Restructuring and Other Charges

9 Months Ended

Sep. 27, 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 have included the closure and consolidation of three envelope facilities on the west coast into one facility. Additionally, during the third quarter of 2014, the Company substantially completed the consolidation of seven additional envelope facilities into our existing operations and two new 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 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 September 27, 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	$	31	$	—		$	—	$	—		$	—	$	—	$	31
	Residual Plans	—		—			—		—			36		33		69
	Acquisition Integration Plans	370		(28		)	1,203		280			—		1,515		3,340
Total Envelope		401		(28		)	1,203		280			36		1,548		3,440
Print
	2014 Plan	210		(699		)	—		—			—		92		(397		)
	2013 Plan	—		—			—		(29		)	—		61		32
	2012 Plan	—		—			—		5			7		—		12
	Residual Plans	—		—			—		67			128		37		232
Total Print		210		(699		)	—		43			135		190		(121		)
Label and Packaging
	2014 Plan	220		—			—		—			—		—		220
Total Label and Packaging		220		—			—		—			—		—		220
Corporate
	2014 Plan	2,017		—			—		—			—		—		2,017
	2013 Plan	—		—			—		—			—		15		15
Total Corporate		2,017		—			—		—			—		15		2,032
Total Restructuring and Other Charges		$	2,848	$	(727	)	$	1,203	$	323		$	171	$	1,753	$	5,571

Restructuring and other charges for the nine months ended September 27, 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	$	112		$	—		$	—	$	—		$	—	$	—	$	112
	2013 Plan	(1		)	—			—		—			—		—		(1		)
	2012 Plan	—			—			—		(198		)	—		1		(197		)
	Residual Plans	—			—			—		—			102		87		189
	Acquisition Integration Plans	2,095			2,186			2,821		1,884			—		2,986		11,972
Total Envelope		2,206			2,186			2,821		1,686			102		3,074		12,075
Print
	2014 Plan	362			(699		)	—		—			—		193		(144		)
	2013 Plan	299			(41		)	—		178			—		455		891
	2012 Plan	—			—			—		14			739		—		753
	Residual Plans	—			—			—		143			234		606		983
Total Print		661			(740		)	—		335			973		1,254		2,483
Label and Packaging
	2014 Plan	792			—			—		—			—		—		792
	2013 Plan	27			—			—		—			—		—		27
	Residual Plans	—			—			—		28			—		—		28
Total Label and Packaging		819			—			—		28			—		—		847
Corporate
	2014 Plan	3,390			—			—		—			—		46		3,436
	2013 Plan	—			—			—		—			—		15		15
Total Corporate		3,390			—			—		—			—		61		3,451
Total Restructuring and Other Charges		$	7,076		$	1,446		$	2,821	$	2,049		$	1,075	$	4,389	$	18,856

2013 Activity

Restructuring and other charges for the three months ended September 28, 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	$	35		$	—	$	—	$	104		$	—	$	41	$	180
	2012 Plan	(18		)	—		10		(1		)	—		54		45
	Residual Plans	—			—		—		—			28		26		54
	Acquisition Integration Plans	(142		)	263		287		22			—		181		611
Total Envelope		(125		)	263		297		125			28		302		890
Print
	2013 Plan	1,173			—		—		95			—		51		1,319
	2012 Plan	—			—		—		3			—		—		3
	Residual Plans	—			—		—		68			92		54		214
Total Print		1,173			—		—		166			92		105		1,536
Label and Packaging
	2013 Plan	723			—		—		—			—		1		724
	Residual Plans	—			—		—		13			—		—		13
Total Label and Packaging		723			—		—		13			—		1		737
Corporate
	2013 Plan	36			—		—		64			—		43		143
	Residual Plans	—			—		—		—			—		31		31
Total Corporate		36			—		—		64			—		74		174
Total Restructuring and Other Charges		$	1,807		$	263	$	297	$	368		$	120	$	482	$	3,337

Restructuring and other charges for the nine months ended September 28, 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	$	114		$	—	$	10	$	104		$	—	$	61	$	289
	2012 Plan	(36		)	118		193		203			—		691		1,169
	Residual Plans	—			—		—		—			77		37		114
	Acquisition Integration Plans	319			133		996		25			—		520		1,993
Total Envelope		397			251		1,199		332			77		1,309		3,565
Print
	2013 Plan	2,313			—		—		185			—		65		2,563
	2012 Plan	(74		)	147		39		7			—		56		175
	Residual Plans	—			—		10		489			245		197		941
Total Print		2,239			147		49		681			245		318		3,679
Label and Packaging
	2013 Plan	1,078			—		—		—			—		13		1,091
	Residual Plans	(4		)	—		—		(148		)	—		—		(152		)
Total Label and Packaging		1,074			—		—		(148		)	—		13		939
Corporate
	2013 Plan	1,827			—		—		64			—		64		1,955
	Residual Plans	23			—		—		—			—		82		105
Total Corporate		1,850			—		—		64			—		146		2,060
Total Restructuring and Other Charges		$	5,560		$	398	$	1,248	$	929		$	322	$	1,786	$	10,243

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	4,656			—			—			239			4,895
Payments	(2,780		)	—			—			(239		)	(3,019		)
Balance as of September 27, 2014	$	1,876		$	—		$	—		$	—		$	1,876
2013 Plan
Balance as of December 28, 2013	$	837		$	56		$	—		$	—		$	893
Accruals, net	325			178			—			470			973
Payments	(1,027		)	(230		)	—			(470		)	(1,727		)
Balance as of September 27, 2014	$	135		$	4		$	—		$	—		$	139

2012 Plan
Balance as of December 28, 2013	$	—		$	327		$	5,400		$	—		$	5,727
Accruals, net	—			(184		)	739			1			556
Payments	—			(93		)	(320		)	(1		)	(414		)
Balance as of September 27, 2014	$	—		$	50		$	5,819		$	—		$	5,869

Residual Plans
Balance as of December 28, 2013	$	—		$	1,017		$	15,155		$	—		$	16,172
Accruals, net	—			171			336			693			1,200
Payments	—			(469		)	(1,944		)	(693		)	(3,106		)
Balance as of September 27, 2014	$	—		$	719		$	13,547		$	—		$	14,266

Acquisition Integration Plans
Balance as of December 28, 2013	$	155		$	2,503		$	—		$	—		$	2,658
Accruals, net	2,095			1,884			—			5,807			9,786
Payments	(1,915		)	(3,243		)	—			(5,807		)	(10,965		)
Balance as of September 27, 2014	$	335		$	1,144		$	—		$	—		$	1,479

Total Restructuring Liability	$	2,346		$	1,917		$	19,366		$	—		$	23,629

- 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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