Document_and_Entity_Informatio
Document and Entity Information Document | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | IMATION CORP | |
Entity Central Index Key | 1014111 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 42,699,593 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net revenue | $155.40 | $178.90 |
Cost of goods sold | 121.4 | 145.2 |
Gross profit | 34 | 33.7 |
Operating expenses: | ||
Selling, general and administrative | 41 | 43.4 |
Research and development | 4.8 | 4.3 |
Restructuring and other | 1.2 | 2.1 |
Total | 47 | 49.8 |
Operating loss from continuing operations | -13 | -16.1 |
Other (income) expense: | ||
Interest income | -0.1 | -0.1 |
Interest expense | 0.6 | 0.6 |
Other, net expense | 0.8 | 0.2 |
Total | 1.3 | 0.7 |
Loss from continuing operations before income taxes | -14.3 | -16.8 |
Income tax provision | 0.1 | 0 |
Loss from continuing operations | -14.4 | -16.8 |
Discontinued operations: | ||
Loss on sale of discontinued businesses, net of income taxes | 0 | -0.5 |
Loss from operations of discontinued businesses, net of income taxes | 0 | -0.2 |
Loss from discontinued operations, net of income taxes | 0 | -0.7 |
Net loss | ($14.40) | ($17.50) |
Loss per common share — basic: | ||
Continuing operations - basic (in dollars per share) | ($0.35) | ($0.41) |
Discontinued operations - basic (in dollars per share) | $0 | ($0.02) |
Net loss - basic (in dollars per share) | ($0.35) | ($0.43) |
Loss per common share — diluted: | ||
Continuing operations - diluted (in dollars per share) | ($0.35) | ($0.41) |
Discontinued operations - diluted (in dollars per share) | $0 | ($0.02) |
Net loss - diluted (dollars per share) | ($0.35) | ($0.43) |
Weighted average shares outstanding - basic (in shares) | 41 | 40.8 |
Weighted average shares outstanding - diluted (in shares) | 41 | 40.8 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net loss | ($14.40) | ($17.50) |
Net unrealized gains (losses) on derivative financial instruments: | ||
Net holding gains (losses) arising during the period | 0.9 | -0.9 |
Reclassification adjustment for net realized gains recorded in net loss | -2.1 | -0.3 |
Total net unrealized losses on derivative financial instruments | -1.2 | -1.2 |
Net pension adjustments: | ||
Reclassification adjustment for defined benefit plans recorded in net loss | 0.2 | -0.1 |
Unrealized foreign currency translation losses | -4.6 | -3.5 |
Total other comprehensive loss, net of tax | -5.6 | -4.8 |
Comprehensive loss | ($20) | ($22.30) |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $96.20 | $114.60 |
Accounts receivable, net | 109.3 | 134.4 |
Inventories | 62.9 | 57.7 |
Other current assets | 32.3 | 32.7 |
Total current assets | 300.7 | 339.4 |
Property, plant and equipment, net | 43.5 | 45 |
Intangible assets, net | 54.2 | 57.9 |
Goodwill | 36.1 | 36.1 |
Other assets | 18.3 | 20.8 |
Total assets | 452.8 | 499.2 |
Current liabilities: | ||
Accounts payable | 92.2 | 95.5 |
Short-term debt | 20.1 | 18.9 |
Other current liabilities | 77.9 | 98.2 |
Total current liabilities | 190.2 | 212.6 |
Other liabilities | 42.1 | 45.8 |
Total liabilities | 232.3 | 258.4 |
Commitments and contingencies (Note 15) | ||
Total shareholders' equity | 220.5 | 240.8 |
Preferred stock, $.01 par value, authorized 25 million shares, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value, authorized 100 million shares, 42.9 million issued | 0.4 | 0.4 |
Additional paid-in capital | 1,027 | 1,034.60 |
Retained deficit | -714.3 | -699.9 |
Accumulated other comprehensive loss | -90.4 | -84.8 |
Treasury stock, at cost | -2.2 | -9.5 |
Total liabilities and shareholders’ equity | $452.80 | $499.20 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 42,900,000 | 42,900,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities: | ||
Net loss | ($14.40) | ($17.50) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 5.4 | 5.5 |
Other, net | 2.7 | 1.7 |
Changes in operating assets and liabilities | -9.2 | 4.8 |
Net cash used in operating activities | -15.5 | -5.5 |
Cash Flows from Investing Activities: | ||
Capital expenditures | -0.8 | -1 |
Proceeds from sale of disposal group | 0.4 | 0.3 |
Net cash used in investing activities | -0.4 | -0.7 |
Cash Flows from Financing Activities: | ||
Purchase of treasury stock | -0.7 | 0 |
Exercise of stock options | 0 | 0.2 |
Short-term debt repayment | -6.4 | -20 |
Short-term borrowings | 7.4 | 19.6 |
Net cash (used in) provided by financing activities | 0.3 | -0.2 |
Effect of exchange rate changes on cash and cash equivalents | -2.8 | 0 |
Net change in cash and cash equivalents | -18.4 | -6.4 |
Cash and cash equivalents — beginning of period | 114.6 | 132.6 |
Cash and cash equivalents — end of period | $96.20 | $126.20 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The interim Condensed Consolidated Financial Statements of Imation Corp. (Imation, the Company, we, us or our) are unaudited but, in the opinion of management, reflect all adjustments necessary for a fair statement of financial position, results of operations, comprehensive loss and cash flows for the periods presented. Except as otherwise disclosed herein, these adjustments consist of normal, recurring items. The results of operations for any interim period are not necessarily indicative of full year results. The Condensed Consolidated Financial Statements and Notes are presented in accordance with the requirements for Quarterly Reports on Form 10-Q and do not contain certain information included in our annual Consolidated Financial Statements and Notes. | |
The preparation of the interim Condensed Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses for the reporting periods. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates. | |
The December 31, 2014 Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Financial Statements but does not include all disclosures required by U.S. GAAP. This Form 10-Q should be read in conjunction with our Consolidated Financial Statements and Notes included in our Annual Report on Form 10-K for the year ended December 31, 2014. | |
The operating results of our former XtremeMacTM and MemorexTM consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented. See Note 4 - Acquisitions and Divestitures for further information on these divestitures. |
Recently_Issued_or_Adopted_Acc
Recently Issued or Adopted Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued or Adopted Accounting Pronouncements | Recently Issued or Adopted Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board issued new accounting guidance related to revenue recognition. This new guidance will replace all current U.S. GAAP guidance on revenue recognition and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for interim and annual periods beginning on or after December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of this new guidance on our financial position and results of operations. | |
In April 2015, the Financial Accounting Standards Board issued new accounting guidance related to debt issuance costs. Under this new standard, debt issuance costs reported on the consolidated balance sheet would be reflected as a direct deduction from the related debt liability rather than as an asset. For Imation, this is effective January 1, 2016, with early adoption permitted. Retroactive application to prior periods is required. As this standard impacts only the classification of certain amounts within the consolidated balance sheet, Imation does not expect this new standard to have a material impact on our financial position and results of operations. |
Loss_Earnings_per_Common_Share
(Loss) Earnings per Common Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
(Loss) Earnings per Common Share | (Loss) Earnings per Common Share | ||||||||
Basic (loss) earnings per common share is calculated using the weighted average number of shares outstanding for the period. Diluted (loss) earnings per common share is computed on the basis of the weighted average shares outstanding plus the dilutive effect of our stock-based compensation plans using the “treasury stock” method. Unvested restricted stock and treasury shares are excluded from the calculation of basic weighted average number of common shares outstanding. Once restricted stock vests, it is included in our common shares outstanding. | |||||||||
Potential common shares are excluded from the computation of diluted (loss) earnings per common share when the effect would be anti-dilutive. Stock options are anti-dilutive when the exercise price of these instruments is greater than the average market price of the Company's common stock for the period. All potential common shares are anti-dilutive in periods of net loss available to common shareholders. | |||||||||
The following table sets forth the computation of the weighted average basic and diluted (loss) earnings per share: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions, except for per share amounts) | 2015 | 2014 | |||||||
Numerator: | |||||||||
Loss from continuing operations | $ | (14.4 | ) | $ | (16.8 | ) | |||
Loss from discontinued operations | — | (0.7 | ) | ||||||
Net loss | $ | (14.4 | ) | $ | (17.5 | ) | |||
Denominator: | |||||||||
Weighted average number of common shares outstanding during the period - basic | 41 | 40.8 | |||||||
Dilutive effect of stock-based compensation plans | — | — | |||||||
Weighted average number of diluted shares outstanding during the period - diluted | 41 | 40.8 | |||||||
Loss per common share — basic: | |||||||||
Continuing operations | $ | (0.35 | ) | $ | (0.41 | ) | |||
Discontinued operations | — | (0.02 | ) | ||||||
Net loss | (0.35 | ) | (0.43 | ) | |||||
Loss per common share — diluted: | |||||||||
Continuing operations | $ | (0.35 | ) | $ | (0.41 | ) | |||
Discontinued operations | — | (0.02 | ) | ||||||
