MIRA INFORM REPORT

Report Date :

20.05.2013

IDENTIFICATION DETAILS

Name :	IMATION CORP.
Registered Office :	1 Imation Way Oakdale, MN, 55128-3414 Washington County
Country :	United States
Financials (as on) :	31.12.2012
Date of Incorporation :	1996
Legal Form :	Public Parent
Line of Business :	Manufacture of prepared unrecorded media
No. of Employees :	1,230

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate
Payment Behaviour :	Slow but Correct
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March, 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits - including significant budget shortages for state governments.

Source : CIA

Company name and address

IMATION CORP.

1 Imation Way
Oakdale, MN 55128-3414
United States
Map
Tel:	651-704-4000
Fax:	651-704-6692
Toll Free:	(888) 466-3456
www.imation.com

Employees:

1,230

Company Type:

Public Parent

Corporate Family:

47 Companies

Traded:

New York Stock Exchange:

IMN

Incorporation Date:

1996

Auditor:

PricewaterhouseCoopers LLP

Credit Rating:

A+ (99)

Financials in:	USD (In Millions)
Fiscal Year End:	31-Dec-2012
Reporting Currency:	US Dollar
Annual Sales:	1,099.6 ^1
Net Income:	(340.7)
Total Assets:	793.5 ^2
Market Value:	156.1
	(10-May-2013)

Business Description

Imation Corp. (Imation) is a global scalable storage and data security company. The Company’s portfolio includes tiered storage and security offerings for business and products designed to manage audio and video information in the home. The Company’s global brand portfolio includes the Imation brand, the Memorex brand, the XtremeMac and MXI Security brands. Imation is also the exclusive licensee of the TDK Life on Record brand. Its three product categories include traditional storage, secure and scalable storage, and audio and video information. It operates in four geographic segments: Americas, Europe, North Asia and South Asia. On June 4, 2011, it acquired the assets of MXI Security, from Memory Experts International Inc. On October 4, 2011 it acquired the secure data storage hardware assets of IronKey Systems Inc. In December 2011, it acquired the data deduplication technology from Nine Technology. In January 2013, the Company acquired privately held Nexsan Corporation. For the three months ended 31 March 2013, Imation Corp. revenues decreased 15% to $224.4M. Net loss before extraordinary items increased 70% to $15.6M. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Higher net loss reflects Gain on sale of fixed assets held for sa decrease from $700K (income) to $0K, Acquisition and integration related cost increase of 50% to $600K

Industry

Industry	Audio and Video Equipment
ANZSIC 2006:	2429 - Other Electronic Equipment Manufacturing
NACE 2002:	2465 - Manufacture of prepared unrecorded media
NAICS 2002:	51821 - Data Processing, Hosting, and Related Services
UK SIC 2003:	2465 - Manufacture of prepared unrecorded media
UK SIC 2007:	2680 - Manufacture of magnetic and optical media
US SIC 1987:	3695 - Magnetic and Optical Recording Media

Key Executives  

(Emails Available)

Name	Title
Mark E. Lucas	President, Chief Executive Officer, Director
Paul R. Zeller	Chief Financial Officer, Senior Vice President
Robert L Garthwaite	Vice President & General Manager, Americas Consumer
John P. Breedlove	Vice President, General Counsel, Corporate Secretary
David P. Berg	Chief Operating Officer, Executive Vice President and Director

Significant Developments

Topic	#*	Most Recent Headline	Date
Layoffs	1	Imation Corp Announces Reduction Of Approximately 20% Global Workforce In FY 2013; Sees FY 2013 Charge Guidance	24-Oct-2012
Mergers & Acquisitions	1	Imation Corp Acquires Nexsan Corporation	2-Jan-2013

* number of significant developments within the last 12 months

News

Title	Date
Beyond the red carpeet Western Mail (Wales) (994 Words)	17-May-2013
WIPO PUBLISHES PATENT OF IMATION FOR "REMOVABLE MEMORY CARTRIDGE AND DOCKING STATION COMPATIBLE WITH MEDIA DRIVE EXPANSION SLOTS" (AMERICAN INVENTORS) U.S. Fed News (182 Words)	17-May-2013
iGo Ranks the Lowest in Terms of Price to Book Ratio in the Computer Storage & Peripherals Industry (IGOI, IMN, IVAC) Company and Organization Website News (200 Words)	16-May-2013
Q1 2013 Imation Corp Earnings Conference Call - Final FD (Fair Disclosure) Wire (4664 Words)	15-May-2013
Imation Corp. Files SEC Form S-8, Securities To Be Offered To Employees in Employee Benefit Plans (May. 8, 2013) Electronics Newsweekly (178 Words)	15-May-2013
Imation Corp. Files SEC Form 4, Statement of Changes in Beneficial Ownership of Securities (May. 6, 2013) Electronics Newsweekly (241 Words)	15-May-2013

Financial Summary

As of 31-Mar-2013

Key Ratios	Company	Industry
Current Ratio (MRQ)	1.70	2.25
Quick Ratio (MRQ)	1.24	1.94
Debt to Equity (MRQ)	0.05	0.24
Sales 5 Year Growth	-10.32	14.91
Net Profit Margin (TTM) %	-33.01	12.56
Return on Assets (TTM) %	-37.90	8.90
Return on Equity (TTM) %	-62.77	16.22

Stock Snapshot

Traded: New York Stock Exchange: IMN

As of 10-May-2013

   Financials in: USD

Recent Price	3.76	EPS	-3.80
52 Week High	6.29	Price/Sales	0.14
52 Week Low	3.32	Price/Book	0.39
Avg. Volume (mil)	0.16	Beta	1.22
Market Value (mil)	156.09

	Price % Change	Rel S&P 500%
4 Week	1.90%	-0.89%
13 Week	-1.31%	-8.31%
52 Week	-34.61%	-45.64%
Year to Date	-19.49%	-29.72%

2 Year Weekly End Price & Volume

ABI Number: 475134466

1 - Profit & Loss Item Exchange Rate: USD 1 = USD 1
2 - Balance Sheet Item Exchange Rate: USD 1 = USD 1

Corporate Overview

Location
1 Imation Way
Oakdale, MN, 55128-3414
Washington County
United States

Tel:	651-704-4000
Fax:	651-704-6692
Toll Free Tel:	(888) 466-3456

www.imation.com

Quote Symbol - Exchange
IMN - New York Stock Exchange
Sales USD(mil):	1,099.6
Assets USD(mil):	793.5
Employees:	1,230
Fiscal Year End:	31-Dec-2012

Industry:	Audio and Video Equipment

Incorporation Date:	1996
Company Type:	Public Parent
Quoted Status:	Quoted

President, Chief Executive Officer, Director:	Mark E. Lucas

Industry Codes

ANZSIC 2006 Codes:
2429	-	Other Electronic Equipment Manufacturing
7000	-	Computer System Design and Related Services
4221	-	Electrical, Electronic and Gas Appliance Retailing

NACE 2002 Codes:
2465	-	Manufacture of prepared unrecorded media
7230	-	Data processing
5245	-	Retail sale of electrical household appliances and radio and television goods

NAICS 2002 Codes:
51821	-	Data Processing, Hosting, and Related Services
518210	-	Data Processing, Hosting, and Related Services
443112	-	Radio, Television, and Other Electronics Stores

US SIC 1987:
3695	-	Magnetic and Optical Recording Media
7374	-	Computer Processing and Data Preparation and Processing Services
5731	-	Radio, Television, and Consumer Electronics Stores

UK SIC 2003:
2465	-	Manufacture of prepared unrecorded media
5245	-	Retail sale of electrical household appliances and radio and television goods
7230	-	Data processing

UK SIC 2007:
2680	-	Manufacture of magnetic and optical media
4754	-	Retail sale of electrical household appliances in specialised stores
6311	-	Data processing, hosting and related activities

Business Description

Imation Corp. (Imation) is a global scalable storage and data security company. The Company’s portfolio includes tiered storage and security offerings for business and products designed to manage audio and video information in the home. The Company’s global brand portfolio includes the Imation brand, the Memorex brand, the XtremeMac and MXI Security brands. Imation is also the exclusive licensee of the TDK Life on Record brand. Its three product categories include traditional storage, secure and scalable storage, and audio and video information. It operates in four geographic segments: Americas, Europe, North Asia and South Asia. On February 28, 2011, it acquired all of the assets of Encryptx Corporation. On June 4, 2011, it acquired the assets of MXI Security, from Memory Experts International Inc. On October 4, 2011 it acquired the secure data storage hardware assets of IronKey Systems Inc. In December 2011, it acquired the data deduplication technology from Nine Technology.

The Americas segment includes North America, Central America and South America. The Europe segment includes Europe and parts of Africa. North Asia segment includes Japan, China, Hong Kong, Korea and Taiwan. The South Asia segment includes Australia, Singapore, India, the Middle East and parts of Africa.

Imation brand products include magnetic tape media, recordable compact discs (CDs), digital versatile Discs (DVDs) and Blu-ray discs, flash products and hard disk drives. The Imation brand includes the DataGuard Data Protection Appliances, InfiniVault Storage appliances and removable disk technology (RDX) removable hard disk storage systems. Imation Defender products include secure storage flash drives and external hard drives. Imation brand products are sold throughout the worldwide and target the commercial user and individual consumer. Imation Defender products include secure storage flash drives and external hard drives. TDK Life on Record brand products include recordable CDs, DVDs and Blu-ray discs, flash drives, tape cartridges, headphones and computer speakers which are sold to commercial customers and individual consumers. TDK Life on Record brand products is sold throughout the world.

XtremeMac brand products include cases, chargers and audio solutions to protect, power and play Apple iPad, iPod, iPhone and other devices. XtremeMac products are developed for Apple enthusiasts and are available worldwide. Its MXI Security brand includes secure storage flash drives and external hard drives, as well as software solutions to help manage portable security devices on the network.

Traditional Storage

The Company’s optical media products consist of CDs, DVDs and Blu-ray recordable media. It sells Blu-ray discs, which are used primarily for recording high-definition video content. Its recordable optical media products are sold through a variety of retail and commercial distribution channels and sourced from manufacturers primarily in Taiwan and India. Optical storage capacities range from 650 megabyte CD-R (recordable) and CD-RW (rewritable) optical discs to 9.4 gigabyte double-sided DVD optical discs and Blu-ray discs with 25 gigabyte to 100 gigabyte of capacity. Its optical media is sold throughout the world under brands it owns or controls, including Imation, Memorex and TDK Life on Record and under a distribution agreement for the Hewlett Packard brand.

The Company’s magnetic tape media products are used for back-up, business and operational continuity planning, disaster recovery, near-line data storage and retrieval and for mass and archival storage. Other traditional storage products include primarily optical drives and audio and video tape media.

Secure and Scalable Storage

Secure storage products and software include universal serial bus (USB) flash drives and external hard drives designed to meet the security standards to protect data at rest with Federal Information Processing Standard (FIPS) validation, password and biometric authentication, including biometric USB drives, encrypted and biometric hard disk drives, secure portable desktop solutions and software solutions. It also sells standard USB flash drives and external hard disk drives throughout the world under its Imation, Memorex and TDK Life on Record brands. It sources these products from manufacturers primarily in Asia and the United States and sell them through a variety of retail and commercial distribution channels around the world. Scalable storage products include data protection appliances, such as DataGuard network attached storage backup appliances and InfiniVault active archive appliances.

Audio and Video Information

The Company’s audio and video information products include Apple iPad, iPod and iPhone accessories, headphones, CD players, alarm clocks, portable boom boxes, moving picture experts group layer-3 audio (MP3) players, and speakers sold under the Memorex, TDK Life on Record and XtremeMac brands. It designs products to meet user needs and source these products from manufacturers throughout Asia.

The Company competes with Maxell, JVC, Sony, Verbatim, Fuji, HP, SanDisk, Lexar, PNY and Kingston.

More Business Descriptions

Imation Corp. (Imation) is a global scalable storage and data security company. The Company’s portfolio includes tiered storage and security offerings for business and products designed to manage audio and video information in the home. The Company’s global brand portfolio includes the Imation brand, the Memorex brand, the XtremeMac and MXI Security brands. Imation is also the exclusive licensee of the TDK Life on Record brand. Its three product categories include traditional storage, secure and scalable storage, and audio and video information. It operates in four geographic segments: Americas, Europe, North Asia and South Asia. On June 4, 2011, it acquired the assets of MXI Security, from Memory Experts International Inc. On October 4, 2011 it acquired the secure data storage hardware assets of IronKey Systems Inc. In December 2011, it acquired the data deduplication technology from Nine Technology. In January 2013, the Company acquired privately held Nexsan Corporation. For the three months ended 31 March 2013, Imation Corp. revenues decreased 15% to $224.4M. Net loss before extraordinary items increased 70% to $15.6M. Revenues reflect a decrease in demand for the Company's products and services due to unfavorable market conditions. Higher net loss reflects Gain on sale of fixed assets held for sa decrease from $700K (income) to $0K, Acquisition and integration related cost increase of 50% to $600K

Information Storage Device Mfr

Establishments primarily engaged in the retail sale of computers, computer peripheral equipment, and software.

Imation Corp. (Imation) is a data storage and security provider, based in the US. It provides tiered storage and security for business and products designed to manage audio and video information. The company manufactures removable data storage media products and accessories. Imation offers peripherals storage which operates on Portable Media Devices and Terminals, Monitors and Appliances. Its products are sold under the brand names, Imation, Memorex, TDK Life on Record, and XtremeMac. The company operates its business through three reportable segments namely, traditional storage, emerging storage, and electronics and accessories. Traditional storage products include optical media products, magnetic tape media products and other traditional storage media products. The company's optical media products consist of CDs, DVDs and Blu-ray recordable media. The company sells Bluray discs which are used for recording high-definition video content. Optical storage capacities range from 650 megabyte CD-R (recordable) and CD-RW (rewritable) optical discs to 9.4 gigabyte (GB) double-sided DVD optical discs, and Blu-ray discs with 25GB to 100GB of capacity. The company's magnetic tape media products are used for back-up, business and operational continuity planning, disaster recovery, near-line data storage and retrieval and for cost-effective mass and archival storage. Tape product capacity is range from 10GB to 3.0 terabytes (TB) per cartridge. For the fiscal year ended December 2011, the traditional storage segment’s revenue decreased 13.84% from $1,029.9m in 2010 to $887m in 2011. The segment accounted for 70.3% of the total revenues in 2011.The company's emerging storage products include USB flash drives, removable hard disk drives and external hard disk drives. USB flash drives have capacities ranging from 1GB up to 64GB and capacities continue to increase as new products are introduced. The company's RDXTM removable hard disk cartridge is a high-capacity, rugged and removable 2.5-inch hard disk drive cartridges with 160GB to 1TB capacities. For the fiscal year ended December 2011, the emerging storage segment’s revenue decreases 5.84% from $347.8m in 2010 to $327.4m in 2011. The segment accounted for 25.9% of the total revenues in 2011.The company's electronics and accessories consist of CD players, alarm clocks, portable boom boxes, MP3 players, Apple iPad, iPod and iPhone accessories, headphones, speakers and gaming accessories sold under the Memorex, TDK, Life on Record and XtremeMac brands. For the fiscal year ended December 2011, the electronics and accessories segment’s revenue decreased 24% from $62.8m in 2010 to $47.7m in 2011. The segment accounted for 3.8% of the total revenues in 2011.Imation’s research and development (R&D) activities operates on developing new products and enhancing existing products. In 2011, the company spent $21m of its total revenues on its R&D operations.Geographically the company operates in the US and International. During the fiscal year ended December 2011, the company has generated 40.2% of its total revenue from the US and 59.8% of the total from International regions. It also operates in Europe, North Asia and South Asia.The company’s products are sold through distributors, wholesalers, value-added resellers, original equipment manufacturers (OEMs), and retail outlets. It also sells these products through its website. Imation works with OEMs, such as Sun StorageTek, IBM, HP, and Tandberg that develop and/or market tape drives, tape libraries, tape automation systems and servers with storage subsystems. The company subsidiaries include Imation Enterprises Corp., Imation Data Storage Holdings CV, Imation Latin America Corp., Imation Holdings Pte Ltd., Imation Europe B.V., and Memorex Products Inc. and joint ventures with the UAE-based Global Data Media FZ-LLC.In June 04 2012, Imation introduced RDX® media secure with Cyber Safe Pro Security Technology which is the world’s 1st RDX media with built-in encryption technology.In June 11 2012, Imation’s USB-based Secure mobile workspace gives business travelers, teleworkers and contractors a secure Microsoft windows OS on any computer.

