Property, Plant and Equipment

6 Months Ended

Jul. 02, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

Property, plant and equipment are as follows (in thousands):

	July 2, 2016			January 2, 2016
Land and land improvements	$	9,209		$	9,194
Buildings and building improvements	82,065			82,206
Machinery and equipment	527,632			525,914
Furniture and fixtures	8,894			8,696
Construction in progress	14,981			10,181
	642,781			636,191
Accumulated depreciation	(434,381		)	(425,613		)
	$	208,400		$	210,578

Sale-Leaseback Transaction

On June 30, 2016, the Company sold the real estate used by one manufacturing facility related to its envelope segment for net proceeds of $7.9 million and entered into a five year operating lease for the same facility, with an option to renew for two additional five year periods. In connection with the sale, the Company has maintained continuing involvement in one capital improvement project, which under ASC 840 “Leases,” requires the gain on the sale to be deferred until the project is completed, which completion is expected by the end of 2016. At that time, the Company will record a gain of approximately $2.0 million and a deferred gain of approximately $2.8 million. The final amounts of the gain and deferred gain are dependent on the timing of the completion of the project.