Net loss | (0.35 | ) | (0.43 | ) | |||||
Anti-dilutive shares excluded from calculation | 3.6 | 4.3 | |||||||
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisitions and Divestitures | Acquisitions and Divestitures | ||||||||
Discontinued Operations | |||||||||
On February 13, 2013, we announced our plans to divest our XtremeMac and Memorex consumer electronics businesses. | |||||||||
On January 31, 2014, we completed the sale of our XtremeMac consumer electronics business. Total cash consideration was originally estimated at $3.1 million which consisted of $0.3 million of cash consideration, an interest-bearing note receivable of $0.3 million (maturing in December 2015) and $2.5 million to be received based on the proceeds the purchaser was able to achieve from selling the acquired inventory. The sale of this business resulted in a loss of $0.5 million which was recorded in discontinued operations during the first quarter of 2014. There were no results for discontinued operations for XtremeMac for the three months ended March 31, 2015. | |||||||||
On October 15, 2013, we completed the sale of the Memorex consumer electronics business for $9.3 million of total consideration. We received payments of $0.4 million during the first quarter of 2015, $1.9 million during 2014 and $0.9 million during 2013. The remaining receivable balance associated with the disposition of this business is recorded at an estimated fair value of $5.4 million. There were no results for discontinued operations for the Memorex consumer electronics business for the three months ended March 31, 2015. | |||||||||
The operating results for these businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations for all periods presented and reflect revenues and expenses that are directly attributable to these businesses that were eliminated from our ongoing operations. | |||||||||
The key components of the results of discontinued operations were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Net revenue | $ | — | $ | 0.5 | |||||
Loss on sale of discontinued businesses, before income taxes | — | (0.5 | ) | ||||||
Loss from operations of discontinued businesses, before income taxes | — | (0.2 | ) | ||||||
Income tax provision (benefit) | — | — | |||||||
Loss from discontinued operations, net of income taxes | $ | — | $ | (0.7 | ) | ||||
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information | ||||||||
Additional supplemental balance sheet information is provided as follows: | |||||||||
March 31, | December 31, | ||||||||
(In millions) | 2015 | 2014 | |||||||
Accounts Receivable: | |||||||||
Accounts receivable | $ | 116.3 | $ | 143.5 | |||||
Less reserves and allowances1 | (7.0 | ) | (9.1 | ) | |||||
Accounts receivable, net | $ | 109.3 | $ | 134.4 | |||||
Inventories: | |||||||||
Finished goods | $ | 56 | $ | 51.1 | |||||
Work in process | 0.5 | 0.7 | |||||||
Raw materials and supplies | 6.4 | 5.9 | |||||||
Total inventories | $ | 62.9 | $ | 57.7 | |||||
Property, Plant and Equipment: | |||||||||
Property, plant and equipment | $ | 170.6 | $ | 184 | |||||
Less accumulated depreciation | (127.1 | ) | (139.0 | ) | |||||
Property, plant and equipment, net | $ | 43.5 | $ | 45 | |||||
1Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts. | |||||||||
Other current liabilities (included as a separate line in our Condensed Consolidated Balance Sheets) includes rebates payable of $21.1 million and $26.9 million and accrued payroll of $10.4 million and $18.4 million as of March 31, 2015 and December 31, 2014, respectively. | |||||||||
Other liabilities (included as a separate line in our Condensed Consolidated Balance Sheets) includes pension liabilities of $20.8 million and $22.5 million as of March 31, 2015 and December 31, 2014, respectively. |
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill | ||||||||||||||||||||
Intangible Assets | |||||||||||||||||||||
Intangible assets consist of the following: | |||||||||||||||||||||
(In millions) | Trade Names | Software | Customer Relationships | Other | Total | ||||||||||||||||
March 31, 2015 | |||||||||||||||||||||
Cost | $ | 34.1 | $ | 60.1 | $ | 19.6 | $ | 25.9 | $ | 139.7 | |||||||||||
Accumulated amortization | (15.1 | ) | (56.0 | ) | (4.1 | ) | (10.3 | ) | (85.5 | ) | |||||||||||
Intangible assets, net | $ | 19 | $ | 4.1 | $ | 15.5 | $ | 15.6 | $ | 54.2 | |||||||||||
December 31, 2014 | |||||||||||||||||||||
Cost | $ | 34.2 | $ | 60.1 | $ | 20 | $ | 26.2 | $ | 140.5 | |||||||||||
Accumulated amortization | (14.0 | ) | (55.3 | ) | (3.7 | ) | (9.6 | ) | (82.6 | ) | |||||||||||
Intangible assets, net | $ | 20.2 | $ | 4.8 | $ | 16.3 | $ | 16.6 | $ | 57.9 | |||||||||||
Other intangible assets, net as of March 31, 2015 consists primarily of $12.1 million of developed technology. | |||||||||||||||||||||
Amortization expense for intangible assets consisted of the following: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
(In millions) | 2015 | 2014 | |||||||||||||||||||
Amortization expense | $ | 3.3 | $ | 3.2 | |||||||||||||||||
Based on the intangible assets in service as of March 31, 2015, estimated amortization expense for the remainder of 2015 and each of the next five years is as follows: | |||||||||||||||||||||
(In millions) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
(Remainder) | |||||||||||||||||||||
Amortization expense | $ | 8.8 | $ | 9.9 | $ | 8.7 | $ | 6.6 | $ | 6.2 | |||||||||||
Goodwill | |||||||||||||||||||||
The goodwill balance was $36.1 million as of March 31, 2015. The goodwill is solely contained within our Storage and Security Solutions reporting units. We will monitor our results and expected cash flows in the future to assess whether consideration of a goodwill impairment in our reporting units may be necessary. |
Restructuring_and_Other_Expens
Restructuring and Other Expense | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Restructuring and Other Expense | Restructuring and Other Expense | ||||||||||||
The components of our restructuring and other expense included in the Condensed Consolidated Statements of Operations were as follows: | |||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
(In millions) | 2015 | 2014 | |||||||||||
Restructuring: | |||||||||||||
Severance and related | $ | 0.5 | $ | 0.4 | |||||||||
Lease termination costs | — | 0.1 | |||||||||||
Other | 0.3 | 0.1 | |||||||||||
Total restructuring | $ | 0.8 | $ | 0.6 | |||||||||
Other: | |||||||||||||
Pension settlement/curtailment (Note 9) | — | (0.7 | ) | ||||||||||
Other1 | 0.4 | 2.2 | |||||||||||
Total | $ | 1.2 | $ | 2.1 | |||||||||
1Other includes consulting fees and certain employee costs. | |||||||||||||
2012 Global Process Improvement Restructuring Program | |||||||||||||
In October 2012, the Board of Directors approved our Global Process Improvement (GPI) Program in order to realign our business structure and significantly reduce operating expenses over time. This restructuring program addressed product line rationalization and infrastructure and included a planned reduction in our global workforce. The program has resulted in the reduction of $103 million in legacy costs in 2013 and 2014, while we continue to invest in our priority growth businesses. We have reduced corporate overhead and executive staff, and, to generate additional savings, Imation has a number of ongoing cost reduction and cash flow initiatives, including listing our corporate headquarters facility for sale. We expect to continue our efforts to reduce legacy expenses under this program. | |||||||||||||
Since the inception of the GPI Program, we have recorded a total of $22.0 million of severance and related expenses, $1.1 million of lease termination and modification costs, $4.8 million of other charges and $9.6 million of inventory write-offs. | |||||||||||||
Activity related to the 2012 GPI Program accruals was as follows: | |||||||||||||
(In millions) | Severance and Related | Lease Termination Costs | Other | Total | |||||||||
Accrued balance at December 31, 2014 | 0.8 | 0.3 | 0.2 | 1.3 | |||||||||
Charges | 0.3 | — | 0.2 | 0.5 | |||||||||
Usage and payments | (0.6 | ) | (0.1 | ) | (0.2 | ) | (0.9 | ) | |||||
Accrued balance at March 31, 2015 | 0.5 | 0.2 | 0.2 | 0.9 | |||||||||
We also recorded severance and related charges of $0.2 million and other charges of $0.1 million in the three months ended March 31, 2015 to other accruals as they were not related to the 2012 GPI Program accrual. These charges are not included in the table above. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||
Stock-based compensation consisted of the following: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Stock-based compensation expense | $ | 0.9 | $ | 1.6 | |||||
We have stock-based compensation awards consisting of stock options, restricted stock and stock appreciation rights under four plans (collectively, the Stock Plans) which are described in detail in our 2014 Annual Report on Form 10-K. As of March 31, 2015, there were 1,273,822 shares available for grant under the 2011 Incentive Plan. No further shares were available for grant under any other stock incentive plan. | |||||||||
Stock Options | |||||||||
The following table summarizes our stock option activity: | |||||||||
Stock Options | Weighted Average Exercise Price | ||||||||
Outstanding December 31, 2014 | 3,897,986 | $ | 13.07 | ||||||
Granted | 24,547 | 3.94 | |||||||
Exercised | — | — | |||||||
Canceled | (113,753 | ) | 19.8 | ||||||
Forfeited | (39,687 | ) | 5.15 | ||||||
Outstanding March 31, 2015 | 3,769,093 | $ | 12.89 | ||||||
Exercisable as of March 31, 2015 | 3,351,970 | $ | 13.92 | ||||||
The outstanding options are non-qualified and generally have a term of ten years. The following table summarizes our weighted average assumptions used in the valuation of stock options: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Volatility | 46 | % | 43 | % | |||||