Imation Corp. (Imation) is a removable data storage media products and accessories manufacturing company based in the US. Its removable data storage media products include optical disks (CDs, DVDs, Blu-ray discs) and magnetic storage tapes. Imation also offers flash memory drives, removable storage drives, and a line of electronics and accessory products that include portable CD players and iPod clock radios. Major brands of the company through which it sells its products, include Imation, Memorex, TDK Life on Record, and XtremeMac. Imation’s product portfolio includes recordable and rewritable optical discs, magnetic tape cartridges, universal serial bus (USB) flash drives, and removable hard drives. The company offers several other products related to consumer video, audio, and home electronics. The company markets its products in about 100 countries across the world. It has over 46 wholly-owned subsidiaries. Imation is headquartered at Oakdale, Minnesota, the US.The company reported revenues of (U.S. Dollars) USD 1,290.40 million during the fiscal year ended December 2011, a decrease of 11.67% from 2010. The operating loss of the company was USD 33.10 million during the fiscal year 2011, as compared to an operating loss of USD 69.70 million during 2010. The net loss of the company was USD 46.70 million during the fiscal year 2011, as compared to a net loss of USD 158.50 million during 2010.

Imation Corp. a Delaware corporation is a leading global technology company dedicated to helping people and organizations store protect and connect their digital world. Our portfolio of data storage and security products electronics and accessories reaches customers in more than 100 countries through a powerful global distribution network. As used herein the terms Imation Company we us or our mean Imation Corp. and its subsidiaries unless the context indicates otherwise. In July 1996 Imation was established as a spin-off of the businesses which comprised substantially all of the data storage and imaging systems groups of 3M Company. We subsequently divested all of the non-data storage businesses acquired from 3M Company in connection with the spin-off. These divestitures allowed us to focus on data storage media primarily as a manufacturer of magnetic tape products under the Imation brand sold to commercial end users through multiple distribution channels. We then expanded our business into other removable data storage media such as optical media flash and solid state drives and removable and external hard disk drives. In 2006 we acquired substantially all of the assets of Memorex International Inc. (Memorex) followed by the acquisition of the TDK Recording Media business (TDK Life on Record) in 2007. In 2007 we also acquired certain assets of Memcorp Inc. and Memcorp Asia Limited (together Memcorp) used in or relating to the sourcing and sale of consumer electronic products principally under the Memorex brand name. This acquisition established our foundation in audio and video consumer electronic products. In 2008 we expanded our presence in consumer electronic products with the Xtreme Accessories LLC (XtremeMac) acquisition a maker of accessories for Apple consumer electronics products.

With a focus on removable data media, Imation develops, manufactures and markets optical and magnetic media technologies to businesses and individuals who want to capture, create, protect and preserve their digital information. Large data centers and networks rely on Imation tape cartridges for data processing, business continuity, backup and archiving applications, while consumers and small businesses depend on Imation's CD and DVD discs to store, edit and manage business data, photos, video, images and music on professional and home desktops. As the only United States-based manufacturer of magnetic data storage media, Imation has a heritage in removable data storage media that spans more than 50 years, since the introduction of the first data storage tape in 1953. Over the decades, the company has amassed more than 330 data storage-related patents.

Product Codes

Product Code	Product Description
COM-AX-MH	Hard disk cartridges
COM-AX-MQ	CD-ROM optical discs
COM-AX-S	Metal printing plates
COM-BU-C	Microfilm duplicators
COM-BU-C	Diazo card duplicators
COM-BU-MP	Demand micrographic printers
COM-BU-MQ	Micrograph reader-printers
COM-BU-MR	Micrographic readers
COM-BU-MZ	Micrographic film
COM-OU-PL	Micrographics laser printers
COM-OU-R	Printer-plotters
COM-OU-S	CAD film plotters
COM-SP-IE	Digital color proofing systems
MAT-CO-S	Protective photographic chemical coatings - Photogard(tm)
PHO-CA-P	Photographic film
TEL-AV-RM	Audio/video magnetic recording tapes
TEL-AV-RW	Digital video discs

Brand/Trade Names

Color-Key - Plates - paper Ns - Computer peripheral equipment Matchprint - Photographic equipment Duplicard - Paper

Rainbow - Computer software Primaris - Computer peripheral equipment Superdisk - Computer hardware

Financial Data

Financials in:	USD(mil)
Revenue:	1,099.6
Net Income:	-340.7
Assets:	793.5
Long Term Debt:	0.0
Total Liabilities:	393.1
Working Capital:	0.5
Date of Financial Data:	31-Dec-2012

1 Year Growth

-14.8%

NA

-31.0%

Market Data

Quote Symbol:	IMN
Exchange:	New York Stock Exchange
Currency:	USD
Stock Price:	3.8
Stock Price Date:	05-10-2013
52 Week Price Change %:	-34.6
Market Value (mil):	156,087.6
SEDOL:	2475491
ISIN:	US45245A1079
Equity and Dept Distribution:
Common Stock $.01 Par, 12/10 100M auth., 42,900,000 issd., less 4,200,000 shs in Treas @ $108.2M. Insiders and strategic owns 21.91%. 6/96, Stock issd.through spin-off from Minnesota Mining & Manufacturing Co.("3M"). Basis: 1 for 10 shs. of 3M held.

Key Corporate Relationships

Auditor:	PricewaterhouseCoopers LLP
Auditor:	PricewaterhouseCoopers LLP

Additional Information

ABI Number:

475134466

The Strategic Initiatives report is created using technology to extract meaningful insights from analyst reports about a company's strategic projects and investments. More about Strategic Initiatives

Strategic Initiatives

Key Organizational Changes

Location
1 Imation Way Oakdale, MN 55128-3414 United States
County:	Washington
MSA:	Minn-St Paul, MN
Phone:	651-704-4000
Fax:	651-704-4200
URL:	http://imation.com
ABI^©:	475134466
Annual Sales:	$1,099,600,000 (USD)
Employees:	1,230
Facility Size(ft^2):	40,000+
Business Type:	Public
Location Type:	Headquarter
Ticker:	IMN
Exchange:	NYSE

BUSINESS CREDIT RATING
A+(99)
RECOMMENDED CREDIT LIMIT *
$500,000 (USD)
Primary Line of Business:
SIC:	5734-07 - Computer & Equipment Dealers
NAICS:	443120 - Computer & Software Stores
Secondary Lines of Business:
NAICS:	339112 - Surgical & Medical Instrument Mfg
	334112 - Computer Storage Device Mfg
	541613 - Marketing Consulting Svcs
	334613 - Magnetic & Optical Recording Media Mfg
	517310 - Telecommunications Resellers
SICs:	3572-98 - Computer Storage Devices (Mfrs)
	3695-98 - Magnetic/Optical Recording Media (Mfrs)
	3841-04 - Physicians & Surgeons Equip & Supls-Mfrs
	4813-02 - Telecommunications Services
	8742-13 - Marketing Programs & Services
	9999-66 - Federal Government Contractors
Years in InfoUSA Database:	10+

Corporate Family

Corporate Structure News:

Total Corporate Family Members: 47

Company Name	Company Type	Location	Country	Industry	Sales (USD mil)	Employees	Source
Imation Corp.	Parent	Oakdale, MN	United States	Audio and Video Equipment	1,099.6	1,230	RT
Imation Enterprises Corp.	Subsidiary	Oakdale, MN	United States	Audio and Video Equipment		1,200	LEX
Imation Europe B.V.	Subsidiary	Hoofddorp	Netherlands	Computer Storage Devices		200	LEX
Imation Corp	Branch	Southaven, MS	United States	Advertising	31.0	156	IUSA
Nexsan Corporation	Subsidiary	Thousand Oaks, CA	United States	Computer Storage Devices	60.9	126	RT
Nexsan Technologies Ltd.	Subsidiary	Derby	United Kingdom	Computer Hardware	32.9	52	EXP
Nexsan Technologies Inc	Branch	Escondido, CA	United States	Retail (Technology)	2.4	9	IUSA
Imation Corp	Branch	Weatherford, OK	United States	Retail (Technology)	27.7	110	IUSA
Imation Corp. Japan	Subsidiary	Tokyo	Japan	Computer Storage Devices		100	LEX
Memorex Products, Inc.	Subsidiary	Cerritos, CA	United States	Motion Pictures		80	LEX
Imation Deutschland GmbH	Subsidiary	Neuss	Germany	Computer Storage Devices		65	LEX
Imation Hong Kong Ltd.	Subsidiary	North Point	Hong Kong	Computer Storage Devices		50	LEX
TME GmbH	Subsidiary	Neuss, Nordrhein-Westfalen	Germany	Appliance and Tool	64.7	44	D&B
Imation Singapore Pte. Ltd.	Subsidiary	Singapore	Singapore	Audio and Video Equipment	59.8	33	LEX
Imation ANZ Pty. Ltd.	Subsidiary	Kings Park, NSW	Australia	Computer Storage Devices		30	LEX
Imation ANZ Pty Ltd. - Auckland	Subsidiary	Auckland, AU	New Zealand	Computer Storage Devices		50	LEX
Imation Holdings Pte. Ltd.	Subsidiary	Singapore	Singapore	Miscellaneous Financial Services		30	LEX
Imation Asia Pacific Pte Ltd	Subsidiary
Memorex Products (Taiwan) Inc.	Subsidiary	Taipei City, Taipei	Taiwan	Computer Hardware		23	D&B
Imation Hong Kong Limited	Subsidiary	North Point, Hong Kong	Hong Kong	Computer Hardware	34.6		D&B
Imation Korea	Subsidiary	Seoul	Korea, Republic of	Computer Storage Devices		27	LEX
Imation Europe B.V.	Subsidiary	Schiphol-Rijk	Netherlands	Audio and Video Equipment	248.3	20	LEX
Imation S.p.A.	Subsidiary	Segrate, Milan	Italy	Computer Storage Devices	4.2	23	LEX
Imation UK Ltd.	Subsidiary	Bracknell	United Kingdom	Miscellaneous Capital Goods	8.0	17	EXP
Imation U K Ltd.	UK Branch/Trading address	Bracknell	United Kingdom	Audio and Video Equipment	8.0	22	1STP
Imation Taiwan Ltd.	Subsidiary	Taipei	Taiwan	Computer Storage Devices		20	LEX
Imation Canada Inc.	Subsidiary	London, ON	Canada	Computer Storage Devices	16.0	15	LEX
Imation Latin America Corp.	Subsidiary	Miami, FL	United States	Audio and Video Equipment		15	LEX
Imation Iberia S.A.	Subsidiary	Madrid	Spain	Computer Storage Devices		13	LEX
Imation Mexico, SA de CV	Subsidiary	Mexico, DF	Mexico	Computer Storage Devices		12	LEX
Imation Middle East FZE	Subsidiary	Dubai	United Arab Emirates	Computer Storage Devices		12	LEX
Imation Information Technology (Beijing) Limited	Subsidiary	Beijing	China	Computer Storage Devices		12	LEX
Imation India Pte. Ltd.	Subsidiary	New Delhi, Jasola	India	Audio and Video Equipment		10	LEX
Imation (Thailand) Limited	Subsidiary	Bangkok	Thailand	Computer Storage Devices		10	LEX
Global Data Media FZ-LLC	Joint Venture	Dubai	United Arab Emirates	Audio and Video Equipment		10	RT
Imation (Tianjin) International Co. Ltd.	Subsidiary	Tianjin	China	Audio and Video Equipment		10	LEX
Imation France S.A.	Subsidiary	Cergy, Cedex	France	Computer Storage Devices		7	LEX
Imation (Malaysia) Sdn. Bhd.	Subsidiary	Petaling Jaya	Malaysia	Computer Storage Devices		6	LEX
Imation Colombia S.A.	Subsidiary	Bogota	Colombia	Audio and Video Equipment		6	LEX
Imation Research Ltd.	Subsidiary	Bracknell	United Kingdom	Audio and Video Equipment		6	LEX
Glyphic Media Inc.	Joint Venture	Rochester, NY	United States	Electronic Instruments and Controls		5	LEX
Imation Chile SA	Subsidiary	Santiago	Chile	Computer Storage Devices		5	LEX
Imation Argentina SACIFIA	Subsidiary	Buenos Aires, CABA	Argentina	Computer Storage Devices		5	LEX
Be Compliant Corp	Subsidiary	Louisville, CO	United States	Computer Services		4	IUSA
Imation Corp	Subsidiary	Boulder, CO	United States	Retail (Technology)	0.8	3	IUSA
Imation do Brasil Ltda.	Subsidiary	Barueri, Sao Paulo	Brazil	Computer Storage Devices			LEX
Imation (Shanghai) Co. Limited	Subsidiary	Shanghai	China	Computer Storage Devices			LEX

Competitors Report

CompanyName	Location	Employees	Ownership
Dell Inc.	Round Rock, Texas, United States	108,800	Public
Dot Hill Systems Corp.	Longmont, Colorado, United States	324	Public
EMC Corporation	Hopkinton, Massachusetts, United States	60,000	Public
FUJI ELECTRONICS CO., LTD.	Bunkyo-Ku, Japan	392	Public
FUJIFILM Corporation	Tokyo, Minato ku, Japan	35,274	Private
Hewlett-Packard Company	Palo Alto, California, United States	331,800	Public
Hitachi Maxell Ltd	Osaka, Japan	2,563	Public
JVC America Inc.	Kennesaw, Georgia, United States	123	Private
Kingston Systems, Inc.	Hampton, New Hampshire, United States	6	Public
Kingston Technology Co Inc	Fountain Valley, California, United States	4,000	Private
Lexar Media, Inc.	Fremont, California, United States	160	Private
LG Electronics Inc.	Seoul, Korea, Republic of	36,376	Public
Maxell Corporation of America	Woodland Park, New Jersey, United States	30	Private
NetApp Inc.	Sunnyvale, California, United States	12,149	Public
Quantum Corp	San Jose, California, United States	1,820	Public
SanDisk Corporation	Milpitas, California, United States	4,636	Public
Seagate Technology	Bloomington, Minnesota, United States	3,500	Private
Seagate Technology PLC	Dublin, Ireland	57,900	Public
SONY CORPORATION	Minato-Ku, Japan	162,700	Public
Verbatim Corporation, Inc.	Charlotte, North Carolina, United States	125	Private
Western Digital Corp.	Irvine, California, United States	103,111	Public

