded in net loss	0.2	0.8	0.3	0.7
Total net pension adjustments	0.2	1.6	0.3	1.5
Unrealized foreign currency translation gains (losses)	1.1	2.2	(3.5)	(1.3)
Total other comprehensive income (loss), net of tax	2.1	3.2	(3.7)	(1.7)
Comprehensive loss	$ (15.3)	$ (18.2)	$ (35.5)	$ (40.6)

XML

Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Debt

Debt

As of June 30, 2015, we had short-term borrowings of $19.6 million with interest rates ranging from 2.6 percent to 2.7 percent. The borrowings were primarily from our credit agreements with various banks in the United States, Europe and Japan. As of June 30, 2015, our remaining borrowing capacity under all credit agreements, after consideration of amounts outstanding, was $19.6 million. We are in compliance with our covenant requirements as of June 30, 2015.

Our Credit Agreement entered into in 2006 as amended (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, 2014. In order to reduce borrowing costs, the maximum amount of borrowings under the Credit Agreement was reduced at the Company's request from $170 million to $100 million on May 28, 2015. The new limit does not impact our borrowing capacity as our borrowing availability under the Credit Agreement is under $100 million. The new sublimits are $80 million in the United States and $20 million in Europe. All other terms of the Credit Agreement remain the same.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information [Abstract]
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, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		41,756,683

XML

Fair Value Measurements

6 Months Ended

Jun. 30, 2015

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, 2015							December 31, 2014
(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 forward contracts	—		0.2			—		—		7.3		—
Derivative liabilities:
Foreign currency forward contracts	—		(0.8		)	—		—		—		—
Total net derivative (liabilities) assets	$	—	$	(0.6	)	$	—	$	—	$	7.3	$	—

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 and, 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, 2015 and 2014, we recorded net foreign currency losses of $0.6 million and $0.4 million, respectively, in other (income) expense in the Condensed Consolidated Statements of Operations. These net losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of losses of $0.5 million and $0.1 million from the related foreign currency forward contracts for the three months ended June 30, 2015 and 2014, respectively.

For the six months ended June 30, 2015 and 2014, we recorded net foreign currency losses of $1.2 million and $0.4 million, respectively, in other (income) expense in the Condensed Consolidated Statements of Operations. These net losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of gains of $0.2 million and losses of $0.3 million from the related foreign currency forward contracts for the six months ended June 30, 2015 and 2014, 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, 2015							December 31, 2014
			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	$	52.2	$	0.2	$	(0.8	)	$	86.7	$	7.3	$	—
Other hedges not receiving hedge accounting	0.6		—		—			23.4		—		—
Total	$	52.8	$	0.2	$	(0.8	)	$	110.1	$	7.3	$	—

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 89.8	$ 114.6
Accounts receivable, net	103.1	134.4
Inventories	59.5	57.7
Other current assets	22.8	32.7
Total current assets	275.2	339.4
Property, plant and equipment, net	42.4	45.0
Intangible assets, net	51.6	57.9
Goodwill	36.1	36.1
Other assets	18.2	20.8
Total assets	423.5	499.2
Current liabilities:
Accounts payable	78.0	95.5
Short-term debt	19.6	18.9
Other current liabilities	79.9	98.2
Total current liabilities	177.5	212.6
Other liabilities	41.6	45.8
Total liabilities	$ 219.1	$ 258.4
Commitments and contingencies (Note 15)
Preferred stock, $.01 par value, authorized 25 million shares, none issued and outstanding	$ 0.0	$ 0.0
Common stock, $.01 par value, authorized 100 million shares, 42.9 million issued	0.4	0.4
Additional paid-in capital	1,039.7	1,034.6
Retained deficit	(731.7)	(699.9)
Accumulated other comprehensive loss	(88.5)	(84.8)
Treasury stock, at cost	(15.5)	(9.5)
Total shareholders' equity	204.4	240.8
Total liabilities and shareholders’ equity	$ 423.5	$ 499.2