Risk-free interest rate | 1.9 | % | 1.1 | % | |||||
Expected life (months) | 73 | 72 | |||||||
Dividend yield | — | — | |||||||
As of March 31, 2015, there was $0.3 million of total unrecognized compensation expense related to non-vested stock options granted under our Stock Plans. That expense is expected to be recognized over a weighted average period of 1.3 years. | |||||||||
Restricted Stock | |||||||||
The following table summarizes our restricted stock activity: | |||||||||
Restricted Stock | Weighted Average Grant Date Fair Value Per Share | ||||||||
Nonvested as of December 31, 2014 | 1,348,917 | $ | 3.81 | ||||||
Granted | 690,661 | 3.8 | |||||||
Grant adjustments | — | — | |||||||
Vested | (332,069 | ) | 3.74 | ||||||
Forfeited | (625 | ) | 5.79 | ||||||
Nonvested as of March 31, 2015 | 1,706,884 | $ | 3.82 | ||||||
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 March 31, 2015, there was $4.3 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 2.2 years. | |||||||||
Stock Appreciation Rights | |||||||||
During the three months ended March 31, 2015, we granted 2.7 million Stock Appreciation Rights (SARs) to certain employees associated with our Storage Solutions and Mobile Security operations. These awards were issued to incentivize employees to grow revenues. These awards expire on December 31, 2017 and only vest when both stock price and revenue performance conditions specified by the terms of the SARs are met. Additionally, the payout from the current plan reduces the payout from the prior plan if the employee received grants under both plans. For the stock price condition, based on the terms of the awards, 50 percent of the SARs may vest if the 30-day average Imation stock price reaches $8 per share or more by December 31, 2017 and the remaining 50 percent of the SARs may vest if the 30-day average Imation stock price reaches $12 per share or more by December 31, 2017. Additionally, for the revenue performance condition, as a condition necessary for vesting, the net revenue of Storage Solutions or Mobile Security (depending on the award) must reach certain specified stretch targets by December 31, 2017. If exercised, the SARs require a cash payment to the holder in an amount based on the Imation stock price at the date of exercise as compared to the stock price at the date of grant. As of March 31, 2015, we had 5.5 million SARs outstanding for which we have not recorded any related compensation expense based on the applicable accounting rules. We will continue to assess these SARs each quarter to determine if any expense should be recorded. |
Retirement_Plans
Retirement Plans | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Retirement Plans | Retirement Plans | ||||||||||||||||
Pension Plans | |||||||||||||||||
During the three months ended March 31, 2015, we contributed $0.3 million to our worldwide pension plans. We presently anticipate contributing between $1 million and $2 million to fund our worldwide pension plans during the remainder of 2015. | |||||||||||||||||
Components of net periodic pension (credit) cost included the following: | |||||||||||||||||
United States | International | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | — | $ | — | $ | 0.1 | $ | 0.1 | |||||||||
Interest cost | 0.7 | 0.8 | 0.1 | 0.2 | |||||||||||||
Expected return on plan assets | (1.0 | ) | (1.2 | ) | (0.2 | ) | (0.2 | ) | |||||||||
Amortization of net actuarial loss | 0.3 | 0.3 | 0.1 | — | |||||||||||||
Net periodic pension (credit) cost | $ | — | $ | (0.1 | ) | $ | 0.1 | $ | 0.1 | ||||||||
Curtailment gain | — | — | — | (0.7 | ) | ||||||||||||
Total pension (credit) cost | $ | — | $ | (0.1 | ) | $ | 0.1 | $ | (0.6 | ) | |||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
For interim income tax reporting, we are required to estimate our annual effective tax rate and apply it to year-to-date pre-tax income/loss excluding unusual or infrequently occurring discrete items. Tax jurisdictions with losses for which tax benefits cannot be realized are excluded. | |
For the three months ended March 31, 2015, we recorded income tax expense of $0.1 million. For the three months ended March 31, 2014, we recorded no income tax expense (benefit). The income tax expense for the three months ended March 31, 2015 is relatively consistent with the same period last year. The effective income tax rate for the three months ended March 31, 2015 differs from the U.S. federal statutory rate of 35 percent primarily due to a valuation allowance on various deferred tax assets and the effects of foreign tax rate differential. | |
We conduct business globally. As a result, we file income tax returns in multiple jurisdictions and are subject to review by various U.S and foreign taxing authorities. Our U.S. federal income tax returns for 2011 through 2013 are subject to examination by the Internal Revenue Service. With few exceptions, we are no longer subject to examination by foreign tax jurisdictions or state and local tax jurisdictions for years before 2008. In the event that we have determined not to file tax returns with a particular state or city, all years remain subject to examination by the tax jurisdiction. | |
We accrue for the effects of uncertain tax positions and the related potential penalties and interest. Our liability related to uncertain tax positions, which is presented in other liabilities on our Condensed Consolidated Balance Sheets and which includes interest and penalties and excludes certain unrecognized tax benefits that have been netted against deferred tax assets, was $1.6 million and $1.9 million as of March 31, 2015 and December 31, 2014, respectively. It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of our unrecognized tax positions will increase or decrease during the next twelve months; however it is not possible to reasonably estimate the effect at this time. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt |
As of March 31, 2015, we had short-term borrowings of $20.1 million with interest rates ranging from 2.6 percent to 4.5 percent. The borrowings were primarily from our credit agreements with various banks in the United States, Europe and Japan. Our Credit Agreement entered into in 2006 as amended (the Credit Agreement) and the Credit Agreement entered into in 2013 with a lender in Japan (the Japan Credit Agreement) are both described in Note 11 - Debt of our Annual Report on Form 10-K for the year ended December 31, 2014. As of March 31, 2015, our remaining borrowing capacity under all credit agreements, after consideration of amounts outstanding, was $21.6 million. We are in compliance with our covenant requirements as of March 31, 2015. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||||||
Derivative Financial Instruments | |||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||
We attempt to substantially mitigate the risk that forecasted cash flows denominated in foreign currencies may be adversely affected by changes in the currency exchange rates through the use of option, forward and combination option contracts. Gains and losses related to cash flow hedges are deferred in accumulated other comprehensive loss with a corresponding asset or liability. When the hedged transaction occurs, the gains and losses in accumulated other comprehensive loss are reclassified into the Condensed Consolidated Statements of Operations in the same line as the item being hedged. The following table sets forth our cash flow hedges which are measured at fair value on a recurring basis. | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
(In millions) | Quoted Prices in | Significant Other Observable Inputs | Unobservable | Quoted Prices in | Significant Other Observable Inputs | Unobservable | |||||||||||||||||||
Active Markets | (Level 2) | Inputs | Active Markets | (Level 2) | Inputs | ||||||||||||||||||||
for Identical | (Level 3) | for Identical | (Level 3) | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||
Foreign currency forward contracts | — | 6.1 | — | — | 7.3 | — | |||||||||||||||||||
Other Derivative Instruments | |||||||||||||||||||||||||
We use foreign currency forward contracts to manage the foreign currency exposure related to our monetary assets and liabilities denominated in foreign currencies. We record the estimated fair value of these forward contracts in other current assets or other current liabilities on our Condensed Consolidated Balance Sheets and, because we do not receive hedge accounting for these derivatives, changes in their value are recognized every reporting period in the Condensed Consolidated Statements of Operations. | |||||||||||||||||||||||||
For the three months ended March 31, 2015 and 2014, we recorded net foreign currency losses of $0.6 million and no net foreign currency losses, respectively, in other (income) expense in the Condensed Consolidated Statements of Operations. These net losses reflect changes in foreign exchange rates on foreign denominated assets and liabilities and are net of gains of $0.7 million and losses of $0.2 million from the related foreign currency forward contracts for the three months ended March 31, 2015 and 2014, respectively. | |||||||||||||||||||||||||
The notional amounts and fair values of our derivative instruments recorded in other current assets and other current liabilities in the Condensed Consolidated Balance Sheets were as follows: | |||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||
(In millions) | Notional Amount | Other Current Assets | Other Current Liabilities | Notional Amount | Other Current Assets | Other Current Liabilities | |||||||||||||||||||
Cash flow hedges designated as hedging instruments | $ | 72 | $ | 6.1 | $ | — | $ | 86.7 | $ | 7.3 | $ | — | |||||||||||||