Board of Directors

Name	Title	Function
L. White Matthews	Non-Executive Chairman	Chairman
Biography: Mr. L. White Matthews, III, serves as Non-Executive Independent Chairman of the Board of Imation Corp. Mr. Matthews has been active in corporate board work since he retired in September 2001. From July 1999 until September 2001, Mr. Matthews served as Executive Vice President and Chief Financial Officer of Ecolab, Inc. (a developer and marketer of cleaning and sanitizing products and services) as well as a member of its Board of Directors. Mr. Matthews was retired from May 1998 to July 1999. From February 1977 to May 1998, Mr. Matthews served in various financial positions with Union Pacific Corporation (a company involved in rail/truck transportation and oil/gas exploration and production). From November 1989 to May 1998 he was Executive Vice President and Chief Financial Officer of Union Pacific and he was a member of its Board of Directors from 1994 to 1998. Mr. Matthews has been a director of Imation since February 2003. He is a director and Chairman of the Board of Constar International Inc., a privately-held company, and a director of PNC Mutual Funds, Inc., a privately-held company. Mr. Matthews was also a director of two publicly-held companies: Matrixx Initiatives, Inc. from 2003 to 2011 and Ceridian Corporation from 2005 to 2008 where he served as Chairman of the Board in his last year. Age: 66 Education: University of Virginia, MBA (Finance) Hampden-Sydney College, BS (Economics)
Bill Monahan	Chairman	Chairman
Biography: William T. Monahan. Mr. Monahan serves as Pentairs Lead Director. In 2006 Mr. Monahan served as a director and the Interim Chief Executive Officer of Novelis Inc. a global leader in aluminum rolled products and aluminum can recycling. From 1995 to 2004 Mr. Monahan was Chairman of the board of directors and Chief Executive Officer of Imation Corp. a manufacturer of magnetic and optical data storage media. Mr. Monahan is also a director of Hutchinson Technology Inc. The Mosaic Company and Solutia Inc. and was a director of Novelis Inc. from 2005 to 2007. Mr. Monahan is also a member of Pentairs Governance and Compensation Committees. Education: Rutgers Graduate School of Business, MBA (Finance And Marketing) St. Peters College, BS (Economics)
David P. Berg	Chief Operating Officer, Executive Vice President and Director	Director/Board Member
Biography: Mr. David P. Berg serves as Independent Director of Imation Corp., since July 6, 2010. Mr. Berg is President — International of Outback Steak (a chain of Australian themed steakhouse restaurants owned by OSI Restaurant Partners, LLC), a position he has held since September 2011. From June 2010 to September 2011, Mr. Berg was Chief Operating Officer and Executive Vice President, Global Business Development of General Nutrition Centers, Inc. (“GNC�) (a global specialty retailer of nutritional products including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products) and Chief Operating Officer of its indirect parent, GNC Acquisition Holdings, Inc. From September 2009 to June 2010, Mr. Berg was Executive Vice President, Global Business Development and Chief Operating Officer, International of GNC. From 2002 to March 2009, Mr. Berg served in various capacities for Best Buy, Inc. (a multinational retailer of technology and entertainment products and services), including Executive Vice President and Chief Operating Officer, Best Buy International from July 2008 to March 2009, Executive Vice President, International Strategy and Corporate Development from March 2008 to July 2008, Senior Vice President, International Strategy and Corporate Development from March 2007 to March 2008, Chief Operating Officer, Best Buy International from July 2006 to March 2007, Senior Vice President, Strategic Alliances from September 2004 to July 2006 and Vice President and Associate General Counsel from December 2002 to September 2004. From 2001 to 2002, he was the President and Chief Operating Officer, International Division of Danka Business Systems (a United Kingdom-based office equipment and solutions company). Age: 51 Education: University of Florida, JD Emory University, B (Economics)
Theodore H. Bunting	Director	Director/Board Member
Biography: Mr. Theodore Bunting, Jr., has been appointed as Director of Imation Corp. effective November 8, 2012. Bunting is currently group president, utility operations, for Entergy Corporation, an integrated energy company engaged in electric power production and retail distribution operations, a position he has held since June 2012. Bunting has previously held numerous executive positions within Entergy Corporation and its subsidiaries, including senior vice president and chief accounting officer. He is also a certified public accountant. Age: 54 Education: Hendrix College, BA (Economics)
Michael S Fields	Board Member	Director/Board Member
Biography: Mr. Fields jonined our Board of Directors in 2005. He is Chief Executive Officer of KANA Software. With more than 30 years management experience at enterprise software companies Mr. Fields has a track record of leadership at large corporations including Oracle U.S.A where he served as president; Applied Data Research; and Burroughs Corporation. In addition he was a founder chairman and CEO of OpenVision Technologies which he led to a public offering in 1996 and acquisition by VERITAS in 1997. Mr. Fields joined KANA in September 2005. Under his leadership in 2006 KANA achieved its first annual operating profit in company history. Currently Mr. Fields serves on the board of directors of Imation Corporation [Nasdaq: IMN] and has also served on the advisory board of the Ford Motor Company Customer Service Division from 1999 through 2001. He began his career in the technology industry in 1964 in the U.S. Air Force. Education: New York State University, Computer Science
Charles A. Haggerty	Independent Director	Director/Board Member
Biography: Mr. Charles A. Haggerty serves as Independent Director of Imation Corp. He has been Chief Executive Officer of LeConte Associates, LLC (a consulting and investment company) since June 2000. In June 1992, Mr. Haggerty became President and Chief Operating Officer and in July 1993, Chairman, President and Chief Executive Officer of Western Digital Corporation (a hard disk maker). Mr. Haggerty retired from Western Digital Corporation in June 2000. Prior to June 1992, Mr. Haggerty had a 28-year career with IBM Corporation (an information technology company), rising to the post of Vice President and General Manager of the worldwide OEM storage products business. Mr. Haggerty has been a director of Imation since October 2004. Mr. Haggerty is also a director of Pentair Corporation, Deluxe Corporation and LSI Corporation. Age: 71 Education: University of St. Thomas, Minnesota, B
William G. LaPerch	Director	Director/Board Member
Biography: Mr. William LaPerch has been appointed as Director of Imation Corp. effective November 8, 2012. LaPerch was chief executive officer, president and director of AboveNet Inc., a provider of high bandwidth connectivity solutions for business and carriers, from January 2004 to July 2012. Prior to AboveNet, LaPerch held executive management positions at MCI telecommunications, a global business and residential communications company, and at NYNEX Corporation, a regional telephone holding company. Age: 56 Education: Columbia University, MBA United States Military Academy, BS (Engineering)
Ronald T. LeMay	Board Member	Director/Board Member
Biography: Ron serves as chairman and chief executive officer for MachineryLink. He is a pioneer and respected leader in the wireless industry with nearly 40 years of telecommunications senior operating experience with companies such as AT&T Sprint and Southwestern Bell. Ron served as the first employee and CEO of Sprint PCS the companys wireless entity and guided the company from start-up to $10 billion in revenue faster than any company in history. His career with Sprint spanned 18 years and he served as President and COO before retiring in 2003. Following that time he served as an Industrial Partner with Ripplewood Holdings a private equity firm. He held the CEO position at Japan Telecom from November 2003 until the sale of the company in July 2004. In 2006 he was named Chairman of the Board for GoGo Inflight Internet a Ripplewood portfolio company. Ron co-founded venture capital entity October Capital in 1999. Since that company was formed it has provided venture capital to more than 15 companies in diverse industry segments. Ron is also co-founder and managing director of OpenAir Equity Partners a venture capital and private equity firm focused on the wireless communications and mobile Internet sectors. Ron brings a unique perspective gained from his diverse executive leadership experiences in both large public companies and numerous start-up companies. Those experiences spanning across the full spectrum of company development provide him with a breadth of knowledge in nurturing growth and expansion of products and companies. Ron is a highly sought after board member for both public and privately-held companies and currently sits on the boards of Allstate (ALL) Imation (IMN) GoGo In-flight Internet and eRecyclingCorps as well as MachineryLink. A native of Arkansas Ron attended Southern Arkansas University where he earned a bachelors degree and a law degree from the University of Arkansas School of Law. Ron and his wife reside in Kansas City and spend time enjoying their six grandchildren including two sets of twin girls. Education: Southern Arkansas University, bachelor's University of Arkansas School of Law, bachelor's University of Arkansas School of Law, JD
Mark E. Lucas View Email	President, Chief Executive Officer, Director	Director/Board Member
Biography: Mr. Mark E. Lucas is President, Chief Executive Officer, Director of Imation Corp. From March 2009 to May 2010, Mr. Lucas was President and Chief Operating Officer of Imation. Prior to joining Imation, Mr. Lucas served as Chairman and Chief Executive Officer of Geneva Watch Group (a privately held company that is a designer, manufacturer and distributor of watches, pens and clocks under both its own brand and licensed brands) from November 2005 to August 2008. Prior to that role, Mr. Lucas served as President and Chief Executive Officer of Altec Lansing Technologies (a manufacturer of consumer audio equipment) from June 2001 to August 2005. Mr. Lucas has also held executive management positions at Iomega Corporation (a data storage solutions company) from 2000 to 2001, The Gillette Company (a developer, manufacturer and seller of blades and razors, toiletries and cosmetics) from 1996 to 1999 and Duracell International Inc. (manufacturer and marketer of high-performance alkaline and other batteries) from 1988 to 1996 and started his career at Nestle Corp. Mr. Lucas was a director of Imation from April 2007 to February 2009 and served as a member of Imation’s Audit and Finance Committee and Compensation Committee. Mr. Lucas resigned from the Board of Directors of Imation in connection with his appointment as President and Chief Operating Officer. Mr. Lucas’ resignation from the Board of Directors was a requirement of his employment. Age: 58 Education: Rensselaer Polytechnic Institute, MBA Rensselaer Polytechnic Institute, BS (Industrial Engineering) Compensation/Salary:$733,091 Compensation Currency: USD
Trudy A. Rautio	Independent Director	Director/Board Member
Biography: Ms. Trudy A. Rautio serves as Independent Director of Imation Corp., since July 6, 2010. Ms. Rautio is Executive Vice President and Chief Financial Officer of Carlson, (a global hospitality and travel company), a position she has held since February 2005. In 2010 she also assumed the title of Chief Administrative Officer for Carlson by adding responsibility for the Information Technology function. From 2003 to February 2005, Ms. Rautio served as President and Chief Operating Officer for Carlson Hotels, The Americas and from 1997 to 2003 served as Executive Vice President and Chief Financial Officer of Carlson Hospitality Worldwide and Chief Administrative Officer, Carlson Hotels. From 1993 until 1997, she served in various capacities for Jostens, Inc. (a provider of products, programs and services that help people celebrate important moments, recognize achievements and build affiliations), including as Senior Vice President, Finance from 1994 until 1997. From 1982 until 1993, Ms. Rautio served in various capacities for The Pillsbury Company (a food company). Ms. Rautio is a director of The Rezidor Hotel Group, a publicly-traded company on the Stockholm exchange, and Securian Holding Company and Carlson Wagonlit Travel, Inc., both privately-held companies. Age: 60 Education: University of St. Thomas, M (Business Administration)
Charles Reich	Board Member	Director/Board Member
Biography: Charles Reich age 68 has been retired since October 2004. From October 2002 to October 2004 Dr. Reich served as Executive Vice President of 3M Health Care a business segment of 3M Company. Dr. Reich joined 3M Company in 1968 as a research chemist and assumed a variety of management positions in the Research & Development organization before moving to business management in 1989. He held a variety of management and executive positions including international postings within 3M Company since that time. He also served as a member of the Executive Advisory Board Juran Center for Leadership in Quality at the University of Minnesota. From July 2004 to February 2010 Dr. Reich served as a director of Imation Corp. He has been one of our directors since December 2005. Dr. Reich brings strategic business experience in the healthcare field including experience in the dental products business as well as international experience to our Board.
David B. Stevens	Independent Director	Director/Board Member
Biography: Mr. David B. Stevens serves as Independent Director of Imation Corp., since March 12, 2012. Mr. Stevens has been the Chief Technology Officer of Brocade Communications Systems, Inc. (a provider of networking solutions for data centers, enterprises and service providers) since September 2008. In 2011, he also assumed responsibility for Corporate Development activities, becoming Vice President, Corporate Development. From October 2005 to June 2008, Mr. Stevens was co-founder and Chief Executive Officer of Palo Alto Networks, Inc. (a privately held company that develops next-generation firewall products). Mr. Stevens previously served as the Vice President and CTO of Brocade Communications Systems, Inc. having joined the company through the acquisition of Rhapsody Networks, where he served as the founding Chief Executive Officer and Vice President of Business Development. Prior to that, Stevens served in senior management positions at Atmosphere Networks, Nortel, Bay Networks, and SynOptics Communications. Age: 49 Education: University of Virginia, MS (Electrical Engineering) University of Virginia, BS (Electrical Engineering) Source: Reuters
Daryl J. White	Independent Director	Director/Board Member
Biography: Mr. Daryl J. White serves as Independent Director of Imation Corp. He has been retired since May 2001. From August 2000 until May 2001, Mr. White served as President and Chief Financial Officer of Legerity, Inc. (a supplier of data and voice communications integrated circuitry). Prior to such time, Mr. White served as the Senior Vice President of Finance and Chief Financial Officer of Compaq Computer Corporation (a computer equipment manufacturer) from 1988 until his retirement in May 1996. Age: 64 Education: Central Missouri State University, BS (Computer Science) University of Santa Clara, MBA (Finance)

