Document_and_Entity_Informatio
Document and Entity Information Document | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Entity Information [Line Items] | ' | ' |
Entity Registrant Name | 'IMATION CORP. | ' |
Entity Central Index Key | '0001014111 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 41,805,568 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidated Statements of Operations [Abstract] | ' | ' | ' | ' |
Net revenue | $191.90 | $227.40 | $628 | $739.90 |
Cost of goods sold | 155.8 | 184.3 | 494.6 | 593.6 |
Gross profit | 36.1 | 43.1 | 133.4 | 146.3 |
Operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 46.3 | 45.8 | 142.1 | 145.4 |
Research and development | 4.6 | 4.6 | 14.3 | 15.7 |
Restructuring and other | 11.7 | -3.6 | 18.2 | 2 |
Total | 62.6 | 46.8 | 174.6 | 163.1 |
Operating loss | -26.5 | -3.7 | -41.2 | -16.8 |
Other expense (income): | ' | ' | ' | ' |
Interest income | -0.1 | -0.1 | -0.1 | -0.4 |
Interest expense | 0.7 | 0.6 | 2 | 2.4 |
Other, net | 1.1 | -0.4 | 1 | 2.2 |
Total | 1.7 | 0.1 | 2.9 | 4.2 |
Loss from continuing operations before income taxes | -28.2 | -3.8 | -44.1 | -21 |
Income tax (benefit) provision | -2 | 0 | -0.5 | 1.5 |
Loss from continuing operations | -26.2 | -3.8 | -43.6 | -22.5 |
Discontinued operations: | ' | ' | ' | ' |
Loss from operations of discontinued business, net of income taxes | -8.7 | -2.5 | -17.5 | -8 |
Net loss | ($34.90) | ($6.30) | ($61.10) | ($30.50) |
Loss per common share — basic: | ' | ' | ' | ' |
Continuing operations | ($0.65) | ($0.10) | ($1.08) | ($0.60) |
Discontinued operations | ($0.21) | ($0.07) | ($0.43) | ($0.21) |
(Loss) earnings per common share - basic (dollars per share) | ($0.86) | ($0.17) | ($1.51) | ($0.81) |
Loss per common share — diluted: | ' | ' | ' | ' |
Continuing operations | ($0.65) | ($0.10) | ($1.08) | ($0.60) |
Discontinued operations | ($0.21) | ($0.07) | ($0.43) | ($0.21) |
(Loss) earnings per common share - diluted (dollars per share) | ($0.86) | ($0.17) | ($1.51) | ($0.81) |
Weighted average shares outstanding - basic | 40.5 | 37.4 | 40.5 | 37.6 |
Weighted average shares outstanding - diluted | 40.5 | 37.4 | 40.5 | 37.6 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net loss | ($34.90) | ($6.30) | ($61.10) | ($30.50) |
Net unrealized (losses) gains on derivative financial instruments: | ' | ' | ' | ' |
Net holding gains (losses) arising during the period | -0.5 | -0.6 | 4.1 | 0.3 |
Reclassification adjustment for net realized gains included in net loss | -2 | -0.5 | -5.2 | -1.2 |
Total net unrealized (losses) gains on derivative financial instruments | -2.5 | -1.1 | -1.1 | -0.9 |
Adjustments for defined benefit plans | 5.3 | 2.5 | 9.8 | 3 |
Unrealized foreign currency translation gains (losses) | 5.3 | 3.1 | -5.6 | 1.3 |
Total other comprehensive loss, net of tax | 8.1 | 4.5 | 3.1 | 3.4 |
Comprehensive loss | ($26.80) | ($1.80) | ($58) | ($27.10) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $108.40 | $108.70 |
Accounts receivable, net | 146.9 | 220.8 |
Inventories | 113.9 | 166 |
Other current assets | 55.4 | 61.6 |
Total current assets | 424.6 | 557.1 |
Property, plant and equipment, net | 52.5 | 58.9 |
Intangible assets, net | 70.9 | 81.9 |
Goodwill | 71.7 | 73.5 |
Other assets | 15.9 | 22.1 |
Total assets | 635.6 | 793.5 |
Current liabilities | ' | ' |
Accounts payable | 103.8 | 162.7 |
Short-term Debt | 20 | 20 |
Other current liabilities | 122.2 | 158.4 |
Total current liabilities | 246 | 341.1 |
Other liabilities | 43.4 | 52 |
Total liabilities | 289.4 | 393.1 |
Commitments and contingencies (Note 15) | ' | ' |
Shareholders’ equity | 346.2 | 400.4 |
Total liabilities and shareholders’ equity | $635.60 | $793.50 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net loss | ($61.10) | ($30.50) |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 18.3 | 27.8 |
Stock-based compensation | 5.1 | 5.5 |
Loss on settlement of pension plan (UK) | 10.6 | 0 |
Adjustment to carrying value of disposal group | 5.5 | 0 |
Other, net | -6.3 | -4.2 |
Changes in operating assets and liabilities | 34.7 | -21.2 |
Net cash used in operating activities | 6.8 | -22.6 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures | -5.2 | -8.4 |
Purchase price adjustment | 1.6 | 0 |
Proceeds from sale of assets | 0.4 | 1.4 |
Proceeds from investments | 0 | 0.9 |
Net cash used in investing activities | -3.2 | -6.1 |
Cash Flows from Financing Activities: | ' | ' |
Purchase of treasury stock | -2.5 | -4.9 |
Debt issuance costs | -0.4 | -2.4 |
Contingent consideration payments | -0.5 | -1.2 |
Net cash used in financing activities | -3.4 | -8.5 |
Effect of exchange rate changes on cash and cash equivalents | -0.5 | 0.4 |
Net change in cash and cash equivalents | -0.3 | -36.8 |
Cash and cash equivalents — beginning of period | 108.7 | 223.1 |
Cash and cash equivalents - end of period | $108.40 | $186.30 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The interim Condensed Consolidated Financial Statements of Imation Corp. ("Imation," "the Company," "we," "us" or "our") are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of financial position, results of operations, comprehensive loss and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of full year results. The Condensed Consolidated Financial Statements and Notes are presented in accordance with the requirements for Quarterly Reports on Form 10-Q and do not contain certain information included in our annual Consolidated Financial Statements and Notes. | |
The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses for the reporting periods. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates. | |
The December 31, 2012 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, 2012. | |
On February 13, 2013, we announced our plans to divest our XtremeMacTM and MemorexTM consumer electronics businesses. The results of operations for these businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented. The consumer storage business under the Memorex and TDK Life on RecordTM brands and the consumer electronics business under the TDK Life on Record brand are being retained. See Note 4 - Acquisitions and Divestitures for further information. |
Recently_Issued_or_Adopted_Acc
Recently Issued or Adopted Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued or Adopted Accounting Pronouncements | ' |
Recently Issued or Adopted Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board (FASB) issued amendments to allow the Federal Funds Effective Swap Rate (which is the Overnight Index Swap rate, or OIS rate, in the U.S.) to be designated as a benchmark interest rate for hedge accounting purposes under the derivatives and hedging guidance. The amendments also allow for the use of different benchmark rates for similar hedges. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. This amended guidance did not have a material impact on our condensed consolidated financial position and results of operations. | |
In July 2013, the FASB issued amendments to guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments require entities to present an unrecognized tax benefit netted against certain deferred tax assets when specific requirements are met. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 with early adoption permitted. The amendments only affect gross versus net presentation and do not impact the calculation of the unrecognized tax benefit. The impact of the amended guidance will not have an impact on our consolidated financial position. |
Loss_Earnings_per_Common_Share
(Loss) Earnings per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 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. All potential common shares are anti-dilutive in periods of net loss available to common shareholders. 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. | |||||||||||||||||
The following table sets forth the computation of the weighted average basic and diluted (loss) earnings per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions, except for per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Loss from continuing operations | $ | (26.2 | ) | $ | (3.8 | ) | $ | (43.6 | ) | $ | (22.5 | ) | |||||
Loss from discontinued operations | (8.7 | ) | (2.5 | ) | (17.5 | ) | (8.0 | ) | |||||||||
Net loss | $ | (34.9 | ) | $ | (6.3 | ) | $ | (61.1 | ) | $ | (30.5 | ) | |||||
Denominator: | |||||||||||||||||
Weighted average number of common shares outstanding during the period | 40.5 | 37.4 | 40.5 | 37.6 | |||||||||||||
Dilutive effect of stock-based compensation plans | — | — | — | — | |||||||||||||
Weighted average number of diluted shares outstanding during the period | 40.5 | 37.4 | 40.5 | 37.6 | |||||||||||||
(Loss) earnings per common share — basic | |||||||||||||||||
Continuing operations | $ | (0.65 | ) | $ | (0.10 | ) | $ | (1.08 | ) | $ | (0.60 | ) | |||||
Discontinued operations | (0.21 | ) | (0.07 | ) | (0.43 | ) | (0.21 | ) | |||||||||
Net loss | (0.86 | ) | (0.17 | ) | (1.51 | ) | (0.81 | ) | |||||||||
(Loss) earnings per common share — diluted | |||||||||||||||||
Continuing operations | $ | (0.65 | ) | $ | (0.10 | ) | $ | (1.08 | ) | $ | (0.60 | ) | |||||
Discontinued operations | (0.21 | ) | (0.07 | ) | (0.43 | ) | (0.21 | ) | |||||||||
Net loss | (0.86 | ) | (0.17 | ) | (1.51 | ) | (0.81 | ) | |||||||||
Anti-dilutive shares excluded from calculation | 5.9 | 6.5 | 6.3 | 6.2 | |||||||||||||
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Notes) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Acquisitions and Divestitures | ' | ||||||||||||||||
Acquisitions and Divestitures | |||||||||||||||||
Acquisitions | |||||||||||||||||
On December 31, 2012, we acquired Nexsan Corporation (Nexsan), a provider of disk-based storage systems with a portfolio of disk-based and hybrid disk-and-solid-state storage systems, for a purchase price of $120.1 million. The acquisition resulted in $65.5 million of goodwill. During the nine months ended September 30, 2013, the purchase price was adjusted to reflect working capital variances in accordance with the merger agreement. This adjustment resulted in a decrease to goodwill of $1.6 million and a cash receipt for this amount. As of September 30, 2013, our purchase price allocation is preliminary pending final evaluation of income tax balances, which will take place by December 31, 2013. See Note 6 - Intangible Assets and Goodwill for more information regarding goodwill. | |||||||||||||||||
On June 4, 2011, we acquired the assets of MXI Security (MXI). The purchase price included a contingent consideration arrangement with an estimated fair value of $0.6 million at December 31, 2012. See Note 4 - Acquisitions in our 2012 Annual Report on Form 10-K for further information regarding the contingent consideration. | |||||||||||||||||
We remeasure the estimated fair value of the remaining contingent consideration each reporting period. At September 30, 2013, our estimated fair value of this contingent consideration was determined to be $0.2 million. We did not record an adjustment in the fair value of the contingent consideration in the three months ended September 30, 2013. We recorded a decrease of $0.4 million in the fair value of this contingent consideration from December 31, 2012 in the nine months ended September 30, 2013 as a benefit in the restructuring and other line in the Condensed Consolidated Statements of Operations. | |||||||||||||||||
On February 28, 2011, we acquired substantially all of the assets of BeCompliant Corporation, doing business as Encryptx (Encryptx). The purchase price included future contingent consideration with an estimated fair value of $0.6 million at December 31, 2012. The final contingent consideration payment of $0.8 million was determined based on certain 2012 milestones and was paid during the first quarter of 2013. In the Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2013, $0.5 million was presented in cash flows from financing activities and the remaining $0.3 million was presented in cash flows from operating activities as it pertains to the excess of actual payments over the initially recognized fair value of the contingent consideration. | |||||||||||||||||
During the second quarter of 2012, we recorded a working capital adjustment to the purchase price in our acquisition of the secure data hardware of IronKey Systems Inc. in the amount of $0.6 million. As the purchase accounting for this acquisition was finalized in 2011, the adjustment was recorded as a charge to restructuring and other in the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2012. | |||||||||||||||||
Discontinued Operations | |||||||||||||||||
