Restructuring, Impairment and Other Charges

Cost Savings, Restructuring and Integration Plans

In addition to the other restructuring plans implemented by the Company's segments described below, the Company currently has one active and five residual cost savings, restructuring and integration plans: (i) the plan related to the integration of the EPG acquisition (the “EPG Plan”) and (ii) the plans related to the integration of the Nashua Corporation and Glyph acquisitions (collectively with the EPG Plan the “Acquisition Integration Plans”), the 2009 Cost Savings and Restructuring Plan, the 2007 Cost Savings and Integration Plan and the 2005 Cost Savings and Restructuring Plan (collectively referred to as the “Residual Plans”). As a result of these cost savings actions, over the last six years the Company has closed or consolidated a significant amount of manufacturing facilities including, five manufacturing facilities in 2011, and has had a significant number of headcount reductions, including approximately 700 employees in 2011.

Other Restructuring Plans

In 2011, the envelopes and labels and commercial printing segments have implemented further cost savings initiatives (“Other Restructuring Plans”) in order to provide enhanced customer service, centralize various back office functions or rationalize their businesses. These Other Restructuring Plans also include the realignment of certain manufacturing platforms, which has resulted in the closure and consolidation of two commercial printing plants into our existing operations. The cumulative total costs incurred through the year ended 2011 related to this plan for envelopes and labels, commercial printing and corporate were approximately $1.0 million, $1.5 million and $0.2 million, respectively. The Company anticipates that these initiatives will be completed in 2012.

Acquisition Integration Plans

Upon the completion of the EPG acquisition, the Company developed and implemented its plan to integrate EPG into its existing envelope operations. Since the date of acquisition, activities related to the EPG Plan have included the closure and consolidation of three manufacturing facilities into the Company's existing operations and the elimination of duplicative headcount. Upon the acquisition of Glyph, the Company developed and implemented its plan to integrate Glyph into its existing operations. In 2010, these activities have included the elimination of duplicative headcount and the closure of a sales office. Upon the acquisition of Nashua, the Company developed and implemented its plan to integrate Nashua into its existing operations. Since the acquisition date, activities related to Nashua have included the closure and consolidation of two manufacturing facilities into existing operations and elimination of duplicative headcount and public company costs. The cumulative total costs incurred through the year ended 2011 related to these plans for envelopes and labels and commercial printing were approximately $11.8 million and $0.2 million, respectively. The Company completed the Nashua and Glyph plans in 2010 and does not anticipate any significant future expenses, other than modifications to its current assumptions for lease terminations and ongoing expenses related to maintaining restructured assets. The Company anticipates that the integration of EPG will continue into 2012 and may include additional closure or consolidation of manufacturing facilities and further headcount reductions.

2009 Cost Savings and Restructuring Plan

In 2009, the Company developed and implemented a cost savings and restructuring plan to reduce its operating costs and realign its manufacturing platform in order to compete effectively during the economic downturn. As part of this plan, the Company continued to implement cost savings initiatives throughout its operations, closed and consolidated manufacturing facilities into existing operations and reduced headcount. The cumulative total costs incurred through the year ended 2011 related to this plan for envelopes and labels, commercial printing and corporate were approximately $23.5 million, $78.8 million and $4.7 million, respectively. The Company completed this plan in 2010 and does not anticipate any significant future expenses, other than modifications to its current assumptions for lease terminations, multi-employer pension withdrawal liabilities and ongoing expenses related to maintaining restructured assets.

2007 Cost Savings and Integration Plan

In 2007, the Company formulated its cost savings and integration plan related to acquisitions that took place that year. As part of this plan, the Company closed and consolidated manufacturing facilities into existing or acquired operations and reduced headcount. The cumulative total costs incurred through the year ended 2011 related to this plan for envelopes and labels, commercial printing and corporate were approximately $14.8 million, $32.5 million and $0.5 million, respectively. The Company completed the implementation of this plan in 2008 and does not anticipate any significant future expenses, other than modifications to its current assumptions for lease terminations, multi-employer pension withdrawal liabilities and ongoing expenses related to maintaining restructured assets.