Executives

Name	Title	Function
Mark E. Lucas	President, Chief Executive Officer, Director	Chief Executive Officer
Biography: Mr. Mark E. Lucas is President, Chief Executive Officer, Director of Imation Corp. From March 2009 to May 2010, Mr. Lucas was President and Chief Operating Officer of Imation. Prior to joining Imation, Mr. Lucas served as Chairman and Chief Executive Officer of Geneva Watch Group (a privately held company that is a designer, manufacturer and distributor of watches, pens and clocks under both its own brand and licensed brands) from November 2005 to August 2008. Prior to that role, Mr. Lucas served as President and Chief Executive Officer of Altec Lansing Technologies (a manufacturer of consumer audio equipment) from June 2001 to August 2005. Mr. Lucas has also held executive management positions at Iomega Corporation (a data storage solutions company) from 2000 to 2001, The Gillette Company (a developer, manufacturer and seller of blades and razors, toiletries and cosmetics) from 1996 to 1999 and Duracell International Inc. (manufacturer and marketer of high-performance alkaline and other batteries) from 1988 to 1996 and started his career at Nestle Corp. Mr. Lucas was a director of Imation from April 2007 to February 2009 and served as a member of Imation’s Audit and Finance Committee and Compensation Committee. Mr. Lucas resigned from the Board of Directors of Imation in connection with his appointment as President and Chief Operating Officer. Mr. Lucas’ resignation from the Board of Directors was a requirement of his employment. Age: 58 Education: Rensselaer Polytechnic Institute, MBA Rensselaer Polytechnic Institute, BS (Industrial Engineering) Compensation/Salary:$733,091 Compensation Currency: USD
Lawrence Reusing	General Manager	Division Head Executive
Biography: Lawrence Reusing joined Imation in June 2011 with the companys acquisition of the MXI Security business from Memory Experts International. In this role Reusing is responsible to drive the growth of Imations MXI Security business and to open new strategic opportunities for the company in the data security market. Reusing co-founded Memory Experts International in 1994 and served as the companys vice president of corporate business development for its first decade. During this period he built strong partnerships with leading office equipment manufacturers as the company grew from a start-up business into a leader in the development and manufacture of memory expansion boards. He was named CEO of Memory Experts in 2005. In 2000 Reusing took a one-year leave from Memory Experts to co-found NexGen Digital a component distribution company. Before founding Memory Experts he co-founded and was vice president of sales customer support and engineering at InTech Data Corp. a Montreal-based distributor of computers and memory expansion boards.
David P. Berg	Chief Operating Officer, Executive Vice President and Director	Operations Executive
Biography: Mr. David P. Berg serves as Independent Director of Imation Corp., since July 6, 2010. Mr. Berg is President — International of Outback Steak (a chain of Australian themed steakhouse restaurants owned by OSI Restaurant Partners, LLC), a position he has held since September 2011. From June 2010 to September 2011, Mr. Berg was Chief Operating Officer and Executive Vice President, Global Business Development of General Nutrition Centers, Inc. (“GNC�) (a global specialty retailer of nutritional products including vitamin, mineral, herbal and other specialty supplements and sports nutrition, diet and energy products) and Chief Operating Officer of its indirect parent, GNC Acquisition Holdings, Inc. From September 2009 to June 2010, Mr. Berg was Executive Vice President, Global Business Development and Chief Operating Officer, International of GNC. From 2002 to March 2009, Mr. Berg served in various capacities for Best Buy, Inc. (a multinational retailer of technology and entertainment products and services), including Executive Vice President and Chief Operating Officer, Best Buy International from July 2008 to March 2009, Executive Vice President, International Strategy and Corporate Development from March 2008 to July 2008, Senior Vice President, International Strategy and Corporate Development from March 2007 to March 2008, Chief Operating Officer, Best Buy International from July 2006 to March 2007, Senior Vice President, Strategic Alliances from September 2004 to July 2006 and Vice President and Associate General Counsel from December 2002 to September 2004. From 2001 to 2002, he was the President and Chief Operating Officer, International Division of Danka Business Systems (a United Kingdom-based office equipment and solutions company). Age: 51 Education: University of Florida, JD Emory University, B (Economics)
Bob Kennedy	IMS Operations	Operations Executive
Biography: Mr. John P. Breedlove is Vice President, General Counsel, Corporate Secretary of Imation Corp. Prior to joining Imation, from July 1993 to May 2011, he served as Vice President of business law and various other positions at Supervalu Inc., a $40 billion food wholesale and retail company and logistics provider. Prior to that role, Mr. Breedlove was an attorney with the law offices of Dorsey & Whitney, Minneapolis, and Graham & James, San Francisco. Age: 55 Education: University of California, Los Angeles, JD University of Minnesota, MBA University of Minnesota, BA (International Relations)
Scott J. Robinson	Vice President, Corporate Controller & Chief Accounting Officer	Finance Executive
Biography: Mr. Scott J. Robinson is Vice President, Chief Accounting Officer, Corporate Controller of Imation Corp. He was appointed Vice President in February 2010 and was appointed Corporate Controller and Chief Accounting Officer in August 2007. He joined Imation in March 2004 and held the position of Chief Accountant until August 2007. Prior to joining Imation, he was at Deluxe Corporation, where he held the position of Assistant Corporate Controller from August 2002 to March 2004 and held the position of Director of Internal Audit from June 1999 to August 2002. Age: 46 Education: Saint Cloud State University, BS (Accounting) Compensation/Salary:$234,812 Compensation Currency: USD
Paul R. Zeller	Chief Financial Officer, Senior Vice President	Finance Executive
Biography: Mr. Paul R. Zeller is Chief Financial Officer, Senior Vice President of Imation Corp. He is Senior Vice President and Chief Financial Officer, a position he has held since May 2009. He was Vice President and Chief Financial Officer from August 2004 to May 2009. He has been with Imation since spin-off and held the position of Corporate Controller from May 1998 until August 2004. Prior to joining Imation, he held several accounting management positions with 3M Company. Age: 52 Education: University of Minnesota, B (Accounting) Compensation/Salary:$425,747 Compensation Currency: USD
Mark Arps	Global IT Audit	Accounting Executive
Stephanie Crossen	General Accounting Manager At Imation	Accounting Executive
Bonnie Guerrero	Accounting Manager	Accounting Executive
Craig Conti	Director, Global Product Marketing	International Executive
Kris Lichtscheidl	Global Product Manager	International Executive
Biography: Mr. R. Ian Williams is Vice President, Group President - Tiered Storage and Solutions of Imation Corp. He joined Imation in February 2011 as Vice President for Global Marketing and Product Management. Prior to joining Imation, from 2006 to January 2011, he was the executive director of near-line enterprise storage for Seagate Technology, plc, a provider of data storage products in hard disk drives and storage solutions. From 2004 to 2006, he served as director of RAID solutions and external storage for Adaptec Inc. From 2000 to 2004 and following Compaq's acquisition by Hewlett-Packard Company, a computer software and hardware and IT consulting and services company, Williams was group product manager for Hewlett-Packard's enterprise storage, server storage and infrastructure products. Age: 42
Ken Kadet	Corporate Communications Manager	Corporate Communications Executive
Mary Rawlings	Director-Corporate Communications & Public Relations	Corporate Communications Executive
Chris Caprio	Technical Services	Information Executive
Chitra Hariharan	Team Lead Information Technology	Information Executive
Daniel Heschke	Information Technology	Information Executive
Kevin Resler	Development Engineer	Engineering/Technical Executive
Denis Langlois	Scientist	Research & Development Executive
Dean Delserro	Product Manager	Product Management Executive
Alet Jentink	Emea Product Manager Consumer Storage	Product Management Executive
Paul Matschi	Product Marketing Manager	Product Management Executive
Steven Swenson	Product Line Manager	Product Management Executive
Baniel Egan	Business Development Manager	Business Development Executive
Gregory J Bolser	Senior Vice President, Global Business Management	Commercial Executive
Biography: Mr. Gregory J. Bosler is Senior Vice President, Group President - Consumer Storage and Accessories of Imation Corp. From October 2010 to December 2012, he was Senior Vice President of Global Business Management. From May 2010 to October 2010 he was Vice President, Americas, and from January 2009 to April 2010 he was Vice President, Americas Consumer. Prior to joining Imation in January 2009, he was with TTE Corporation, a global consumer electronics manufacturer, where he held the position of Executive Vice President, North America Business Center from August 2004 until February 2008. Prior to that, Mr. Bosler held a series of senior sales and general management positions at Thomson Inc., Pioneer Electronics (USA) and Duracell Inc. Age: 51 Education: University of Florida, BS (Business Administration) Compensation/Salary:$363,276 Compensation Currency: USD
James C Ellis	Vice President Strategy	Planning Executive
Biography: Jim Ellis is responsible for identifying and managing new growth opportunities across the four pillars of data storage technology: magnetic optical flash and removable hard disk drives. Previously Jim was General Manager of Imations Global Product Strategy which focused on identifying and developing new around the companys core removable optical and magnetic media businesses. Jim brings more than 25 years of experience and leadership in the data storage industry. He first joined 3M in 1978 and has since held a variety of technical and business management positions within the data storage businesses of Imation and 3M Company including the management of tape optical and flash businesses. Jim holds a Bachelor of Science degree in computer science and mechanical engineering from the University of Minnesota. Education: University of Minnesota, BS (Computer Science And Mechanical Engineering)
John L Sullivan	Senior Vice President General Counsel &	Legal Executive
Biography: John L. Sullivan age 54 is Senior Vice President General Counsel and Corporate Secretary a position he has held since joining Imation in August 1998. He joined Imation from Silicon Graphics where he most recently was Vice President General Counsel. Prior to joining Silicon Graphics he held several positions with Cray Research from 1989 to 1997 including the positions of General Counsel and Corporate Secretary from 1995 to 1997. Cray Research became part of Silicon Graphics in 1996. Education: Massachusetts Institute of Technology, MS (Aeronautical Engineering) Massachusetts Institute of Technology, PhD (Aeronautical Engineering) University of Rochester, BS
Yosuke Tsuchida	Sourcing and Trade Compliance Manager	Legal Executive
Kevin Weis	Senior Logistics Manager	Logistics Executive
William Kavanaugh	Real Estate Facilities & Selection	Facilities Executive
Bradley D Allen	Vice President-Investor Relations	Other
Education: Boston College, Masters (Finance) Boston University, Masters (Journalism) Ohio State University, BA
Kim Bauer	Ims Functional Support Analyst	Other
Patricia Hamm	Vice President	Other
Biography: Patricia (Patty) Hamm oversees our global Human Resources (HR) function. In this role Hamm is charged with driving strategic change across Imations team and culture focused on supporting the companys business imperatives through HR strategies including high-performance organizational development leadership development and career planning. Hamm has nearly 30 years of leadership experience in the human resources and marketing field. Prior to joining Imation she was executive vice president of human capital and learning at Petters Group Worldwide LLC in Minnetonka Minn. From 1984 to 1994 Hamm held human resources and marketing management positions at First Bank System (now U.S. Bancorp) and from 1995 to 1999 at medical companies Aequitron Medical Inc. Nellcor Puritan Bennett and Mallinckrodt Corporation where she managed numerous acquisition and integration focused activities. From 1999 to 2001 she was vice president of human resources at Net Perceptions a leading supplier of real-time personalization solutions. From 2001 to 2002 Hamm was vice president of human resources at Fingerhut Inc (now Bluestem Brands) a home shopping retailer offering private-label and brand-name merchandise. Fingerhut was purchased by Petters Group Worldwide LLC where she was named to the executive vice president position in 2003. Hamm holds a Bachelor of Arts degree in Sociology from the College of Saint Benedict and a Master of Social Work degree from the University of Minnesota. She is a board member for the Human Resources Executive Forum and provides project support to Women Ventures Human Resource Committee. Education: College of St. Benedict, bachelor's (Sociology) University of Minnesota, master's (Social Work) Source: OneSourceWeb
Ka Herr	Regional Executive	Other
Molly Hollenkamp	Manager	Other
Peter A Koehn	Vice President-Global Operations	Other
Education: Valparaiso University Source: OneSourceWeb
Carl Thielk	Vice President	Other
Biography: Carl Thielk is vice president of global supply chain operations. He serves as Imations lead for sourcing logistics/transportation supply planning and overall operational excellence. In this role he is leveraging his international operations experience to drive transformation and the institutionalization of foundational processes to build upon for execution and product launch. Prior to joining Imation in 2009 he was corporate vice president at Motorola responsible for the integrated supply chain operations in Americas and EMEA. After joining Motorola in 1983 Thielk led global supply chain teams across the various business units in the United States Asia and Europe. He optimized internal manufacturing / distribution operations in the US and Europe and established an external global network of manufacturing/distribution operations. Thielk earned a Bachelor of Science degree and a Masters degree in Mechanical Engineering from the University of Illinois Champaign. Source: OneSourceWeb
Blake Verdon	Manager	Other

Significant Developments

Imation Corp Acquires Nexsan Corporation

Jan 02, 2013

Imation Corp announced that it has acquired privately held Nexsan Corporation, a Thousand Oaks, Calif.-based provider of disk-based storage systems. The combination cash-and-stock transaction included approximately $105 million in cash and 3,319,324 Imation common shares, the equivalent of approximately $15 million. Approximately 200 employees, based in the U.S., U.K. and Canada, have joined Imation with this acquisition. The Nexsan business will continue to operate within Imation from Nexsan`s current headquarters in Thousand Oaks, Calif., under existing management. Integration and global expansion activities between Imation`s Tiered Storage and Security Solutions business and Nexsan will be determined in first quarter 2013.

Imation Corp Announces Reduction Of Approximately 20% Global Workforce In FY 2013; Sees FY 2013 Charge Guidance

Oct 24, 2012

Imation Corp announced that in conjunction with the realignment of the business structure, the Company is also taking actions to right-size its operations with the goal of reducing operating expenses by approximately 25%. The program will address process improvements globally, product line rationalization and infrastructure, and include a reduction of approximately 20% of Imation's global workforce. The staff reductions are expected to occur in fiscal 2013. Impacted employees will be provided financial support and outplacement assistance. The Company anticipates will incur cash charges up to $40 million, with total charges expected to be $50 million to $60 million.

News

Beyond the red carpeet Western Mail (Wales) (994 Words)	17-May-2013
WIPO PUBLISHES PATENT OF IMATION FOR "REMOVABLE MEMORY CARTRIDGE AND DOCKING STATION COMPATIBLE WITH MEDIA DRIVE EXPANSION SLOTS" (AMERICAN INVENTORS) U.S. Fed News (182 Words)	17-May-2013
iGo Ranks the Lowest in Terms of Price to Book Ratio in the Computer Storage & Peripherals Industry (IGOI, IMN, IVAC) Company and Organization Website News (200 Words)	16-May-2013
Q1 2013 Imation Corp Earnings Conference Call - Final FD (Fair Disclosure) Wire (4664 Words)	15-May-2013
Imation Corp. Files SEC Form S-8, Securities To Be Offered To Employees in Employee Benefit Plans (May. 8, 2013) Electronics Newsweekly (178 Words)	15-May-2013
Imation Corp. Files SEC Form 4, Statement of Changes in Beneficial Ownership of Securities (May. 6, 2013) Electronics Newsweekly (241 Words)	15-May-2013
Imation Corp. Files SEC Form 4, Statement of Changes in Beneficial Ownership of Securities (May. 3, 2013) Electronics Newsweekly (241 Words)	15-May-2013
USPTO ISSUES TRADEMARK: PC ON A STICK U.S. Fed News (145 Words)	15-May-2013
Mark E. Lucas of Imation Corp. (IMN)-NYSE bought Shares of IMN Individual.com (247 Words)	14-May-2013
Top Insider Purchases: MUR, EVOL, MTSN, IMN, OPK, POL, SPB I Stock Analyst (369 Words)	14-May-2013
Imation Expert to Speak on Combating Advanced Threats with Secure Workspaces at FOSE 2013 Business Wire (525 Words)	14-May-2013