Other hedges not receiving hedge accounting | 24.4 | — | — | 23.4 | — | — | |||||||||||||||||||
Total | $ | 96.4 | $ | 6.1 | $ | — | $ | 110.1 | $ | 7.3 | $ | — | |||||||||||||
Shareholders_Equity
Shareholders' Equity | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Shareholders' Equity | Shareholders' Equity | ||||||||||||||||
Treasury Stock | |||||||||||||||||
On May 2, 2012, our Board of Directors authorized a share repurchase program that allowed for the repurchase of 5.0 million shares of common stock, replacing our previous authorization. For the three months ended March 31, 2015, we repurchased 0.2 million shares of common stock for $0.7 million. Since the authorization of this program, we have repurchased 2.8 million shares of common stock for $12.2 million and, as of March 31, 2015, we had remaining authorization to repurchase up to 2.2 million additional shares. The treasury stock held as of March 31, 2015 was acquired at an average price of $9.75 per share. | |||||||||||||||||
Following is a summary of treasury share activity: | |||||||||||||||||
Treasury Shares | |||||||||||||||||
Balance as of December 31, 2014 | 627,796 | ||||||||||||||||
Purchases | 157,101 | ||||||||||||||||
Exercise of stock options | — | ||||||||||||||||
Restricted stock grants | (690,662 | ) | |||||||||||||||
Forfeitures and other | 133,799 | ||||||||||||||||
Balance as of March 31, 2015 | 228,034 | ||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Accumulated other comprehensive loss and related activity consisted of the following: | |||||||||||||||||
(In millions) | Gains (Losses) on Derivative Financial Instruments | Defined Benefit Plans | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2014 | $ | 5.1 | $ | (20.6 | ) | $ | (69.3 | ) | $ | (84.8 | ) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax 1 | 0.9 | — | (4.6 | ) | (3.7 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (2.1 | ) | 0.2 | — | (1.9 | ) | |||||||||||
Net current period other comprehensive (loss) income | (1.2 | ) | 0.2 | (4.6 | ) | (5.6 | ) | ||||||||||
Balance as of March 31, 2015 | $ | 3.9 | $ | (20.4 | ) | $ | (73.9 | ) | $ | (90.4 | ) | ||||||
1Income tax expense of $0.6 million was recorded for unrealized gains on derivative financial instruments for the three months ended March 31, 2015. | |||||||||||||||||
Details of amounts reclassified from accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2015 are as follows: | |||||||||||||||||
(In millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented | |||||||||||||||
Gains on cash flow hedges | (3.2 | ) | Cost of goods sold | ||||||||||||||
Income tax expense | 1.1 | Income tax provision | |||||||||||||||
(2.1 | ) | ||||||||||||||||
Amortization of net actuarial loss | 0.3 | Selling, general and administrative | |||||||||||||||
Income tax benefit | (0.1 | ) | Income tax provision | ||||||||||||||
0.2 | |||||||||||||||||
Total reclassifications for the period | (1.9 | ) |
Segment_Information
Segment Information | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Segment Information | Segment Information | ||||||||
We manage our business through two reporting segments, Consumer Storage and Accessories (CSA) and Tiered Storage and Security Solutions (TSS). Our reporting segments are generally aligned with our key consumer and commercial channels. | |||||||||
We have two major product categories under our CSA segment: Consumer Storage Media and Audio and Accessories. Consumer Storage Media products include primarily optical products such as DVDs, CDs and Blu-rayTM disc recordable media as well as flash media. Audio and Accessories includes primarily headphones, audio electronics and accessories. Consumer storage solutions and audio products and accessories are sold under the ImationTM, MemorexTM, TREKTM and TDK Life on Record brands. We have two major product categories under our TSS segment: Commercial Storage Media and Storage and Security Solutions. Commercial Storage Media products consist mainly of magnetic data storage tape media and RDX® media. Storage and Security Solutions includes storage hardware products, services and software for backup and archiving as well as primary storage; encrypted and biometric flash drives and hard disk drives; secure portable desktop solutions; and software solutions, including products which contain various security features such as password authentication, encryption and remote manageability. Imation’s storage and security portfolio includes NexsanTM hybrid storage solutions and IronKeyTM mobile security solutions that address the needs of professionals for storage and archiving, secure data transport and mobile workspaces. | |||||||||
We evaluate segment performance based on revenue and operating income (loss). The operating income (loss) reported in our segments excludes corporate and other unallocated amounts. Although such amounts are excluded from the business segment results, they are included in reported consolidated results. Corporate and unallocated amounts may include depreciation and amortization, litigation settlement expense, goodwill impairment, intangible impairments, corporate expense, inventory write-offs related to our restructuring programs and restructuring and other expenses which are not allocated to the segments. | |||||||||
The operating results of our former XtremeMac and Memorex consumer electronics businesses are presented in our Condensed Consolidated Statements of Operations as discontinued operations and are not included in segment results for all periods presented. See Note 4 - Acquisitions and Divestitures for further information on these divestitures. | |||||||||
Net revenue and operating income (loss) from continuing operations by segment were as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Net revenue | |||||||||
Consumer Storage and Accessories: | |||||||||
Consumer Storage Media | $ | 66 | $ | 89.5 | |||||
Audio and Accessories | 9.2 | 10.5 | |||||||
Total Consumer Storage and Accessories | 75.2 | 100 | |||||||
Tiered Storage and Security Solutions: | |||||||||
Commercial Storage Media | 47.9 | 51.4 | |||||||
Storage and Security Solutions | 32.3 | 27.5 | |||||||
Total Tiered Storage and Security Solutions | 80.2 | 78.9 | |||||||
Total net revenue | $ | 155.4 | $ | 178.9 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Operating income (loss) from continuing operations | |||||||||
Consumer Storage and Accessories | $ | 3.9 | $ | 4.1 | |||||
Tiered Storage and Security Solutions | (6.5 | ) | (8.8 | ) | |||||
Total segment operating loss | (2.6 | ) | (4.7 | ) | |||||
Corporate and unallocated | (10.4 | ) | (11.4 | ) | |||||
Total operating loss | (13.0 | ) | (16.1 | ) | |||||
Interest income | (0.1 | ) | (0.1 | ) | |||||
Interest expense | 0.6 | 0.6 | |||||||
Other, net expense | 0.8 | 0.2 | |||||||
Loss from continuing operations before income taxes | $ | (14.3 | ) | $ | (16.8 | ) |
Litigation_Commitments_and_Con
Litigation, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation, Commitments and Contingencies | Litigation, Commitments and Contingencies |
Litigation | |
We are the subject of various pending or threatened legal actions in the ordinary course of our business. All such matters are subject to many uncertainties and outcomes that are not predictable with assurance. Additionally, our businesses are subject to allegations of patent infringement by our competitors as well as by non-practicing entities (NPEs), sometimes referred to as “patent trolls,” who may seek monetary settlements from us, our competitors, suppliers and resellers, including the One-Blue litigation described below. Consequently, as of March 31, 2015, we are unable to reasonably estimate the ultimate aggregate amount of any monetary liability or financial impact that we may incur with respect to these matters. It is reasonably possible that the ultimate resolution of these matters could materially affect our financial condition, results of operations and cash flows. | |
On May 22, 2013, Imation was sued in U.S. District Court for the District of Delaware by five entities: One-Blue, LLC (One-Blue), which is an entity with licensing authority for a pool of patents relating to Blu-ray discs, and four members of One-Blue, Koninklijke Philips N.V., Panasonic Corporation, Pioneer Corporation and Sony Corporation. The plaintiffs allege that Imation's sales of certain Blu-ray discs infringe six patents and seek unspecified damages, treble damages and attorney's fees. On June 13, 2013, Imation filed an Answer, Affirmative Defenses, and Counterclaims, naming various defenses including that plaintiffs are barred, in whole or in part, from any recovery or relief by their refusal to license the patents-in-suit under fair, reasonable and nondiscriminatory terms. Imation intends to vigorously defend the case. This matter is now in the discovery phase for issues relating to determination of a fair, reasonable and nondiscriminatory royalty rate. Imation has notified its manufacturers of their indemnity obligations that it believes cover a portion of its liability, if any, to One-Blue and the other plaintiffs. In addition, Imation has a dispute with One-Blue regarding One-Blue's refusal to license its Japanese Blu-ray patents under fair, reasonable and nondiscriminatory terms in Japan, where Imation's sales of Blu-ray discs are substantially greater than in the U.S. Imation Corporation Japan, Imation's Japanese subsidiary, sued One-Blue in Japan regarding its unlawful interference with certain of our customer relationships. On February 18, 2015, the Tokyo District Court rendered a decision in favor of Imation that held One-Blue's sending of warning letters to Imation customers that threatened those customers with certain patent-related actions constituted an illegal "unfair competition practice" and issued a permanent injunction prohibiting One-Blue from sending any such warning letters in the future. One-Blue did not appeal that decision. | |