On February 13, 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses. The consumer storage business under the Memorex and TDK Life on Record brands and the consumer electronics business under the TDK Life on Record brand are being retained. These expected divestitures are part of the acceleration of our strategic transformation that we announced during the fourth quarter of 2012 in conjunction with our plan to increase focus on data storage and security. As a part of exiting these disposal groups, we plan to sell the assets directly associated with these businesses, which primarily include inventory, tooling and intangible assets. | |||||||||||||||||
On October 15, 2013 we completed the sale of the Memorex consumer electronics business. We do not expect a loss in the fourth quarter of 2013 on this transaction. In addition, we currently have a signed term sheet for the sale of the XtremeMac business and we anticipate that a sale will be completed by December 31, 2013. Based on the estimated value of the expected consideration to be received, we have adjusted the carrying value of the XtremeMac disposal group as of September 30, 2013 and recorded a charge of $5.5 million in the three and nine months ended September 30, 2013 as an element of discontinued operations. We do not expect a loss in the fourth quarter of 2013 upon the closing of this transaction. Total proceeds to be received from discontinuing these businesses are estimated at approximately $19 million, with approximately $10 million spread between the fourth quarter of 2013 and early 2014, and the balance over the next several years. Proceeds expected to be received consist of various forms of consideration including up-front payments, notes receivable, guaranteed minimum royalties and a percent of the value of inventory transferred. | |||||||||||||||||
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 will be eliminated from ongoing operations. See Note 7 - Restructuring and Other for disclosure of severance expense that was recorded relating to these planned divestitures. | |||||||||||||||||
The key components of discontinued operations were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenue | $ | 10.5 | $ | 20.8 | $ | 33.9 | $ | 60.6 | |||||||||
Loss from operations of discontinued businesses, before income taxes | $ | (3.2 | ) | $ | (2.8 | ) | $ | (12.0 | ) | $ | (8.9 | ) | |||||
Adjustment to carrying value of disposal group | (5.5 | ) | — | (5.5 | ) | — | |||||||||||
Income tax benefit | — | (0.3 | ) | — | (0.9 | ) | |||||||||||
Loss from discontinued businesses, net of income taxes | $ | (8.7 | ) | $ | (2.5 | ) | $ | (17.5 | ) | $ | (8.0 | ) |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Supplemental Balance Sheet Information [Abstract] | ' | ||||||||
Supplemental Balance Sheet Information | ' | ||||||||
Supplemental Balance Sheet Information | |||||||||
September 30, | December 31, | ||||||||
(In millions) | 2013 | 2012 | |||||||
Accounts Receivable | |||||||||
Accounts receivable | $ | 163.5 | $ | 238.8 | |||||
Less reserves and allowances1 | (16.6 | ) | (18.0 | ) | |||||
Accounts receivable, net | $ | 146.9 | $ | 220.8 | |||||
Inventories | |||||||||
Finished goods | $ | 102.9 | $ | 146.9 | |||||
Work in process | 5.1 | 6.4 | |||||||
Raw materials and supplies | 5.9 | 12.7 | |||||||
Total inventories | $ | 113.9 | $ | 166 | |||||
Other Current Assets | |||||||||
Non-trade receivables | $ | 6.1 | $ | 15.1 | |||||
Deferred income taxes | 5 | 4.7 | |||||||
Prepaid expenses | 5.5 | 5.4 | |||||||
Hedging asset | 4 | 5.5 | |||||||
Assets held for sale2 | 14.3 | 2.5 | |||||||
Restricted cash3 | — | 7.5 | |||||||
Other | 20.5 | 20.9 | |||||||
Total other current assets | $ | 55.4 | $ | 61.6 | |||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment | $ | 208 | $ | 222.6 | |||||
Less accumulated depreciation | (155.5 | ) | (163.7 | ) | |||||
Property, plant and equipment, net | $ | 52.5 | $ | 58.9 | |||||
1Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and the inability of certain customers to make the required payment. | |||||||||
2Assets held for sale include assets in our XtremeMac and Memorex consumer electronics businesses transferred to held for sale during 2013 as a result of the planned divestiture of these businesses. See Note 4 - Acquisitions and Divestitures for more information on these planned divestitures. | |||||||||
3Restricted cash at December 31, 2012 primarily included cash acquired from Nexsan that was previously restricted for certain obligations of Nexsan. Such obligations were fulfilled during the first quarter of 2013. | |||||||||
September 30, | December 31, | ||||||||
(In millions) | 2013 | 2012 | |||||||
Other Assets | |||||||||
Deferred income taxes | $ | 10.5 | $ | 9.3 | |||||
Pension assets1 | — | 6.6 | |||||||
Credit facility fees | 1.9 | 2.3 | |||||||
Other | 3.5 | 3.9 | |||||||
Total other assets | $ | 15.9 | $ | 22.1 | |||||
Other Current Liabilities | |||||||||
Rebates | $ | 31.7 | $ | 44.8 | |||||
Accrued European consumer copyright levies | 18.8 | 27.7 | |||||||
Accrued payroll | 16.4 | 11.4 | |||||||
Accrued royalties | 6.4 | 7.5 | |||||||
Deferred revenue | 8 | 6.9 | |||||||
Accrued employee severance and related | 3 | 16.7 | |||||||
Hedging liability | 1.2 | 1.3 | |||||||
Other | 36.7 | 42.1 | |||||||
Total other current liabilities | $ | 122.2 | $ | 158.4 | |||||
Other Liabilities | |||||||||
Pension liabilities | $ | 21.2 | $ | 28.1 | |||||
Deferred revenue | 2.5 | 2.5 | |||||||
Deferred income taxes | 2.3 | 2.1 | |||||||
Other | 17.4 | 19.3 | |||||||
Total other liabilities | $ | 43.4 | $ | 52 | |||||
1The reduction in pension assets as of September 30, 2013 is a result of the settlement of our UK Pension Plan. See Note 9 - Retirement Plans for more information. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets and Goodwill | ' | ||||||||||||||||||||||||
Intangible Assets and Goodwill | |||||||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||||||
The components of our amortizable intangible assets were as follows: | |||||||||||||||||||||||||
(In millions) | Trade Names | Software | Customer Relationships | Other | Total | ||||||||||||||||||||
September 30, 2013 | |||||||||||||||||||||||||
Gross carrying amount | $ | 33.9 | $ | 58.6 | $ | 20.5 | $ | 26.7 | $ | 139.7 | |||||||||||||||
Accumulated amortization | (7.9 | ) | (53.1 | ) | (1.9 | ) | (5.9 | ) | (68.8 | ) | |||||||||||||||
Intangible assets, net | $ | 26 | $ | 5.5 | $ | 18.6 | $ | 20.8 | $ | 70.9 | |||||||||||||||
December 31, 2012 | |||||||||||||||||||||||||
Gross carrying amount | $ | 37.7 | $ | 58.4 | $ | 21.2 | $ | 26.8 | $ | 144.1 | |||||||||||||||
Accumulated amortization | (6.0 | ) | (52.0 | ) | (1.0 | ) | (3.2 | ) | (62.2 | ) | |||||||||||||||
Intangible assets, net | $ | 31.7 | $ | 6.4 | $ | 20.2 | $ | 23.6 | $ | 81.9 | |||||||||||||||
Other net intangible assets as of September 30, 2013 consists primarily of $18.8 million of developed technology. | |||||||||||||||||||||||||
Amortization expense for intangible assets consisted of the following: | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Amortization expense | $ | 3.4 | $ | 7.2 | $ | 10.3 | $ | 21.7 | |||||||||||||||||
Based on the intangible assets in service as of September, 2013, estimated amortization expense for the remainder of 2013 and each of the next five years is as follows: | |||||||||||||||||||||||||
(In millions) | 2013 (Remainder) | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
Amortization expense | $ | 3.8 | $ | 12.7 | $ | 11.2 | $ | 9.2 | $ | 8.2 | $ | 6.5 | |||||||||||||
Goodwill | |||||||||||||||||||||||||
During the nine months ended September 30, 2013, we recorded a decrease in goodwill of $1.6 million due to the working capital adjustment to the Nexsan acquisition purchase price. Additionally, goodwill decreased $0.2 million due to foreign currency translation. See Note 4 - Acquisitions and Divestitures for further information regarding the Nexsan acquisition and this adjustment. | |||||||||||||||||||||||||
We test the carrying amount of a reporting unit's goodwill for impairment on an annual basis during the fourth quarter of each year and if an event occurs or circumstances change that would warrant impairment testing during an interim period. Through September 30, 2013, our actual 2013 results for the Mobile Security reporting unit are lower than originally planned, primarily because of factors that we believe are short-term and temporary in nature. Despite the lower than anticipated results for 2013, we currently do not believe there are significant changes to the longer-term cash flow projections for the Mobile Security reporting unit. Our internal business plan associated with Mobile Security is being updated during the fourth quarter of 2013. While we presently believe our longer-term forecasts associated with Mobile Security have not been negatively impacted compared to previous projections, it is reasonably possible that, upon the completion of our fourth quarter 2013 internal business plan update, we may incur an impairment charge related to goodwill in the Mobile Security reporting unit. The Mobile Security reporting unit contains $8.0 million of goodwill as of September 30, 2013. |
Restructuring_and_Other_Expens
Restructuring and Other Expense | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Restructuring | |||||||||||||||||
Severance and related | $ | (0.2 | ) | $ | — | $ | 1 | $ | 2.8 | ||||||||
Lease termination costs | 0.1 | — | 0.7 | 0.5 | |||||||||||||
Gain on sale of fixed assets held for sale | — | — | — | (0.7 | ) | ||||||||||||
Other | 0.6 | 0.1 | 1.9 | 1.2 | |||||||||||||
Total restructuring | $ | 0.5 | $ | 0.1 | $ | 3.6 | $ | 3.8 | |||||||||
Other | |||||||||||||||||
Contingent consideration fair value adjustment | — | (5.5 | ) | (0.4 | ) | (8.3 | ) | ||||||||||
Intangible asset abandonment | — | — | — | 1.3 | |||||||||||||
Acquisition and integration related costs | 0.6 | 0.1 | 1.8 | 1.3 | |||||||||||||
Pension settlement | 0.2 | 0.5 | 1.7 | 2 | |||||||||||||
Settlement of UK pension plan | 10.6 | — | 10.6 | — | |||||||||||||
Other | (0.2 | ) | 1.2 | 0.9 | 1.9 | ||||||||||||
Total | $ | 11.7 | $ | (3.6 | ) | $ | 18.2 | $ | 2 | ||||||||
During the three and nine months ended September 30, 2013, severance expense of $0.3 million and $1.7 million, respectively, related to employees directly associated with XtremeMac and Memorex consumer electronics businesses was recorded in discontinued operations. See Note 4 - Acquisitions and Divestitures for additional information related to our discontinued operations. This expense is excluded from the table above. | |||||||||||||||||
2012 Global Process Improvement Restructuring Program | |||||||||||||||||
On October 22, 2012, the Board of Directors approved the Global Process Improvement Restructuring Program (GPI Program) related to the realignment of our business structure and the reduction of our operating expenses in excess of 25 percent over time. This program addresses product line rationalization and infrastructure, and is anticipated to include a reduction of approximately 20 percent of our global workforce. Since the inception of this program, we have recorded a total of $14.9 million of severance and related expenses, $5.1 million of inventory write-offs, $2.8 million of other charges and $0.8 million of lease termination costs. Inventory write-offs are included in cost of goods sold in our Consolidated Statements of Operations. Restructuring charges under this plan will continue to be incurred throughout the remainder of 2013. | |||||||||||||||||
Changes in the 2012 GPI Program accruals were as follows: | |||||||||||||||||
(In millions) | Severance and Related | Lease Termination Costs | Other | Total | |||||||||||||
Accrued balance at December 31, 2012 | $ | 15.4 | $ | 0.5 | $ | 1 | $ | 16.9 | |||||||||
Charges | 1.7 | 0.1 | 0.8 | 2.6 | |||||||||||||
Usage and payments | (5.0 | ) | (0.1 | ) | (0.2 | ) | (5.3 | ) | |||||||||
Currency impacts | (0.2 | ) | — | (0.1 | ) | (0.3 | ) | ||||||||||
Accrued balance at March 31, 2013 | $ | 11.9 | $ | 0.5 | $ | 1.5 | $ | 13.9 | |||||||||
Charges | 0.9 | 0.5 | 0.5 | 1.9 | |||||||||||||
Usage and payments | (6.5 | ) | (0.2 | ) | (0.4 | ) | (7.1 | ) | |||||||||
Currency impacts | 0.1 | (0.1 | ) | — | — | ||||||||||||
Accrued balance at June 30, 2013 | $ | 6.4 | $ | 0.7 | $ | 1.6 | $ | 8.7 | |||||||||
Charges | 0.1 | 0.1 | 0.7 | 0.9 | |||||||||||||
Usage and payments | (3.9 | ) | (0.2 | ) | (0.4 | ) | (4.5 | ) | |||||||||
Currency impacts | 0.1 | — | (0.1 | ) | — | ||||||||||||
Accrued balance at September 30, 2013 | $ | 2.7 | $ | 0.6 | $ | 1.8 | $ | 5.1 | |||||||||
We have land in Camarillo, California, related to a manufacturing facility that was previously closed and demolished as part of a prior restructuring program. This land continues to meet the criteria for held for sale accounting and, therefore, remains classified in other current assets on the Consolidated Balance Sheet as of September 30, 2013 at a book value of $0.2 million. On October 7, 2011 we entered into an agreement to sell the land for $10.5 million, contingent upon the change of certain zoning requirements for the land as well as other standard conditions. If these conditions are met, the sale is expected to close in the fourth quarter of 2013. |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Stock-Based Compensation | |||||||||||||||||
