Restructuring, Impairment and Transaction-Related Charges

The Company recorded restructuring, impairment and transaction-related charges for the three and six months ended June 30, 2011 and 2010 as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Employee terminations	$	5.1	$	1.2	$	20.2	$	1.2
Impairment charges	—		24.4		—		24.4
Transaction-related charges	1.0		2.7		1.0		8.9
Integration costs	8.9		2.2		16.1		2.2
Other restructuring charges	8.4		0.8		20.9		0.9
Total	$	23.4	$	31.3	$	58.2	$	37.6

The restructuring charges recorded are based on restructuring plans that have been committed to by management and are, in part, based upon management's best estimates of future events. Changes to the estimates may require future restructuring charges and adjustments to the restructuring liabilities. The costs related to restructuring activities have been recorded on the condensed consolidated statements of operations as restructuring, impairment and transaction-related charges. For restructuring, impairment and transaction-related charges by segment, see Note 21.

2011 Restructuring Events

For the three and six months ended June 30, 2011, the Company recorded: (1) $5.1 million and $20.2 million, respectively, of employee termination costs related to headcount reductions of 523 and 904, respectively, for plant closures and other workforce reductions announced through the second quarter of 2011, as well from workforce reductions that commenced in 2010, (2) $1.0 million of transaction costs incurred primarily in connection with the transaction with Transcontinental Inc. ("Transcontinental") (see Note 22), (3) $8.9 million and $16.1 million, respectively, of World Color Press integration costs and (4) $8.4 million and $20.9 million, respectively, of various other restructuring charges including costs to maintain and exit closed facilities, as well as lease exit charges. The $16.1 million of integration costs recognized during the six months ended June 30, 2011 included a $7.1 million gain on the collection of a previously written off note receivable for the June 2008 sale of World Color Press' European operations.

On January 17, 2011, the Company announced the closure of the St. Laurent plant located in Quebec, Canada resulting in 107 headcount reductions. As part of this initiative, the Company recognized $0 and $1.3 million of employee termination costs for the three and six months ended June 30, 2011, respectively. The Company has also recognized $0.5 million and $0.7 million of other restructuring charges related to equipment removal costs and facility carrying costs for the three and six months ended June 30, 2011, respectively.

On March 15, 2011, the Company announced the closure of the Mt. Morris, Illinois plant resulting in 490 headcount reductions (441 of which were previously included in a workforce reduction initiative during November 2010 and 49 of which were attributable to the March 2011 plant closure). As part of this initiative, the Company recognized $0.4 million and $2.8 million of employee termination costs for the three and six months ended June 30, 2011, respectively. The Company has also recognized $0.5 million and $0.9 million of other restructuring charges related to equipment removal costs and facility carrying costs for the three and six months ended June 30, 2011, respectively. The Company expects to incur additional restructuring charges for the Mt. Morris plant closure in the future.

On April 18, 2011, the Company announced the closure of the Buffalo, New York plant resulting in 414 headcount reductions. As part of this initiative, the Company recognized $0.8 million of employee termination costs for the three and six months ended June 30, 2011. The Company has also recognized $0.2 million of other restructuring charges related to equipment removal costs for the three and six months ended June 30, 2011. The Company expects to incur additional restructuring charges for the Buffalo plant closure in the future.

In addition to these plant closures, the Company continued to execute various workforce reduction and other restructuring initiatives related to the integration of the operations of World Color Press as well as certain corporate and administrative functions, resulting in 109 and 334 additional headcount reductions during the three and six months ended June 30, 2011, respectively. Severance costs also continue to be incurred related to previously announced plant closures and workforce reductions. Due to these initiatives, the Company has recognized the following charges for the three and six months ended June 30, 2011: (1) $3.9 million and $15.3 million of employee termination costs, respectively, (2) $2.2 million and $6.1 million of facility carrying costs, respectively, (3) $2.1 million and $6.0 million of estimated lease exit charges, respectively, and (4) $2.9 million and $7.0 million of other restructuring charges. The Company expects to incur additional restructuring charges related to these and other initiatives in the future.

2010 Restructuring Events

For the three and six months ended June 30, 2010, the Company recorded: (1) $1.2 million of employee termination costs related to 707 headcount reductions for the closure of the Pila, Poland plant, (2) $24.4 million of impairment charges on assets related to the closure of the Pila, Poland plant, (3) $2.7 million and $8.9 million, respectively, of transaction costs incurred primarily in connection with the World Color Press acquisition, (4) $2.2 million of integration costs incurred related to the acquisition of World Color Press and (5) $0.8 million and $0.9 million, respectively, of lease exit charges.

Restructuring Reserve

Activity impacting the Company's restructuring reserve for the six months ended June 30, 2011 was as follows:



	Employee Terminations			Impairment Charges		Transaction-Related Charges		Integration Costs			Other Restructuring Charges			Total
Balance at December 31, 2010	$	24.7		$	—	$	—	$	1.1		$	42.6		$	68.4

Reserve provisions	20.2			—		1.0		16.1			20.9			58.2
Cash payments	(37.7		)	—		—		(13.9		)	(26.3		)	(77.9		)
Non-cash adjustments	—			—		—		(1.6		)	(0.5		)	(2.1		)

Balance at June 30, 2011	$	7.2		$	—	$	1.0	$	1.7		$	36.7		$	46.6

The restructuring reserves are classified as current accrued liabilities in the condensed consolidated balance sheets, as the Company expects the restructuring reserves to be paid within the next twelve months.