XML

Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible Assets

Intangible assets consist of the following:

(In millions)	Trade Names			Software			Customer Relationships			Other			Total
June 30, 2015
Cost	$	34.2		$	60.0		$	20.0		$	26.3		$	140.5
Accumulated amortization	(16.4		)	(56.5		)	(4.6		)	(11.4		)	(88.9		)
Intangible assets, net	$	17.8		$	3.5		$	15.4		$	14.9		$	51.6
December 31, 2014
Cost	$	34.2		$	60.1		$	20.0		$	26.2		$	140.5
Accumulated amortization	(14.0		)	(55.3		)	(3.7		)	(9.6		)	(82.6		)
Intangible assets, net	$	20.2		$	4.8		$	16.3		$	16.6		$	57.9

Other intangible assets, net as of June 30, 2015 consists primarily of $11.6 million of acquired developed technology.

Amortization expense for intangible assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2015		2014		2015		2014
Amortization expense	$	3.1	$	3.2	$	6.4	$	6.4

Based on the intangible assets in service as of June 30, 2015, estimated amortization expense for the remainder of 2015 and each of the next four years is as follows:

(In millions)	2015 (Remainder)		2016		2017		2018		2019
Amortization expense	$	5.7	$	9.9	$	8.7	$	6.6	$	6.2

Goodwill

The goodwill balance was $36.1 million as of June 30, 2015. The goodwill is solely contained within our Storage and Security Solutions reporting units. We will monitor our results and expected cash flows in the future to assess whether consideration of a goodwill impairment in our reporting units may be necessary. During the six months ended June 30, 2015, there were no events or indications that, in our judgment, would require an interim assessment of goodwill impairment.

XML

Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2015

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

Additional supplemental balance sheet information is provided as follows:

	June 30,			December 31,
(In millions)	2015			2014
Accounts Receivable:
Accounts receivable	$	110.0		$	143.5
Less reserves and allowances1	(6.9		)	(9.1		)
Accounts receivable, net	$	103.1		$	134.4
Inventories:
Finished goods	$	52.1		$	51.1
Work in process	0.5			0.7
Raw materials and supplies	6.9			5.9
Total inventories	$	59.5		$	57.7
Property, Plant and Equipment:
Property, plant and equipment	$	165.9		$	184.0
Less accumulated depreciation	(123.5		)	(139.0		)
Property, plant and equipment, net	$	42.4		$	45.0

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 $21.6 million and $26.9 million and accrued payroll of $12.0 million and $18.4 million as of June 30, 2015 and December 31, 2014, respectively.

Other liabilities (included as a separate line in our Condensed Consolidated Balance Sheets) includes pension liabilities of $20.8 million and $22.5 million as of June 30, 2015 and December 31, 2014, respectively.

XML

(Loss) Earnings per Common Share (Tables)

6 Months Ended

Jun. 30, 2015

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)	2015			2014			2015			2014
Numerator:
Loss from continuing operations	$	(17.4	)	$	(19.8	)	$	(31.8	)	$	(36.6	)
Loss from discontinued operations	—			(1.6		)	—			(2.3		)
Net loss	$	(17.4	)	$	(21.4	)	$	(31.8	)	$	(38.9	)
Denominator:
Weighted average number of common shares outstanding during the period - basic	41.1			41.2			41.1			41.0
Dilutive effect of stock-based compensation plans	—			—			—			—
Weighted average number of diluted shares outstanding during the period - diluted	41.1			41.2			41.1			41.0
Loss per common share — basic:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Loss per common share — diluted:
Continuing operations	$	(0.42	)	$	(0.48	)	$	(0.77	)	$	(0.89	)
Discontinued operations	—			(0.04		)	—			(0.06		)
Net loss	(0.42		)	(0.52		)	(0.77		)	(0.95		)
Anti-dilutive shares excluded from calculation	3.3			4.9			3.5			4.7

XML

Shareholders' Equity

6 Months Ended

Jun. 30, 2015

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, 2015, we repurchased 0.2 million shares of common stock for $1.0 million. Since the authorization of this program, we have repurchased 3.0 million shares of common stock for $13.3 million and, as of June 30, 2015, we had remaining authorization to repurchase up to 2.0 million additional shares. The treasury stock held as of June 30, 2015 was acquired at an average price of $13.23 per share.