Stock compensation consisted of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock compensation expense | $ | 1.9 | $ | 1.9 | $ | 5.1 | $ | 5.5 | |||||||||
We have stock-based compensation awards consisting of stock options and restricted stock outstanding under five plans (collectively, the Stock Plans) which are described in detail in our 2012 Annual Report on Form 10-K. On May 8, 2013, at the Company's 2013 Annual Meeting of Shareholders, the Company's shareholders approved various amendments to our 2011 Stock Incentive Plan (2011 Incentive Plan) including increasing the number of shares of our common stock that may be issued pursuant to stock-based awards made under the 2011 Incentive Plan by 1,543,000 shares to a total of 6,043,000 shares. As of September 30, 2013 there were 2,082,057 shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan. | |||||||||||||||||
On September 24, 2013 we granted 2.9 million stock appreciation rights (SARs) under the 2011 Incentive Plan to certain employees associated with our Nexsan and Mobile Security operations. These awards expire in five years and only vest when both of the market and performance conditions specified by the terms of the SARs are met. For the market conditions, based on the terms of the awards, 50 percent of the SARs may vest if the 30-day average Imation stock price reaches $10 per share or more by December 31, 2016 and the remaining 50 percent of the SARs may vest if the 30-day average Imation stock price reaches $15 per share or more by December 31, 2016. Additionally, for the performance condition, as a condition necessary for vesting, the net revenue of Nexsan or Mobile Security (depending on the award) must reach certain specified stretch targets by December 31, 2016. 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 $4.03. As of September 30, 2013 we have not recorded any compensation expense associated with these SARs based on the applicable accounting rules. We will continue to assess these SARs each quarter to determine if any expense should be recorded. | |||||||||||||||||
Stock Options | |||||||||||||||||
The following table summarizes our stock option activity: | |||||||||||||||||
Stock Options | Weighted Average Exercise Price | ||||||||||||||||
Outstanding December 31, 2012 | 5,818,472 | $ | 16.57 | ||||||||||||||
Granted | 1,034,406 | 3.85 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled | (1,001,382 | ) | 25.67 | ||||||||||||||
Forfeited | (382,493 | ) | 7.22 | ||||||||||||||
Outstanding September 30, 2013 | 5,469,003 | $ | 13.14 | ||||||||||||||
Exercisable as of September 30, 2013 | 3,411,153 | $ | 17.65 | ||||||||||||||
The outstanding options are non-qualified and generally have a term of ten years. The weighted average grant date fair value of options that were granted for the nine months ended September 30, 2013 was $1.61 per award. The following table summarizes our weighted average assumptions used in the valuation of options: | |||||||||||||||||
2013 | |||||||||||||||||
Volatility | 42.8 | % | |||||||||||||||
Risk-free interest rate | 1.1 | % | |||||||||||||||
Expected life (months) | 72 | ||||||||||||||||
Dividend yield | — | ||||||||||||||||
As of September 30, 2013, there was $3.7 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 1.6 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, 2012 | 1,025,804 | $ | 7.12 | ||||||||||||||
Granted | 837,443 | 3.75 | |||||||||||||||
Vested | (511,796 | ) | 7.22 | ||||||||||||||
Forfeited | (80,203 | ) | 7.25 | ||||||||||||||
Nonvested as of September 30, 2013 | 1,271,248 | $ | 4.86 | ||||||||||||||
The cost of the awards is determined using the fair value of the Company’s common stock on the date of the grant and compensation is recognized on a straight-line basis over the requisite vesting period. | |||||||||||||||||
As of September 30, 2013, there was $4.4 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 1.5 years. |
Retirement_Plans
Retirement Plans | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Retirement Plans | ' | ||||||||||||||||||||||||||||||||
Retirement Plans | |||||||||||||||||||||||||||||||||
Pension Plans | |||||||||||||||||||||||||||||||||
During the three and nine months ended September 30, 2013 we contributed $0.3 million and $1.0 million, respectively, to our worldwide pension plans. We presently anticipate contributing $0.0 million to $2.0 million to fund our worldwide pension plans during the remainder of 2013. | |||||||||||||||||||||||||||||||||
In connection with actions taken under our announced restructuring programs, the number of employees accumulating benefits under our pension plan in the United States continues to decline. Participants in our U.S. defined benefit pension plan have the option of receiving cash lump sum payments when exiting the plan, which a number of participants exiting the plan have elected to receive. Lump sum payments for the nine months ended September 30, 2013 have exceeded our expected 2013 service and interest costs. As a result, a partial settlement event occurred during the three and nine months ended September 30, 2013 and we recognized a settlement loss of $0.2 million and $1.7 million, respectively. A settlement loss of $0.5 million and $2.0 million was also recognized for the three and nine months ended September 30, 2012. These settlement losses are included in restructuring and other in our Condensed Consolidated Statements of Operations. Additionally, in connection with the settlement and as required by pension accounting, we remeasured the funded status of our U.S. defined benefit plan as of September 30, 2013 and have adjusted the funded status on our Condensed Consolidated Balance Sheets as of September 30 2013, accordingly. | |||||||||||||||||||||||||||||||||
We have a defined benefit pension plan located in the United Kingdom (UK Plan) for former employees with no current employees in the plan. On September 17, 2013 we settled our UK Plan by way of a transaction with Pension Insurance Corporation (PIC) whereby PIC fully assumed the projected benefit obligation and underlying plan assets. The net balance assumed by PIC represents an asset balance of $6.4 million and no cash consideration took place between Imation and PIC associated with this transaction. As a result of this transaction, we removed this net asset and related unrecognized net actuarial loss in other comprehensive loss and recorded a loss of $10.6 million in restructuring and other in the Condensed Consolidated Statements of Operations during the three and nine months ended September 30, 2013. Additionally, the settlement of the UK Plan resulted in the removal of a deferred tax liability related to the plan resulting in a $2.3 million credit to income tax expense for the three and nine months ended September 30, 2013. See Note 10 - Income Taxes for further discussion of the impact on the income tax rate. It is a standard practice in the United Kingdom (UK) for a review process by the UK government, entailing a review of the plan obligations and participant data, to occur upon a transaction such as this one involving a transfer of a pension plan. We expect that this government review will be completed within the next twelve months. Upon the conclusion of this regulatory review, we will record a true-up, if necessary, in the period in which it occurs. | |||||||||||||||||||||||||||||||||
Components of net periodic pension cost included the following: | |||||||||||||||||||||||||||||||||
United States | International | United States | International | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.1 | $ | 0.1 | $ | — | $ | — | $ | 0.3 | $ | 0.3 | |||||||||||||||||
Interest cost | 0.9 | 0.8 | — | — | 2.4 | 2.4 | — | — | |||||||||||||||||||||||||
Expected return on plan assets | (1.2 | ) | (1.4 | ) | — | — | (3.7 | ) | (4.3 | ) | — | — | |||||||||||||||||||||
Amortization of net actuarial loss | 0.4 | 0.4 | 0.1 | 0.1 | 1.3 | 1 | 0.3 | 0.3 | |||||||||||||||||||||||||
Net periodic pension cost (credit) | $ | 0.1 | $ | (0.2 | ) | $ | 0.2 | $ | 0.2 | $ | — | $ | (0.9 | ) | $ | 0.6 | $ | 0.6 | |||||||||||||||
Settlement | 0.2 | 0.5 | 10.6 | — | 1.7 | 2 | 10.6 | — | |||||||||||||||||||||||||
Total pension cost | $ | 0.3 | $ | 0.3 | $ | 10.8 | $ | 0.2 | $ | 1.7 | $ | 1.1 | $ | 11.2 | $ | 0.6 | |||||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
For interim income tax reporting, we are required to estimate our annual effective tax rate and apply it to year-to-date pre-tax ordinary income/loss excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. | |
For the three and nine months ended September 30, 2013 we recorded income tax benefit of $2.0 million and $0.5 million, respectively. For the three months ended September 30, 2012, we recorded no income tax expense. For the nine months ended September 30, 2012, we recorded income tax expense of $1.5 million. The increase in tax benefit for the three and nine months ended September 30, 2013 was driven by a discrete tax benefit of $2.3 million resulting from the removal of a deferred tax liability related to the settlement of our UK pension plan, changes in withholding tax expense and the mix of taxable income (loss) by country. See Note 9 - Retirement Plans for further information on the settlement of our UK pension plan. The effective income tax rate for the three and nine months ended September 30, 2013 differs from the U.S. federal statutory rate of 35 percent primarily due to the full valuation allowance on U.S. deferred tax assets and the effects of foreign tax rate differential. | |
We conduct business globally. As a result, we file income tax returns in multiple jurisdictions and are subject to review by various U.S and foreign taxing authorities. Our U.S. federal income tax returns for 2010 and 2011 are subject to examination by the Internal Revenue Service (IRS). With few exceptions, we are no longer subject to examination by foreign tax jurisdictions or state and city tax jurisdictions for years before 2006. In the event that we have determined not to file tax returns with a particular state or city, all years remain subject to examination by the tax jurisdiction. | |
We accrue for the effects of uncertain tax positions and the related potential penalties and interest. Our liability related to uncertain tax positions, which is presented within the other liabilities line on our Condensed Consolidated Balance Sheets and which includes interest and penalties, was $4.6 million and $4.7 million as of September 30, 2013 and December 31, 2012, 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 upon the unrecognized tax benefits at this time. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Debt | |
Our Credit Agreement entered into in 2006 and its amendments (the Credit Agreement) are described in Note 11 - Debt of our Annual Report on Form 10-K for the year ended December 31, 2012. As of September 30, 2013, our borrowing capacity under this arrangement, after consideration of amounts outstanding, was $71.7 million, consisting of $59.5 million in the United States and $12.2 million in Europe. | |
As of September 30, 2013, we had $20.0 million of borrowings outstanding under the Credit Agreement, all of which was borrowed in the United States and bears an interest rate of 2.2 percent. We are in compliance with all covenant requirements as of September 30, 2013. | |
On July 16, 2013, we entered into an additional credit agreement for a revolving credit facility with a lender in Japan with Imation Corporation Japan as the borrower and Imation Corp. as the guarantor. We intend to use the credit facility for general operating purposes. The credit agreement is a three year asset-based revolving credit facility with a borrowing base consistent with our existing Credit Agreement that allows for the borrowing of amounts up to 2.0 billion Japanese Yen, or approximately $20.0 million. Borrowings under the credit facility will bear interest at an interest rate equal to the base rate based on LIBOR or TIBOR plus the applicable margins provided for in the credit agreement. The credit agreement contains financial covenants applicable to Imation Corporation Japan including a fixed charge coverage ratio requirement. As of September 30, 2013, our borrowing capacity under this arrangement was $10.1 million and we did not have any borrowings outstanding under this credit facility. We are in compliance with all covenant requirements as of September 30, 2013. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Quoted Prices in | Significant Other Observable Inputs (Level 2) | Unobservable | Quoted Prices in | Significant Other Observable Inputs (Level 2) | Unobservable | |||||||||||||||||||
Active Markets | Inputs | Active Markets | Inputs | ||||||||||||||||||||||
