Restructuring and Other Charges

6 Months Ended

Jun. 28, 2014

Restructuring and Related Activities [Abstract]

The Company currently has three active cost savings, restructuring and integration plans: (i) two plans related to the implementation of cost savings initiatives focused on overhead cost eliminations, including headcount reductions, and the potential closure of certain manufacturing facilities (the "2014 Plan" and the "2013 Plan"); and (ii) the plan related to the integration of certain assets of National into existing envelope operations (the "National Plan").

2014 Plan

During the first quarter of 2014, the Company began implementing the 2014 Plan, which primarily focuses on overhead cost eliminations, including headcount reductions, and the potential closure of certain manufacturing facilities. The Company expects to be substantially complete with the 2014 Plan during the 2015 fiscal year.

2013 Plan

During the first quarter of 2013, the Company began implementing the 2013 Plan, which primarily focuses on overhead cost eliminations, including headcount reductions, and the potential closure of certain manufacturing facilities. The Company expects to be substantially complete with the 2013 Plan during the 2014 fiscal year.

Acquisition Integration Plans

Upon the completion of the acquisition of certain assets of National, the Company developed and began implementing the National Plan. Since the date of acquisition, activities related to the National Plan included the closure and consolidation of three envelope facilities into one facility. Additionally, the Company is in the midst of consolidating six additional envelope facilities into three facilities. The Company expects the National Plan to be completed during 2014.

Upon the completion of the Envelope Product Group ("EPG") acquisition, the Company developed and implemented its plan to integrate EPG into its existing envelope operations (the "EPG Plan"). Since the date of acquisition, activities related to the EPG Plan have included the closure and consolidation of five manufacturing facilities into the Company's existing operations and the elimination of duplicative headcount. The Company has substantially completed the EPG Plan.

2012 Plan

In 2012, the Company announced the closure and consolidation of a print plant and an envelope plant into its existing print operations. Additionally, the Company began implementing a cost savings initiative (the "2012 Plan"), which primarily focused on the Company's print and envelope segments and corporate expenses. This initiative focused on the consolidation of office and warehouse space and other overhead cost elimination plans, including headcount reductions.

Residual Plans

The Company currently has certain residual cost savings, restructuring and integration plans (the "Residual Plans"). As a result of these cost savings actions over the last eight years, the Company has closed or consolidated a significant amount of manufacturing facilities and has had a significant number of headcount reductions.

The Company does not anticipate any significant future expenses related to either the 2012 Plan or the Residual Plans.

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

2014 Activity

Restructuring and other charges for the three months ended June 28, 2014 were as follows (in thousands):




		Employee Separation Costs			Asset Charges Net of Gain on Sale			Equipment Moving Expenses			Lease Termination Expenses		Multi-Employer Pension Withdrawal Expenses		Building Clean-up & Other Expenses		Total
Envelope
	2014 Plan	$	81		$	—		$	—		$	—	$	—	$	—	$	81
	2012 Plan	—			—			—			—		—		1		1
	Residual Plans	—			—			—			—		34		38		72
	Acquisition Integration Plans	1,632			1,613			982			214		—		1,023		5,464
Total Envelope		1,713			1,613			982			214		34		1,062		5,618
Print
	2014 Plan	145			—			—			—		—		101		246
	2013 Plan	(89		)	(19		)	—			74		—		102		68
	2012 Plan	—			—			—			5		3		—		8
	Residual Plans	—			—			(1		)	136		119		22		276
Total Print		56			(19		)	(1		)	215		122		225		598
Label and Packaging
	2014 Plan	321			—			—			—		—		—		321
	2013 Plan	1			—			—			—		—		—		1
	Residual Plans	—			—			—			14		—		—		14
Total Label and Packaging		322			—			—			14		—		—		336
Corporate
	2014 Plan	769			—			—			—		—		17		786
Total Corporate		769			—			—			—		—		17		786
Total Restructuring and Other Charges		$	2,860		$	1,594		$	981		$	443	$	156	$	1,304	$	7,338

Restructuring and other charges for the six months ended June 28, 2014 were as follows (in thousands):




		Employee Separation Costs			Asset Charges Net of Gain on Sale			Equipment Moving Expenses		Lease Termination Expenses			Multi-Employer Pension Withdrawal Expenses		Building Clean-up & Other Expenses		Total
Envelope
	2014 Plan	$	81		$	—		$	—	$	—		$	—	$	—	$	81
	2013 Plan	(1		)	—			—		—			—		—		(1		)
	2012 Plan	—			—			—		(198		)	—		1		(197		)
	Residual Plans	—			—			—		—			66		54		120
	Acquisition Integration Plans	1,725			2,214			1,618		1,604			—		1,471		8,632
Total Envelope		1,805			2,214			1,618		1,406			66		1,526		8,635
Print
	2014 Plan	152			—			—		—			—		101		253
	2013 Plan	299			(41		)	—		207			—		394		859
	2012 Plan	—			—			—		9			732		—		741
	Residual Plans	—			—			—		76			106		569		751
Total Print		451			(41		)	—		292			838		1,064		2,604
Label and Packaging
	2014 Plan	572			—			—		—			—		—		572
	2013 Plan	27			—			—		—			—		—		27
	Residual Plans	—			—			—		28			—		—		28
Total Label and Packaging		599			—			—		28			—		—		627
Corporate
	2014 Plan	1,373			—			—		—			—		46		1,419
Total Corporate		1,373			—			—		—			—		46		1,419
Total Restructuring and Other Charges		$	4,228		$	2,173		$	1,618	$	1,726		$	904	$	2,636	$	13,285

