Restructuring and Other Charges

3 Months Ended

Apr. 02, 2016

Restructuring and Related Activities [Abstract]

The Company currently has two active cost savings, restructuring and integration 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 "2016 Plan" and the "2015 Plan").

2016 Plan

During the first quarter of 2016, the Company began implementing the 2016 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 2016 Plan during the 2017 fiscal year.

2015 Plan

During the first quarter of 2015, the Company began implementing the 2015 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 2015 Plan during the 2016 fiscal year.

Acquisition Integration Plans

Upon the completion of the acquisition of certain assets of National Envelope Corporation ("National"), the Company developed and began implementing a plan related to the integration of certain assets of National into existing envelope operations (the "National Plan"). The Company completed the National Plan in 2015, which included the closure and consolidation of nine manufacturing facilities into existing envelope operations and two new facilities.

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 several 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 the Residual Plans other than modifications to current assumptions for lease terminations, multi-employer pension withdrawal liabilities and ongoing expenses related to maintaining restructured assets.

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

2016 Activity

Restructuring and other charges for the three months ended April 2, 2016 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
	2016 Plan	$	65		$	—	$	—	$	—	$	—	$	—	$	65
	2015 Plan	7			—		—		—		—		—		7
	Residual Plans	—			—		—		—		47		2		49
	Acquisition Integration Plans	—			—		276		—		—		118		394
Total Envelope		72			—		276		—		47		120		515
Print
	2016 Plan	4			—		—		—		—		—		4
	2015 Plan	(2		)	—		—		—		—		34		32
	Residual Plans	1			—		—		40		222		9		272
Total Print		3			—		—		40		222		43		308
Label
	2016 Plan	28			—		—		—		—		—		28
	2015 Plan	563			—		—		—		—		1,264		1,827
	Asset Impairments	—			2,300		—		—		—		—		2,300
Total Label		591			2,300		—		—		—		1,264		4,155
Corporate
	2016 Plan	—			—		—		—		—		3		3
	Residual Plans	—			—		—		—		—		9		9
Total Corporate		—			—		—		—		—		12		12
Total Restructuring and Other Charges		$	666		$	2,300	$	276	$	40	$	269	$	1,439	$	4,990

2015 Activity

Restructuring and other charges for the three months ended March 28, 2015 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
	Residual Plans	$	270	$	—	$	—	$	(22	)	$	40	$	40	$	328
	Acquisition Integration Plans	39		1,895		8		275			—		247		2,464
Total Envelope		309		1,895		8		253			40		287		2,792
Print
	2015 Plan	60		—		—		—			—		—		60
	Residual Plans	71		116		13		58			132		587		977
Total Print		131		116		13		58			132		587		1,037
Label
	Residual Plans	138		—		—		—			—		—		138
Total Label		138		—		—		—			—		—		138
Corporate
	2015 Plan	88		—		—		—			—		—		88
	Residual Plans	—		—		—		—			—		14		14
Total Corporate		88		—		—		—			—		14		102
Total Restructuring and Other Charges		$	666	$	2,011	$	21	$	311		$	172	$	888	$	4,069

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
2016 Plan
Balance as of January 2, 2016	$	—		$	—		$	—		$	—		$	—
Accruals, net	97			—			—			3			100
Payments	(34		)	—			—			(3		)	(37		)
Balance as of April 2, 2016	$	63		$	—		$	—		$	—		$	63

2015 Plan
Balance as of January 2, 2016	$	276		$	—		$	—		$	—		$	276
Accruals, net	568			—			—			1,298			1,866
Payments	(152		)	—			—			(34		)	(186		)
Balance as of April 2, 2016	$	692		$	—		$	—		$	1,264		$	1,956

Residual Plans
Balance as of January 2, 2016	$	3		$	411		$	19,842		$	—		$	20,256
Accruals, net	1			40			269			20			330
Payments	(4		)	(95		)	(977		)	(20		)	(1,096		)
Balance as of April 2, 2016	$	—		$	356		$	19,134		$	—		$	19,490

Acquisition Integration Plans
Balance as of January 2, 2016	$	—		$	392		$	—		$	—		$	392
Accruals, net	—			—			—			394			394
Payments	—			(48		)	—			(394		)	(442		)
Balance as of April 2, 2016	$	—		$	344		$	—		$	—		$	344

Total Restructuring Liability	$	755		$	700		$	19,134		$	1,264		$	21,853

As of April 2, 2016, the total restructuring liability was $21.9 million, of which $4.8 million is included in other current liabilities, and $17.1 million is included in other liabilities in the Company's consolidated balance sheet.