Cost Reduction Actions

9 Months Ended

Sep. 27, 2014

Note 9. Cost Reduction Actions

2014 Actions

During the nine months ended September 27, 2014, we recorded $52.9 million in restructuring charges, net of reversals, related to restructuring actions we initiated in 2014 (“2014 Actions”), primarily related to the consolidation of certain European operations. These charges consisted of severance and related costs for the reduction of approximately 1,195 positions, lease cancellation costs, and asset impairment charges. Approximately 110 employees impacted by our 2014 Actions remained employed with us as of September 27, 2014. We expect payments to be completed and savings to be realized relating to our 2014 Actions by the end of 2015.

2012 Program

In 2013, we recorded $40.3 million in restructuring charges, net of reversals, related to the restructuring program we initiated in 2012 (“2012 Program”), which consisted of severance and related costs for the reduction of approximately 1,400 positions, lease and other contract cancellation costs, and asset impairment charges. We expect payments related to the 2012 Program to be completed by the end of 2014.

Accruals for severance and related costs and lease and other contract cancellation costs were included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. For assets that were not disposed of, impairments were based on the estimated market value of the assets. Restructuring costs were included in “Other expense, net” in the unaudited Consolidated Statements of Income.

During the nine months ended September 27, 2014, restructuring charges and payments were as follows:

(In millions)	Accrual at December 28, 2013		Charges (Reversals), net			Cash Payments			Non-cash Impairment			Foreign Currency Translation			Accrual at September 27, 2014
2014 Actions
Severance and related costs	$	–	$	48.4		$	(16.7	)	$	–		$	(1.9	)	$	29.8
Asset impairment charges	–		4.0			–			(4.0		)	–			–
Lease cancellation costs	–		.5			(.3		)	–			–			.2
2012 Program
Severance and related costs	6.6		(.4		)	(5.2		)	–			(.1		)	.9
Lease and other contract cancellation costs	.2		–			(.2		)	–			–			–
Total	$	6.8	$	52.5		$	(22.4	)	$	(4.0	)	$	(2.0	)	$	30.9

The table below shows the total amount of restructuring costs incurred by reportable segment and Corporate. Restructuring costs were included in “Other expense, net” in the unaudited Consolidated Statements of Income.

	Three Months Ended				Nine Months Ended
(In millions)	September 27, 2014		September 28, 2013		September 27, 2014		September 28, 2013
Restructuring costs by reportable segment and Corporate
Pressure-sensitive Materials	$	2.1	$	3.4	$	35.7	$	8.7
Retail Branding and Information Solutions	4.1		12.6		16.3		22.9
Vancive Medical Technologies	.1		.1		.1		.1
Corporate	.4		.6		.4		.9
	$	6.7	$	16.7	$	52.5	$	32.6

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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