Following is a summary of treasury share activity:

	Treasury Shares
Balance as of December 31, 2014	627,796
Purchases	382,448
Exercise of stock options	(12,381	)
Restricted stock grants	(690,662	)
Forfeitures and other	863,743
Balance as of June 30, 2015	1,170,944

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, 2014	$	5.1		$	(20.6	)	$	(69.3	)	$	(84.8	)
Other comprehensive income (loss) before reclassifications, net of tax1	3.1			—			(3.5		)	(0.4		)
Amounts reclassified from accumulated other comprehensive income (loss), net of tax	(3.6		)	0.3			—			(3.3		)
Net current period other comprehensive (loss) income	(0.5		)	0.3			(3.5		)	(3.7		)
Balance as of June 30, 2015	$	4.6		$	(20.3	)	$	(72.8	)	$	(88.5	)

¹Income tax benefit of $1.2 million was recorded for unrealized gains on derivative financial instruments for the six months ended June 30, 2015.

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, 2015 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, 2015		June 30, 2015
Gains on cash flow hedges	(2.0	)	(5.3	)	Cost of goods sold
Income tax expense	0.7		1.7		Income tax provision
	(1.3	)	(3.6	)
Amortization of net actuarial loss	0.2		0.4		Selling, general and administrative
Net pension curtailment/settlement loss	—		—		Restructuring and other
Income tax benefit	—		(0.1	)	Income tax provision
	0.2		0.3
Total reclassifications for the period	(1.1	)	(3.3	)

XML

Retirement Plans

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement Plans

Retirement Plans

Pension Plans

During the three and six months ended June 30, 2015, we contributed $0.3 million and $0.6 million to our worldwide pension plans, respectively. We presently anticipate contributing up to $0.5 million to fund our worldwide pension plans during the remainder of 2015.

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 to 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)	2015			2014			2015			2014			2015			2014			2015			2014
Service cost	$	—		$	—		$	0.1		$	0.1		$	—		$	—		$	0.2		$	0.2
Interest cost	0.7			0.8			0.1			0.2			1.4			1.6			0.2			0.4
Expected return on plan assets	(1.0		)	(1.2		)	(0.2		)	(0.2		)	(2.0		)	(2.4		)	(0.4		)	(0.4		)
Amortization of net actuarial loss	0.3			0.3			0.1			0.1			0.6			0.6			0.2			0.1
Amortization of prior service credit	—			—			—			(0.1		)	—			—			—			(0.1		)
Net periodic pension (credit) cost	$	—		$	(0.1	)	$	0.1		$	0.1		$	—		$	(0.2	)	$	0.2		$	0.2
Settlement loss	—			0.6			—			—			—			0.6			—			—
Curtailment gain	—			—			—			—			—			—			—			(0.7		)
Total pension (credit) cost	$	—		$	0.5		$	0.1		$	0.1		$	—		$	0.4		$	0.2		$	(0.5	)

XML

Restructuring and Other Expense

6 Months Ended

Jun. 30, 2015

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)	2015		2014		2015		2014
Restructuring Expense:
Severance and related	$	0.4	$	2.4	$	0.9	$	2.8
Lease termination costs	—		—		—		0.1
Other	0.1		0.8		0.4		0.9
Total restructuring	$	0.5	$	3.2	$	1.3	$	3.8
Other Expense:
Pension settlement/curtailment (Note 9)	—		0.6		—		(0.1		)
Other1	1.0		1.4		1.4		3.6
Total	$	1.5	$	5.2	$	2.7	$	7.3

¹Other includes consulting fees and certain employee costs.