for Identical | (Level 3) | for Identical | (Level 3) | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||
Foreign currency option contracts | $ | — | $ | 3.9 | $ | — | $ | — | $ | 5.5 | $ | — | |||||||||||||
Foreign currency forward contracts | — | 0.1 | — | — | — | — | |||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||
Foreign currency option contracts | — | (1.2 | ) | — | — | (1.2 | ) | — | |||||||||||||||||
Foreign currency forward contracts | — | — | — | — | (0.1 | ) | — | ||||||||||||||||||
Total | $ | — | $ | 2.8 | $ | — | $ | — | $ | 4.2 | $ | — | |||||||||||||
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 within 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 September 30, 2013 and 2012, we recorded foreign currency losses of $0.6 million and $0.1 million, respectively, in other expense (income) in the Condensed Consolidated Statements of Operations. These 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 $0.1 million from the related foreign currency forward contracts for the three months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||
For the nine months ended September 30, 2013 and 2012, there were no foreign currency gains (losses) and losses of $1.8 million, respectively, in other expense (income) in the Condensed Consolidated Statements of Operations. These gains and losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of gains of $1.3 million and losses of $0.2 million from the related foreign currency forward contracts for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The notional amounts and fair values of our derivative instruments recorded in other current assets and other current liabilities in the Condensed Consolidated Financial Statements were as follows: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
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 | $ | 117.5 | $ | 4 | $ | (1.2 | ) | $ | 248.6 | $ | 5.5 | $ | (1.3 | ) | |||||||||||
Other hedges not receiving hedge accounting | 73.1 | — | — | 46.5 | — | — | |||||||||||||||||||
Total | $ | 190.6 | $ | 4 | $ | (1.2 | ) | $ | 295.1 | $ | 5.5 | $ | (1.3 | ) | |||||||||||
On September 30, 2013, we entered into certain hedges not receiving hedge accounting treatment and the estimated fair value of these hedges was immaterial as of September 30, 2013. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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. For the nine months ended September 30, 2013, we have repurchased 0.6 million shares of common stock for $2.5 million. Since the authorization of this program, we have repurchased 1.8 million shares of common stock for $9.0 million, and as of September 30, 2013 we had remaining authorization to repurchase up to 3.2 million additional shares. The treasury stock held as of September 30, 2013 was acquired at an average price of $23.31 per share. | |||||||||||||||||
Following is a summary of treasury share activity: | |||||||||||||||||
Treasury Shares | |||||||||||||||||
Balance as of December 31, 2012 | 1,563,321 | ||||||||||||||||
Purchases | 616,581 | ||||||||||||||||
Exercise of stock options | — | ||||||||||||||||
Restricted stock grants and other | (656,413 | ) | |||||||||||||||
401(k) matching contribution | (378,511 | ) | |||||||||||||||
Balance as of September 30, 2013 | 1,144,978 | ||||||||||||||||
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, 2012 | $ | 2.7 | $ | (27.8 | ) | $ | (49.1 | ) | $ | (74.2 | ) | ||||||
Other comprehensive (loss) income before reclassifications, net of tax 1 | 4.1 | 5.4 | (5.6 | ) | 3.9 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | (5.2 | ) | 4.4 | — | (0.8 | ) | |||||||||||
Net current-period other comprehensive income (loss) | (1.1 | ) | 9.8 | (5.6 | ) | 3.1 | |||||||||||
Balance as of September 30, 2013 | $ | 1.6 | $ | (18.0 | ) | $ | (54.7 | ) | $ | (71.1 | ) | ||||||
1Income tax benefit of $0.2 million was recorded for unrealized losses on derivative financial instruments for the three months ended September 30, 2013 and income tax expense of $2.6 million was recorded for unrealized gains on derivative financial instruments for the nine months ended September 30, 2013, respectively. | |||||||||||||||||
Details of amounts reclassified from Accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2013 are as follows: | |||||||||||||||||
(In millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Statement Where Net Loss is Presented | |||||||||||||||
(Gains) Losses on cash flow hedges | $ | (8.4 | ) | Cost of goods sold | |||||||||||||
3.2 | Income tax provision | ||||||||||||||||
(5.2 | ) | Net of tax | |||||||||||||||
Amortization of net actuarial loss | 1.4 | Selling, general and administrative | |||||||||||||||
Pension settlement loss | 3 | Restructuring and other | |||||||||||||||
— | Income tax benefit | ||||||||||||||||
4.4 | Net of tax | ||||||||||||||||
Total reclassifications for the period | $ | (0.8 | ) |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | |||||||||||||||||
As of January 1, 2013, we revised our segment reporting to reflect changes in how we manage our business, review operating performance and allocate resources. We now manage our business through two reporting segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our new reporting segments are aligned with our key commercial and consumer 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 disc recordable media as well as flash media. Audio and accessories include primarily headphones, audio electronics and accessories. We have two major product categories under our TSS segment: Commercial storage media and Storage and security solutions. Commercial storage media products consist mainly of magnetic data storage tape media and RDX media. Storage and security solutions includes storage hardware products, services and software for backup and archiving as well as primary storage; encrypted and biometric flash drives and hard disk drives; secure portable desktop solutions; and software solutions, including products which contain various security features such as password authentication, encryption and remote manageability. | |||||||||||||||||
We evaluate segment performance based on revenue and operating income (loss). The operating income (loss) reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. Corporate and unallocated amounts include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, intangible asset abandonment, corporate expense, contingent consideration adjustments, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments. | |||||||||||||||||
On February 13, 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses. The operating results for these businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations and are not included in segment results for any periods presented. The consumer storage business under the Memorex and TDK Life on Record brands and the consumer electronics business under the TDK Life on Record brand will be retained. See Note 4 - Acquisitions and Divestitures for further information. | |||||||||||||||||
Net revenue and operating income (loss) by segment were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Revenue | |||||||||||||||||
Consumer Storage and Accessories | |||||||||||||||||
Consumer storage media | $ | 97.3 | $ | 133.5 | $ | 318.8 | $ | 437.3 | |||||||||
Audio and accessories | 11 | 8.7 | 28.2 | 27.5 | |||||||||||||
Total Consumer Storage and Accessories | 108.3 | 142.2 | 347 | 464.8 | |||||||||||||
Tiered Storage and Security Solutions | |||||||||||||||||
Commercial storage media | 54.3 | 72.9 | 183 | 234.2 | |||||||||||||
Storage and security solutions | 29.3 | 12.3 | 98 | 40.9 | |||||||||||||
Total Tiered Storage and Security Solutions | 83.6 | 85.2 | 281 | 275.1 | |||||||||||||
Total Net Revenue | $ | 191.9 | $ | 227.4 | $ | 628 | $ | 739.9 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating Income (Loss) | |||||||||||||||||
Consumer Storage and Accessories | $ | 3.3 | $ | 12.9 | $ | 30 | $ | 45.5 | |||||||||
Tiered Storage and Security Solutions | (8.2 | ) | (6.6 | ) | (14.1 | ) | (19.1 | ) | |||||||||
Total segment operating income | (4.9 | ) | 6.3 | 15.9 | 26.4 | ||||||||||||
Corporate and unallocated | (21.6 | ) | (10.0 | ) | (57.1 | ) | (43.2 | ) | |||||||||
Total operating loss | (26.5 | ) | (3.7 | ) | (41.2 | ) | (16.8 | ) | |||||||||
Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.4 | ) | |||||||||
Interest expense | 0.7 | 0.6 | 2 | 2.4 | |||||||||||||
Other, net | 1.1 | (0.4 | ) | 1 | 2.2 | ||||||||||||
Loss from continuing operations before income taxes | $ | (28.2 | ) | $ | (3.8 | ) | $ | (44.1 | ) | $ | (21.0 | ) |
Litigation_Commitments_and_Con
Litigation, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
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 September 30, 2013, 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 one or more of those patents and seek unspecified damages, treble damages and attorney's fees. On June 13, 2013, Imation filed an Answer, Affirmative Defenses, and Counterclaims, naming various defenses including that plaintiffs are barred, in whole or in part, from any recovery or relief by their refusal to license the patents-in-suit under fair, reasonable, and nondiscriminatory terms. Imation intends to vigorously defend the case. This matter is now in the discovery phase. 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 the sale of Blu-ray discs is more material. Imation Corporation Japan, Imation's Japanese subsidiary, has sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. Imation has notified its manufacturers of indemnity obligations that it believes cover a portion of its liability, if any, to One-Blue and the other associated patent holders. | |
Copyright Levies | |
In many European Union (EU) member countries, the sale of recordable optical media is subject to a private copyright levy. The levies are intended to compensate copyright holders with "fair compensation" for the harm caused by private copies made by natural persons of protected works under the European Copyright Directive, which became effective in 2002 (Directive). Levies are generally charged directly to the importer of the product upon the sale of the products. Payers of levies remit levy payments to collecting societies which, in turn, are expected to distribute funds to copyright holders. Levy systems of EU member countries must comply with the Directive, but individual member countries are responsible for administering their own systems. Since implementation, the levy systems have been the subject of numerous litigation and law making activities. On October 21, 2010, the European Court of Justice (ECJ) ruled that fair compensation is an autonomous European law concept that was introduced by the Directive and must be uniformly applied in all EU member states. The ECJ stated that fair compensation must be calculated based on the harm caused to the authors of protected works by private copying. The ECJ also stated that the indiscriminate application of the private copying levy to devices not made available to private users and clearly reserved for uses other than private copying is incompatible with the Directive. The ECJ ruling made clear that copyright holders are only entitled to fair compensation payments (funded by levy payments made by importers of applicable products, including the Company) when sales of optical media are made to natural persons presumed to be making private copies. Within this disclosure, we use the term "commercial channel sales" when referring to products intended for uses other than private copying and "consumer channel sales" when referring to products intended for uses including private copying. | |
Since the Directive was implemented in 2002, we estimate that we have paid in excess of $100 million in levies to various ongoing collecting societies related to commercial channel sales. Based on the ECJ's October 2010 ruling and subsequent litigation and law making activities, we believe that these payments were not consistent with the Directive and should not have been paid to the various collecting societies. Accordingly, subsequent to the October 21, 2010 ECJ ruling, we began withholding levy payments to the various collecting societies and, in 2011, we released our existing accruals (totaling $7.8 million) for unpaid levies related to commercial channel sales. However, we continue to accrue, but not pay, a liability for levies arising from consumer channel sales, in all applicable jurisdictions except Italy due to a recent Italian Court ruling that is explained below. As of March 31, 2013 and December 31, 2012, we had accrued liabilities of $29.1 million and $27.7 million, respectively, associated with levies related to consumer channel sales for which we are withholding payment. | |