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation
Net Sales	1,099.6	1,290.4	1,460.9	1,649.5	1,981.0
Revenue	1,099.6	1,290.4	1,460.9	1,649.5	1,981.0
Total Revenue	1,099.6	1,290.4	1,460.9	1,649.5	1,981.0
Cost of Revenue	897.3	1,073.7	1,234.5	1,385.5	1,642.2
Cost of Revenue, Total	897.3	1,073.7	1,234.5	1,385.5	1,642.2
Gross Profit	202.3	216.7	226.4	264.0	338.8
Selling/General/Administrative Expense	210.7	203.7	202.5	229.7	287.6
Total Selling/General/Administrative Expenses	210.7	203.7	202.5	229.7	287.6
Research & Development	22.8	21.0	16.4	20.4	23.6
Restructuring Charge	6.3	0.0	0.0	11.9	20.5
Litigation	0.0	2.0	2.6	49.0	0.0
Impairment-Assets Held for Use	283.8	1.6	54.7	2.7	37.4
Loss (Gain) on Sale of Assets - Operating	-0.7	7.0	0.0	0.0	-
Other Unusual Expense (Income)	15.5	14.5	19.9	12.0	3.4
Unusual Expense (Income)	304.9	25.1	77.2	75.6	61.3
Total Operating Expense	1,435.7	1,323.5	1,530.6	1,711.2	2,014.7
Operating Income	-336.1	-33.1	-69.7	-61.7	-33.7
Interest Expense - Non-Operating	-2.9	-3.7	-4.2	-2.9	-1.5
Interest Expense, Net Non-Operating	-2.9	-3.7	-4.2	-2.9	-1.5
Interest Income - Non-Operating	0.5	0.9	0.8	0.7	3.8
Interest/Investment Income - Non-Operating	0.5	0.9	0.8	0.7	3.8
Interest Income (Expense) - Net Non-Operating Total	-2.4	-2.8	-3.4	-2.2	2.3
Other Non-Operating Income (Expense)	-2.6	-7.0	-3.3	-12.8	-10.3
Other, Net	-2.6	-7.0	-3.3	-12.8	-10.3
Income Before Tax	-341.1	-42.9	-76.4	-76.7	-41.7
Total Income Tax	-0.4	3.8	81.9	-32.7	-3.9
Income After Tax	-340.7	-46.7	-158.3	-44.0	-37.8
Net Income Before Extraord Items	-340.7	-46.7	-158.3	-44.0	-37.8
Discontinued Operations	0.0	0.0	-0.2	1.8	4.5
Total Extraord Items	0.0	0.0	-0.2	1.8	4.5
Net Income	-340.7	-46.7	-158.5	-42.2	-33.3
Income Available to Common Excl Extraord Items	-340.7	-46.7	-158.3	-44.0	-37.8
Income Available to Common Incl Extraord Items	-340.7	-46.7	-158.5	-42.2	-33.3
Basic/Primary Weighted Average Shares	37.5	37.7	37.8	37.5	37.5
Basic EPS Excl Extraord Items	-9.09	-1.24	-4.19	-1.17	-1.01
Basic/Primary EPS Incl Extraord Items	-9.09	-1.24	-4.19	-1.13	-0.89
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	-340.7	-46.7	-158.5	-42.2	-33.3
Diluted Weighted Average Shares	37.5	37.7	37.8	37.5	37.5
Diluted EPS Excl Extraord Items	-9.09	-1.24	-4.19	-1.17	-1.01
Diluted EPS Incl Extraord Items	-9.09	-1.24	-4.19	-1.13	-0.89
Dividends per Share - Common Stock Primary Issue	0.00	0.00	0.00	0.00	0.56
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	20.9
Interest Expense, Supplemental	2.9	3.7	4.2	2.9	1.5
Depreciation, Supplemental	8.3	10.7	18.2	19.7	25.9
Total Special Items	304.9	25.1	77.2	75.6	61.3
Normalized Income Before Tax	-36.2	-17.8	0.8	-1.1	19.6
Effect of Special Items on Income Taxes	106.7	8.8	27.0	26.5	21.5
Inc Tax Ex Impact of Sp Items	106.3	12.6	108.9	-6.2	17.6
Normalized Income After Tax	-142.5	-30.4	-108.1	5.1	2.0
Normalized Inc. Avail to Com.	-142.5	-30.4	-108.1	5.1	2.0
Basic Normalized EPS	-3.80	-0.81	-2.86	0.14	0.05
Diluted Normalized EPS	-3.80	-0.81	-2.86	0.14	0.05
Amort of Intangibles, Supplemental	27.5	26.0	23.6	23.3	23.4
Rental Expenses	12.2	13.2	16.8	28.3	30.4
Advertising Expense, Supplemental	6.0	2.0	4.0	6.0	14.0
Research & Development Exp, Supplemental	22.8	21.0	16.4	20.4	23.6
Normalized EBIT	-31.2	-8.0	7.5	13.9	27.6
Normalized EBITDA	4.6	28.7	49.3	56.9	76.9
Current Tax - Domestic	-11.9	1.5	12.1	-27.0	-9.4
Current Tax - Foreign	4.9	5.5	9.0	2.7	7.1
Current Tax - Local	0.0	0.0	3.8	-6.4	-1.8
Current Tax - Total	-7.0	7.0	24.9	-30.7	-4.1
Deferred Tax - Domestic	8.8	0.0	44.7	-6.6	-5.7
Deferred Tax - Foreign	-2.2	-3.2	3.7	5.5	6.4
Deferred Tax - Local	0.0	0.0	8.6	-0.9	-0.5
Deferred Tax - Total	6.6	-3.2	57.0	-2.0	0.2
Income Tax - Total	-0.4	3.8	81.9	-32.7	-3.9
Interest Cost - Domestic	3.2	-	-	5.4	6.5
Service Cost - Domestic	0.0	-	-	2.8	5.6
Prior Service Cost - Domestic	0.0	-	-	0.1	0.1
Expected Return on Assets - Domestic	-5.7	-	-	-6.5	-7.9
Actuarial Gains and Losses - Domestic	1.5	-	-	0.2	0.0
Curtailments & Settlements - Domestic	2.4	-	-	7.1	5.7
Domestic Pension Plan Expense	1.4	-	-	9.1	10.0
Interest Cost - Foreign	2.2	-	-	3.2	3.6
Service Cost - Foreign	0.6	-	-	0.7	0.8
Prior Service Cost - Foreign	-0.5	-	-	-0.2	-0.3
Expected Return on Assets - Foreign	-2.3	-	-	-3.0	-4.5
Actuarial Gains and Losses - Foreign	0.3	-	-	0.4	0.3
Curtailments & Settlements - Foreign	0.0	-	-	4.6	0.0
Transition Costs - Foreign	0.3	-	-	0.3	0.3
Foreign Pension Plan Expense	0.6	-	-	6.0	0.2
Defined Contribution Expense - Domestic	2.3	-	-	1.3	2.6
Total Pension Expense	4.3	-	-	16.4	12.8
Discount Rate - Domestic	3.75%	-	-	5.60%	6.00%
Discount Rate - Foreign	4.09%	-	-	5.79%	5.13%
Expected Rate of Return - Domestic	8.00%	-	-	8.00%	8.00%
Expected Rate of Return - Foreign	4.32%	-	-	5.07%	5.73%
Compensation Rate - Domestic	0.00%	-	-	4.75%	4.75%
Compensation Rate - Foreign	2.57%	-	-	3.56%	3.77%
Total Plan Interest Cost	5.4	-	-	8.6	10.1
Total Plan Service Cost	0.6	-	-	3.5	6.4
Total Plan Expected Return	-8.0	-	-	-9.5	-12.4

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation
Cash & Equivalents	108.7	223.1	304.9	163.4	96.6
Cash and Short Term Investments	108.7	223.1	304.9	163.4	96.6
Accounts Receivable - Trade, Gross	238.8	253.3	279.4	343.5	414.9
Provision for Doubtful Accounts	-18.0	-18.4	-20.6	-28.6	-36.6
Trade Accounts Receivable - Net	220.8	234.9	258.8	314.9	378.3
Other Receivables	15.1	4.3	2.0	35.1	-
Total Receivables, Net	235.9	239.2	260.8	350.0	378.3
Inventories - Finished Goods	146.9	186.7	175.0	210.4	337.1
Inventories - Work In Progress	6.4	13.5	10.6	8.9	9.0
Inventories - Raw Materials	12.7	8.6	17.7	16.4	17.1
Total Inventory	166.0	208.8	203.3	235.7	363.2
Prepaid Expenses	5.4	6.1	-	-	-
Restricted Cash - Current	7.5	2.2	17.9	19.1	0.0
Deferred Income Tax - Current Asset	4.7	6.1	9.1	42.7	51.5
Other Current Assets	28.9	31.0	45.2	67.5	104.3
Other Current Assets, Total	41.1	39.3	72.2	129.3	155.8
Total Current Assets	557.1	716.5	841.2	878.4	993.9
Buildings	95.0	92.6	122.2	121.3	119.0
Land/Improvements	1.2	1.2	1.4	1.4	1.4
Machinery/Equipment	124.8	146.1	223.6	227.7	305.3
Construction in Progress	1.6	1.5	2.1	0.4	1.7
Property/Plant/Equipment - Gross	222.6	241.4	349.3	350.8	427.4
Accumulated Depreciation	-163.7	-186.0	-282.4	-241.0	-305.0
Property/Plant/Equipment - Net	58.9	55.4	66.9	109.8	122.4
Goodwill, Net	73.5	31.3	0.0	23.5	23.5
Intangibles - Gross	144.1	480.4	453.7	467.6	461.0
Accumulated Intangible Amortization	-62.2	-158.7	-133.3	-130.3	-104.0
Intangibles, Net	81.9	321.7	320.4	337.3	357.0
Pension Benefits - Overfunded	6.6	5.1	-	-	-
Deferred Income Tax - Long Term Asset	9.3	15.8	12.2	35.5	31.4
Other Long Term Assets	6.2	3.5	10.3	9.3	11.8
Other Long Term Assets, Total	22.1	24.4	22.5	44.8	43.2
Total Assets	793.5	1,149.3	1,251.0	1,393.8	1,540.0
Accounts Payable	162.7	205.2	219.2	201.4	296.1
Accrued Expenses	108.1	94.7	26.1	31.7	12.5
Notes Payable/Short Term Debt	20.0	0.0	0.0	0.0	0.0
Customer Advances	6.9	2.3	-	-	-
Deferred Income Tax - Current Liability	0.3	0.7	-	-	-
Other Current Liabilities	43.1	53.5	146.2	138.8	200.5
Other Current liabilities, Total	50.3	56.5	146.2	138.8	200.5
Total Current Liabilities	341.1	356.4	391.5	371.9	509.1
Total Long Term Debt	0.0	0.0	0.0	0.0	0.0
Total Debt	20.0	0.0	0.0	0.0	0.0
Deferred Income Tax - LT Liability	2.1	0.1	3.4	3.3	4.2
Deferred Income Tax	2.1	0.1	3.4	3.3	4.2
Pension Benefits - Underfunded	28.1	29.3	27.0	36.3	49.0
Other Long Term Liabilities	21.8	39.8	47.4	55.1	33.1
Other Liabilities, Total	49.9	69.1	74.4	91.4	82.1
Total Liabilities	393.1	425.6	469.3	466.6	595.4
Convertible Preferred Stock - Non Redeemable	0.0	0.0	-	-	-
Preferred Stock - Non Redeemable, Net	0.0	0.0	-	-	-
Common Stock	0.4	0.4	0.4	0.4	0.4
Common Stock	0.4	0.4	0.4	0.4	0.4
Additional Paid-In Capital	1,052.6	1,107.8	1,103.6	1,112.3	1,113.1
Retained Earnings (Accumulated Deficit)	-540.8	-200.1	-153.4	5.1	47.3
Treasury Stock - Common	-37.6	-111.8	-108.2	-121.7	-131.2
Translation Adjustment	-49.1	-47.4	-	-	-
Minimum Pension Liability Adjustment	-27.8	-26.8	-	-	-
Other Comprehensive Income	2.7	1.6	-60.7	-68.9	-85.0
Other Equity, Total	-74.2	-72.6	-60.7	-68.9	-85.0
Total Equity	400.4	723.7	781.7	927.2	944.6
Total Liabilities & Shareholders’ Equity	793.5	1,149.3	1,251.0	1,393.8	1,540.0
Shares Outstanding - Common Stock Primary Issue	41.3	38.2	38.7	38.1	37.7
Total Common Shares Outstanding	41.3	38.2	38.7	38.1	37.7
Treasury Shares - Common Stock Primary Issue	1.6	4.7	4.2	4.8	5.2
Employees	1,230	-	1,115	1,210	1,570
Number of Common Shareholders	20,009	-	21,785	22,558	23,475
Accumulated Intangible Amort, Suppl.	62.2	158.7	133.3	130.3	104.0
Deferred Revenue - Current	6.9	2.3	-	-	-
Deferred Revenue - Long Term	4.3	17.6	-	-	-
Total Operating Leases, Supplemental	18.8	-	17.6	43.3	31.2
Operating Lease Payments Due in Year 1	8.0	-	9.0	12.7	10.3
Operating Lease Payments Due in Year 2	4.9	-	5.2	11.4	8.6
Operating Lease Payments Due in Year 3	2.1	-	2.2	8.2	6.7
Operating Lease Payments Due in Year 4	1.3	-	0.9	5.3	3.3
Operating Lease Payments Due in Year 5	0.9	-	0.3	4.2	1.5
Operating Lease Pymts. Due in 2-3 Years	7.0	-	7.4	19.6	15.3
Operating Lease Pymts. Due in 4-5 Years	2.2	-	1.2	9.5	4.8
Oper. Lse. Pymts. Due in Year 6 & Beyond	1.6	-	0.0	1.5	0.8
Pension Obligation - Domestic	88.3	-	93.8	96.7	110.2
Pension Obligation - Foreign	63.4	-	58.9	59.2	57.0
Plan Assets - Domestic	71.7	-	70.9	64.1	64.1
Plan Assets - Foreign	58.0	-	61.2	59.0	59.0
Funded Status - Domestic	-16.6	-	-22.9	-32.6	-46.1
Funded Status - Foreign	-5.4	-	2.3	-0.2	2.0
Accumulated Obligation - Domestic	88.3	-	93.7	95.9	108.8
Accumulated Obligation - Foreign	36.9	-	28.8	26.8	9.7
Total Funded Status	-22.0	-	-20.6	-32.8	-44.1
Discount Rate - Domestic	3.50%	-	5.00%	5.50%	5.75%
Discount Rate - Foreign	3.33%	-	4.77%	5.12%	5.70%
Compensation Rate - Domestic	0.00%	-	4.75%	4.75%	4.75%
Compensation Rate - Foreign	3.02%	-	1.30%	3.51%	3.70%
Prepaid Benefits - Foreign	6.1	-	6.4	3.5	4.9
Intangible Assets - Foreign	11.5	-	4.1	3.7	2.9
Accrued Liabilities - Domestic	-16.6	-	-22.9	-32.6	-46.1
Other Assets, Net - Domestic	51.6	-	43.2	54.8	86.4
Other Assets, Net - Foreign	14.2	-	2.7	6.2	4.6
Net Assets Recognized on Balance Sheet	66.8	-	33.5	35.6	52.7
Other Investments % - Domestic	0.00%	-	0.00%	0.00%	0.00%
Other Investments % - Foreign	33.00%	-	31.00%	34.00%	32.00%
Total Plan Obligations	151.7	-	152.7	155.9	167.2
Total Plan Assets	129.7	-	132.1	123.1	123.1