2012 Global Process Improvement Restructuring Program

In October 2012, the Board of Directors approved our Global Process Improvement (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. We expect to continue our efforts to reduce legacy expenses.

Since the inception of the GPI Program, we have recorded a total of $22.4 million of severance and related expenses, $1.1 million of lease termination and modification costs, $4.9 million of other charges and $9.6 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, 2014	0.8		0.3		0.2		1.3
Charges	0.3		—		0.2		0.5
Usage and payments	(0.6	)	(0.1	)	(0.2	)	(0.9	)
Accrued balance at March 31, 2015	0.5		0.2		0.2		0.9
Charges	0.1		—		0.1		0.2
Usage and payments	(0.1	)	(0.2	)	(0.1	)	(0.4	)
Accrued balance at June 30, 2015	0.5		—		0.2		0.7

In the three months ended June 30, 2015, we also recorded severance and related charges of $0.3 million to other accruals as they were not related to the 2012 GPI Program. In the six months ended June 30, 2015, we recorded severance and related charges of $0.5 million and other charges of $0.1 million to other accruals as they were not related to the 2012 GPI Program. These charges are not included in the table above.

XML

Stock-Based Compensation

6 Months Ended

Jun. 30, 2015

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)	2015		2014		2015		2014
Stock-based compensation expense	$	0.5	$	1.4	$	1.4	$	3.0

We have stock-based compensation awards consisting of stock options, restricted stock and stock appreciation rights under four plans (collectively, the Stock Plans) which are described in detail in our 2014 Annual Report on Form 10-K. As of June 30, 2015, there were 1,988,854 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, 2014	3,897,986		$	13.07
Granted	24,547		3.94
Exercised	(12,381	)	3.84
Canceled	(321,880	)	25.35
Forfeited	(43,497	)	7.36
Outstanding June 30, 2015	3,544,775		$	11.99
Exercisable as of June 30, 2015	3,348,131		$	12.48

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,
	2015		2014
Volatility	46.0	%	46.2	%
Risk-free interest rate	1.9	%	1.9	%
Expected life (months)	73		73
Dividend yield	—		—

As of June 30, 2015, there was $0.2 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 1.3 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, 2014	1,348,917		$	3.81
Granted	862,706		3.97
Grant adjustments	—		—
Vested	(807,239	)	4.19
Forfeited	(867,445	)	3.76
Nonvested as of June 30, 2015	536,939		$	3.57

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.

Effective May 22, 2015, a “Change of Control” occurred under the terms of the Company’s Amended and Restated Severance and Change in Control Agreements and certain incentive award agreements with its executives as a result of the election of three new directors to the Company’s Board of Directors by shareholders at the shareholder meeting on May 20, 2015 (the "May 2015 Change of Control Event"). Upon a change of control, under the terms of the agreements with these executives, certain performance-based restricted shares would immediately vest and be paid out in cash. As a result, 225,347 restricted shares were vested immediately, and a cash payment of $1.0 million was made to settle such awards. The only situation in which such shares would have been settled in cash was pursuant to a change of control. Additionally, 866,820 restricted shares that were subject to vesting in the future were forfeited.

As of June 30, 2015, there was $1.5 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 1.4 years.

Stock Appreciation Rights

During the six months ended June 30, 2015, we granted 2.7 million Stock Appreciation Rights (SARs) to certain employees associated with our Storage Solutions and Mobile Security operations. These awards were issued to incentivize employees to grow revenues. These awards expire on December 31, 2017 and only vest when both stock price and revenue performance conditions specified by the terms of the SARs are met. Additionally, under the terms of the 2015 SARs, any cash payments to an individual under a 2015 vested SAR would reduce any cash payment received under any earlier SAR grant pertaining to that individual, if and when such earlier SAR vests. For the stock price condition, based on the terms of the awards, 50 percent of the SARs could vest if the 30-day average Imation stock price reaches $8 per share or more by December 31, 2017 and the remaining 50 percent of the SARs could vest if the 30-day average Imation stock price reaches $12 per share or more by December 31, 2017. Additionally, for the revenue performance condition, as a condition necessary for vesting, the net revenue of Storage Solutions or Mobile Security (depending on the award) must reach certain specified stretch targets by December 31, 2017. If exercised, the SARs require a cash payment to the holder in an amount based on the Imation stock price at the date of exercise as compared to the stock price at the date of grant. As of June 30, 2015, we had 5.1 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.