2013 Activity

Restructuring and other charges for the three months ended June 29, 2013 were as follows (in thousands):




		Employee Separation Costs			Asset Charges Net of Gain on Sale			Equipment Moving Expenses		Lease Termination Expenses			Multi-Employer Pension Withdrawal Expenses		Building Clean-up & Other Expenses		Total
Envelope
	2013 Plan	$	37		$	—		$	—	$	—		$	—	$	20	$	57
	2012 Plan	(8		)	118			139		156			—		429		834
	Residual Plans	—			—			—		—			26		6		32
	Acquisition Integration Plans	(57		)	(130		)	506		29			—		264		612
Total Envelope		(28		)	(12		)	645		185			26		719		1,535
Print
	2013 Plan	434			—			—		90			—		14		538
	2012 Plan	(1		)	—			—		2			—		52		53
	Residual Plans	—			—			—		369			97		105		571
Total Print		433			—			—		461			97		171		1,162
Label and Packaging
	2013 Plan	104			—			—		—			—		8		112
	Residual Plans	—			—			—		(185		)	—		—		(185		)
Total Label and Packaging		104			—			—		(185		)	—		8		(73		)
Corporate
	2013 Plan	66			—			—		—			—		—		66
	Residual Plans	—			—			—		—			—		34		34
Total Corporate		66			—			—		—			—		34		100
Total Restructuring and Other Charges		$	575		$	(12	)	$	645	$	461		$	123	$	932	$	2,724

Restructuring and other charges for the six months ended June 29, 2013 were as follows (in thousands):




		Employee Separation Costs			Asset Charges Net of Gain on Sale			Equipment Moving Expenses		Lease Termination Expenses			Multi-Employer Pension Withdrawal Expenses		Building Clean-up & Other Expenses		Total
Envelope
	2013 Plan	$	79		$	—		$	10	$	—		$	—	$	20	$	109
	2012 Plan	(18		)	118			183		204			—		637		1,124
	Residual Plans	—			—			—		—			49		11		60
	Acquisition Integration Plans	461			(130		)	709		3			—		339		1,382
Total Envelope		522			(12		)	902		207			49		1,007		2,675
Print
	2013 Plan	1,140			—			—		90			—		14		1,244
	2012 Plan	(74		)	147			39		4			—		56		172
	Residual Plans	—			—			10		421			153		143		727
Total Print		1,066			147			49		515			153		213		2,143
Label and Packaging
	2013 Plan	355			—			—		—			—		12		367
	Residual Plans	(4		)	—			—		(161		)	—		—		(165		)
Total Label and Packaging		351			—			—		(161		)	—		12		202
Corporate
	2013 Plan	1,791			—			—		—			—		21		1,812
	Residual Plans	23			—			—		—			—		51		74
Total Corporate		1,814			—			—		—			—		72		1,886
Total Restructuring and Other Charges		$	3,753		$	135		$	951	$	561		$	202	$	1,304	$	6,906

A summary of the activity related to the restructuring liabilities for all the cost savings, restructuring and integration initiatives were as follows (in thousands):



	Employee Separation Costs			Lease Termination Expenses			Multi-Employer Pension Withdrawal Expenses			Building Clean-up, Equipment Moving and Other Expenses			Total
2014 Plan
Balance as of December 28, 2013	$	—		$	—		$	—		$	—		$	—
Accruals, net	2,178			—			—			147			2,325
Payments	(2,005		)	—			—			(147		)	(2,152		)
Balance as of June 28, 2014	$	173		$	—		$	—		$	—		$	173
2013 Plan
Balance as of December 28, 2013	$	837		$	56		$	—		$	—		$	893
Accruals, net	325			207			—			394			926
Payments	(929		)	(125		)	—			(394		)	(1,448		)
Balance as of June 28, 2014	$	233		$	138		$	—		$	—		$	371

2012 Plan
Balance as of December 28, 2013	$	—		$	327		$	5,400		$	—		$	5,727
Accruals, net	—			(189		)	732			1			544
Payments	—			(62		)	(160		)	(1		)	(223		)
Balance as of June 28, 2014	$	—		$	76		$	5,972		$	—		$	6,048

Residual Plans
Balance as of December 28, 2013	$	—		$	1,017		$	15,155		$	—		$	16,172
Accruals, net	—			104			172			623			899
Payments	—			(149		)	(1,256		)	(623		)	(2,028		)
Balance as of June 28, 2014	$	—		$	972		$	14,071		$	—		$	15,043

Acquisition Integration Plans
Balance as of December 28, 2013	$	155		$	2,503		$	—		$	—		$	2,658
Accruals, net	1,725			1,604			—			3,089			6,418
Payments	(1,227		)	(986		)	—			(3,089		)	(5,302		)
Balance as of June 28, 2014	$	653		$	3,121		$	—		$	—		$	3,774

Total Restructuring Liability	$	1,059		$	4,307		$	20,043		$	—		$	25,409

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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