2005 Cost Savings and Restructuring Plan

In 2005, as a result of a new senior management team, the Company formulated its 2005 Cost Savings and Restructuring Plan, which included consolidating purchasing activities and manufacturing platform, reducing corporate and field human resources, streamlining information technology infrastructure and eliminating discretionary spending. As part of this plan, the Company, closed and consolidated manufacturing facilities into existing operations and reduced headcount. The cumulative total costs incurred through the year ended 2011 related to this plan for envelopes and labels, commercial printing and corporate were approximately $34.0 million, $74.3 million and $30.8 million, respectively. The Company completed the implementation of this plan in 2006 and does not anticipate any future expenses related to this plan as all liabilities incurred with this plan have been settled, other than modifications to its current assumptions for lease terminations, multi-employer pension withdrawal liabilities and ongoing expenses related to maintaining restructured assets.

Goodwill and Other Long-Lived Asset Impairments

2010

In the third quarter of 2010, the Company recorded non-cash, impairment charges of $132.2 million related to goodwill and $49.2 million related to other long-lived assets, of which $22.0 million related to an indefinite lived trade name and $27.2 million related to customer relationships in its PSG reporting unit.

The following tables present the details of the expenses recognized as a result of these plans.

2011 Activity

Restructuring and impairment charges for the year ended 2011 were as follows (in thousands):



		Employee Separation Costs			Asset Impairments net of gain on sale		Equipment Moving Expenses		Lease Termination Expenses		Multi-employer Pension Withdrawal Expenses			Building Clean-up & Other Expenses			Total
Envelopes and Labels
	Other Restructuring Plans	$	1,001		$	—	$	—	$	—	$	—		$	—		$	1,001
	2009 Plan	387			—		31		242		(156		)	426			930
	2007 Plan	—			—		—		23		—			(32		)	(9		)
	2005 Plan	—			—		—		—		—			41			41
	Acquisition Integration Plans	2,130			852		1,898		107		—			695			5,682
Total Envelopes and Labels		3,518			852		1,929		372		(156		)	1,130			7,645
Commercial Printing
	Other Restructuring Plans	741			224		94		134		—			257			1,450
	2009 Plan	(154		)	1,820		525		1,713		1,969			1,996			7,869
	2007 Plan	—			77		—		287		(376		)	212			200
	2005 Plan	—			—		—		3		—			6			9
	Acquisition Integration Plans	—			—		—		—		—			—			—
Subtotal		587			2,121		619		2,137		1,593			2,471			9,528
	Asset Impairments	—			—		—		—		—			—			—
Total Commercial Printing		587			2,121		619		2,137		1,593			2,471			9,528
Corporate
	Other Restructuring Plans	225			—		—		—		—			—			225
	2009 Plan	—			—		—		15		—			355			370
	2007 Plan	—			—		—		9		—			—			9
	2005 Plan	—			—		—		58		—			(23		)	35
Total Corporate		225			—		—		82		—			332			639
Total Restructuring and Impairment Charges		$	4,330		$	2,973	$	2,548	$	2,591	$	1,437		$	3,933		$	17,812

2010 Activity

Restructuring and impairment charges for the year ended 2010 were as follows (in thousands):



		Employee Separation Costs		Asset Impairments net of gain on sale			Equipment Moving Expenses		Lease Termination Expenses			Multi-employer Pension Withdrawal Expenses		Building Clean-up & Other Expenses		Total
Envelopes and Labels
	2009 Plan	$	3,515	$	64		$	191	$	278		$	2,326	$	573	$	6,947
	2007 Plan	—		—			—		53			—		69		122
	2005 Plan	—		—			—		(73		)	77		83		87
	Acquisition Integration Plans	1,451		1,830			721		197			—		708		4,907
Total Envelopes and Labels		4,966		1,894			912		455			2,403		1,433		12,063
Commercial Printing
	2009 Plan	4,432		3,008			2,216		6,298			6,315		4,578		26,847
	2007 Plan	—		1,108			—		39			74		487		1,708
	2005 Plan	—		(165		)	—		622			—		369		826
	Acquisition Integration Plans	78		—			—		164			—		—		242
Subtotal		4,510		3,951			2,216		7,123			6,389		5,434		29,623
	Asset Impairments	—		181,419			—		—			—		—		181,419
Total Commercial Printing		4,510		185,370			2,216		7,123			6,389		5,434		211,042
Corporate
	2009 Plan	1,780		—			—		352			—		500		2,632
	2007 Plan	—		—			—		—			—		4		4
	2005 Plan	—		—			—		299			—		110		409
Total Corporate		1,780		—			—		651			—		614		3,045
Total Restructuring and Impairment Charges		$	11,256	$	187,264		$	3,128	$	8,229		$	8,792	$	7,481	$	226,150