Since the October 2010 ECJ ruling, we evaluate quarterly on a country-by-country basis whether: (i) levies should be accrued on current period commercial and/or consumer channel sales; and, (ii) accrued, but unpaid, copyright levies on prior period consumer channel sales should be reversed. Our evaluation is made on a jurisdiction-by-jurisdiction basis and considers ongoing and cumulative developments related to levy litigation and law making activities within each jurisdiction as well as throughout the EU. For the three months ended March 31, 2013 and the three and six months ended June 30, 2012 we did not reverse any amounts associated with prior period copyright levies. To the extent any reversals were to occur, they would be recorded as a reduction to costs of sales, which is the same income statement account in which our levy expense is initially recorded. | |
During the second quarter of 2013, an Italian court rendered a decision associated with a copyright levy matter to which Imation was not a party. This decision (i) confirmed and provided further specificity to the October 21, 2010 ruling of the ECJ that levies should not be paid on commercial channel sales and (ii) evaluated, via audit, the plaintiff's documentation and evidence for distinguishing between levies paid on commercial and consumer channel sales. Based on the ruling of this Italian court, in combination with other applicable levy and law-making activities within the EU, including Italy, we believe there is sufficient evidence that we may offset with the Italian collecting society the estimated $39 million we have overpaid for copyright levies in Italy (due to us paying levies on commercial channel sales prior to the October 21, 2010 ECJ ruling) against the amounts owed to the Italian collecting society for unpaid levies on consumer channel sales. As such, our liability for Italian copyright levies in the amount of $13.6 million (existing at the time of the of the second quarter 2013 Italian court decision) that arose from consumer channel sales that had been accrued but not paid was reversed and recorded as a reduction of cost of sales during the three months ended June 30, 2013. We did not record a receivable for the remaining estimated $25.4 million that we believe is owed to us by the Italian collection society for our historical over payment on levies associated with commercial channel sales as we are not assured of its collectability. Rather, going forward, such amount will be realized as a reduction to cost of sales upon the incurrence of (and for the same amount of) valid levies for consumer channel sales. Our annual expense for copyright levies in Italy was $5.1 million and $7.4 million for the years ended December 31, 2012 and 2011, respectively. | |
The Italian court required sufficient documentation and evidence to support the determination of levies between those paid on commercial versus consumer channel sales. We believe that we have utilized a methodology, and have sufficient documentation and evidence, to fully support our estimates that we have overpaid $39 million to the Italian collection society of levies on commercial channel sales and that we have incurred (but not paid) $13.6 million of levies on consumer channel sales in Italy. However, such amounts could be subject to challenge in court and there is no certainty that our estimates would be upheld and supported. Additionally, due to the expected continued decline in our sales associated with optical media products, we cannot be assured that we will ever be able to fully realize the estimated amounts owed to us by the Italian collection society through offsetting such amounts against levies incurred on future consumer channel sales or other measures. | |
At September 30, 2013, the recovery of some or all of the copyright levies previously paid on commercial sales in EU jurisdictions other than Italy represents a gain contingency that has not yet met the required criteria for recognition in our financial statements. There is no assurance that we will realize any of this gain contingency. We also have an estimated $18.8 million of accrued but unpaid levies associated with consumer sales in EU jurisdictions other than Italy that we continue to carry on our books. | |
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. Imation has corresponding claims in those actions seeking reimbursement of levies improperly collected by those collecting societies. We are also 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. |
Loss_Earnings_per_Common_Share1
(Loss) Earnings per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions, except for per share amounts) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Numerator: | |||||||||||||||||
Loss from continuing operations | $ | (26.2 | ) | $ | (3.8 | ) | $ | (43.6 | ) | $ | (22.5 | ) | |||||
Loss from discontinued operations | (8.7 | ) | (2.5 | ) | (17.5 | ) | (8.0 | ) | |||||||||
Net loss | $ | (34.9 | ) | $ | (6.3 | ) | $ | (61.1 | ) | $ | (30.5 | ) | |||||
Denominator: | |||||||||||||||||
Weighted average number of common shares outstanding during the period | 40.5 | 37.4 | 40.5 | 37.6 | |||||||||||||
Dilutive effect of stock-based compensation plans | — | — | — | — | |||||||||||||
Weighted average number of diluted shares outstanding during the period | 40.5 | 37.4 | 40.5 | 37.6 | |||||||||||||
(Loss) earnings per common share — basic | |||||||||||||||||
Continuing operations | $ | (0.65 | ) | $ | (0.10 | ) | $ | (1.08 | ) | $ | (0.60 | ) | |||||
Discontinued operations | (0.21 | ) | (0.07 | ) | (0.43 | ) | (0.21 | ) | |||||||||
Net loss | (0.86 | ) | (0.17 | ) | (1.51 | ) | (0.81 | ) | |||||||||
(Loss) earnings per common share — diluted | |||||||||||||||||
Continuing operations | $ | (0.65 | ) | $ | (0.10 | ) | $ | (1.08 | ) | $ | (0.60 | ) | |||||
Discontinued operations | (0.21 | ) | (0.07 | ) | (0.43 | ) | (0.21 | ) | |||||||||
Net loss | (0.86 | ) | (0.17 | ) | (1.51 | ) | (0.81 | ) | |||||||||
Anti-dilutive shares excluded from calculation | 5.9 | 6.5 | 6.3 | 6.2 | |||||||||||||
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||||||
Schedule of key components from discontinued operations | ' | ||||||||||||||||
The key components of discontinued operations were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net revenue | $ | 10.5 | $ | 20.8 | $ | 33.9 | $ | 60.6 | |||||||||
Loss from operations of discontinued businesses, before income taxes | $ | (3.2 | ) | $ | (2.8 | ) | $ | (12.0 | ) | $ | (8.9 | ) | |||||
Adjustment to carrying value of disposal group | (5.5 | ) | — | (5.5 | ) | — | |||||||||||
Income tax benefit | — | (0.3 | ) | — | (0.9 | ) | |||||||||||
Loss from discontinued businesses, net of income taxes | $ | (8.7 | ) | $ | (2.5 | ) | $ | (17.5 | ) | $ | (8.0 | ) |
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Supplemental Balance Sheet Information [Abstract] | ' | ||||||||
Supplemental Balance Sheet Disclosures | ' | ||||||||
September 30, | December 31, | ||||||||
(In millions) | 2013 | 2012 | |||||||
Accounts Receivable | |||||||||
Accounts receivable | $ | 163.5 | $ | 238.8 | |||||
Less reserves and allowances1 | (16.6 | ) | (18.0 | ) | |||||
Accounts receivable, net | $ | 146.9 | $ | 220.8 | |||||
Inventories | |||||||||
Finished goods | $ | 102.9 | $ | 146.9 | |||||
Work in process | 5.1 | 6.4 | |||||||
Raw materials and supplies | 5.9 | 12.7 | |||||||
Total inventories | $ | 113.9 | $ | 166 | |||||
Other Current Assets | |||||||||
Non-trade receivables | $ | 6.1 | $ | 15.1 | |||||
Deferred income taxes | 5 | 4.7 | |||||||
Prepaid expenses | 5.5 | 5.4 | |||||||
Hedging asset | 4 | 5.5 | |||||||
Assets held for sale2 | 14.3 | 2.5 | |||||||
Restricted cash3 | — | 7.5 | |||||||
Other | 20.5 | 20.9 | |||||||
Total other current assets | $ | 55.4 | $ | 61.6 | |||||
Property, Plant and Equipment | |||||||||
Property, plant and equipment | $ | 208 | $ | 222.6 | |||||
Less accumulated depreciation | (155.5 | ) | (163.7 | ) | |||||
Property, plant and equipment, net | $ | 52.5 | $ | 58.9 | |||||
1Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and the inability of certain customers to make the required payment. | |||||||||
2Assets held for sale include assets in our XtremeMac and Memorex consumer electronics businesses transferred to held for sale during 2013 as a result of the planned divestiture of these businesses. See Note 4 - Acquisitions and Divestitures for more information on these planned divestitures. | |||||||||
3Restricted cash at December 31, 2012 primarily included cash acquired from Nexsan that was previously restricted for certain obligations of Nexsan. Such obligations were fulfilled during the first quarter of 2013. | |||||||||
September 30, | December 31, | ||||||||
(In millions) | 2013 | 2012 | |||||||
Other Assets | |||||||||
Deferred income taxes | $ | 10.5 | $ | 9.3 | |||||
Pension assets1 | — | 6.6 | |||||||
Credit facility fees | 1.9 | 2.3 | |||||||
Other | 3.5 | 3.9 | |||||||
Total other assets | $ | 15.9 | $ | 22.1 | |||||
Other Current Liabilities | |||||||||
Rebates | $ | 31.7 | $ | 44.8 | |||||
Accrued European consumer copyright levies | 18.8 | 27.7 | |||||||
Accrued payroll | 16.4 | 11.4 | |||||||
Accrued royalties | 6.4 | 7.5 | |||||||
Deferred revenue | 8 | 6.9 | |||||||
Accrued employee severance and related | 3 | 16.7 | |||||||
Hedging liability | 1.2 | 1.3 | |||||||
Other | 36.7 | 42.1 | |||||||
Total other current liabilities | $ | 122.2 | $ | 158.4 | |||||
Other Liabilities | |||||||||
Pension liabilities | $ | 21.2 | $ | 28.1 | |||||
Deferred revenue | 2.5 | 2.5 | |||||||
Deferred income taxes | 2.3 | 2.1 | |||||||
Other | 17.4 | 19.3 | |||||||
Total other liabilities | $ | 43.4 | $ | 52 | |||||
1The reduction in pension assets as of September 30, 2013 is a result of the settlement of our UK Pension Plan. See Note 9 - Retirement Plans for more information. |
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | ' | ||||||||||||||||||||
The components of our amortizable intangible assets were as follows: | |||||||||||||||||||||
(In millions) | Trade Names | Software | Customer Relationships | Other | Total | ||||||||||||||||
September 30, 2013 | |||||||||||||||||||||
Gross carrying amount | $ | 33.9 | $ | 58.6 | $ | 20.5 | $ | 26.7 | $ | 139.7 | |||||||||||
Accumulated amortization | (7.9 | ) | (53.1 | ) | (1.9 | ) | (5.9 | ) | (68.8 | ) | |||||||||||
Intangible assets, net | $ | 26 | $ | 5.5 | $ | 18.6 | $ | 20.8 | $ | 70.9 | |||||||||||
December 31, 2012 | |||||||||||||||||||||
Gross carrying amount | $ | 37.7 | $ | 58.4 | $ | 21.2 | $ | 26.8 | $ | 144.1 | |||||||||||
Accumulated amortization | (6.0 | ) | (52.0 | ) | (1.0 | ) | (3.2 | ) | (62.2 | ) | |||||||||||
Intangible assets, net | $ | 31.7 | $ | 6.4 | $ | 20.2 | $ | 23.6 | $ | 81.9 | |||||||||||
Schedule of Intangible Asset Amortization Expense | ' | ||||||||||||||||||||
Amortization expense for intangible assets consisted of the following: | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Amortization expense | $ | 3.4 | $ | 7.2 | $ | 10.3 | $ | 21.7 | |||||||||||||
Restructuring_and_Other_Expens1
Restructuring and Other Expense (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ||||||||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||
The components of our restructuring and other expense included in the Condensed Consolidated Statements of Operations were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Restructuring | |||||||||||||||||
Severance and related | $ | (0.2 | ) | $ | — | $ | 1 | $ | 2.8 | ||||||||
Lease termination costs | 0.1 | — | 0.7 | 0.5 | |||||||||||||
Gain on sale of fixed assets held for sale | — | — | — | (0.7 | ) | ||||||||||||
Other | 0.6 | 0.1 | 1.9 | 1.2 | |||||||||||||
Total restructuring | $ | 0.5 | $ | 0.1 | $ | 3.6 | $ | 3.8 | |||||||||
Other | |||||||||||||||||
Contingent consideration fair value adjustment | — | (5.5 | ) | (0.4 | ) | (8.3 | ) | ||||||||||
Intangible asset abandonment | — | — | — | 1.3 | |||||||||||||
Acquisition and integration related costs | 0.6 | 0.1 | 1.8 | 1.3 | |||||||||||||
Pension settlement | 0.2 | 0.5 | 1.7 | 2 | |||||||||||||
Settlement of UK pension plan | 10.6 | — | 10.6 | — | |||||||||||||
Other | (0.2 | ) | 1.2 | 0.9 | 1.9 | ||||||||||||
Total | $ | 11.7 | $ | (3.6 | ) | $ | 18.2 | $ | 2 | ||||||||
Global Processing Improvement Restructuring Program 2012 [Member] | ' | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | ||||||||||||||||
Changes in the 2012 GPI Program accruals were as follows: | |||||||||||||||||
(In millions) | Severance and Related | Lease Termination Costs | Other | Total | |||||||||||||
Accrued balance at December 31, 2012 | $ | 15.4 | $ | 0.5 | $ | 1 | $ | 16.9 | |||||||||
Charges | 1.7 | 0.1 | 0.8 | 2.6 | |||||||||||||
Usage and payments | (5.0 | ) | (0.1 | ) | (0.2 | ) | (5.3 | ) | |||||||||
Currency impacts | (0.2 | ) | — | (0.1 | ) | (0.3 | ) | ||||||||||
Accrued balance at March 31, 2013 | $ | 11.9 | $ | 0.5 | $ | 1.5 | $ | 13.9 | |||||||||
Charges | 0.9 | 0.5 | 0.5 | 1.9 | |||||||||||||
Usage and payments | (6.5 | ) | (0.2 | ) | (0.4 | ) | (7.1 | ) | |||||||||
Currency impacts | 0.1 | (0.1 | ) | — | — | ||||||||||||