SpearPoint Capital Fund LP et al. v. Mark E. Lucas, et al. This shareholder derivative action was filed in Delaware Chancery Court on February 9, 2015. It names as defendants the Company and the members of its Board of Directors. Plaintiffs contend that the defendants paid excessive compensation to the directors. They seek damages for breaches of fiduciary duties, waste of corporate assets and unjust enrichment. They also seek corporate governance reforms related to the Company’s compensation practices. The Directors have responded to the complaint denying all the allegations; the Company, as the nominal defendant, has responded denying the allegations as well. No trial date has been set. | |
Copyright Levies | |
Background and historical developments associated with our copyright levies are discussed in Note 15 - Litigation, Commitments and Contingencies in our Notes to Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2014. As of March 31, 2015 and December 31, 2014, we had accrued liabilities of $5.5 million and $9.3 million, respectively, associated with levies related to consumer channel sales for which we are withholding payment. In the first quarter of 2015, we reversed a $2.8 million accrual for copyright levies on optical products as the result of a favorable German court decision retroactively setting levy rates at a level much lower than the rates sought by the German collecting society. | |
We are subject to several pending or threatened legal actions by the individual European national levy collecting societies in relation to private copyright levies under the Directive. Those actions generally seek payment of the commercial and consumer optical levies withheld by Imation. For example, in the first quarter of 2015, the French levy society, Copie France, filed a new summary proceeding, seeking $8.7 million in withheld levies. Imation believes this claim is without merit and intends to vigorously defend this action. Imation has corresponding claims in those actions seeking reimbursement of levies improperly collected by those collecting societies. We are subject to threatened actions by certain customers of Imation seeking reimbursement of funds they allege relate to commercial levies that they claim they should not have paid. Although these actions are subject to the uncertainties inherent in the litigation process, based on the information presently available to us, management does not expect that the ultimate resolution of these actions will have a material adverse effect on our financial condition, results of operations or cash flows. We anticipate that additional court decisions may be rendered in 2015 that may directly or indirectly impact our levy exposure in specific European countries which could trigger a review of our levy exposure in those countries. |
Recently_Issued_or_Adopted_Acc1
Recently Issued or Adopted Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Recently Issued or Adopted Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board issued new accounting guidance related to revenue recognition. This new guidance will replace all current U.S. GAAP guidance on revenue recognition and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The guidance is effective for interim and annual periods beginning on or after December 15, 2016. The guidance permits the use of either a retrospective or cumulative effect transition method. We have not yet selected a transition method and are currently evaluating the impact of this new guidance on our financial position and results of operations. |
In April 2015, the Financial Accounting Standards Board issued new accounting guidance related to debt issuance costs. Under this new standard, debt issuance costs reported on the consolidated balance sheet would be reflected as a direct deduction from the related debt liability rather than as an asset. For Imation, this is effective January 1, 2016, with early adoption permitted. Retroactive application to prior periods is required. As this standard impacts only the classification of certain amounts within the consolidated balance sheet, Imation does not expect this new standard to have a material impact on our financial position and results of operations. |
Loss_Earnings_per_Common_Share1
(Loss) Earnings per Common Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the weighted average basic and diluted (loss) earnings per share: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions, except for per share amounts) | 2015 | 2014 | |||||||
Numerator: | |||||||||
Loss from continuing operations | $ | (14.4 | ) | $ | (16.8 | ) | |||
Loss from discontinued operations | — | (0.7 | ) | ||||||
Net loss | $ | (14.4 | ) | $ | (17.5 | ) | |||
Denominator: | |||||||||
Weighted average number of common shares outstanding during the period - basic | 41 | 40.8 | |||||||
Dilutive effect of stock-based compensation plans | — | — | |||||||
Weighted average number of diluted shares outstanding during the period - diluted | 41 | 40.8 | |||||||
Loss per common share — basic: | |||||||||
Continuing operations | $ | (0.35 | ) | $ | (0.41 | ) | |||
Discontinued operations | — | (0.02 | ) | ||||||
Net loss | (0.35 | ) | (0.43 | ) | |||||
Loss per common share — diluted: | |||||||||
Continuing operations | $ | (0.35 | ) | $ | (0.41 | ) | |||
Discontinued operations | — | (0.02 | ) | ||||||
Net loss | (0.35 | ) | (0.43 | ) | |||||
Anti-dilutive shares excluded from calculation | 3.6 | 4.3 | |||||||
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Schedule of Key Components of Discontinued Operations | The key components of the results of discontinued operations were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Net revenue | $ | — | $ | 0.5 | |||||
Loss on sale of discontinued businesses, before income taxes | — | (0.5 | ) | ||||||
Loss from operations of discontinued businesses, before income taxes | — | (0.2 | ) | ||||||
Income tax provision (benefit) | — | — | |||||||
Loss from discontinued operations, net of income taxes | $ | — | $ | (0.7 | ) | ||||
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||
Schedule of Supplemental Balance Sheet Information | Additional supplemental balance sheet information is provided as follows: | ||||||||
March 31, | December 31, | ||||||||
(In millions) | 2015 | 2014 | |||||||
Accounts Receivable: | |||||||||
Accounts receivable | $ | 116.3 | $ | 143.5 | |||||
Less reserves and allowances1 | (7.0 | ) | (9.1 | ) | |||||
Accounts receivable, net | $ | 109.3 | $ | 134.4 | |||||
Inventories: | |||||||||
Finished goods | $ | 56 | $ | 51.1 | |||||
Work in process | 0.5 | 0.7 | |||||||
Raw materials and supplies | 6.4 | 5.9 | |||||||
Total inventories | $ | 62.9 | $ | 57.7 | |||||
Property, Plant and Equipment: | |||||||||
Property, plant and equipment | $ | 170.6 | $ | 184 | |||||
Less accumulated depreciation | (127.1 | ) | (139.0 | ) | |||||
Property, plant and equipment, net | $ | 43.5 | $ | 45 | |||||
1Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts. |
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||
Schedule of Intangible Assets | Intangible assets consist of the following: | ||||||||||||||||||||
(In millions) | Trade Names | Software | Customer Relationships | Other | Total | ||||||||||||||||
March 31, 2015 | |||||||||||||||||||||
Cost | $ | 34.1 | $ | 60.1 | $ | 19.6 | $ | 25.9 | $ | 139.7 | |||||||||||
Accumulated amortization | (15.1 | ) | (56.0 | ) | (4.1 | ) | (10.3 | ) | (85.5 | ) | |||||||||||
Intangible assets, net | $ | 19 | $ | 4.1 | $ | 15.5 | $ | 15.6 | $ | 54.2 | |||||||||||
December 31, 2014 | |||||||||||||||||||||
Cost | $ | 34.2 | $ | 60.1 | $ | 20 | $ | 26.2 | $ | 140.5 | |||||||||||
Accumulated amortization | (14.0 | ) | (55.3 | ) | (3.7 | ) | (9.6 | ) | (82.6 | ) | |||||||||||
Intangible assets, net | $ | 20.2 | $ | 4.8 | $ | 16.3 | $ | 16.6 | $ | 57.9 | |||||||||||
Schedule of Amortization Expense for Intangible Assets | Amortization expense for intangible assets consisted of the following: | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
(In millions) | 2015 | 2014 | |||||||||||||||||||
Amortization expense | $ | 3.3 | $ | 3.2 | |||||||||||||||||
Schedule of Intangible Assets Estimated Amortization Expense | Based on the intangible assets in service as of March 31, 2015, estimated amortization expense for the remainder of 2015 and each of the next five years is as follows: | ||||||||||||||||||||
(In millions) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
(Remainder) | |||||||||||||||||||||
Amortization expense | $ | 8.8 | $ | 9.9 | $ | 8.7 | $ | 6.6 | $ | 6.2 | |||||||||||
Restructuring_and_Other_Expens1
Restructuring and Other Expense (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Components of Restructuring and Other Expense | The components of our restructuring and other expense included in the Condensed Consolidated Statements of Operations were as follows: | ||||||||||||
Three Months Ended | |||||||||||||
March 31, | |||||||||||||
(In millions) | 2015 | 2014 | |||||||||||
Restructuring: | |||||||||||||
Severance and related | $ | 0.5 | $ | 0.4 | |||||||||
Lease termination costs | — | 0.1 | |||||||||||
Other | 0.3 | 0.1 | |||||||||||
Total restructuring | $ | 0.8 | $ | 0.6 | |||||||||
Other: | |||||||||||||
Pension settlement/curtailment (Note 9) | — | (0.7 | ) | ||||||||||
Other1 | 0.4 | 2.2 | |||||||||||
Total | $ | 1.2 | $ | 2.1 | |||||||||
1Other includes consulting fees and certain employee costs. | |||||||||||||
Schedule of Restructuring Reserve Activity | Activity related to the 2012 GPI Program accruals was as follows: | ||||||||||||