2009 Activity

Restructuring and impairment charges for the year ended 2009 were as follows (in thousands):



		Employee Separation Costs		Asset Impairments net of gain on sale		Equipment Moving Expenses		Lease Termination Expenses			Multi-employer Pension Withdrawal Expenses		Building Clean-up & Other Expenses		Total
Envelopes and Labels
	2009 Plan	$	5,505	$	2,944	$	1,863	$	3,126		$	—	$	2,196	$	15,634
	2007 Plan	122		67		—		140			—		182		511
	2005 Plan	—		—		—		(203		)	—		279		76
	Acquisition Integration Plans	710		35		211		159			—		69		1,184
Total Envelopes and Labels		6,337		3,046		2,074		3,222			—		2,726		17,405
Commercial Printing
	2009 Plan	12,842		11,077		3,427		1,687			11,303		3,728		44,064
	2007 Plan	87		981		59		(51		)	2,133		698		3,907
	2005 Plan	—		18		14		419			—		322		773
Total Commercial Printing		12,929		12,076		3,500		2,055			13,436		4,748		48,744
Corporate
	2009 Plan	1,156		143		—		210			—		184		1,693
	2007 Plan	29		—		—		3			—		67		99
	2005 Plan	—		—		—		93			—		—		93
Total Corporate		1,185		143		—		306			—		251		1,885
Total Restructuring and Impairment Charges		$	20,451	$	15,265	$	5,574	$	5,583		$	13,436	$	7,725	$	68,034

A summary of the activity related to the restructuring liabilities for the restructuring, acquisition and integration plans was as follows (in thousands):



	Lease Termination			Employee Separation Costs			Pension Withdrawal Liabilities			Building Clean-up, Equipment Moving and Other Expenses			Total
Other Restructuring Plans
Balance as of year end 2010	$	—		$	—		$	—		$	—		$	—
Accruals, net	134			1,967			—			351			2,452
Payments	(88		)	(1,166		)	—			(351		)	(1,605		)
Balance as of year end 2011	$	46		$	801		$	—		$	—		$	847

2009 Plan
Balance as of year end 2009	$	2,224		$	3,403		$	11,303		$	140		$	17,070
Accruals, net	6,928			9,727			8,641			5,651			30,947
Payments	(4,755		)	(11,797		)	(432		)	(5,791		)	(22,775		)
Balance as of year end 2010	4,397			1,333			19,512			—			25,242
Accruals, net	1,970			233			1,813			3,333			7,349
Payments	(3,488		)	(1,296		)	(1,263		)	(3,333		)	(9,380		)
Balance as of year end 2011	$	2,879		$	270		$	20,062		$	—		$	23,211

2007 Plan
Balance as of year end 2009	$	1,641		$	1		$	3,156		$	—		$	4,798
Accruals, net	92			—			74			560			726
Payments	(620		)	(1		)	—			(560		)	(1,181		)
Balance as of year end 2010	1,113			—			3,230			—			4,343
Accruals, net	319			—			(376		)	182			125
Payments	(553		)	—			(378		)	(182		)	(1,113		)
Balance as of year end 2011	$	879		$	—		$	2,476		$	—		$	3,355

2005 Plan
Balance as of year end 2009	$	1,678		$	—		$	88		$	—		$	1,766
Accruals, net	848			—			77			562			1,487
Payments	(1,567		)	—			(119		)	(562		)	(2,248		)
Balance as of year end 2010	959			—			46			—			1,005
Accruals, net	61			—			—			24			85
Payments	(1,020		)	—			(46		)	(24		)	(1,090		)
Balance as of year end 2011	$	—		$	—		$	—		$	—		$	—

Acquisition Integration Plans
Balance as of year end 2009	$	2,791		$	532		$	—		$	—		$	3,323
Accruals, net	361			1,529			—			708			2,598
Payments	(1,509		)	(1,834		)	—			(708		)	(4,051		)
Balance as of year end 2010	1,643			227			—			—			1,870
Accruals, net	107			2,130			—			2,593			4,830
Payments	(404		)	(1,865		)	—			(2,593		)	(4,862		)
Balance as of year end 2011	$	1,346		$	492		$	—		$	—		$	1,838