Accrued balance at June 30, 2013 | $ | 6.4 | $ | 0.7 | $ | 1.6 | $ | 8.7 | |||||||||
Charges | 0.1 | 0.1 | 0.7 | 0.9 | |||||||||||||
Usage and payments | (3.9 | ) | (0.2 | ) | (0.4 | ) | (4.5 | ) | |||||||||
Currency impacts | 0.1 | — | (0.1 | ) | — | ||||||||||||
Accrued balance at September 30, 2013 | $ | 2.7 | $ | 0.6 | $ | 1.8 | $ | 5.1 | |||||||||
We have land in Camarillo, California, related to a manufacturing facility that was previously closed and demolished as part of a prior restructuring program. This land continues to meet the criteria for held for sale accounting and, therefore, remains classified in other current assets on the Consolidated Balance Sheet as of September 30, 2013 at a book value of $0.2 million. On October 7, 2011 we entered into an agreement to sell the land for $10.5 million, contingent upon the change of certain zoning requirements for the land as well as other standard conditions. If these conditions are met, the sale is expected to close in the fourth quarter of 2013. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ||||||||||||||||
Stock compensation consisted of the following: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Stock compensation expense | $ | 1.9 | $ | 1.9 | $ | 5.1 | $ | 5.5 | |||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||||||
The following table summarizes our stock option activity: | |||||||||||||||||
Stock Options | Weighted Average Exercise Price | ||||||||||||||||
Outstanding December 31, 2012 | 5,818,472 | $ | 16.57 | ||||||||||||||
Granted | 1,034,406 | 3.85 | |||||||||||||||
Exercised | — | — | |||||||||||||||
Canceled | (1,001,382 | ) | 25.67 | ||||||||||||||
Forfeited | (382,493 | ) | 7.22 | ||||||||||||||
Outstanding September 30, 2013 | 5,469,003 | $ | 13.14 | ||||||||||||||
Exercisable as of September 30, 2013 | 3,411,153 | $ | 17.65 | ||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | ' | ||||||||||||||||
The following table summarizes our weighted average assumptions used in the valuation of options: | |||||||||||||||||
2013 | |||||||||||||||||
Volatility | 42.8 | % | |||||||||||||||
Risk-free interest rate | 1.1 | % | |||||||||||||||
Expected life (months) | 72 | ||||||||||||||||
Dividend yield | — | ||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Activity | ' | ||||||||||||||||
The following table summarizes our restricted stock activity: | |||||||||||||||||
Restricted Stock | Weighted Average Grant Date Fair Value Per Share | ||||||||||||||||
Nonvested as of December 31, 2012 | 1,025,804 | $ | 7.12 | ||||||||||||||
Granted | 837,443 | 3.75 | |||||||||||||||
Vested | (511,796 | ) | 7.22 | ||||||||||||||
Forfeited | (80,203 | ) | 7.25 | ||||||||||||||
Nonvested as of September 30, 2013 | 1,271,248 | $ | 4.86 | ||||||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | ' | ||||||||||||||||||||||||||||||||
Components of net periodic pension cost included the following: | |||||||||||||||||||||||||||||||||
United States | International | United States | International | ||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | 0.1 | $ | 0.1 | $ | — | $ | — | $ | 0.3 | $ | 0.3 | |||||||||||||||||
Interest cost | 0.9 | 0.8 | — | — | 2.4 | 2.4 | — | — | |||||||||||||||||||||||||
Expected return on plan assets | (1.2 | ) | (1.4 | ) | — | — | (3.7 | ) | (4.3 | ) | — | — | |||||||||||||||||||||
Amortization of net actuarial loss | 0.4 | 0.4 | 0.1 | 0.1 | 1.3 | 1 | 0.3 | 0.3 | |||||||||||||||||||||||||
Net periodic pension cost (credit) | $ | 0.1 | $ | (0.2 | ) | $ | 0.2 | $ | 0.2 | $ | — | $ | (0.9 | ) | $ | 0.6 | $ | 0.6 | |||||||||||||||
Settlement | 0.2 | 0.5 | 10.6 | — | 1.7 | 2 | 10.6 | — | |||||||||||||||||||||||||
Total pension cost | $ | 0.3 | $ | 0.3 | $ | 10.8 | $ | 0.2 | $ | 1.7 | $ | 1.1 | $ | 11.2 | $ | 0.6 | |||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||||||||||||||
The following table sets forth our cash flow hedges which are measured at fair value on a recurring basis. | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
(In millions) | Quoted Prices in | Significant Other Observable Inputs (Level 2) | Unobservable | Quoted Prices in | Significant Other Observable Inputs (Level 2) | Unobservable | |||||||||||||||||||
Active Markets | Inputs | Active Markets | Inputs | ||||||||||||||||||||||
for Identical | (Level 3) | for Identical | (Level 3) | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||
Foreign currency option contracts | $ | — | $ | 3.9 | $ | — | $ | — | $ | 5.5 | $ | — | |||||||||||||
Foreign currency forward contracts | — | 0.1 | — | — | — | — | |||||||||||||||||||
Derivative liabilities | |||||||||||||||||||||||||
Foreign currency option contracts | — | (1.2 | ) | — | — | (1.2 | ) | — | |||||||||||||||||
Foreign currency forward contracts | — | — | — | — | (0.1 | ) | — | ||||||||||||||||||
Total | $ | — | $ | 2.8 | $ | — | $ | — | $ | 4.2 | $ | — | |||||||||||||
Schedule of Derivative Instruments | ' | ||||||||||||||||||||||||
The notional amounts and fair values of our derivative instruments recorded in other current assets and other current liabilities in the Condensed Consolidated Financial Statements were as follows: | |||||||||||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||||||||||
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 | $ | 117.5 | $ | 4 | $ | (1.2 | ) | $ | 248.6 | $ | 5.5 | $ | (1.3 | ) | |||||||||||
Other hedges not receiving hedge accounting | 73.1 | — | — | 46.5 | — | — | |||||||||||||||||||
Total | $ | 190.6 | $ | 4 | $ | (1.2 | ) | $ | 295.1 | $ | 5.5 | $ | (1.3 | ) | |||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Schedule of Treasury Stock by Class | ' | ||||||||||||||||
Following is a summary of treasury share activity: | |||||||||||||||||
Treasury Shares | |||||||||||||||||
Balance as of December 31, 2012 | 1,563,321 | ||||||||||||||||
Purchases | 616,581 | ||||||||||||||||
Exercise of stock options | — | ||||||||||||||||
Restricted stock grants and other | (656,413 | ) | |||||||||||||||
401(k) matching contribution | (378,511 | ) | |||||||||||||||
Balance as of September 30, 2013 | 1,144,978 | ||||||||||||||||
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, 2012 | $ | 2.7 | $ | (27.8 | ) | $ | (49.1 | ) | $ | (74.2 | ) | ||||||
Other comprehensive (loss) income before reclassifications, net of tax 1 | 4.1 | 5.4 | (5.6 | ) | 3.9 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax | (5.2 | ) | 4.4 | — | (0.8 | ) | |||||||||||
Net current-period other comprehensive income (loss) | (1.1 | ) | 9.8 | (5.6 | ) | 3.1 | |||||||||||
Balance as of September 30, 2013 | $ | 1.6 | $ | (18.0 | ) | $ | (54.7 | ) | $ | (71.1 | ) | ||||||
1Income tax benefit of $0.2 million was recorded for unrealized losses on derivative financial instruments for the three months ended September 30, 2013 and income tax expense of $2.6 million was recorded for unrealized gains on derivative financial instruments for the nine months ended | |||||||||||||||||
Reclassification Out Of Accumulated Other ComprehensiveIncome | ' | ||||||||||||||||
Details of amounts reclassified from Accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the nine months ended September 30, 2013 are as follows: | |||||||||||||||||
(In millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Statement Where Net Loss is Presented | |||||||||||||||
(Gains) Losses on cash flow hedges | $ | (8.4 | ) | Cost of goods sold | |||||||||||||
3.2 | Income tax provision | ||||||||||||||||
(5.2 | ) | Net of tax | |||||||||||||||
Amortization of net actuarial loss | 1.4 | Selling, general and administrative | |||||||||||||||
Pension settlement loss | 3 | Restructuring and other | |||||||||||||||
— | Income tax benefit | ||||||||||||||||
4.4 | Net of tax | ||||||||||||||||
Total reclassifications for the period | $ | (0.8 | ) |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Schedule of Revenue and Operating Income, by Segment | ' | ||||||||||||||||
Net revenue and operating income (loss) by segment were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Net Revenue | |||||||||||||||||
Consumer Storage and Accessories | |||||||||||||||||
Consumer storage media | $ | 97.3 | $ | 133.5 | $ | 318.8 | $ | 437.3 | |||||||||
Audio and accessories | 11 | 8.7 | 28.2 | 27.5 | |||||||||||||
Total Consumer Storage and Accessories | 108.3 | 142.2 | 347 | 464.8 | |||||||||||||
Tiered Storage and Security Solutions | |||||||||||||||||
Commercial storage media | 54.3 | 72.9 | 183 | 234.2 | |||||||||||||
Storage and security solutions | 29.3 | 12.3 | 98 | 40.9 | |||||||||||||
Total Tiered Storage and Security Solutions | 83.6 | 85.2 | 281 | 275.1 | |||||||||||||
Total Net Revenue | $ | 191.9 | $ | 227.4 | $ | 628 | $ | 739.9 | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
(In millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating Income (Loss) | |||||||||||||||||
Consumer Storage and Accessories | $ | 3.3 | $ | 12.9 | $ | 30 | $ | 45.5 | |||||||||
Tiered Storage and Security Solutions | (8.2 | ) | (6.6 | ) | (14.1 | ) | (19.1 | ) | |||||||||
Total segment operating income | (4.9 | ) | 6.3 | 15.9 | 26.4 | ||||||||||||
Corporate and unallocated | (21.6 | ) | (10.0 | ) | (57.1 | ) | (43.2 | ) | |||||||||
Total operating loss | (26.5 | ) | (3.7 | ) | (41.2 | ) | (16.8 | ) | |||||||||
Interest income | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.4 | ) | |||||||||
Interest expense | 0.7 | 0.6 | 2 | 2.4 | |||||||||||||
Other, net | 1.1 | (0.4 | ) | 1 | 2.2 | ||||||||||||
Loss from continuing operations before income taxes | $ | (28.2 | ) | $ | (3.8 | ) | $ | (44.1 | ) | $ | (21.0 | ) |
Loss_Earnings_per_Common_Share2
(Loss) Earnings per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Loss from continuing operations | ($26.20) | ($3.80) | ($43.60) | ($22.50) |
Loss from operations of discontinued business, net of income taxes | -8.7 | -2.5 | -17.5 | -8 |
Net loss | ($34.90) | ($6.30) | ($61.10) | ($30.50) |
Weighted average number of common shares outstanding during period | 40.5 | 37.4 | 40.5 | 37.6 |
Dilutive effect of stock-based compensation plans (in shares) | 0 | 0 | 0 | 0 |
Weighted average number of diluted shares outstanding during the period | 40.5 | 37.4 | 40.5 | 37.6 |
(Loss) earnings per common share — basic | ' | ' | ' | ' |
Continuing operations | ($0.65) | ($0.10) | ($1.08) | ($0.60) |
Discontinued operations | ($0.21) | ($0.07) | ($0.43) | ($0.21) |
Net loss - basic (dollars per share) | ($0.86) | ($0.17) | ($1.51) | ($0.81) |
(Loss) earnings per common share — diluted | ' | ' | ' | ' |
Continuing operations | ($0.65) | ($0.10) | ($1.08) | ($0.60) |
Discontinued operations | ($0.21) | ($0.07) | ($0.43) | ($0.21) |
Net loss - diluted (dollars per share) | ($0.86) | ($0.17) | ($1.51) | ($0.81) |
Anti-dilutive shares excluded from calculation (in shares) | 5.9 | 6.5 | 6.3 | 6.2 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures Acquisitions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Nexsan Corporation | MXI Security | MXI Security | BeCompliant Corporation (Encryptx) | BeCompliant Corporation (Encryptx) | Cash Flows from Financing Activities | Cash Flows from Operating Activities | |||||||
BeCompliant Corporation (Encryptx) | BeCompliant Corporation (Encryptx) | ||||||||||||
Business Acquisition, Contingent Consideration [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | ' | ' | ' | ' | ' | ' | $120.10 | ' | ' | ' | ' | ' | ' |
Goodwill | 71.7 | ' | ' | 71.7 | ' | 73.5 | 65.5 | ' | ' | ' | ' | ' | ' |
Goodwill, Purchase Accounting Adjustments | ' | ' | 0.6 | 1.6 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration obligation | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0.6 | ' | 0.6 | ' | ' |
Contingent consideration adjustment | 0 | -5.5 | ' | -0.4 | -8.3 | ' | ' | 0.4 | ' | ' | ' | ' | ' |
Contingent consideration payments | ' | ' | ' | ($0.50) | ($1.20) | ' | ' | ' | ' | $0.80 | ' | $0.50 | $0.30 |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures Discontinued Operations Textual (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 15, 2013 | Sep. 30, 2013 |
XtremeMac and Memorex [Member] | XtremeMac and Memorex [Member] | XtremeMac and Memorex [Member] | XtremeMac and Memorex [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||
XtremeMac and Memorex [Member] | XtremeMac and Memorex [Member] | |||||||
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to carrying value of disposal group | $5.50 | $0 | $5.50 | $0 | $5.50 | $0 | ' | $5.50 |
Estimated proceeds | ' | ' | ' | ' | ' | ' | 19 | ' |
Estimated proceeds in next two filing periods | ' | ' | ' | ' | ' | ' | $10 | ' |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' |
Adjustment to carrying value of disposal group | ' | ' | ($5.50) | $0 |
Discontinued operations | -8.7 | -2.5 | -17.5 | -8 |
XtremeMac and Memorex [Member] | ' | ' | ' | ' |
Long Lived Assets Held-for-sale [Line Items] | ' | ' | ' | ' |
Disposal group, net revenue | 10.5 | 20.8 | 33.9 | 60.6 |
Loss from operations of discontinued businesses, before income taxes | -3.2 | -2.8 | -12 | -8.9 |