(In millions) | Severance and Related | Lease Termination Costs | Other | Total | |||||||||
Accrued balance at December 31, 2014 | 0.8 | 0.3 | 0.2 | 1.3 | |||||||||
Charges | 0.3 | — | 0.2 | 0.5 | |||||||||
Usage and payments | (0.6 | ) | (0.1 | ) | (0.2 | ) | (0.9 | ) | |||||
Accrued balance at March 31, 2015 | 0.5 | 0.2 | 0.2 | 0.9 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Schedule of Stock-Based Compensation | Stock-based compensation consisted of the following: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Stock-based compensation expense | $ | 0.9 | $ | 1.6 | |||||
Summary of Stock Option Activity | The following table summarizes our stock option activity: | ||||||||
Stock Options | Weighted Average Exercise Price | ||||||||
Outstanding December 31, 2014 | 3,897,986 | $ | 13.07 | ||||||
Granted | 24,547 | 3.94 | |||||||
Exercised | — | — | |||||||
Canceled | (113,753 | ) | 19.8 | ||||||
Forfeited | (39,687 | ) | 5.15 | ||||||
Outstanding March 31, 2015 | 3,769,093 | $ | 12.89 | ||||||
Exercisable as of March 31, 2015 | 3,351,970 | $ | 13.92 | ||||||
Summary of Weighted Average Assumptions Used in the Valuation of Stock Options | The following table summarizes our weighted average assumptions used in the valuation of stock options: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Volatility | 46 | % | 43 | % | |||||
Risk-free interest rate | 1.9 | % | 1.1 | % | |||||
Expected life (months) | 73 | 72 | |||||||
Dividend yield | — | — | |||||||
Summary of Restricted Stock Activity | The following table summarizes our restricted stock activity: | ||||||||
Restricted Stock | Weighted Average Grant Date Fair Value Per Share | ||||||||
Nonvested as of December 31, 2014 | 1,348,917 | $ | 3.81 | ||||||
Granted | 690,661 | 3.8 | |||||||
Grant adjustments | — | — | |||||||
Vested | (332,069 | ) | 3.74 | ||||||
Forfeited | (625 | ) | 5.79 | ||||||
Nonvested as of March 31, 2015 | 1,706,884 | $ | 3.82 | ||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Components of Net Periodic Pension (Credit) Cost | Components of net periodic pension (credit) cost included the following: | ||||||||||||||||
United States | International | ||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
(In millions) | 2015 | 2014 | 2015 | 2014 | |||||||||||||
Service cost | $ | — | $ | — | $ | 0.1 | $ | 0.1 | |||||||||
Interest cost | 0.7 | 0.8 | 0.1 | 0.2 | |||||||||||||
Expected return on plan assets | (1.0 | ) | (1.2 | ) | (0.2 | ) | (0.2 | ) | |||||||||
Amortization of net actuarial loss | 0.3 | 0.3 | 0.1 | — | |||||||||||||
Net periodic pension (credit) cost | $ | — | $ | (0.1 | ) | $ | 0.1 | $ | 0.1 | ||||||||
Curtailment gain | — | — | — | (0.7 | ) | ||||||||||||
Total pension (credit) cost | $ | — | $ | (0.1 | ) | $ | 0.1 | $ | (0.6 | ) | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||
Schedule of Cash Flow Hedges Measured at Fair Value on a Recurring Basis | The following table sets forth our cash flow hedges which are measured at fair value on a recurring basis. | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
(In millions) | Quoted Prices in | Significant Other Observable Inputs | Unobservable | Quoted Prices in | Significant Other Observable Inputs | Unobservable | |||||||||||||||||||
Active Markets | (Level 2) | Inputs | Active Markets | (Level 2) | Inputs | ||||||||||||||||||||
for Identical | (Level 3) | for Identical | (Level 3) | ||||||||||||||||||||||
Assets | Assets | ||||||||||||||||||||||||
(Level 1) | (Level 1) | ||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||
Foreign currency forward contracts | — | 6.1 | — | — | 7.3 | — | |||||||||||||||||||
Schedule of Notional and Fair Value Amounts of Derivative Instruments | The notional amounts and fair values of our derivative instruments recorded in other current assets and other current liabilities in the Condensed Consolidated Balance Sheets were as follows: | ||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||||||
(In millions) | Notional Amount | Other Current Assets | Other Current Liabilities | Notional Amount | Other Current Assets | Other Current Liabilities | |||||||||||||||||||
Cash flow hedges designated as hedging instruments | $ | 72 | $ | 6.1 | $ | — | $ | 86.7 | $ | 7.3 | $ | — | |||||||||||||
Other hedges not receiving hedge accounting | 24.4 | — | — | 23.4 | — | — | |||||||||||||||||||
Total | $ | 96.4 | $ | 6.1 | $ | — | $ | 110.1 | $ | 7.3 | $ | — | |||||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Schedule of Treasury Share Activity | Following is a summary of treasury share activity: | ||||||||||||||||
Treasury Shares | |||||||||||||||||
Balance as of December 31, 2014 | 627,796 | ||||||||||||||||
Purchases | 157,101 | ||||||||||||||||
Exercise of stock options | — | ||||||||||||||||
Restricted stock grants | (690,662 | ) | |||||||||||||||
Forfeitures and other | 133,799 | ||||||||||||||||
Balance as of March 31, 2015 | 228,034 | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss and related activity consisted of the following: | ||||||||||||||||
(In millions) | Gains (Losses) on Derivative Financial Instruments | Defined Benefit Plans | Foreign Currency Translation | Total | |||||||||||||
Balance as of December 31, 2014 | $ | 5.1 | $ | (20.6 | ) | $ | (69.3 | ) | $ | (84.8 | ) | ||||||
Other comprehensive income (loss) before reclassifications, net of tax 1 | 0.9 | — | (4.6 | ) | (3.7 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | (2.1 | ) | 0.2 | — | (1.9 | ) | |||||||||||
Net current period other comprehensive (loss) income | (1.2 | ) | 0.2 | (4.6 | ) | (5.6 | ) | ||||||||||
Balance as of March 31, 2015 | $ | 3.9 | $ | (20.4 | ) | $ | (73.9 | ) | $ | (90.4 | ) | ||||||
1Income tax expense of $0.6 million was recorded for unrealized gains on derivative financial instruments for the three months ended March 31, 2015. | |||||||||||||||||
Schedule of Amounts Reclassified from Accumulated Other Comprehensive Loss | Details of amounts reclassified from accumulated other comprehensive loss and the line item in the Condensed Consolidated Statement of Operations for the three months ended March 31, 2015 are as follows: | ||||||||||||||||
(In millions) | Amounts Reclassified from Accumulated Other Comprehensive Loss | Affected Line Item in the Consolidated Statement of Operations Where (Gain) Loss is Presented | |||||||||||||||
Gains on cash flow hedges | (3.2 | ) | Cost of goods sold | ||||||||||||||
Income tax expense | 1.1 | Income tax provision | |||||||||||||||
(2.1 | ) | ||||||||||||||||
Amortization of net actuarial loss | 0.3 | Selling, general and administrative | |||||||||||||||
Income tax benefit | (0.1 | ) | Income tax provision | ||||||||||||||
0.2 | |||||||||||||||||
Total reclassifications for the period | (1.9 | ) |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Schedule of Net Revenue and Operating Income (Loss) by Segment | Net revenue and operating income (loss) from continuing operations by segment were as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Net revenue | |||||||||
Consumer Storage and Accessories: | |||||||||
Consumer Storage Media | $ | 66 | $ | 89.5 | |||||
Audio and Accessories | 9.2 | 10.5 | |||||||
Total Consumer Storage and Accessories | 75.2 | 100 | |||||||
Tiered Storage and Security Solutions: | |||||||||
Commercial Storage Media | 47.9 | 51.4 | |||||||
Storage and Security Solutions | 32.3 | 27.5 | |||||||
Total Tiered Storage and Security Solutions | 80.2 | 78.9 | |||||||
Total net revenue | $ | 155.4 | $ | 178.9 | |||||
Three Months Ended | |||||||||
March 31, | |||||||||
(In millions) | 2015 | 2014 | |||||||
Operating income (loss) from continuing operations | |||||||||
Consumer Storage and Accessories | $ | 3.9 | $ | 4.1 | |||||
Tiered Storage and Security Solutions | (6.5 | ) | (8.8 | ) | |||||
Total segment operating loss | (2.6 | ) | (4.7 | ) | |||||
Corporate and unallocated | (10.4 | ) | (11.4 | ) | |||||
Total operating loss | (13.0 | ) | (16.1 | ) | |||||
Interest income | (0.1 | ) | (0.1 | ) | |||||
Interest expense | 0.6 | 0.6 | |||||||
Other, net expense | 0.8 | 0.2 | |||||||
Loss from continuing operations before income taxes | $ | (14.3 | ) | $ | (16.8 | ) |
Loss_Earnings_per_Common_Share2
(Loss) Earnings per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator [Abstract] | ||
Loss from continuing operations | ($14.40) | ($16.80) |
Loss from discontinued operations | 0 | -0.7 |
Net loss | ($14.40) | ($17.50) |
Denominator [Abstract] | ||
Weighted average number of common shares outstanding during the period - basic (in shares) | 41 | 40.8 |
Dilutive effect of stock-based compensation plans (in shares) | 0 | 0 |
Weighted average number of diluted shares outstanding during the period - diluted (in shares) | 41 | 40.8 |
Loss per common share — basic: | ||
Continuing operations - basic (in dollars per share) | ($0.35) | ($0.41) |
Discontinued operations - basic (in dollars per share) | $0 | ($0.02) |
Net loss - basic (in dollars per share) | ($0.35) | ($0.43) |
Loss per common share — diluted: | ||
Continuing operations - diluted (in dollars per share) | ($0.35) | ($0.41) |
Discontinued operations - diluted (in dollars per share) | $0 | ($0.02) |
Net loss - diluted (dollars per share) | ($0.35) | ($0.43) |
Anti-dilutive shares excluded from calculation (in shares) | 3.6 | 4.3 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures - Narrative (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2013 | Oct. 15, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on sale of discontinued businesses | $0 | $500,000 | |||
Loss from discontinued operations | 0 | -700,000 | |||
Discontinued Operations | XtremeMac Consumer Electronics Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total consideration from sale of business | 3,100,000 | ||||
Proceeds from sale of businesses | 300,000 | ||||
Note receivable from sale of business | 300,000 | ||||