XML

Income Taxes

6 Months Ended

Jun. 30, 2015

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 income/loss excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded.

For the three and six months ended June 30, 2015, we recorded income tax expense of $0.2 million and $0.3 million, respectively. For both the three and six months ended June 30, 2014, we recorded income tax benefit of $1.6 million. The change in the income tax expense for the three months ended June 30, 2015 compared to the same period last year is due to valuation allowances established in the current year, which resulted in tax losses not being benefited. The effective income tax rate for the three and six months ended June 30, 2015 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 2011 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 local tax jurisdictions for years before 2008. 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 $1.6 million and $1.9 million as of June 30, 2015 and December 31, 2014, 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.

XML

Acquisitions and Divestitures - Narrative (Details) - USD ($)		3 Months Ended			6 Months Ended		12 Months Ended
	Jan. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Dec. 31, 2013	Oct. 15, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss on sale of discontinued businesses		$ 0	$ 1,200,000		$ 0	$ 1,700,000
Loss from discontinued operations		0	(1,600,000)		0	$ (2,300,000)
Discontinued Operations | XtremeMac Consumer Electronics Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration from sale of business	$ 3,100,000
Proceeds from sale of businesses	300,000
Note receivable from sale of business	300,000
Consideration to be received from sale of business based on selling acquired inventory	$ 2,500,000
Loss on sale of discontinued businesses				$ 500,000
Loss from discontinued operations		0			0
Discontinued Operations | Memorex Consumer Electronics Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total consideration from sale of business									$ 9,300,000
Proceeds from sale of businesses					700,000		$ 1,900,000	$ 900,000
Loss from discontinued operations		0			0
Estimated fair value of receivable		$ 5,100,000			$ 5,100,000
Notes receivable | Discontinued Operations | XtremeMac Consumer Electronics Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Decrease in expected contingent consideration receivable			1,200,000
Loss from discontinued operations | Discontinued Operations | XtremeMac Consumer Electronics Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss as a component of discontinued operations related to the decrease in contingent consideration receivable			$ 1,200,000

XML

Fair Value Measurements - Cash Flow Hedges (Details) - Fair Value, Measurements, Recurring - Cash flow hedges - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
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 (liabilities) assets	$ 0.0	$ 0.0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total net derivative (liabilities) assets	(0.6)	7.3
Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total net derivative (liabilities) assets	0.0	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	0.0
Foreign currency forward contracts	0.0	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	0.2	7.3
Foreign currency forward contracts	(0.8)	0.0
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	0.0
Foreign currency forward contracts	$ 0.0	$ 0.0

XML

Litigation, Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

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, 2015, 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. 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. Proceedings in the case have been bifurcated, and the matter is now in the pretrial phase for issues relating to determination of a fair, reasonable and nondiscriminatory royalty rate. 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. 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, sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. On February 18, 2015, the Tokyo District Court rendered a decision in favor of Imation that held One-Blue's sending of warning letters to Imation customers that threatened those customers with certain patent-related actions constituted an illegal "unfair competition practice" and issued a permanent injunction prohibiting One-Blue from sending any such warning letters in the future. One-Blue did not appeal that decision.

