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Cost Reduction Actions
 6 Months Ended
Jul. 04, 2015
Cost Reduction Actions  
Cost Reduction Actions

Note 9.  Cost Reduction Actions

 

2014/2015 Actions

 

During the six months ended July 4, 2015, we recorded $33.9 million in restructuring charges, net of reversals, related to restructuring actions we initiated in 2014 that are continuing through 2015 (“2014/2015 Actions”). These charges consisted of severance and related costs for the reduction of approximately 605 positions, lease cancellation costs, and asset impairment charges.

 

In 2014, we recorded $66.5 million in restructuring charges, net of reversals, related to our 2014/2015 Actions.  These charges consisted of severance and related costs for the reduction of approximately 1,420 positions, lease cancellation costs, and asset impairment charges.

 

Approximately 245 employees impacted by our 2014/2015 Actions remained employed with us as of July 4, 2015. We expect charges and payments related to these actions to be substantially completed in 2015.

 

Accruals for severance and related costs and lease cancellation costs were included in “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. Asset impairment charges were based on the estimated market value of the assets.  Restructuring costs were included in “Other expense, net” in the unaudited Condensed Consolidated Statements of Income.

 

During the six months ended July 4, 2015, restructuring charges and payments were as follows:

 

(In millions)

 

Accrual at

January 3,

2015

 

Charges

(Reversals),

net

 

Cash

Payments

 

Non-cash

Impairment

 

Foreign

Currency

Translation

 

Accrual at

July 4, 2015

 

2014/2015 Actions

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and related costs

 

$
16.8

 

$
30.3

 

$
(26.0

)

$

–

 

$
(1.0

)

$
20.1

 

Asset impairment charges

 

–

 
3.4

 

–

 
(3.4

)

–

 

–

 

Lease cancellation costs

 

.1

 

.2

 

(.3

)

–

 

–

 

–

 

2012 Program

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and related costs

 

.8

 

–

 

–

 

–

 

(.1

)

.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
17.7

 

$
33.9

 

$
(26.3

)

$
(3.4

)

$
(1.1

)

$
20.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The table below shows the total amount of restructuring costs incurred by reportable segment and Corporate.

 

 

 

Three Months Ended

 

Six Months Ended

 

(In millions)

 

July 4, 2015

 

June 28, 2014

 

July 4, 2015

 

June 28, 2014

 

Restructuring costs by reportable segment and Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Pressure-sensitive Materials

 

$
7.1

 

$
32.3

 

$
14.4

 

$
33.6

 

Retail Branding and Information Solutions

 
12.3

 
6.2

 
15.7

 
12.2

 

Vancive Medical Technologies

 

.6

 

–

 
1.7

 

–

 

Corporate

 

–

 

–

 
2.1

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

$
20.0

 

$
38.5

 

$
33.9

 

$
45.8