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation
Net Income/Starting Line	-340.7	-46.7	-158.5	-42.2	-33.3
Depreciation	35.8	36.7	41.8	19.7	25.9
Depreciation/Depletion	35.8	36.7	41.8	19.7	25.9
Amortization of Intangibles	-	-	-	23.3	23.4
Amortization	-	-	-	23.3	23.4
Deferred Taxes	5.7	-2.9	57.0	-2.0	0.2
Unusual Items	285.7	8.6	54.7	31.7	39.7
Other Non-Cash Items	6.3	31.5	31.9	28.4	20.1
Non-Cash Items	292.0	40.1	86.6	60.1	59.8
Accounts Receivable	23.7	28.0	59.7	67.6	129.0
Inventories	45.8	-12.2	16.1	132.9	0.2
Other Assets	-9.1	5.5	54.9	-38.6	-2.9
Accounts Payable	-44.0	-17.7	13.6	-98.4	-61.5
Accrued Expenses	-17.7	-47.1	-19.8	-54.9	-56.1
Changes in Working Capital	-1.3	-43.5	124.5	8.6	8.7
Cash from Operating Activities	-8.5	-16.3	151.4	67.5	84.7
Purchase of Fixed Assets	-10.2	-7.3	-8.3	-11.0	-13.6
Purchase/Acquisition of Intangibles	-4.0	0.0	-5.0	0.0	0.0
Capital Expenditures	-14.2	-7.3	-13.3	-11.0	-13.6
Acquisition of Business	-103.8	-47.0	0.0	0.0	-15.3
Sale of Business	-	-	-	-	0.0
Sale of Fixed Assets	1.4	0.0	0.2	13.0	0.0
Sale/Maturity of Investment	-	-	-	-	0.0
Investment, Net	0.9	0.0	0.0	-	-
Purchase of Investments	-	-	-	0.0	-8.1
Other Investing Cash Flow	-	-	-	0.0	0.9
Other Investing Cash Flow Items, Total	-101.5	-47.0	0.2	13.0	-22.5
Cash from Investing Activities	-115.7	-54.3	-13.1	2.0	-36.1
Other Financing Cash Flow	-3.6	0.0	-1.0	-3.2	0.0
Financing Cash Flow Items	-3.6	0.0	-1.0	-3.2	0.0
Cash Dividends Paid - Common	-	-	-	0.0	-20.9
Total Cash Dividends Paid	-	-	-	0.0	-20.9
Repurchase/Retirement of Common	-6.5	-9.7	0.0	0.0	-26.4
Common Stock, Net	-6.5	-9.7	0.0	0.0	-26.4
Options Exercised	0.0	0.6	0.0	0.0	0.6
Issuance (Retirement) of Stock, Net	-6.5	-9.1	0.0	0.0	-25.8
Long Term Debt Issued	25.0	0.0	0.0	-	-
Long Term Debt Reduction	-5.0	0.0	0.0	0.0	-31.3
Long Term Debt, Net	20.0	0.0	0.0	0.0	-31.3
Issuance (Retirement) of Debt, Net	20.0	0.0	0.0	0.0	-31.3
Cash from Financing Activities	9.9	-9.1	-1.0	-3.2	-78.0
Foreign Exchange Effects	-0.1	-2.1	4.2	0.5	-9.5
Net Change in Cash	-114.4	-81.8	141.5	66.8	-38.9
Net Cash - Beginning Balance	223.1	304.9	163.4	96.6	135.5
Net Cash - Ending Balance	108.7	223.1	304.9	163.4	96.6
Cash Interest Paid	2.4	2.7	2.7	1.4	1.9
Cash Taxes Paid	4.4	-4.9	6.4	14.8	26.5

Annual Income Statement

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation
Net revenue	1,099.6	1,290.4	1,460.9	1,649.5	1,981.0
Total Revenue	1,099.6	1,290.4	1,460.9	1,649.5	1,981.0
Global process improvement consulting	14.9	-	-	-	-
Other	2.7	-2.0	2.4	-	-
Cost of Goods Sold	897.3	1,073.7	1,234.5	1,385.5	1,642.2
Selling, general and administrative	210.7	203.7	202.5	229.7	287.6
Research and development	22.8	21.0	16.4	20.4	23.6
Intangible impairments	260.5	0.0	0.0	-	-
Goodwill impairment	23.3	1.6	23.5	0.0	32.4
Contingent consideration fair value adju	-8.6	0.0	0.0	-	-
Restructuring and other	-	-	-	11.9	20.5
Severance and Severance-Related Expense	3.0	7.0	13.0	-	-
Lease termination costs	0.5	3.3	1.7	-	-
Other	1.3	1.1	0.0	-	-
Intangible asset abandonment	1.9	0.0	0.0	-	-
Pension Settlement	2.4	2.5	2.8	11.7	5.7
Asset impairments	0.0	0.0	31.2	2.7	5.0
Gain on sale of fixed assets held for sa	-0.7	0.0	0.0	-	-
Asset disposals	-	7.0	0.0	-	-
Facility disposals	0.0	-	-	0.0	-
Acquisition and integration related cost	3.7	2.6	0.0	0.0	-
Long-term disability plan amendment	-	-	-	0.3	-2.3
Litigation settlement	0.0	2.0	2.6	49.0	0.0
Total Operating Expense	1,435.7	1,323.5	1,530.6	1,711.2	2,014.7
Interest Income	0.5	0.9	0.8	0.7	3.8
Interest Expense	-2.9	-3.7	-4.2	-2.9	-1.5
Other, net	-2.6	-7.0	-3.3	-12.8	-10.3
Net Income Before Taxes	-341.1	-42.9	-76.4	-76.7	-41.7
Provision for Income Taxes	-0.4	3.8	81.9	-32.7	-3.9
Net Income After Taxes	-340.7	-46.7	-158.3	-44.0	-37.8
Net Income Before Extra. Items	-340.7	-46.7	-158.3	-44.0	-37.8
Loss from discontinued operations, net o	0.0	0.0	-0.2	1.8	4.5
Net Income	-340.7	-46.7	-158.5	-42.2	-33.3
Income Available to Com Excl ExtraOrd	-340.7	-46.7	-158.3	-44.0	-37.8
Income Available to Com Incl ExtraOrd	-340.7	-46.7	-158.5	-42.2	-33.3
Basic Weighted Average Shares	37.5	37.7	37.8	37.5	37.5
Basic EPS Excluding ExtraOrdinary Items	-9.09	-1.24	-4.19	-1.17	-1.01
Basic EPS Including ExtraOrdinary Items	-9.09	-1.24	-4.19	-1.13	-0.89
Dilution Adjustment	0.0	0.0	0.0	0.0	0.0
Diluted Net Income	-340.7	-46.7	-158.5	-42.2	-33.3
Diluted Weighted Average Shares	37.5	37.7	37.8	37.5	37.5
Diluted EPS Excluding ExtraOrd Items	-9.09	-1.24	-4.19	-1.17	-1.01
Diluted EPS Including ExtraOrd Items	-9.09	-1.24	-4.19	-1.13	-0.89
DPS-Common Stock	0.00	0.00	0.00	0.00	0.56
Gross Dividends - Common Stock	0.0	0.0	0.0	0.0	20.9
Normalized Income Before Taxes	-36.2	-17.8	0.8	-1.1	19.6
Inc Tax Ex Impact of Sp Items	106.3	12.6	108.9	-6.2	17.6
Normalized Income After Taxes	-142.5	-30.4	-108.1	5.1	2.0
Normalized Inc. Avail to Com.	-142.5	-30.4	-108.1	5.1	2.0
Basic Normalized EPS	-3.80	-0.81	-2.86	0.14	0.05
Diluted Normalized EPS	-3.80	-0.81	-2.86	0.14	0.05
Research and development	22.8	21.0	16.4	20.4	23.6
Interest Expense	2.9	3.7	4.2	2.9	1.5
BC - Depreciation of Fixed Assets	8.3	10.7	18.2	-	-
Depreciation	-	-	-	19.7	25.9
BC - Depreciation of Intangible Assets	27.5	26.0	23.6	-	-
Amort of Intangibles	-	-	-	23.3	23.4
Rental Expense	12.2	13.2	16.8	28.3	30.4
Advertising Expenses	6.0	2.0	4.0	6.0	14.0
Current Tax - Domestic	-11.9	1.5	12.1	-	-
Federal - Current Tax	-	-	-	-27.0	-9.4
Current Tax - Local	0.0	0.0	3.8	-	-
State - Current Tax	-	-	-	-6.4	-1.8
Current Tax - Foreign	4.9	5.5	9.0	-	-
International - Current Tax	-	-	-	2.7	7.1
Current Tax - Total	-7.0	7.0	24.9	-30.7	-4.1
Deferred Tax - Domestic	8.8	0.0	44.7	-	-
Federal - Deferred Tax	-	-	-	-6.6	-5.7
Deferred Tax - Local	0.0	0.0	8.6	-	-
State - Deferred Tax	-	-	-	-0.9	-0.5
Deferred Tax - Foreign	-2.2	-3.2	3.7	-	-
International - Deferred Tax	-	-	-	5.5	6.4
Deferred Tax - Total	6.6	-3.2	57.0	-2.0	0.2
Income Tax - Total	-0.4	3.8	81.9	-32.7	-3.9
Service Cost - U.S.	0.0	-	-	2.8	5.6
Interest Cost - U.S.	3.2	-	-	5.4	6.5
Expected Return on Assets - U.S.	-5.7	-	-	-6.5	-7.9
Amort. of Actuarial Gain/Loss - U.S.	1.5	-	-	0.2	0.0
Amort. of Prior Service Cost - U.S.	0.0	-	-	0.1	0.1
Recognized Actuarial Gain/Loss - U.S.	0.0	-	-	0.0	0.0
Curtailments & Settlements - U.S.	2.4	-	-	7.1	5.7
Domestic Pension Plan Expense	1.4	-	-	9.1	10.0
Service Cost - Int'l	0.6	-	-	0.7	0.8
Interest Cost - Int'l	2.2	-	-	3.2	3.6
Expected Return on Assets - Int'l	-2.3	-	-	-3.0	-4.5
Amort. of Actuarial Gain/Loss - Int'l	0.3	-	-	0.4	0.3
Amort. of Prior Service Cost - Int'l	-0.5	-	-	-0.2	-0.3
Amort. of Transition Oblig. - Int'l	0.3	-	-	0.3	0.3
Curtailments & Settlements - Int'l	0.0	-	-	4.6	0.0
Foreign Pension Plan Expense	0.6	-	-	6.0	0.2
401(k) Retirement Savings Plan	2.3	-	-	1.3	2.6
Total Pension Expense	4.3	-	-	16.4	12.8
Discount Rate - U.S.	3.75%	-	-	5.60%	6.00%
Expected Rate of Return - U.S.	8.00%	-	-	8.00%	8.00%
Compensation Rate - U.S.	0.00%	-	-	4.75%	4.75%
Discount Rate - Int'l	4.09%	-	-	5.79%	5.13%
Expected Rate of Return - Int'l	4.32%	-	-	5.07%	5.73%
Compensation Rate - Int'l	2.57%	-	-	3.56%	3.77%

Annual Balance Sheet

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2010	Updated Normal 31-Dec-2009	Restated Normal 31-Dec-2009
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation
Cash and cash equivalents	108.7	223.1	304.9	163.4	96.6
Non trade receivables	15.1	4.3	-	-	-
Hedging asset	5.5	3.4	-	-	-
Other Current Assets	20.9	24.3	-	-	-
Other current assets	-	-	38.0	60.3	104.3
Tax Receivables	-	-	2.0	35.1	-
Assets hels for sale	2.5	3.3	7.2	7.2	-
Deferred Taxes	4.7	6.1	9.1	42.7	51.5
Accounts Rcvbl.	238.8	253.3	-	-	-
Accounts Rcvbl.	-	-	279.4	343.5	414.9
Provision	-18.0	-18.4	-20.6	-28.6	-36.6
Restricted Cash	7.5	2.2	17.9	19.1	0.0
Finished Goods	146.9	186.7	175.0	210.4	337.1
Work in Process	6.4	13.5	10.6	8.9	9.0
Raw Materials	12.7	8.6	17.7	16.4	17.1
Prepaid expenses	5.4	6.1	-	-	-
Total Current Assets	557.1	716.5	841.2	878.4	993.9
Goodwill	73.5	31.3	0.0	23.5	23.5
Credit facility fees	2.3	0.3	-	-	-
Other assets	3.9	3.2	10.3	9.3	11.8
Deferred Taxes	9.3	15.8	12.2	35.5	31.4
Land	1.2	1.2	1.4	1.4	1.4
Buildings/Improv	95.0	92.6	122.2	121.3	119.0
Mach./Equipment	124.8	146.1	223.6	227.7	305.3
Constr. in Progr	1.6	1.5	2.1	0.4	1.7
Depreciation	-163.7	-186.0	-282.4	-241.0	-305.0
Trade Names	37.7	347.1	332.4	333.2	333.1
Software	58.4	57.9	54.2	62.3	56.9
Customer Relationships	21.2	61.5	58.8	65.5	62.9
Others Intangibles	26.8	13.9	8.3	6.6	8.1
AccAmort Brand/Patent/Market/Art Intang.	-6.0	-57.5	-	-	-
Acc Amort Computer Software	-52.0	-51.1	-	-	-
Customer relationship- amortization	-1.0	-45.5	-	-	-
Other - amortization	-3.2	-4.6	-	-	-
Amortization Intagible	-	-	-133.3	-130.3	-104.0
Pension Assets	6.6	5.1	-	-	-
Total Assets	793.5	1,149.3	1,251.0	1,393.8	1,540.0
Accounts Payable	162.7	205.2	219.2	201.4	296.1
Accrued Payroll	11.4	13.2	15.6	19.7	12.5
Accrued copyright levies	27.7	19.7	-	-	-
Employee separation costs	16.7	5.9	-	-	-
Accrued royalties	7.5	10.7	-	-	-
Value Added Tax	-	-	10.5	12.0	-
Litigation settlement	0.0	18.0	-	-	-
Hedging liability	1.3	1.4	-	-	-
Other current liabilities	41.8	34.1	146.2	138.8	200.5
Accrued Rebates	44.8	45.2	-	-	-
Deferred Income	6.9	2.3	-	-	-
Short-term debt	20.0	0.0	-	-	-
Deferred Income Tax - Current Liability	0.3	0.7	-	-	-
Total Current Liabilities	341.1	356.4	391.5	371.9	509.1
Pension Benefits	28.1	29.3	27.0	36.3	49.0
Deferred Income Tax	2.1	0.1	3.4	3.3	4.2
Uncertain tax positions	2.5	0.0	-	-	-
Deferred Income	4.3	17.6	-	-	-
Other	15.0	22.2	-	-	-
Other liabilities	-	-	47.4	55.1	33.1
Total Liabilities	393.1	425.6	469.3	466.6	595.4
Transl. Adjustment	-49.1	-47.4	-	-	-
Pension adjustments, net of income tax	-27.8	-26.8	-	-	-
Preferred stock	0.0	0.0	-	-	-
Common stock, $.01 par value, authorized	0.4	0.4	0.4	0.4	0.4
Additional paid-in capital	1,052.6	1,107.8	1,103.6	1,112.3	1,113.1
Retained deficit	-540.8	-200.1	-153.4	5.1	47.3
Treasury stock, at cost	-37.6	-111.8	-108.2	-121.7	-131.2
Other Comprehensive Income	2.7	1.6	-	-	-
Accum. Comp.	-	-	-60.7	-68.9	-85.0
Total Equity	400.4	723.7	781.7	927.2	944.6
Total Liabilities & Shareholders' Equity	793.5	1,149.3	1,251.0	1,393.8	1,540.0
S/O-Common Stock	41.3	38.2	38.7	38.1	37.7
Total Common Shares Outstanding	41.3	38.2	38.7	38.1	37.7
T/S-Common Stock	1.6	4.7	4.2	4.8	5.2
Deferred Income	4.3	17.6	-	-	-
AccAmort Brand/Patent/Market/Art Intang.	6.0	57.5	-	-	-
Acc Amort Computer Software	52.0	51.1	-	-	-
Customer relationship- amortization	1.0	45.5	-	-	-
Other - amortization	3.2	4.6	-	-	-
Amortisation of Intangible Assets	-	-	133.3	130.3	104.0
Deferred Revenue	6.9	2.3	-	-	-
Full-Time Employees	1,230	-	1,115	1,210	1,570
Number of Common Shareholders	20,009	-	21,785	22,558	23,475
Operating Lease Maturing Within 1 Year	8.0	-	9.0	12.7	10.3
Operating Lease Maturing Within 2 Year	4.9	-	5.2	11.4	8.6
Operating Lease Maturing Within 3 Year	2.1	-	2.2	8.2	6.7
Operating Lease Maturing Within 4 Year	1.3	-	0.9	5.3	3.3
Operating Lease Maturing Within 5 Year	0.9	-	0.3	4.2	1.5
Operating Leases Maturing Thereafter	1.6	-	0.0	1.5	0.8
Total Operating Leases, Supplemental	18.8	-	17.6	43.3	31.2
Projected Benefit Obligation - U.S.	88.3	-	93.8	96.7	110.2
FV of Plan Assets - U.S.	71.7	-	70.9	64.1	64.1
Funded Status - U.S.	-16.6	-	-22.9	-32.6	-46.1
Accumulated Benefit Obligation - U.S.	88.3	-	93.7	95.9	108.8
Projected Benefit Obligation - Int'l	63.4	-	58.9	59.2	57.0
FV of Plan Assets - Int' l	58.0	-	61.2	59.0	59.0
Funded Status - Int'l	-5.4	-	2.3	-0.2	2.0
Accumulated Benefit Obligation - Int'l	36.9	-	28.8	26.8	9.7
Total Funded Status	-22.0	-	-20.6	-32.8	-44.1
Discount Rate - U.S.	3.50%	-	5.00%	5.50%	5.75%
Compensation Rate - U.S.	0.00%	-	4.75%	4.75%	4.75%
Discount Rate - Int'l	3.33%	-	4.77%	5.12%	5.70%
Compensation Rate - Int'l	3.02%	-	1.30%	3.51%	3.70%
Non-Current Assets - Int'l	6.1	-	6.4	3.5	4.9
Non-Current Liabilities - U.S.	-16.6	-	-22.9	-32.6	-46.1
Non-Current Liabilities - Int'l	11.5	-	4.1	3.7	2.9
Other Comprehensive Inc./Loss - U.S.	25.8	-	21.6	27.4	43.2
AOCI-Net Actuarial Loss - U.S.	25.8	-	21.6	27.0	42.7
AOCI-Prior Service Cost - U.S.	0.0	-	0.0	0.4	0.5
AOCI-Net Actuarial Loss - Int'l	18.2	-	7.3	8.0	6.5
AOCI-Prior Service Cost - Int'l	-5.4	-	-6.7	-3.7	-4.0
AOCI-Transition Obligation - Int'l	1.4	-	2.1	1.9	2.1
Net Assets Recognized on Balance Sheet	66.8	-	33.5	35.6	52.7
Equity Securities % - U.S.	56.00%	-	66.00%	72.00%	55.00%
Short-term investment % - U.S	9.00%	-	3.00%	5.00%	3.00%
Fixed income Securities % - U.S	19.00%	-	19.00%	16.00%	27.00%
Absolute Return Strategy Eq. Fund % -U.S	16.00%	-	12.00%	7.00%	15.00%
Insurance Contract % - U.S	0.00%	-	0.00%	0.00%	0.00%
Equity Securities % - Int'l	26.00%	-	36.00%	31.00%	27.00%
Short-term investment % - Int'l	1.00%	-	1.00%	4.00%	5.00%
Fixed income Securities % - Int'l	40.00%	-	32.00%	31.00%	36.00%
Absolute Return Strat. Eq. Fund % - Int	0.00%	-	0.00%	0.00%	0.00%
Insurance Contract % - Int'l	33.00%	-	31.00%	34.00%	32.00%

