Discontinued Operations

9 Months Ended

Sep. 28, 2013

Discontinued Operation, Income (Loss) from Discontinued Operation Disclosures [Abstract]

Discontinued Operations [Text Block]

Discontinued Operations

On September 28, 2013, the Company completed the sale of Custom Envelope. Net cash proceeds received in the third quarter of 2013 were approximately $42.3 million, which resulted in the recognition of an after-tax gain of $12.5 million. In addition to the proceeds, $4.9 million of purchase price consideration has been held in escrow ("the holdback amount") and will be paid subject to certain financial adjustments. As a result, the Company has not included the holdback amount in the calculation of the gain on sale of Custom Envelope at September 28, 2013. The operating results of Custom Envelope are reported in discontinued operations in the Company's condensed consolidated financial statements for all periods presented herein.

During the second quarter of 2013, the Company decided to exit the San Francisco market and closed a manufacturing facility within its print and envelope segment. The operating results of this manufacturing facility are reported in discontinued operations in the Company's condensed consolidated financial statements for all periods presented herein.

On February 10, 2012, the Company completed the sale of its documents and forms business ("Documents Group"). Net cash proceeds were approximately $35.5 million. The original sale price of $40.0 million was subject to customary working capital settlement negotiations, which were completed during the third quarter of 2012, pursuant to the purchase and sale agreement. The operating results of the Documents Group are reported in discontinued operations in the Company's condensed consolidated financial statements for all periods presented herein.

On January 27, 2012, the Company completed the sale of its wide-format business, for cash proceeds of approximately $4.7 million. The operating results of the wide-format business are reported in discontinued operations in the Company's condensed consolidated financial statements for all periods presented herein.

The following table shows the components of assets and liabilities that are classified as discontinued operations in the Company's condensed consolidated balance sheets as of September 28, 2013 and December 29, 2012 (in thousands):

	September 28, 2013			December 29, 2012
Accounts receivable, net	$	252		$	7,222
Inventories	—			3,534
Prepaid and other current assets	87			509
Assets of discontinued operations - current	339			11,265
Property, plant and equipment, net	68			3,522
Goodwill	—			4,000
Other intangible assets, net	—			7,705
Other assets, net	—			41
Assets of discontinued operations - long-term	68			15,268
Accounts payable	182			5,421
Accrued compensation and related liabilities	747			645
Other current liabilities	1,643			525
Liabilities of discontinued operations - current	2,572			6,591
Liabilities of discontinued operations - long-term	72			880
Net assets	$	(2,237	)	$	19,062

The following table summarizes certain statement of operations information for discontinued operations (in thousands, except per share data):

	For the Three Months Ended					For the Nine Months Ended
	September 28, 2013		September 29, 2012			September 28, 2013		September 29, 2012
Net sales	$	8,447	$	14,106		$	34,891	$	54,361
Income from discontinued operations before income taxes (1)	1,605		2,556			5,040		8,915
Income tax expense on discontinued operations	643		1,011			2,620		3,509
Gain/(loss) on sale of discontinued operations, net of tax (2)	12,530		(92		)	12,530		(5,411		)
Income/(loss) from discontinued operations, net of taxes	$	13,492	$	1,453		$	14,950	$	(5	)
Income/(loss) per share - basic	$	0.21	$	0.02		$	0.23	$	—
Income/(loss) per share - diluted	$	0.16	$	0.02		$	0.23	$	—

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⁽¹⁾     Loss from discontinued operations for the nine months ended September 29, 2012 also includes the reduction of a liability of $1.8 million, net of tax expense of $1.2 million, due to the expiration of certain statutes of limitations related to a previous divestiture.

⁽²⁾     The gain/(loss) on the sale of discontinued operations is shown net of taxes of $10.7 million for the three and nine months September 28, 2013, $0.1 million for the three months ended September 29, 2012, and $3.4 million for the nine months ended September 29, 2012.