Discontinued Operations

3 Months Ended

Mar. 29, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On September 28, 2013, the Company completed the sale of Custom Envelope. To date, the Company has received net cash proceeds of approximately $45.8 million, of which $1.0 million was received in the first quarter of 2014. This resulted in the recognition of a total after-tax gain of $15.7 million, of which $14.9 million was recognized in the year ended 2013. In addition to the proceeds, $1.2 million of purchase price consideration is 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. The operating results of Custom Envelope are reported in discontinued operations in the Company's 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 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 March 29, 2014, and December 28, 2013 (in thousands):

	March 29, 2014			December 28, 2013
Accounts receivable, net	$	—		$	9
Prepaid and other current assets	88			123
Assets of discontinued operations - current	88			132
Property, plant and equipment, net	—			33
Assets of discontinued operations - long-term	—			33
Accrued compensation and related liabilities	99			627
Other current liabilities	5			1,386
Liabilities of discontinued operations - current	104			2,013
Net assets	$	(16	)	$	(1,848	)

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

	For the Three Months Ended
	March 29, 2014		March 30, 2013
Net sales	$	—	$	13,730
Income from discontinued operations before income taxes	176		2,234
Income tax expense on discontinued operations	68		889
Gain on sale of discontinued operations, net of tax expense of $0.5 million	845		—
Income from discontinued operations, net of taxes	$	953	$	1,345
Income per share - basic	$	0.01	$	0.02
Income per share - diluted	$	0.01	$	0.02