Annual Cash Flows

Financials in: USD (mil)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Period Length	12 Months	12 Months	12 Months	12 Months	12 Months
UpdateType/Date	Updated Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Reclassified Normal 31-Dec-2012	Updated Normal 31-Dec-2009	Updated Normal 31-Dec-2008
Filed Currency	USD	USD	USD	USD	USD
Exchange Rate (Period Average)	1	1	1	1	1
Auditor	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP	PricewaterhouseCoopers LLP
Auditor Opinion	Unqualified	Unqualified	Unqualified	Unqualified with Explanation	Unqualified with Explanation
Net Income	-340.7	-46.7	-158.5	-42.2	-33.3
Depreciation	35.8	36.7	41.8	19.7	25.9
Amortization	-	-	-	23.3	23.4
Goodwill impairment	285.7	8.6	54.7	0.0	34.7
Deferred Taxes	5.7	-	-	-	-
Deferred income taxes and valuation allo	-	-2.9	57.0	-2.0	0.2
Contingent consideration adjustment	-8.6	0.0	0.0	-	-
Pension settlement	2.4	3.1	2.8	-	-
Inventory write-offs	2.3	9.1	14.2	0.0	0.0
Asset Impairment	-	-	-	2.7	5.0
Gain on Sale of Specialty Papers	-	-	-	-	0.0
Litigation settlement	-	-	-	49.0	0.0
Note receivable reserve	-	-	-	3.0	0.0
Deferred tax asset valuation allowance	-	-	-	0.0	0.0
Pension settlement / curtailment	-	-	-	11.7	5.7
Stock-based compensation	7.3	7.5	6.9	7.5	9.5
Excess tax benefit from exercise of stoc	-	-	-	-	0.0
Accounts Receivable	23.7	28.0	59.7	67.6	129.0
Inventories	45.8	-12.2	16.1	132.9	0.2
Other assets	-9.1	1.3	53.7	-19.4	-2.9
Accounts Payable	-44.0	-17.7	13.6	-98.4	-61.5
Restricted cash	0.0	4.2	1.2	-19.2	0.0
Accrued payroll and other liabilities	-17.7	-47.1	-19.8	-54.9	-56.1
Litigation settlement payment	-	-	-	-20.0	0.0
Other(1)	2.9	11.8	8.0	6.2	4.9
Cash from Operating Activities	-8.5	-16.3	151.4	67.5	84.7
Recovery of investments	0.9	0.0	0.0	-	-
Purchase of tradename	-4.0	0.0	0.0	-	-
License agreement	0.0	0.0	-5.0	0.0	0.0
Capital Expenditures	-10.2	-7.3	-8.3	-11.0	-13.6
Purchase of Invest.	-	-	-	-	-0.1
Sale of Investments	-	-	-	-	0.0
Proceeds from sale of assets	1.4	0.0	0.2	13.0	0.0
Acquisition of minority interest	-	-	-	0.0	-8.0
Acquisitions, net of cash acquired	-103.8	-	-	-	-
Acquisitions	-	-47.0	-	-	-
Acquisitions, net of cash acquired	-	-	0.0	0.0	-15.3
Sale of Business	-	-	-	-	0.0
Other, net	-	-	-	0.0	0.9
Cash from Investing Activities	-115.7	-54.3	-13.1	2.0	-36.1
Borrow of LT Debt	25.0	0.0	0.0	-	-
Purchase of treasury stock	-6.5	-9.7	0.0	0.0	-26.4
Exercise of stock options	0.0	0.6	0.0	0.0	0.6
Contingent consideration payments	-1.2	0.0	0.0	-	-
Debt issuance costs	-2.4	0.0	-1.0	-3.2	0.0
Debt Repayment	-5.0	0.0	0.0	0.0	-31.3
Dividend Payments	-	-	-	0.0	-20.9
Excess tax benefit from exercise of stoc	-	-	-	-	0.0
Cash from Financing Activities	9.9	-9.1	-1.0	-3.2	-78.0
Foreign Exchange Effects	-0.1	-2.1	4.2	0.5	-9.5
Net Change in Cash	-114.4	-81.8	141.5	66.8	-38.9
Net Cash - Beginning Balance	223.1	304.9	163.4	96.6	135.5
Net Cash - Ending Balance	108.7	223.1	304.9	163.4	96.6
Cash Interest Paid	2.4	2.7	2.7	1.4	1.9
Cash Taxes Paid	4.4	-4.9	6.4	14.8	26.5

Financial Health

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

Key Indicators USD (mil)
Â	Quarter Ending 31-Mar-2013	Quarter Ending Yr Ago	Annual Year End 31-Dec-2012	1 Year Growth	3 Year Growth	5 Year Growth
Total Revenue (?)	224.4	-14.77%	1,099.6	-14.79%	-12.64%	-10.32%
Research & Development (?)	5.4	-3.57%	22.8	8.57%	3.78%	-9.81%
Operating Income (?)	-14.7	-	-336.1	-	-	-
Income Available to Common Excl Extraord Items (?)	-15.6	-	-340.7	-	-	-
Basic EPS Excl Extraord Items (?)	-0.39	-	-9.09	-	-	-
Capital Expenditures (?)	1.4	-30.00%	14.2	94.52%	8.88%	-0.42%
Cash from Operating Activities (?)	-9.0	-	-8.5	-	-	-
Free Cash Flow (?)	-10.4	-	-22.7	-	-	-
Total Assets (?)	725.1	-33.51%	793.5	-30.96%	-17.12%	-14.64%
Total Liabilities (?)	345.5	-7.55%	393.1	-7.64%	-5.55%	-10.83%
Total Long Term Debt (?)	0.0	-	0.0	-	-	-
Employees (?)	-	-	1230	-	0.55%	-11.38%
Total Common Shares Outstanding (?)	41.5	7.73%	41.3	8.11%	2.76%	1.48%
Market Cap (?)	158.6	-33.52%	193.0	-11.89%	-16.55%	-24.87%

Key Ratios
Â	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Profitability
Gross Margin (?)	18.40%	16.79%	15.50%	16.00%	17.10%
Operating Margin (?)	-30.57%	-2.57%	-4.77%	-3.74%	-1.70%
Pretax Margin (?)	-31.02%	-3.32%	-5.23%	-4.65%	-2.11%
Net Profit Margin (?)	-30.98%	-3.62%	-10.84%	-2.67%	-1.91%
Financial Strength
Current Ratio (?)	1.63	2.01	2.15	2.36	1.95
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.05	0.00	0.00	0.00	0.00
Management Effectiveness
Return on Assets (?)	-35.07%	-3.89%	-11.97%	-3.00%	-2.30%
Return on Equity (?)	-60.62%	-6.20%	-18.53%	-4.70%	-3.78%
Efficiency
Receivables Turnover (?)	4.63	5.16	4.78	4.53	4.47
Inventory Turnover (?)	4.79	5.21	5.62	4.63	4.50
Asset Turnover (?)	1.13	1.08	1.10	1.12	1.20

Market Valuation USD (mil)
Enterprise Value (?)	77.9	.	Price/Sales (TTM) (?)	0.15
Enterprise Value/Revenue (TTM) (?)	0.07	.	Price/Book (MRQ) (?)	0.41
Enterprise Value/EBITDA (TTM) (?)	14.65	.	Market Cap (?)	156.1

Ratio Comparisons

Traded: New York Stock Exchange: IMN	Financials in: USD (actual units)
Industry: Computer Storage Devices	As of 10-May-2013
Sector: Technology

	Company	Industry	Sector	S&P 500
Valuation Ratios
P/E Excluding Extraordinary (TTM) (?)	-	26.02	22.09	19.68
P/E High Excluding Extraordinary - Last 5 Yrs (?)	-	41.49	42.91	32.79
P/E Low Excluding Extraordinary - Last 5 Yrs (?)	-	18.71	12.36	10.71
Beta (?)	1.22	1.25	1.19	1.00
Price/Revenue (TTM) (?)	0.15	3.11	4.07	2.57
Price/Book (MRQ) (?)	0.41	3.42	4.73	3.67
Price to Tangible Book (MRQ) (?)	0.67	3.49	6.85	5.21
Price to Cash Flow Per Share (TTM) (?)	-	17.20	17.48	14.22
Price to Free Cash Flow Per Share (TTM) (?)	-	13.61	23.00	26.26
Dividends
Dividend Yield (?)	-	-	1.65%	2.26%
Dividend Per Share - 5 Yr Avg (?)	0.11	0.00	0.71	1.99
Dividend 5 Yr Growth (?)	-	-100.00%	7.13%	0.08%
Payout Ratio (TTM) (?)	-	0.00%	10.38%	25.98%
Growth Rates (%)
Revenue (MRQ) vs Qtr 1 Yr Ago (?)	-14.77%	20.58%	28.50%	15.58%
Revenue (TTM) vs TTM 1 Yr Ago (?)	-15.75%	26.02%	18.25%	17.69%
Revenue 5 Yr Growth (?)	-10.32%	14.91%	16.94%	8.97%
EPS (MRQ) vs Qtr 1 Yr Ago (?)	-57.40%	39.78%	41.24%	19.49%
EPS (TTM) vs TTM 1 Yr Ago (?)	-610.26%	58.15%	49.53%	32.55%
EPS 5 Yr Growth (?)	-	15.54%	20.44%	9.86%
Capital Spending 5 Yr Growth (?)	-0.42%	7.88%	9.78%	-2.04%
Financial Strength
Quick Ratio (MRQ) (?)	1.24	1.94	1.98	1.24
Current Ratio (MRQ) (?)	1.70	2.25	2.38	1.79
LT Debt/Equity (MRQ) (?)	0.00	0.14	0.31	0.64
Total Debt/Equity (MRQ) (?)	0.05	0.24	0.36	0.73
Interest Coverage (TTM) (?)	-15.74	12.75	11.30	13.80
Profitability Ratios (%)
Gross Margin (TTM) (?)	18.07%	55.83%	55.32%	45.21%
Gross Margin - 5 Yr Avg (?)	16.68%	49.74%	53.24%	44.91%
EBITD Margin (TTM) (?)	-0.32%	21.77%	25.78%	24.43%
EBITD Margin - 5 Yr Avg (?)	2.89%	14.54%	21.39%	22.84%
Operating Margin (TTM) (?)	-32.80%	16.70%	22.29%	20.63%
Operating Margin - 5 Yr Avg (?)	-7.14%	9.20%	17.62%	18.28%
Pretax Margin (TTM) (?)	-33.11%	16.14%	22.54%	17.95%
Pretax Margin - 5 Yr Avg (?)	-7.74%	9.90%	18.75%	17.10%
Net Profit Margin (TTM) (?)	-33.01%	12.56%	17.35%	13.65%
Net Profit Margin - 5 Yr Avg (?)	-8.39%	7.72%	12.72%	12.10%
Effective Tax Rate (TTM) (?)	-	19.79%	23.73%	28.45%
Effective Tax rate - 5 Yr Avg (?)	-	20.38%	24.82%	29.92%
Management Effectiveness (%)
Return on Assets (TTM) (?)	-37.90%	8.90%	12.89%	8.54%
Return on Assets - 5 Yr Avg (?)	-9.50%	6.42%	10.70%	8.40%
Return on Investment (TTM) (?)	-56.60%	7.61%	13.09%	7.90%
Return on Investment - 5 Yr Avg (?)	-13.97%	5.72%	11.50%	8.27%
Return on Equity (TTM) (?)	-62.77%	16.22%	25.23%	19.72%
Return on Equity - 5 Yr Avg (?)	-15.29%	11.52%	21.05%	20.06%
Efficiency
Revenue/Employee (TTM) (?)	847,398.40	537,800.09	617,868.03	927,613.77
Net Income/Employee (TTM) (?)	-279,756.10	85,306.64	132,630.14	116,121.92
Receivables Turnover (TTM) (?)	5.58	9.50	8.08	13.25
Inventory Turnover (TTM) (?)	5.18	10.31	19.61	14.53
Asset Turnover (TTM) (?)	1.15	0.72	0.75	0.93

