Restructuring and Other Charges

6 Months Ended

Jul. 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 July 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	$	32		$	—	$	—	$	—	$	—	$	—		$	32
	2015 Plan	6			—		—		—		—		—			6
	Residual Plans	—			—		—		—		7		—			7
	Acquisition Integration Plans	—			146		—		—		—		—			146
Total Envelope		38			146		—		—		7		—			191
Print
	2016 Plan	11			—		—		—		—		—			11
	2015 Plan	(1		)	—		—		—		—		87			86
	Residual Plans	—			—		—		73		290		29			392
	Acquisition Integration Plans	—			—		—		45		—		—			45
Total Print		10			—		—		118		290		116			534
Label
	2016 Plan	5			—		—		—		—		1			6
	2015 Plan	40			—		—		—		—		(105		)	(65		)
Total Label		45			—		—		—		—		(104		)	(59		)
Corporate
	2016 Plan	207			—		—		—		—		—			207
	Residual Plans	—			—		—		—		—		7			7
Total Corporate		207			—		—		—		—		7			214
Total Restructuring and Other Charges		$	300		$	146	$	—	$	118	$	297	$	19		$	880

Restructuring and other charges for the six months ended July 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	$	97		$	—	$	—	$	—	$	—	$	—	$	97
	2015 Plan	13			—		—		—		—		—		13
	Residual Plans	—			—		—		—		54		2		56
	Acquisition Integration Plans	—			146		276		—		—		118		540
Total Envelope		110			146		276		—		54		120		706
Print
	2016 Plan	15			—		—		—		—		—		15
	2015 Plan	(3		)	—		—		—		—		121		118
	Residual Plans	1			—		—		113		512		38		664
	Acquisition Integration Plans	—			—		—		45		—		—		45
Total Print		13			—		—		158		512		159		842
Label
	2016 Plan	33			—		—		—		—		1		34
	2015 Plan	603			—		—		—		—		1,159		1,762
	Asset Impairments	—			2,300		—		—		—		—		2,300
Total Label		636			2,300		—		—		—		1,160		4,096
Corporate
	2016 Plan	207			—		—		—		—		3		210
	Residual Plans	—			—		—		—		—		16		16
Total Corporate		207			—		—		—		—		19		226
Total Restructuring and Other Charges		$	966		$	2,446	$	276	$	158	$	566	$	1,458	$	5,870

2015 Activity

Restructuring and other charges for the three months ended June 27, 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
	2015 Plan	$	86		$	—	$	—	$	—	$	—	$	—	$	86
	Residual Plans	—			—		—		—		42		17		59
	Acquisition Integration Plans	6			—		20		11		—		163		200
Total Envelope		92			—		20		11		42		180		345
Print
	2015 Plan	152			—		—		—		—		—		152
	Residual Plans	(9		)	65		22		33		156		411		678
Total Print		143			65		22		33		156		411		830
Label
	2015 Plan	26			—		17		—		—		28		71
	Residual Plans	(11		)	—		—		—		—		—		(11		)
Total Label		15			—		17		—		—		28		60
Corporate
	2015 Plan	718			—		—		—		—		24		742
Total Corporate		718			—		—		—		—		24		742
Total Restructuring and Other Charges		$	968		$	65	$	59	$	44	$	198	$	643	$	1,977

Restructuring and other charges for the six months ended June 27, 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
	2015 Plan	$	86	$	—	$	—	$	—		$	—	$	—	$	86
	Residual Plans	270		—		—		(22		)	82		57		387
	Acquisition Integration Plans	45		1,895		28		286			—		410		2,664
Total Envelope		401		1,895		28		264			82		467		3,137
Print
	2015 Plan	212		—		—		—			—		—		212
	Residual Plans	62		181		35		91			288		998		1,655
Total Print		274		181		35		91			288		998		1,867
Label
	2015 Plan	26		—		17		—			—		28		71
	Residual Plans	127		—		—		—			—		—		127
Total Label		153		—		17		—			—		28		198
Corporate
	2015 Plan	806		—		—		—			—		24		830
	Residual Plans	—		—		—		—			—		14		14
Total Corporate		806		—		—		—			—		38		844
Total Restructuring and Other Charges		$	1,634	$	2,076	$	80	$	355		$	370	$	1,531	$	6,046

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	352			—			—			4			356
Payments	(261		)	—			—			(4		)	(265		)
Balance as of July 2, 2016	$	91		$	—		$	—		$	—		$	91

2015 Plan
Balance as of January 2, 2016	$	276		$	—		$	—		$	—		$	276
Accruals, net	613			—			—			1,280			1,893
Payments	(319		)	—			—			(291		)	(610		)
Balance as of July 2, 2016	$	570		$	—		$	—		$	989		$	1,559

Residual Plans
Balance as of January 2, 2016	$	3		$	411		$	19,842		$	—		$	20,256
Accruals, net	1			113			566			56			736
Payments	(4		)	(524		)	(1,899		)	(56		)	(2,483		)
Balance as of July 2, 2016	$	—		$	—		$	18,509		$	—		$	18,509

Acquisition Integration Plans
Balance as of January 2, 2016	$	—		$	392		$	—		$	—		$	392
Accruals, net	—			45			—			394			439
Payments	—			(437		)	—			(394		)	(831		)
Balance as of July 2, 2016	$	—		$	—		$	—		$	—		$	—

Total Restructuring Liability	$	661		$	—		$	18,509		$	989		$	20,159

As of July 2, 2016, the total restructuring liability was $20.2 million, of which $4.0 million is included in other current liabilities and $16.2 million is included in other liabilities in the Company's consolidated balance sheet.