Adjustment to carrying value of disposal group | -5.5 | 0 | -5.5 | 0 |
Income tax benefit | 0 | -0.3 | 0 | -0.9 |
Discontinued operations | ($8.70) | ($2.50) | ($17.50) | ($8) |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Accounts Receivable | ' | ' | ||
Accounts receivable | $163.50 | $238.80 | ||
Less reserves and allowances | -16.6 | [1] | -18 | [1] |
Accounts receivable, net | 146.9 | 220.8 | ||
Inventories | ' | ' | ||
Finished goods | 102.9 | 146.9 | ||
Work in process | 5.1 | 6.4 | ||
Raw materials and supplies | 5.9 | 12.7 | ||
Total inventories | 113.9 | 166 | ||
Other Current Assets | ' | ' | ||
Nontrade Receivables | 6.1 | 15.1 | ||
Deferred income taxes | 5 | 4.7 | ||
Prepaid expenses | 5.5 | 5.4 | ||
Hedging asset | 4 | 5.5 | ||
Assets held for sale | 14.3 | [2] | 2.5 | [2] |
Restricted cash | 0 | [3] | 7.5 | [3] |
Other | 20.5 | 20.9 | ||
Total other current assets | 55.4 | 61.6 | ||
Property, Plant and Equipment | ' | ' | ||
Property, plant and equipment | 208 | 222.6 | ||
Less accumulated depreciation | -155.5 | -163.7 | ||
Property, plant and equipment, net | 52.5 | 58.9 | ||
Other Assets | ' | ' | ||
Deferred income taxes | 10.5 | 9.3 | ||
Pension assets | 0 | [4] | 6.6 | [4] |
Credit facility fees | 1.9 | 2.3 | ||
Other | 3.5 | 3.9 | ||
Total other assets | 15.9 | 22.1 | ||
Other Current Liabilities | ' | ' | ||
Rebates | 31.7 | 44.8 | ||
Accrued European consumer copyright levies | 18.8 | 27.7 | ||
Accrued payroll | 16.4 | 11.4 | ||
Accrued royalties | 6.4 | 7.5 | ||
Deferred revenue | 8 | 6.9 | ||
Accrued employee severance and related | 3 | 16.7 | ||
Hedging liability | 1.2 | 1.3 | ||
Other | 36.7 | 42.1 | ||
Total other current liabilities | 122.2 | 158.4 | ||
Other Liabilities | ' | ' | ||
Pension liabilities | 21.2 | 28.1 | ||
Deferred revenue | 2.5 | 2.5 | ||
Deferred income taxes | 2.3 | 2.1 | ||
Other | 17.4 | 19.3 | ||
Total other liabilities | $43.40 | $52 | ||
[1] | Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and the inability of certain customers to make the required payment. | |||
[2] | Assets held for sale include assets in our XtremeMac and Memorex consumer electronics businesses transferred to held for sale during 2013 as a result of the planned divestiture of these businesses. See Note 4 - Acquisitions and Divestitures for more information on these planned divestitures. | |||
[3] | Restricted cash at December 31, 2012 primarily included cash acquired from Nexsan that was previously restricted for certain obligations of Nexsan. Such obligations were fulfilled during the first quarter of 2013. | |||
[4] | The reduction in pension assets as of September 30, 2013 is a result of the settlement of our UK Pension Plan. See Note 9 - Retirement Plans for more information. |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Intangible Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | $139.70 | $144.10 |
Accumulated amortization | -68.8 | -62.2 |
Intangible assets, net | 70.9 | 81.9 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of 2013 | 3.8 | ' |
Finite-Lived Intangible Assets, Amortization Expense, 2014 | 12.7 | ' |
Finite-Lived Intangible Assets, Amortization Expense, 2015 | 11.2 | ' |
Finite-Lived Intangible Assets, Amortization Expense, 2016 | 9.2 | ' |
Finite-Lived Intangible Assets, Amortization Expense, 2017 | 8.2 | ' |
Finite-Lived Intangible Assets, Amortization Expense, 2018 | 6.5 | ' |
Trade Names | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 33.9 | 37.7 |
Accumulated amortization | -7.9 | -6 |
Intangible assets, net | 26 | 31.7 |
Software | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 58.6 | 58.4 |
Accumulated amortization | -53.1 | -52 |
Intangible assets, net | 5.5 | 6.4 |
Customer Relationships | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 20.5 | 21.2 |
Accumulated amortization | -1.9 | -1 |
Intangible assets, net | 18.6 | 20.2 |
Other | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 26.7 | 26.8 |
Accumulated amortization | -5.9 | -3.2 |
Intangible assets, net | 20.8 | 23.6 |
Developed Technology Rights | ' | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, net | $18.80 | ' |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Intangible Assets Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets, net | $70.90 | ' | $70.90 | ' | $81.90 |
Amortization expense | $3.40 | $7.20 | $10.30 | $21.70 | ' |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill - Goodwill (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill, Translation Adjustments | ' | $0.20 | ' | ' |
Goodwill, Purchase Accounting Adjustments | 0.6 | 1.6 | 0 | ' |
Goodwill | ' | 71.7 | ' | 73.5 |
Mobile Security [Member] | ' | ' | ' | ' |
Goodwill [Line Items] | ' | ' | ' | ' |
Goodwill | ' | $8 | ' | ' |
Restructuring_and_Other_Expens2
Restructuring and Other Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Restructuring and Related Activities [Abstract] | ' | ' | ' | ' |
Severance and related | ($0.20) | $0 | $1 | $2.80 |
Lease termination costs | 0.1 | 0 | 0.7 | 0.5 |
Gain on sale of fixed assets held for sale | 0 | 0 | 0 | -0.7 |
Other | 0.6 | 0.1 | 1.9 | 1.2 |
Restructuring Charges | 0.5 | 0.1 | 3.6 | 3.8 |
Contingent consideration adjustment | 0 | -5.5 | -0.4 | -8.3 |
Intangible asset abandonment | 0 | 0 | 0 | 1.3 |
Acquisition and integration related costs | 0.6 | 0.1 | 1.8 | 1.3 |
Pension settlement | 0.2 | 0.5 | 1.7 | 2 |
Loss on settlement of pension plan (UK) | 10.6 | 0 | 10.6 | 0 |
Other | -0.2 | 1.2 | 0.9 | 1.9 |
Total | 11.7 | -3.6 | 18.2 | 2 |
Severance related to discontinued operations | $0.30 | ' | $1.70 | ' |
Restructuring_and_Other_Expens3
Restructuring and Other Expenses Activity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 11 Months Ended | 3 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Oct. 22, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Oct. 07, 2013 |
Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Severance and Related | Severance and Related | Severance and Related | Lease Termination Costs | Lease Termination Costs | Lease Termination Costs | Other | Other | Other | Camarillo [Member] | Subsequent Event [Member] | |||||
Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Global Processing Improvement Restructuring Program 2012 [Member] | Camarillo [Member] | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real Estate Held-for-sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.20 | ' |
Inventory Write-down | ' | ' | ' | ' | ' | ' | ' | ' | 5.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected reduction in operating expenses, percent | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in global workforce | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance and related | -0.2 | 0 | 1 | 2.8 | ' | ' | ' | ' | 14.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease termination costs | 0.1 | 0 | 0.7 | 0.5 | ' | ' | ' | ' | 0.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Restructuring Costs | 0.6 | 0.1 | 1.9 | 1.2 | ' | ' | ' | ' | 2.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued balance, beginning of period | ' | ' | ' | ' | ' | 8.7 | 13.9 | 16.9 | ' | 6.4 | 11.9 | 15.4 | 0.7 | 0.5 | 0.5 | 1.6 | 1.5 | 1 | ' | ' |
Restructuring Charges | 0.5 | 0.1 | 3.6 | 3.8 | ' | 0.9 | 1.9 | 2.6 | ' | 0.1 | 0.9 | 1.7 | 0.1 | 0.5 | 0.1 | 0.7 | 0.5 | 0.8 | ' | ' |
Usage and payments | ' | ' | ' | ' | ' | -4.5 | -7.1 | -5.3 | ' | -3.9 | -6.5 | -5 | -0.2 | -0.2 | -0.1 | -0.4 | -0.4 | -0.2 | ' | ' |
Currency impacts | ' | ' | ' | ' | ' | 0 | 0 | -0.3 | ' | 0.1 | 0.1 | -0.2 | 0 | -0.1 | 0 | -0.1 | 0 | -0.1 | ' | ' |
Accrued balance, end of period | ' | ' | ' | ' | ' | 5.1 | 8.7 | 13.9 | 5.1 | 2.7 | 6.4 | 11.9 | 0.6 | 0.7 | 0.5 | 1.8 | 1.6 | 1.5 | ' | ' |
Sale of land agreement, contingent upon change in zoning requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.50 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | 8-May-13 | Sep. 25, 2013 | Sep. 30, 2013 | Oct. 07, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
plan | Stock Incentive Plan 2011 | Subsequent Event [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Options | Scenario, Forecast [Member] | ||||
Stock Incentive Plan 2011 | Stock Appreciation Rights (SARs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock compensation expense | $1.90 | $1.90 | $5.10 | $5.50 | ' | ' | ' | ' | ' | ' | ' |
Number of share-based compensation plans | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares available for grant | ' | ' | ' | ' | 2,082,057 | ' | ' | ' | ' | ' | ' |
Additional shares authorized for grant | ' | ' | ' | ' | ' | 1,543,000 | ' | ' | ' | ' | ' |
Total number of shares authorized | ' | ' | ' | ' | ' | 6,043,000 | ' | ' | ' | ' | ' |
Options expiration term | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '10 years | ' |
Grants in period, weighted average grant date fair value (dollars per share) | ' | ' | $1.61 | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation expense related to non-vested stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.70 | ' |
Total compensation cost not yet recognized, period for recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year 7 months | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' |
Percentage of options that vest if minimum trading period price is reached | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | 50.00% |
Vesting period for minimum stock price average | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | '30 days |
Minimum average share price for vesting (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | $10 | ' | ' | $15 |
Share price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $4.03 | ' | ' |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Options Activity (Details) (USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
Stock Options [Roll Forward] | ' |
Outstanding December 31, 2012 (shares) | 5,818,472 |
Granted (shares) | 1,034,406 |
Exercised (shares) | 0 |
Canceled (shares) | -1,001,382 |
Forfeited (shares) | -382,493 |
Outstanding September 30, 2013 (shares) | 5,469,003 |
Exercisable as of September 30, 2013 (shares) | 3,411,153 |
Weighted Average Exercise Price [Roll Forward] | ' |
Oustanding December 31, 2012 (dollars per share) | $16.57 |
Granted (dollars per share) | $3.85 |
Exercised (dollars per share) | $0 |
Canceled (dollars per share) | $25.67 |
Forfeited (dollars per share) | $7.22 |
Outstanding September 30, 2013 (dollars per share) | $13.14 |
Exercisable as of September 30, 2013 (dollars per share) | $17.65 |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Options expiration term | '10 years |
Total compensation cost not yet recognized, period for recognition | '1 year 7 months |
Total unrecognized compensation expense related to non-vested stock | $3.70 |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value Assumptions (Details) (Stock Options) | 9 Months Ended |
Sep. 30, 2013 | |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' |
Volatility | 42.80% |
Risk free interest rate | 1.10% |
Expected life (months) | '72 months |
Dividend yield | 0.00% |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock (Details) (Restricted Stock, USD $) | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 |
Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total compensation cost not yet recognized, period for recognition | '1 year 6 months |
Total unrecognized compensation expense related to non-vested stock | $4.40 |
Restricted Stock [Roll Forward] | ' |
Nonvested as of December 31, 2012 (shares) | 1,025,804 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 837,443 |
Vested (shares) | -511,796 |
Forfeited (shares) | -80,203 |
Nonvested as of September 30, 2013 (shares) | 1,271,248 |
Weighted Average Grant Date Fair Value Per Share [Roll Forward] | ' |
Nonvested as of December 31, 2012 (dollars per share) | $7.12 |
Granted (dollars per share) | $3.75 |
Vested (dollars per share) | $7.22 |
Forfeited (dollars per share) | $7.25 |
Nonvested as of September 30, 2013 (dollars per share) | $4.86 |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 17, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||
Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | United States Pension Plan of US Entity, Defined Benefit [Member] | United States Pension Plan of US Entity, Defined Benefit [Member] | United States Pension Plan of US Entity, Defined Benefit [Member] | United States Pension Plan of US Entity, Defined Benefit [Member] | International | International | International | International | UK pension [Member] | UK pension [Member] | Minimum | Maximum | |||||||||
Pension Plans, Defined Benefit [Member] | Pension Plans, Defined Benefit [Member] | |||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employer contributions in current fiscal year | ' | ' | ' | ' | ' | $0.30 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Estimated future employer contributions in current fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2 | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Service cost | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0.1 | 0.1 | 0.3 | 0.3 | ' | ' | ' | ' | |||