Annual Ratios

Financials in: USD (mil)

Except for share items (millions) and per share items (actual units)

	31-Dec-2012	31-Dec-2011	31-Dec-2010	31-Dec-2009	31-Dec-2008
Financial Strength
Current Ratio (?)	1.63	2.01	2.15	2.36	1.95
Quick/Acid Test Ratio (?)	1.01	1.30	1.45	1.38	0.93
Working Capital (?)	216.0	360.1	449.7	506.5	484.8
Long Term Debt/Equity (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Equity (?)	0.05	0.00	0.00	0.00	0.00
Long Term Debt/Total Capital (?)	0.00	0.00	0.00	0.00	0.00
Total Debt/Total Capital (?)	0.05	0.00	0.00	0.00	0.00
Payout Ratio (?)	0.00%	0.00%	0.00%	0.00%	-55.56%
Total Capital (?)	420.4	723.7	781.7	927.2	944.6
Efficiency
Asset Turnover (?)	1.13	1.08	1.10	1.12	1.20
Inventory Turnover (?)	4.79	5.21	5.62	4.63	4.50
Days In Inventory (?)	76.23	70.05	64.90	78.89	81.05
Receivables Turnover (?)	4.63	5.16	4.78	4.53	4.47
Days Receivables Outstanding (?)	78.85	70.71	76.30	80.58	81.57
Revenue/Employee (?)	893,984	-	1,310,224	1,363,223	1,261,783
Operating Income/Employee (?)	-273,252	-	-62,511	-50,992	-21,465
EBITDA/Employee (?)	-244,146	-	-25,022	-15,455	9,936
Profitability
Gross Margin (?)	18.40%	16.79%	15.50%	16.00%	17.10%
Operating Margin (?)	-30.57%	-2.57%	-4.77%	-3.74%	-1.70%
EBITDA Margin (?)	-27.31%	0.28%	-1.91%	-1.13%	0.79%
EBIT Margin (?)	-30.57%	-2.57%	-4.77%	-3.74%	-1.70%
Pretax Margin (?)	-31.02%	-3.32%	-5.23%	-4.65%	-2.11%
Net Profit Margin (?)	-30.98%	-3.62%	-10.84%	-2.67%	-1.91%
R&D Expense/Revenue (?)	2.07%	1.63%	1.12%	1.24%	1.19%
COGS/Revenue (?)	81.60%	83.21%	84.50%	84.00%	82.90%
SG&A Expense/Revenue (?)	19.16%	15.79%	13.86%	13.93%	14.52%
Management Effectiveness
Return on Assets (?)	-35.07%	-3.89%	-11.97%	-3.00%	-2.30%
Return on Equity (?)	-60.62%	-6.20%	-18.53%	-4.70%	-3.78%
Valuation
Free Cash Flow/Share (?)	-0.55	-0.62	3.57	1.48	1.89
Operating Cash Flow/Share  (?)	-0.21	-0.43	3.91	1.77	2.25

Current Market Multiples
Market Cap/Earnings (TTM) (?)	-0.41
Market Cap/Equity (MRQ) (?)	0.41
Market Cap/Revenue (TTM) (?)	0.15
Market Cap/EBIT (TTM) (?)	-4.31
Market Cap/EBITDA (TTM) (?)	-47.30
Enterprise Value/Earnings (TTM) (?)	-0.20
Enterprise Value/Equity (MRQ) (?)	0.21
Enterprise Value/Revenue (TTM) (?)	0.07
Enterprise Value/EBIT (TTM) (?)	-2.15
Enterprise Value/EBITDA (TTM) (?)	-23.60

Stock Snapshot    

Traded: New York Stock Exchange: IMN

As of 10-May-2013    US Dollars

Recent Price	$3.76	EPS	$-3.80
52 Week High	$6.29	Price/Sales	0.14
52 Week Low	$3.32	Price/Book	0.39
Avg. Volume (mil)	0.16	Beta	1.22
Market Value (mil)	$156.09

	Price % Change	Rel S&P 500%
4 Week	1.90%	-0.89%
13 Week	-1.31%	-8.31%
52 Week	-34.61%	-45.64%
Year to Date	-19.49%	-29.72%

2 Year Weekly End Price & Volume

Stock History    

Market Cap History
	31-Mar-13	% Chg	31-Dec-12	% Chg	30-Sep-12	% Chg	30-Jun-12	% Chg	31-Mar-12	% Chg
Total Common Shares Outstanding	42	0.4	41	7.6	38	-0.9	39	0.6	39	0.8
Market Cap	158.6	-17.9	193.0	-10.1	214.7	-6.3	229.0	-4.0	238.5	8.9

Yearly Price History
	2013	% Chg	2012	% Chg	2011	% Chg	2010	% Chg	2009	% Chg
High Price	4.78	-27.6	6.60	-46.6	12.36	-1.8	12.59	-12.8	14.44	-47.7
Low Price	3.32	-12.9	3.81	-29.4	5.40	-35.8	8.41	21.2	6.94	-31.4
Year End Price	3.76	-19.5	4.67	-18.5	5.73	-44.4	10.31	18.2	8.72	-35.7

Monthly Price History
Price Ending Date	Open	High	Low	Close	Volume
10-May-13	3.65	3.86	3.51	3.76	2,060,390
30-Apr-13	3.82	3.84	3.57	3.68	2,664,488
28-Mar-13	3.38	3.89	3.32	3.82	2,661,863
28-Feb-13	3.72	3.95	3.38	3.41	3,380,484
31-Jan-13	4.78	4.78	3.53	3.71	3,948,059
31-Dec-12	4.30	4.68	4.12	4.67	1,367,540
30-Nov-12	4.57	4.57	3.81	4.28	2,249,154
31-Oct-12	5.58	5.74	4.53	4.57	1,647,606
28-Sep-12	5.70	6.05	5.58	5.59	1,416,321
31-Aug-12	5.57	6.00	5.42	5.71	1,872,530
31-Jul-12	5.88	6.06	5.22	5.57	1,495,808
29-Jun-12	5.56	6.29	5.48	5.91	2,680,374
31-May-12	5.79	6.03	5.50	5.68	2,201,346

Standard & Poor’s

United States of America Long-Term Rating Lowered To 'AA+' Due To Political Risks, Rising Debt Burden; Outlook Negative

Publication date: 05-Aug-2011 20:13:14 EST

---

· We have lowered our long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA' and affirmed the 'A-1+' short-term rating.

· We have also removed both the short- and long-term ratings from CreditWatch negative.

· The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics.

· More broadly, the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.

· Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon.

· The outlook on the long-term rating is negative. We could lower the long-term rating to 'AA' within the next two years if we see that less reduction in spending than agreed to, higher interest rates, or new fiscal pressures during the period result in a higher general government debt trajectory than we currently assume in our base case.

TORONTO (Standard & Poor's) Aug. 5, 2011--Standard & Poor's Ratings Services said today that it lowered its long-term sovereign credit rating on the United States of America to 'AA+' from 'AAA'. Standard & Poor's also said that the outlook on the long-term rating is negative. At the same time, Standard & Poor's affirmed its 'A-1+' short-term rating on the U.S. In addition, Standard & Poor's removed both ratings from CreditWatch, where they were placed on July 14, 2011, with negative implications.

The transfer and convertibility (T&C) assessment of the U.S.--our assessment of the likelihood of official interference in the ability of U.S.-based public- and private-sector issuers to secure foreign exchange for

debt service--remains 'AAA'.

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade.

Our lowering of the rating was prompted by our view on the rising public debt burden and our perception of greater policymaking uncertainty, consistent with our criteria (see "Sovereign Government Rating Methodology and Assumptions ," June 30, 2011, especially Paragraphs 36-41). Nevertheless, we view the U.S. federal government's other economic, external, and monetary credit attributes, which form the basis for the sovereign rating, as broadly unchanged.

We have taken the ratings off CreditWatch because the Aug. 2 passage of the Budget Control Act Amendment of 2011 has removed any perceived immediate threat of payment default posed by delays to raising the government's debt ceiling. In addition, we believe that the act provides sufficient clarity to allow us to evaluate the likely course of U.S. fiscal policy for the next few years.

The political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy. Despite this year's wide-ranging debate, in our view, the differences between political parties have proven to be extraordinarily difficult to bridge, and, as we see it, the resulting agreement fell well short of the comprehensive fiscal consolidation program that some proponents had envisaged until quite recently. Republicans and Democrats have only been able to agree to relatively modest savings on discretionary spending while delegating to the Select Committee decisions on more comprehensive measures. It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements,

the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.

Our opinion is that elected officials remain wary of tackling the structural issues required to effectively address the rising U.S. public debt burden in a manner consistent with a 'AAA' rating and with 'AAA' rated sovereign peers (see Sovereign Government Rating Methodology and Assumptions," June 30, 2011, especially Paragraphs 36-41). In our view, the difficulty in framing a consensus on fiscal policy weakens the government's ability to manage public finances and diverts attention from the debate over how to achieve more balanced and dynamic economic growth in an era of fiscal stringency and private-sector deleveraging (ibid). A new political consensus might (or might not) emerge after the 2012 elections, but we believe that by then, the government debt burden will likely be higher, the needed medium-term fiscal adjustment potentially greater, and the inflection point on the U.S. population's demographics and other age-related spending drivers closer at hand (see "Global Aging 2011: In The U.S., Going Gray Will Likely Cost Even More Green, Now," June 21, 2011).

Standard & Poor's takes no position on the mix of spending and revenue measures that Congress and the Administration might conclude is appropriate for putting the U.S.'s finances on a sustainable footing.

The act calls for as much as $2.4 trillion of reductions in expenditure growth over the 10 years through 2021. These cuts will be implemented in two steps: the $917 billion agreed to initially, followed by an additional $1.5 trillion that the newly formed Congressional Joint Select Committee on Deficit Reduction is supposed to recommend by November 2011. The act contains no measures to raise taxes or otherwise enhance revenues, though the committee could recommend them.

The act further provides that if Congress does not enact the committee's recommendations, cuts of $1.2 trillion will be implemented over the same time period. The reductions would mainly affect outlays for civilian discretionary spending, defense, and Medicare. We understand that this fall-back mechanism is designed to encourage Congress to embrace a more balanced mix of expenditure savings, as the committee might recommend.

We note that in a letter to Congress on Aug. 1, 2011, the Congressional Budget Office (CBO) estimated total budgetary savings under the act to be at least $2.1 trillion over the next 10 years relative to its baseline assumptions. In updating our own fiscal projections, with certain modifications outlined below, we have relied on the CBO's latest "Alternate Fiscal Scenario" of June 2011, updated to include the CBO assumptions contained in its Aug. 1 letter to Congress. In general, the CBO's "Alternate Fiscal Scenario" assumes a continuation of recent Congressional action overriding existing law.

We view the act's measures as a step toward fiscal consolidation. However, this is within the framework of a legislative mechanism that leaves open the details of what is finally agreed to until the end of 2011, and Congress and the Administration could modify any agreement in the future. Even assuming that at least $2.1 trillion of the spending reductions the act envisages are implemented, we maintain our view that the U.S. net general government debt burden (all levels of government combined, excluding liquid financial assets) will likely continue to grow. Under our revised base case fiscal scenario--which we consider to be consistent with a 'AA+' long-term rating and a negative outlook--we now project that net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 79% in 2015 and 85% by 2021. Even the projected 2015 ratio of sovereign indebtedness is high in relation to those of peer credits and, as noted, would continue to rise under the act's revised policy settings.

Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues, a position we believe Congress reinforced by passing the act. Key macroeconomic assumptions in the base case scenario include trend real GDP growth of 3% and consumer price inflation near 2% annually over the decade.

Our revised upside scenario--which, other things being equal, we view as consistent with the outlook on the 'AA+' long-term rating being revised to stable--retains these same macroeconomic assumptions. In addition, it incorporates $950 billion of new revenues on the assumption that the 2001 and 2003 tax cuts for high earners lapse from 2013 onwards, as the Administration is advocating. In this scenario, we project that the net general government debt would rise from an estimated 74% of GDP by the end of 2011 to 77% in 2015 and to 78% by 2021.

Our revised downside scenario--which, other things being equal, we view as being consistent with a possible further downgrade to a 'AA' long-term rating--features less-favorable macroeconomic assumptions, as outlined below and also assumes that the second round of spending cuts (at least $1.2 trillion) that the act calls for does not occur. This scenario also assumes somewhat higher nominal interest rates for U.S. Treasuries. We still believe that the role of the U.S. dollar as the key reserve currency confers a government funding advantage, one that could change only slowly over time, and that Fed policy might lean toward continued loose monetary policy at a time of fiscal tightening. Nonetheless, it is possible that interest rates could rise if investors re-price relative risks. As a result, our alternate scenario factors in a 50 basis point (bp)-75 bp rise in 10-year bond yields relative to the base and upside cases from 2013 onwards. In this scenario, we project the net public debt burden would rise from 74% of GDP in 2011 to 90% in 2015 and to 101% by 2021.

Our revised scenarios also take into account the significant negative revisions to historical GDP data that the Bureau of Economic Analysis announced on July 29. From our perspective, the effect of these revisions underscores two related points when evaluating the likely debt trajectory of the U.S. government. First, the revisions show that the recent recession was deeper than previously assumed, so the GDP this year is lower than previously thought in both nominal and real terms. Consequently, the debt burden is slightly higher. Second, the revised data highlight the sub-par path of the current economic recovery when compared with rebounds following previous post-war recessions. We believe the sluggish pace of the current economic recovery could be consistent with the experiences of countries that have had financial crises in which the slow process of debt deleveraging in the private sector leads to a persistent drag on demand. As a result, our downside case scenario assumes relatively modest real trend GDP growth of 2.5% and inflation of near 1.5% annually going forward.

When comparing the U.S. to sovereigns with 'AAA' long-term ratings that we view as relevant peers--Canada, France, Germany, and the U.K.--we also observe, based on our base case scenarios for each, that the trajectory of the U.S.'s net public debt is diverging from the others. Including the U.S., we estimate that these five sovereigns will have net general government debt to GDP ratios this year ranging from 34% (Canada) to 80% (the U.K.), with the U.S. debt burden at 74%. By 2015, we project that their net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%. However, in contrast with the U.S., we project that the net public debt burdens of these other sovereigns will begin to decline, either before or by 2015.

Standard & Poor's transfer T&C assessment of the U.S. remains 'AAA'. Our T&C assessment reflects our view of the likelihood of the sovereign restricting other public and private issuers' access to foreign exchange needed to meet debt service. Although in our view the credit standing of the U.S. government has deteriorated modestly, we see little indication that official interference of this kind is entering onto the policy agenda of either Congress or the Administration. Consequently, we continue to view this risk as being highly remote.

The outlook on the long-term rating is negative. As our downside alternate fiscal scenario illustrates, a higher public debt trajectory than we currently assume could lead us to lower the long-term rating again. On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction--independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners--lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government's debt dynamics, the long-term rating could stabilize at 'AA+'.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.88
UK Pound	1	Rs.83.66
Euro	1	Rs.70.58

INFORMATION DETAILS

Report Prepared by :

SDA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)