SpearPoint Capital Fund LP et al. v. Mark E. Lucas, et al. This shareholder derivative action was filed in Delaware Chancery Court on February 9, 2015. It names as defendants the Company and the members of its Board of Directors. Plaintiffs contend that the defendants paid excessive compensation to the directors. They seek damages for breaches of fiduciary duties, waste of corporate assets and unjust enrichment. They also seek corporate governance reforms related to the Company’s compensation practices. The Directors have responded to the complaint denying all the allegations; the Company, as the nominal defendant, has responded denying the allegations as well. The parties are now engaged in discovery. Trial, should it be necessary, has been scheduled for June 2016.

Following the May 2015 Change of Control Event, on July 6, 2015, Mark Lucas, the Chief Executive Officer of Imation, provided notice to the Company indicating that he believes that his removal from the Company’s Board of Directors as a result of the shareholder vote constitutes “Good Reason” for the termination of his employment under the terms of his Amended and Restated Severance and Change in Control Agreement with the Company dated November 24, 2014 (the “Agreement”) and his performance award agreements with the Company, and that he intends to terminate his employment at an unspecified date not earlier than September 21, 2015. The Company is currently analyzing its planned actions in response to this claim. Under the terms of his Agreement and performance awards, a Change of Control followed by a termination of Mr. Lucas’s employment by the Company without “Cause” or by Mr. Lucas for “Good Reason” would result in a severance payment of $3.6 million. The Company has not recorded a charge or established a liability for this claim as of June 30, 2015.

Copyright Levies

Background and historical developments associated with our copyright levies are discussed in Note 15 - Litigation, Commitments and Contingencies in our Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2014. As of June 30, 2015 and December 31, 2014, we had accrued liabilities of $5.8 million and $9.3 million, respectively, associated with levies for which we are withholding payment. In the first quarter of 2015, we reversed a $2.8 million accrual for copyright levies on optical products as the result of a favorable German court decision retroactively setting levy rates at a level much lower than the rates sought by the German collecting society.

We are subject to several pending or threatened legal actions by the individual European national levy collecting societies in relation to private copyright levies under the Directive. Those actions generally seek payment of the commercial and consumer optical levies withheld by Imation. For example, in the first quarter of 2015, the French levy society, Copie France, filed a new summary proceeding, seeking $8.7 million in withheld levies. Imation believed this claim was without merit, and Copie France voluntarily dismissed the claim in the second quarter of 2015. Imation has corresponding claims in those actions seeking reimbursement of levies improperly collected by those collecting societies. We are subject to threatened actions by certain customers of Imation seeking reimbursement of funds they allege relate to commercial levies that they claim they should not have paid. Although these actions are subject to the uncertainties inherent in the litigation process, based on the information presently available to us, management does not expect that the ultimate resolution of these actions will have a material adverse effect on our financial condition, results of operations or cash flows. We anticipate that additional court decisions may be rendered in 2015 that may directly or indirectly impact our levy exposure in specific European countries which could trigger a review of our levy exposure in those countries.

XML

Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets

Intangible assets consist of the following:

(In millions)	Trade Names			Software			Customer Relationships			Other			Total
June 30, 2015
Cost	$	34.2		$	60.0		$	20.0		$	26.3		$	140.5
Accumulated amortization	(16.4		)	(56.5		)	(4.6		)	(11.4		)	(88.9		)
Intangible assets, net	$	17.8		$	3.5		$	15.4		$	14.9		$	51.6
December 31, 2014
Cost	$	34.2		$	60.1		$	20.0		$	26.2		$	140.5
Accumulated amortization	(14.0		)	(55.3		)	(3.7		)	(9.6		)	(82.6		)
Intangible assets, net	$	20.2		$	4.8		$	16.3		$	16.6		$	57.9

Schedule of Amortization Expense for Intangible Assets

Amortization expense for intangible assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In millions)	2015		2014		2015		2014
Amortization expense	$	3.1	$	3.2	$	6.4	$	6.4

Schedule of Intangible Assets Estimated Amortization Expense

Based on the intangible assets in service as of June 30, 2015, estimated amortization expense for the remainder of 2015 and each of the next four years is as follows:

