Integration and reorganization costs and impairments of property, plant and equipment

9 Months Ended

Sep. 30, 2020

Restructuring and Related Activities [Abstract]

Integration and reorganization costs and impairments of property, plant and equipment

NOTE 7 — Integration and reorganization costs and impairments of property, plant and equipment

Over the past several years, the Company has engaged in a series of individual restructuring programs, designed primarily to right-size the Company’s employee base, consolidate facilities and improve operations, including those of recently acquired entities. These initiatives impact all the Company’s operations and can be influenced by the terms of union contracts. Costs related to these programs, which primarily include severance expense, are accrued when probable and reasonably estimable or at the time of program announcement.

Severance-related expenses: We recorded severance-related expenses by segment as follows:

	Three months ended				Nine months ended
In thousands	September 30, 2020		September 29, 2019		September 30, 2020		September 29, 2019
Publishing	$	3,983	$	1,489	$	35,401	$	6,145
Marketing Solutions	1,196		431		5,333		1,167
Corporate and Other	2,103		8		14,069		909
Total	$	7,282	$	1,928	$	54,803	$	8,221

A rollforward of the accrued severance and related costs included in Accounts payable and accrued expenses on the Condensed consolidated balance sheets for the nine months ended September 30, 2020 are as follows:

In thousands
Beginning balance	$	30,785
Restructuring provision included in integration and reorganization costs	54,803
Cash payments	(71,962		)
Ending balance	$	13,626

The restructuring reserve balance is expected to be paid out over the next twelve months.

Facility consolidation and other restructuring-related expenses: We recorded facility consolidation charges and other restructuring-related costs by segment as follows:

	Three months ended				Nine months ended
In thousands	September 30, 2020		September 29, 2019		September 30, 2020		September 29, 2019
Publishing	$	1,137	$	1,119	$	3,648	$	2,922
Marketing Solutions	41		70		254		70
Corporate and Other	4,957		19		15,273		2,000
Total	$	6,135	$	1,208	$	19,175	$	4,992

Asset impairments and accelerated depreciation: As part of ongoing cost efficiency programs, the Company has ceased a number of print operations. There were $1.6 million of asset impairment charges recorded for the three months ended September 30, 2020 by the Publishing and Marketing Solutions segments as a result of these programs compared to no asset impairment charges recorded for the three months ended September 29, 2019. For the nine months ended September 30, 2020, there were $8.4 million asset impairment charges recorded by the Publishing and Marketing Solutions segments. There were $2.5 million asset impairment charges recorded for the nine months ended September 29, 2019 by the Publishing segment.

The Company incurred accelerated depreciation of $9.3 million and $2.2 million for the three months ended September 30, 2020 and September 29, 2019, respectively. For the nine months ended September 30, 2020 and September 29, 2019, the Company incurred accelerated depreciation of $45.0 million and $4.8 million, respectively. For the three and nine months ended September 30, 2020 and the three and nine months ended September 29, 2019, accelerated depreciation expenses were related to the Publishing segment and are included within Depreciation and amortization expense on the Condensed consolidated statements of operations and comprehensive income (loss).