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Cost Reduction Actions
 9 Months Ended
Oct. 03, 2015
Cost Reduction Actions  
Cost Reduction Actions

 

Note 9.  Cost Reduction Actions

 

2015/2016 Actions

We recorded $6.6 million in restructuring charges related to restructuring actions initiated during the third quarter of 2015, which we expect to continue through 2016 (“2015/2016 Actions”). These charges consisted of severance and related costs for the reduction of approximately 85 positions, lease cancellation costs, and asset impairment charges.

 

No employees impacted by our 2015/2016 Actions taken through October 3, 2015 remained employed with us as of such date. We expect charges and payments related to these actions to be substantially completed in 2016.

 

2014/2015 Actions

During the nine months ended October 3, 2015, we recorded $33.9 million in restructuring charges, net of reversals, related to restructuring actions we initiated in 2014 that continued through the second quarter of 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 180 employees impacted by our 2014/2015 Actions remained employed with us as of October 3, 2015. We expect charges and payments related to these actions to be substantially completed in 2016.

 

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 nine months ended October 3, 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
October 3,
2015

 

2015/2016 Actions

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and related costs

 

$

–

 

$
4.8

 

$
(2.3

)

$

–

 

$

–

 

$
2.5

 

Asset impairment charges

 

–

 
1.7

 

–

 
(1.7

)

–

 

–

 

Lease cancellation costs

 

–

 

.1

 

(.1

)

–

 

–

 

–

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014/2015 Actions

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and related costs

 
16.8

 
30.2

 
(39.4

)

–

 

(.9

)
6.7

 

Asset impairment charges

 

–

 
3.4

 

–

 
(3.4

)

–

 

–

 

Lease cancellation costs

 

.1

 

.3

 

(.3

)

–

 

–

 

.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2012 Program

 

 

 

 

 

 

 

 

 

 

 

 

 

Severance and related costs

 

.8

 

–

 

–

 

–

 

(.1

)

.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$
17.7

 

$
40.5

 

$
(42.1

)

$
(5.1

)

$
(1.0

)

$
10.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

Three Months Ended

 

Nine Months Ended

 

(In millions)

 

October 3,
2015

 

September 27,
2014

 

October 3,
2015

 

September 27,
2014

 

Restructuring costs by reportable segment and Corporate

 

 

 

 

 

 

 

 

 

Pressure-sensitive Materials

 

$
1.1 

 

$
2.1 

 

$
15.5 

 

$
35.7 

 

Retail Branding and Information Solutions

 
3.7 

 
4.1 

 
19.4 

 
16.3 

 

Vancive Medical Technologies

 
1.7 

 

.1

 
3.4 

 

.1

 

Corporate

 

.1

 

.4

 
2.2 

 

.4

 

 

 

 

 

 

 

 

 

 

 

 

 

$
6.6 

 

$
6.7 

 

$
40.5 

 

$
52.5