Consideration to be received from sale of business based on selling acquired inventory | 2,500,000 | ||||
Loss on sale of discontinued businesses | 500,000 | ||||
Loss from discontinued operations | 0 | ||||
Discontinued Operations | Memorex Consumer Electronics Business | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total consideration from sale of business | 9,300,000 | ||||
Proceeds from sale of businesses | 400,000 | 1,900,000 | 900,000 | ||
Loss from discontinued operations | 0 | ||||
Notes receivable from sale of business | $5,400,000 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Schedule of Key Components of Discontinued Operations (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of income taxes | $0 | ($700,000) |
Discontinued Operations | XtremeMac and Memorex | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net revenue | 0 | 500,000 |
Loss on sale of discontinued businesses, before income taxes | 0 | -500,000 |
Loss from operations of discontinued businesses, before income taxes | 0 | -200,000 |
Income tax provision (benefit) | 0 | 0 |
Loss from discontinued operations, net of income taxes | $0 | ($700,000) |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information - Schedule of Supplemental Balance Sheet Information (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Millions, unless otherwise specified | ||||
Accounts Receivable: | ||||
Accounts receivable | $116.30 | $143.50 | ||
Less reserves and allowances | -7 | [1] | -9.1 | [1] |
Accounts receivable, net | 109.3 | 134.4 | ||
Inventories: | ||||
Finished goods | 56 | 51.1 | ||
Work in process | 0.5 | 0.7 | ||
Raw materials and supplies | 6.4 | 5.9 | ||
Total inventories | 62.9 | 57.7 | ||
Property, Plant and Equipment: | ||||
Property, plant and equipment | 170.6 | 184 | ||
Less accumulated depreciation | -127.1 | -139 | ||
Property, plant and equipment, net | $43.50 | $45 | ||
[1] | Accounts receivable reserves and allowances include estimated amounts for customer returns, discounts on payment terms and uncollectible accounts. |
Supplemental_Balance_Sheet_Inf3
Supplemental Balance Sheet Information - Narrative (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Other Current Liabilities | ||
Supplemental Balance Sheet Disclosures [Line Items] | ||
Rebates payable | $21.10 | $26.90 |
Accrued payroll | 10.4 | 18.4 |
Other Liabilities | ||
Supplemental Balance Sheet Disclosures [Line Items] | ||
Pension liabilities | $20.80 | $22.50 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill - Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | $139.70 | $140.50 | |
Accumulated amortization | -85.5 | -82.6 | |
Intangible assets, net | 54.2 | 57.9 | |
Amortization expense | 3.3 | 3.2 | |
Intangible Assets, Amortization Expense, Remainder of 2015 | 8.8 | ||
Intangible Assets, Amortization Expense, 2016 | 9.9 | ||
Intangible Assets, Amortization Expense, 2017 | 8.7 | ||
Intangible Assets, Amortization Expense, 2018 | 6.6 | ||
Intangible Assets, Amortization Expense, 2019 | 6.2 | ||
Trade Names | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | 34.1 | 34.2 | |
Accumulated amortization | -15.1 | -14 | |
Intangible assets, net | 19 | 20.2 | |
Software | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | 60.1 | 60.1 | |
Accumulated amortization | -56 | -55.3 | |
Intangible assets, net | 4.1 | 4.8 | |
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | 19.6 | 20 | |
Accumulated amortization | -4.1 | -3.7 | |
Intangible assets, net | 15.5 | 16.3 | |
Other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Cost | 25.9 | 26.2 | |
Accumulated amortization | -10.3 | -9.6 | |
Intangible assets, net | 15.6 | 16.6 | |
Developed Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, net | $12.10 |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill - Goodwill (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $36.10 | $36.10 |
Restructuring_and_Other_Expens2
Restructuring and Other Expense - Components of Restructuring and Other Expense (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Restructuring and Related Activities [Abstract] | ||||
Severance and related | $0.50 | $0.40 | ||
Lease termination costs | 0 | 0.1 | ||
Other | 0.3 | 0.1 | ||
Total restructuring | 0.8 | 0.6 | ||
Pension settlement/curtailment (Note 9) | 0 | -0.7 | ||
Other | 0.4 | [1] | 2.2 | [1] |
Total | $1.20 | $2.10 | ||
[1] | Other includes consulting fees and certain employee costs. |
Restructuring_and_Other_Expens3
Restructuring and Other Expense - Narrative (Details) (USD $) | 3 Months Ended | 24 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $0.80 | $0.60 | |
2012 Global Processing Improvement Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Legacy costs eliminated | 103 | ||
Restructuring charges | 0.5 | ||
Severance and Related | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.2 | ||
Severance and Related | 2012 Global Processing Improvement Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | 22 | ||
Restructuring charges | 0.3 | ||
Lease Termination Costs | 2012 Global Processing Improvement Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | 1.1 | ||
Restructuring charges | 0 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0.1 | ||
Other | 2012 Global Processing Improvement Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | 4.8 | ||
Restructuring charges | 0.2 | ||
Inventory write-offs | 2012 Global Processing Improvement Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring cost incurred to date | $9.60 |
Restructuring_and_Other_Expens4
Restructuring and Other Expense - Schedule of Restructuring Reserve Activity (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Reserve [Roll Forward] | ||
Charges | $0.80 | $0.60 |
2012 Global Processing Improvement Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Accrued balance, beginning | 1.3 | |
Charges | 0.5 | |
Usage and payments | -0.9 | |
Accrued balance, ending | 0.9 | |
Severance and Related | ||
Restructuring Reserve [Roll Forward] | ||
Charges | 0.2 | |
Severance and Related | 2012 Global Processing Improvement Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Accrued balance, beginning | 0.8 | |
Charges | 0.3 | |
Usage and payments | -0.6 | |
Accrued balance, ending | 0.5 | |
Lease Termination Costs | 2012 Global Processing Improvement Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Accrued balance, beginning | 0.3 | |
Charges | 0 | |
Usage and payments | -0.1 | |
Accrued balance, ending | 0.2 | |
Other | ||
Restructuring Reserve [Roll Forward] | ||
Charges | 0.1 | |
Other | 2012 Global Processing Improvement Restructuring Program | ||
Restructuring Reserve [Roll Forward] | ||
Accrued balance, beginning | 0.2 | |
Charges | 0.2 | |
Usage and payments | -0.2 | |
Accrued balance, ending | $0.20 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $900,000 | $1,600,000 |
Number of share-based compensation plans | 4 | |
Stock Appreciation Rights (SARs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $0 | |
Number of awards granted | 2,700,000 | |
Number of awards outstanding | 5,500,000 | |
Stock Appreciation Rights (SARs) | Tranche One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards vested | 50.00% | |
Number of average consecutive trading days required at trigger stock price | 30 days | |
Minimum stock price required to trigger award vesting | $8 | |
Stock Appreciation Rights (SARs) | Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of awards vested | 50.00% | |
Number of average consecutive trading days required at trigger stock price | 30 days | |
Minimum stock price required to trigger award vesting | $12 | |
Stock Incentive Plan 2011 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 1,273,822 |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Option Activity (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Stock Options [Roll Forward] | |
Exercised (in shares) | 0 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options expiration term | 10 years |
Total unrecognized compensation expense related to non-vested stock | 0.3 |
Total compensation cost not yet recognized, period for recognition | 1 year 3 months 18 days |
Stock Options [Roll Forward] | |
Beginning, outstanding (in shares) | 3,897,986 |
Granted (in shares) | 24,547 |
Exercised (in shares) | 0 |
Canceled (in shares) | -113,753 |
Forfeited (in shares) | -39,687 |
Ending, outstanding (in shares) | 3,769,093 |
Exercisable (in shares) | 3,351,970 |
Weighted Average Exercise Price [Roll Forward] | |
Beginning, outstanding (in dollars per share) | 13.07 |
Granted (in dollars per share) | 3.94 |
Exercised (in dollars per share) | 0 |
Canceled (in dollars per share) | 19.8 |
Forfeited (in dollars per share) | 5.15 |
Ending, outstanding (in dollars per share) | 12.89 |
Exercisable (in dollars per share) | 13.92 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted Average Assumptions Used in the Valuation of Stock Options (Details) (Stock Options) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Volatility | 46.00% | 43.00% |
Risk-free interest rate | 1.90% | 1.10% |
Expected life (months) | 73 years | 72 years |
Dividend yield | 0.00% | 0.00% |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock (Details) (USD $) | 3 Months Ended |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted Stock [Roll Forward] | |
Restricted stock grants | -690,662 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Total unrecognized compensation expense related to non-vested stock | 4.3 |
Total compensation cost not yet recognized, period for recognition | 2 years 2 months 12 days |
Restricted Stock [Roll Forward] | |
Beginning, nonvested (in shares) | 1,348,917 |
Granted (in shares) | 690,661 |
Grant adjustments (in shares) | 0 |
Restricted stock grants | -332,069 |
Forfeited (in shares) | -625 |