(In millions)	2015 (Remainder)		2016		2017		2018		2019
Amortization expense	$	5.7	$	9.9	$	8.7	$	6.6	$	6.2

XML

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 0.2	$ (1.6)	$ 0.3	$ (1.6)
Federal statutory income tax rate	35.00%		35.00%
Unrecognized tax benefits	$ 1.6		$ 1.6		$ 1.9

XML

Restructuring and Other Expense - Narrative (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 0.5		$ 3.2	$ 1.3	$ 3.8
2012 Global Processing Improvement Restructuring Program
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.2	$ 0.5
Severance and Related
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.3			0.5
Severance and Related | 2012 Global Processing Improvement Restructuring Program
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred to date	22.4			22.4
Restructuring charges	0.1	0.3
Lease Termination Costs | 2012 Global Processing Improvement Restructuring Program
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred to date	1.1			1.1
Restructuring charges	0.0	0.0
Other
Restructuring Cost and Reserve [Line Items]
Restructuring charges				0.1
Other | 2012 Global Processing Improvement Restructuring Program
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred to date	4.9			4.9
Restructuring charges	0.1	$ 0.2
Inventory write-offs | 2012 Global Processing Improvement Restructuring Program
Restructuring Cost and Reserve [Line Items]
Restructuring cost incurred to date	$ 9.6			$ 9.6

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	42,900,000	42,900,000

XML

Acquisitions and Divestitures

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisitions and Divestitures

Acquisitions and Divestitures

Discontinued Operations

On February 13, 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses.

On January 31, 2014, we completed the sale of our XtremeMac consumer electronics business. Total cash consideration was originally estimated at $3.1 million which consisted of $0.3 million of cash consideration, an interest-bearing note receivable of $0.3 million (maturing in December 2015) and $2.5 million to be received based on the proceeds the purchaser was 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 second quarter of 2014, we revised downward our estimate of the consideration we expected to receive by $1.2 million based on the purchaser's proceeds from selling the acquired inventory and, accordingly, recognized a loss of $1.2 million as a component of discontinued operations for the three months ended June 30, 2014. There were no results for discontinued operations for XtremeMac for the three and six months ended June 30, 2015.

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 $0.7 million during the six months ended June 30, 2015, $1.9 million during 2014 and $0.9 million during 2013. The remaining receivable balance associated with the disposition of this business is recorded at an estimated fair value of $5.1 million. There were no results for discontinued operations for the Memorex consumer electronics business for the three and six months ended June 30, 2015.

The operating results for these businesses 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 were eliminated from our ongoing operations.

The key components of the results of discontinued operations were as follows:

	Three Months Ended					Six Months Ended
	June 30,					June 30,
(In millions)	2015		2014			2015		2014
Net revenue	$	—	$	—		$	—	$	0.5
Loss on sale of discontinued businesses, before income taxes	—		(1.2		)	—		(1.7		)
Loss from operations of discontinued businesses, before income taxes	—		(0.4		)	—		(0.6		)
Income tax provision (benefit)	—		—			—		—
Loss from discontinued operations, net of income taxes	$	—	$	(1.6	)	$	—	$	(2.3	)

XML

Restructuring and Other Expense (Tables)

6 Months Ended

Jun. 30, 2015

Restructuring and Related Activities [Abstract]

Components of 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)	2015		2014		2015		2014
Restructuring Expense:
Severance and related	$	0.4	$	2.4	$	0.9	$	2.8
Lease termination costs	—		—		—		0.1
Other	0.1		0.8		0.4		0.9
Total restructuring	$	0.5	$	3.2	$	1.3	$	3.8
Other Expense:
Pension settlement/curtailment (Note 9)	—		0.6		—		(0.1		)
Other1	1.0		1.4		1.4		3.6
Total	$	1.5	$	5.2	$	2.7	$	7.3

¹Other includes consulting fees and certain employee costs.