Interest cost | ' | ' | ' | ' | ' | ' | ' | 0.9 | 0.8 | 2.4 | 2.4 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Expected return on plan assets | ' | ' | ' | ' | ' | ' | ' | -1.2 | -1.4 | -3.7 | -4.3 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | |||
Amortization of net actuarial loss | ' | ' | ' | ' | ' | ' | ' | 0.4 | 0.4 | 1.3 | 1 | 0.1 | 0.1 | 0.3 | 0.3 | ' | ' | ' | ' | |||
Defined Benefit Plan, Net Periodic Benefit Cost Before Settlements | ' | ' | ' | ' | ' | ' | ' | 0.1 | -0.2 | 0 | -0.9 | 0.2 | 0.2 | 0.6 | 0.6 | ' | ' | ' | ' | |||
Pension settlement | 0.2 | 0.5 | 1.7 | 2 | ' | ' | ' | 0.2 | 0.5 | 1.7 | 2 | 10.6 | 0 | 10.6 | 0 | 10.6 | ' | ' | ' | |||
Total pension cost (credit) | ' | ' | ' | ' | ' | ' | ' | 0.3 | 0.3 | 1.7 | 1.1 | 10.8 | 0.2 | 11.2 | 0.6 | ' | ' | ' | ' | |||
Deferred income taxes | 2.3 | ' | 2.3 | ' | 2.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 | ' | ' | ' | |||
Pension assets | $0 | [1] | ' | $0 | [1] | ' | $6.60 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.40 | ' | ' |
[1] | The reduction in pension assets as of September 30, 2013 is a result of the settlement of our UK Pension Plan. See Note 9 - Retirement Plans for more information. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Income tax (benefit) provision | ($2) | $0 | ($0.50) | $1.50 | ' |
Deferred income taxes | 2.3 | ' | 2.3 | ' | 2.1 |
Federal statutory income tax rate | ' | ' | 35.00% | ' | ' |
Unrecognized Tax Benefits | 4.6 | ' | 4.6 | ' | 4.7 |
UK pension [Member] | ' | ' | ' | ' | ' |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Deferred income taxes | $2.30 | ' | $2.30 | ' | ' |
Debt_Details
Debt (Details) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 16, 2013 | Jul. 16, 2013 |
USD ($) | Domestic Line of Credit | Foreign Line of Credit | Foreign Line of Credit | Subsequent Event [Member] | Subsequent Event [Member] | |
United States | Europe | Japan | Foreign Line of Credit | Foreign Line of Credit | ||
USD ($) | USD ($) | USD ($) | Japan | Japan | ||
USD ($) | JPY (¥) | |||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Amount Outstanding | $20,000,000 | ' | ' | ' | ' | ' |
Current borrowing capacity | $71,700,000 | $59,500,000 | $12,200,000 | $10,100,000 | $20,000,000 | ¥ 2,000,000,000 |
Debt Instrument, Interest Rate at Period End | 2.20% | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Cash_F
Fair Value Measurements - Cash Flow Hedges (Details) (Fair Value, Measurements, Recurring, Cash flow hedges, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | $0 | $0 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 2.8 | 4.2 |
Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total | 0 | 0 |
Foreign currency option contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign currency option contracts | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 3.9 | 5.5 |
Derivative liabilities | -1.2 | -1.2 |
Foreign currency option contracts | Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Foreign currency forward contracts | Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 0.1 | 0 |
Derivative liabilities | 0 | -0.1 |
Foreign currency forward contracts | Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Derivative assets | 0 | 0 |
Derivative liabilities | $0 | $0 |
Fair_Value_Measurements_Other_
Fair Value Measurements - Other Hedges (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Other Current Assets | Other Current Assets | Other Current Liabilities | Other Current Liabilities | Hedges designated as hedging instruments | Hedges designated as hedging instruments | Hedges designated as hedging instruments | Hedges designated as hedging instruments | Hedges designated as hedging instruments | Hedges designated as hedging instruments | Other hedges not receiving hedge accounting | Other hedges not receiving hedge accounting | Other hedges not receiving hedge accounting | Other hedges not receiving hedge accounting | Other hedges not receiving hedge accounting | Other hedges not receiving hedge accounting | Other Expense | Other Expense | Other Expense | Other Expense | ||
Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Other Current Assets | Other Current Assets | Other Current Liabilities | Other Current Liabilities | |||||||||||||||||
Other Current Assets | Other Current Assets | Other Current Liabilities | Other Current Liabilities | |||||||||||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign Currency Transaction Gain, before Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' |
Foreign Currency Transaction Loss, before Tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.1 | ' | 1.8 |
Gain (loss) on foreign currency contracts | ' | ' | 0.2 | -0.1 | 1.3 | -0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount | 190.6 | 295.1 | ' | ' | ' | ' | ' | ' | ' | ' | 117.5 | 248.6 | ' | ' | ' | ' | 73.1 | 46.5 | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative assets fair value | ' | ' | ' | ' | ' | ' | 4 | 5.5 | ' | ' | ' | ' | 4 | 5.5 | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' |
Derivative liabilities fair value | ' | ' | ' | ' | ' | ' | ' | ' | ($1.20) | ($1.30) | ' | ' | ' | ' | ($1.20) | ($1.30) | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' |
Shareholders_Equity_Treasury_S
Shareholders' Equity - Treasury Stock (Details) (USD $) | 9 Months Ended | 17 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | 2-May-12 |
Equity [Abstract] | ' | ' | ' | ' |
Number of shares authorized to be repurchased | ' | ' | ' | 5,000,000 |
Stock Repurchased During Period, Shares | 600,000 | ' | 1,800,000 | ' |
Payments for Repurchase of Common Stock | $2.50 | $4.90 | $9 | ' |
Remaining number of shares authorized to be repurchased | 3,200,000 | ' | 3,200,000 | ' |
Average price per share of treasury stock acquired and held | $23.31 | ' | ' | ' |
Movement in Treasury Stock [Roll Forward] | ' | ' | ' | ' |
Balance as of December 31, 2012 (shares) | 1,563,321 | ' | ' | ' |
Purchases (shares) | 616,581 | ' | ' | ' |
Exercise of stock options (shares) | 0 | ' | ' | ' |
Restricted stock grants and other (shares) | -656,413 | ' | ' | ' |
401(k) matching contribution (shares) | -378,511 | ' | ' | ' |
Balance as of September 30, 2013 (shares) | 1,144,978 | ' | 1,144,978 | ' |
Shareholders_Equity_Shareholde
Shareholders' Equity Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Income tax (benefit) expense for gains on derivative financial instruments | ($0.20) | ' | $2.60 | ' | |
Income tax (benefit) provision | -2 | 0 | -0.5 | 1.5 | |
Selling, general and administrative | -0.2 | 1.2 | 0.9 | 1.9 | |
Restructuring and other | 11.7 | -3.6 | 18.2 | 2 | |
Selling, general and administrative | 46.3 | 45.8 | 142.1 | 145.4 | |
Accumulated Other Comprhensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), net of tax, beginning of year | ' | ' | -74.2 | ' | |
Other comprehensive (loss) income before reclassifications, net of tax | ' | ' | 3.9 | [1] | ' |
Amounts reclassified from accumulated other comprehensive loss, net of tax | ' | ' | -0.8 | ' | |
Net current-period other comprehensive income (loss) | ' | ' | 3.1 | ' | |
Accumulated other comprehensive income (loss), net of tax, end of year | -71.1 | ' | -71.1 | ' | |
Defined Benefit Plans | ' | ' | ' | ' | |
Accumulated Other Comprhensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), net of tax, beginning of year | ' | ' | -27.8 | ' | |
Other comprehensive (loss) income before reclassifications, net of tax | ' | ' | 5.4 | ' | |
Amounts reclassified from accumulated other comprehensive loss, net of tax | ' | ' | 4.4 | ' | |
Net current-period other comprehensive income (loss) | ' | ' | 9.8 | ' | |
Accumulated other comprehensive income (loss), net of tax, end of year | -18 | ' | -18 | ' | |
Foreign Currency Translation | ' | ' | ' | ' | |
Accumulated Other Comprhensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), net of tax, beginning of year | ' | ' | -49.1 | ' | |
Other comprehensive (loss) income before reclassifications, net of tax | ' | ' | -5.6 | [1] | ' |
Amounts reclassified from accumulated other comprehensive loss, net of tax | ' | ' | 0 | ' | |
Net current-period other comprehensive income (loss) | ' | ' | -5.6 | ' | |
Accumulated other comprehensive income (loss), net of tax, end of year | -54.7 | ' | -54.7 | ' | |
(Gains) Losses on cash flow hedges | ' | ' | ' | ' | |
Accumulated Other Comprhensive Income (Loss) [Roll Forward] | ' | ' | ' | ' | |
Accumulated other comprehensive income (loss), net of tax, beginning of year | ' | ' | 2.7 | ' | |
Other comprehensive (loss) income before reclassifications, net of tax | ' | ' | 4.1 | [1] | ' |
Amounts reclassified from accumulated other comprehensive loss, net of tax | ' | ' | -5.2 | ' | |
Net current-period other comprehensive income (loss) | ' | ' | -1.1 | ' | |
Accumulated other comprehensive income (loss), net of tax, end of year | 1.6 | ' | 1.6 | ' | |
Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' | ' | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Reclassification for the period, net of tax | ' | ' | -0.8 | ' | |
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans | ' | ' | ' | ' | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Income tax (benefit) provision | ' | ' | 0 | ' | |
Reclassification for the period, net of tax | ' | ' | 4.4 | ' | |
Selling, general and administrative | ' | ' | 1.4 | ' | |
Restructuring and other | ' | ' | 3 | ' | |
Reclassification out of Accumulated Other Comprehensive Income | (Gains) Losses on cash flow hedges | ' | ' | ' | ' | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Cost of sales | ' | ' | -8.4 | ' | |
Income tax (benefit) provision | ' | ' | 3.2 | ' | |
Reclassification for the period, net of tax | ' | ' | ($5.20) | ' | |
[1] | Income tax benefit of $0.2 million was recorded for unrealized losses on derivative financial instruments for the three months ended September 30, 2013 and income tax expense of $2.6 million was recorded for unrealized gains on derivative financial instruments for the nine months ended September 30, 2013, respectively. |
Segment_Information_Segment_In
Segment Information - Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | $191.90 | $227.40 | $628 | $739.90 |
Operating Income (Loss) | -26.5 | -3.7 | -41.2 | -16.8 |
Interest income | -0.1 | -0.1 | -0.1 | -0.4 |
Interest expense | 0.7 | 0.6 | 2 | 2.4 |
Other, net | 1.1 | -0.4 | 1 | 2.2 |
Loss from continuing operations before income taxes | -28.2 | -3.8 | -44.1 | -21 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Income (Loss) | -4.9 | 6.3 | 15.9 | 26.4 |
Corporate and Unallocated Amount | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Income (Loss) | -21.6 | -10 | -57.1 | -43.2 |
Consumer Storage and Accessories | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 108.3 | 142.2 | 347 | 464.8 |
Consumer Storage and Accessories | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Income (Loss) | 3.3 | 12.9 | 30 | 45.5 |
Consumer Storage and Accessories | Consumer Storage Media | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 97.3 | 133.5 | 318.8 | 437.3 |
Consumer Storage and Accessories | Audio and Accessories | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 11 | 8.7 | 28.2 | 27.5 |
Tiered Storage and Security and Accessories | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 83.6 | 85.2 | 281 | 275.1 |
Tiered Storage and Security and Accessories | Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Operating Income (Loss) | -8.2 | -6.6 | -14.1 | -19.1 |
Tiered Storage and Security and Accessories | Commercial Storage Media | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | 54.3 | 72.9 | 183 | 234.2 |
Tiered Storage and Security and Accessories | Storage and Security Solutions | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net revenue | $29.30 | $12.30 | $98 | $40.90 |
Litigation_Commitments_and_Con1
Litigation, Commitments and Contingencies (Details) (USD $) | 12 Months Ended | 141 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 |
ECJ Copyright Levy | ECJ Copyright Levy | ECJ Copyright Levy | Italy Copyright Levy | Italy Copyright Levy | Italy Copyright Levy | Italy Copyright Levy | ||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Copyright levy payment | ' | ' | ' | $100 | ' | ' | ' | ' | ' | ' |
Copyright levy accrual reversal | 7.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Copyright levy liabilities | ' | 18.8 | 27.7 | ' | 29.1 | 27.7 | 13.6 | ' | ' | 13.6 |
Amount of copyright Levy overpaid | ' | ' | ' | ' | ' | ' | 39 | ' | ' | ' |
Amount of remaining copyright levy overpaid other than copyright levy liabilities | ' | ' | ' | ' | ' | ' | 25.4 | ' | ' | ' |
Copyright levy expenses | ' | ' | ' | ' | ' | ' | ' | $5.10 | $7.40 | ' |