Ending, nonvested (in shares) | 1,706,884 |
Weighted Average Grant Date Fair Value Per Share [Roll Forward] | |
Beginning, nonvested (in dollars per share) | 3.81 |
Granted (in dollars per share) | 3.8 |
Grants adjustments (in dollars per share) | 0 |
Vested (in dollars per share) | 3.74 |
Forfeited (in dollars per share) | 5.79 |
Ending, nonvested (in dollars per share) | 3.82 |
Retirement_Plans_Details
Retirement Plans (Details) (Pension Plans, USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |
Employer contributions in current fiscal year | $0.30 |
Minimum | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in current fiscal year | 1 |
Maximum | |
Defined Benefit Plan Disclosure [Line Items] | |
Estimated future employer contributions in current fiscal year | $2 |
Retirement_Plans_Components_of
Retirement Plans - Components of Net Periodic Pension (Credit) Cost (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
United States | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $0 | $0 |
Interest cost | 0.7 | 0.8 |
Expected return on plan assets | -1 | -1.2 |
Amortization of net actuarial loss | 0.3 | 0.3 |
Net periodic pension (credit) cost | 0 | -0.1 |
Curtailment gain | 0 | 0 |
Total pension (credit) cost | 0 | -0.1 |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 0.1 | 0.2 |
Expected return on plan assets | -0.2 | -0.2 |
Amortization of net actuarial loss | 0.1 | 0 |
Net periodic pension (credit) cost | 0.1 | 0.1 |
Curtailment gain | 0 | -0.7 |
Total pension (credit) cost | $0.10 | ($0.60) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $0.10 | $0 | |
Federal statutory income tax rate | 35.00% | ||
Unrecognized tax benefits | $1.60 | $1.90 |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Short-term borrowings | $20.10 | $18.90 |
Remaining borrowing capacity | $21.60 | |
Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt interest rate | 2.60% | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt interest rate | 4.50% |
Fair_Value_Measurements_Cash_F
Fair Value Measurements - Cash Flow Hedges (Details) (Fair Value, Measurements, Recurring, Cash flow hedges, Foreign currency forward contracts, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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] | ||
Derivative assets | $0 | $0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6.1 | 7.3 |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $0 | $0 |
Fair_Value_Measurements_Other_
Fair Value Measurements - Other Hedges (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional Amount | $96,400,000 | $110,100,000 | |
Foreign currency forward contracts | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Gain (loss) on foreign currency contracts | 700,000 | -200,000 | |
Other Current Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets fair value | 6,100,000 | 7,300,000 | |
Other Current Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative liabilities fair value | 0 | 0 | |
Cash flow hedges designated as hedging instruments | Cash flow hedges | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional Amount | 72,000,000 | 86,700,000 | |
Cash flow hedges designated as hedging instruments | Cash flow hedges | Other Current Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets fair value | 6,100,000 | 7,300,000 | |
Cash flow hedges designated as hedging instruments | Cash flow hedges | Other Current Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative liabilities fair value | 0 | 0 | |
Other hedges not receiving hedge accounting | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notional Amount | 24,400,000 | 23,400,000 | |
Other hedges not receiving hedge accounting | Other Current Assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative assets fair value | 0 | 0 | |
Other hedges not receiving hedge accounting | Other Current Liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative liabilities fair value | 0 | 0 | |
Other (Income) Expense | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Net foreign currency loss | $600,000 | $0 |
Shareholders_Equity_Treasury_S
Shareholders' Equity - Treasury Stock (Details) (USD $) | 3 Months Ended | 35 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | 2-May-12 |
Equity [Abstract] | |||||
Number of shares authorized to be repurchased | 5,000,000 | ||||
Number shares repurchased | 157,101 | 2,800,000 | |||
Payments for repurchase of common stock | $0.70 | $0 | $12.20 | ||
Remaining number of shares authorized to be repurchased | 2,200,000 | 2,200,000 | 2,200,000 | ||
Average price per share of treasury stock acquired and held | $9.75 | ||||
Movement in Treasury Stock [Roll Forward] | |||||
Beginning balance (in shares) | 627,796 | ||||
Purchases (shares) | 157,101 | 2,800,000 | |||
Exercise of stock options (in shares) | 0 | ||||
Restricted stock grants | -690,662 | ||||
Forfeitures and other | 133,799 | ||||
Ending balance (in shares) | 228,034 | 228,034 | 228,034 |
Shareholders_Equity_Accumulate
Shareholders' Equity - Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $240.80 | ||
Total other comprehensive loss, net of tax | -5.6 | -4.8 | |
Ending balance | 220.5 | ||
Income tax expense for unrealized gains on derivative financial instruments | 0.6 | ||
Selling, general and administrative | -41 | -43.4 | |
Income tax expense (benefit) | 0.1 | 0 | |
Net loss | -14.4 | -17.5 | |
Gains (Losses) on Derivative Financial Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, net of tax 1 | 0.9 | [1] | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -2.1 | ||
Total other comprehensive loss, net of tax | -1.2 | ||
Ending balance | 3.9 | 5.1 | |
Defined Benefit Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, net of tax 1 | 0 | [1] | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0.2 | ||
Total other comprehensive loss, net of tax | 0.2 | ||
Ending balance | -20.4 | -20.6 | |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, net of tax 1 | -4.6 | [1] | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | 0 | ||
Total other comprehensive loss, net of tax | -4.6 | ||
Ending balance | -73.9 | -69.3 | |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) before reclassifications, net of tax 1 | -3.7 | [1] | |
Amounts reclassified from accumulated other comprehensive income (loss), net of tax | -1.9 | ||
Total other comprehensive loss, net of tax | -5.6 | ||
Ending balance | -90.4 | -84.8 | |
Reclassification out of Accumulated Other Comprehensive Income | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Net loss | -1.9 | ||
Reclassification out of Accumulated Other Comprehensive Income | Gains (Losses) on Derivative Financial Instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Cost of goods sold | -3.2 | ||
Income tax expense (benefit) | 1.1 | ||
Net loss | -2.1 | ||
Reclassification out of Accumulated Other Comprehensive Income | Defined Benefit Plans | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Selling, general and administrative | 0.3 | ||
Income tax expense (benefit) | -0.1 | ||
Net loss | $0.20 | ||
[1] | Income tax expense of $0.6 million was recorded for unrealized gains on derivative financial instruments for the three months ended March 31, 2015. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment Reporting Information [Line Items] | ||
Number of reporting segments | 2 | |
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Net revenue | $155.40 | $178.90 |
Operating loss | -13 | -16.1 |
Interest income | -0.1 | -0.1 |
Interest expense | 0.6 | 0.6 |
Other, net expense | 0.8 | 0.2 |
Loss from continuing operations before income taxes | -14.3 | -16.8 |
Operating Segments | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Operating loss | -2.6 | -4.7 |
Corporate and Unallocated | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Operating loss | -10.4 | -11.4 |
Consumer Storage and Accessories | ||
Segment Reporting Information [Line Items] | ||
Number of major product categories | 2 | |
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Net revenue | 75.2 | 100 |
Consumer Storage and Accessories | Operating Segments | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Operating loss | 3.9 | 4.1 |
Consumer Storage and Accessories | Consumer Storage Media | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Net revenue | 66 | 89.5 |
Consumer Storage and Accessories | Audio and Accessories | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Net revenue | 9.2 | 10.5 |
Tiered Storage and Security Solutions | ||
Segment Reporting Information [Line Items] | ||
Number of major product categories | 2 | |
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Net revenue | 80.2 | 78.9 |
Tiered Storage and Security Solutions | Operating Segments | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Operating loss | -6.5 | -8.8 |
Tiered Storage and Security Solutions | Commercial Storage Media | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Net revenue | 47.9 | 51.4 |
Tiered Storage and Security Solutions | Storage and Security Solutions | ||
Segment Reporting Information, Profit (Loss) [Abstract] | ||
Net revenue | $32.30 | $27.50 |
Litigation_Commitments_and_Con1
Litigation, Commitments and Contingencies (Details) (USD $) | 3 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | 22-May-13 | Dec. 31, 2014 |
plaintiff | |||
patent | |||
member | |||
Loss Contingencies [Line Items] | |||
Accrued copyright levies | $5.50 | $9.30 | |
Copyright levies accrual reversal | 2.8 | ||
One-Blue, LLC and Members vs. Imation | |||
Loss Contingencies [Line Items] | |||
Number of plaintiffs | 5 | ||
Number of members of One-Blue involved in litigation | 4 | ||
Number of patents allegedly infringed | 6 | ||
French Levy Society vs. Imation | Pending and Threatened Litigation | |||
Loss Contingencies [Line Items] | |||
Damages sought | $8.70 |