Discontinued Operations

12 Months Ended

Dec. 28, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On September 28, 2013, the Company completed the sale of Custom Envelope. Net cash proceeds received in 2013 were approximately $44.8 million, which resulted in an after-tax gain of $14.9 million. In addition to the proceeds, $2.4 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 as of the year ended 2013. The operating results of Custom Envelope are reported in discontinued operations in the Company's 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 segment. The operating results of this manufacturing facility are reported in discontinued operations in the Company's consolidated financial statements for all periods presented herein.

On February 10, 2012, the Company completed the sale of 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 consolidated financial statements for all periods presented herein.

On January 27, 2012, the Company completed the sale of its wide-format papers business, for cash proceeds of approximately $4.7 million. The operating results of the wide-format papers business are reported in discontinued operations in the Company's 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 consolidated balance sheets as of December 28, 2013, and December 29, 2012 (in thousands):

	2013			2012
Accounts receivable, net	$	9		$	7,222
Inventories	—			3,534
Prepaid and other current assets	123			509
Assets of discontinued operations - current	132			11,265
Property, plant and equipment, net	33			3,522
Goodwill	—			4,000
Other intangible assets, net	—			7,705
Other assets, net	—			41
Assets of discontinued operations - long-term	33			15,268
Accounts payable	—			5,421
Accrued compensation and related liabilities	627			645
Other current liabilities	1,386			525
Liabilities of discontinued operations - current	2,013			6,591
Liabilities of discontinued operations - long-term	—			880
Net assets	$	(1,848	)	$	19,062

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

	For The Years Ended
	2013		2012			2011
Net sales	$	34,891	$	68,478		$	164,427
Income from discontinued operations before income taxes (1) (2)	4,471		11,342			8,901
Income tax expense on discontinued operations	2,663		4,441			8,772
Gain (loss) on sale of discontinued operations, net of tax (3)	14,933		(6,260		)	—
Income from discontinued operations, net of taxes	$	16,741	$	641		$	129
Income per share - basic	$	0.25	$	0.01		$	—
Income per share - diluted	$	0.25	$	0.01		$	—

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⁽¹⁾     Income from discontinued operations for the year ended 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⁾     Includes $13.5 million of non-cash goodwill impairment charges in 2011 related to the Documents Group and the Company's wide-format papers business.

⁽³⁾     The gain (loss) on the sale of discontinued operations is shown net of tax expense of $10.7 million for the year ended 2013 and a tax benefit of $2.6 million for the year ended 2012.