Schedule of Restructuring Reserve Activity

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, 2014	0.8		0.3		0.2		1.3
Charges	0.3		—		0.2		0.5
Usage and payments	(0.6	)	(0.1	)	(0.2	)	(0.9	)
Accrued balance at March 31, 2015	0.5		0.2		0.2		0.9
Charges	0.1		—		0.1		0.2
Usage and payments	(0.1	)	(0.2	)	(0.1	)	(0.4	)
Accrued balance at June 30, 2015	0.5		—		0.2		0.7

XML

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	$ 140.5		$ 140.5		$ 140.5
Accumulated amortization	(88.9)		(88.9)		(82.6)
Intangible assets, net	51.6		51.6		57.9
Amortization expense	3.1	$ 3.2	6.4	$ 6.4
Intangible Assets, Amortization Expense, Remainder of 2015	5.7		5.7
Intangible Assets, Amortization Expense, 2016	9.9		9.9
Intangible Assets, Amortization Expense, 2017	8.7		8.7
Intangible Assets, Amortization Expense, 2018	6.6		6.6
Intangible Assets, Amortization Expense, 2019	6.2		6.2
Trade Names
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	34.2		34.2		34.2
Accumulated amortization	(16.4)		(16.4)		(14.0)
Intangible assets, net	17.8		17.8		20.2
Software
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	60.0		60.0		60.1
Accumulated amortization	(56.5)		(56.5)		(55.3)
Intangible assets, net	3.5		3.5		4.8
Customer Relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	20.0		20.0		20.0
Accumulated amortization	(4.6)		(4.6)		(3.7)
Intangible assets, net	15.4		15.4		16.3
Other
Acquired Finite-Lived Intangible Assets [Line Items]
Cost	26.3		26.3		26.2
Accumulated amortization	(11.4)		(11.4)		(9.6)
Intangible assets, net	14.9		14.9		$ 16.6
Developed Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 11.6		$ 11.6

XML

Segment Information

6 Months Ended

Jun. 30, 2015

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 includes primarily headphones, audio electronics and accessories. Consumer storage media and audio products and accessories are sold under the Imation^TM, Memorex^TM, TREK^TM and TDK Life on Record brands. 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. Imation’s storage and security solutions portfolio includes Nexsan^TM hybrid storage solutions and IronKey^TMmobile security solutions that address the needs of professionals for storage and archiving, secure data transport and mobile workspaces.

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 may include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, corporate expense, 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)	2015		2014		2015		2014
Net revenue
Consumer Storage and Accessories:
Consumer Storage Media	$	66.6	$	84.5	$	132.6	$	174.0
Audio and Accessories	9.7		10.6		18.9		21.1
Total Consumer Storage and Accessories	76.3		95.1		151.5		195.1
Tiered Storage and Security Solutions:
Commercial Storage Media	45.3		54.0		93.2		105.4
Storage and Security Solutions	29.0		29.5		61.3		57.0
Total Tiered Storage and Security Solutions	74.3		83.5		154.5		162.4
Total net revenue	$	150.6	$	178.6	$	306.0	$	357.5

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In millions)	2015			2014			2015			2014
Operating income (loss) from continuing operations
Consumer Storage and Accessories	$	0.7		$	3.2		$	4.6		$	7.3
Tiered Storage and Security Solutions	(6.2		)	(8.5		)	(12.7		)	(17.3		)
Total segment operating loss	(5.5		)	(5.3		)	(8.1		)	(10.0		)
Corporate and unallocated	(10.4		)	(14.8		)	(20.8		)	(26.2		)
Total operating loss	(15.9		)	(20.1		)	(28.9		)	(36.2		)
Interest income	(0.1		)	(0.1		)	(0.2		)	(0.2		)
Interest expense	0.6			0.6			1.2			1.2
Other, net expense	0.8			0.8			1.6			1.0
Loss from continuing operations before income taxes	$	(17.2	)	$	(21.4	)	$	(31.5	)	$	(38.2	)