Restructuring and Other Charges

9 Months Ended

Oct. 01, 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 October 1, 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	$	384		$	—	$	22	$	—	$	—	$	66		$	472
	Residual Plans	—			—		—		—		—		5			5
	Acquisition Integration Plans	—			—		—		—		—		19			19
Total Envelope		384			—		22		—		—		90			496
Print
	2016 Plan	92			—		—		—		—		—			92
	2015 Plan	—			—		—		—		—		162			162
	Residual Plans	—			—		—		—		203		20			223
Total Print		92			—		—		—		203		182			477
Label
	2016 Plan	158			—		—		—		—		4			162
	2015 Plan	(45		)	—		—		—		—		(81		)	(126		)
Total Label		113			—		—		—		—		(77		)	36
Corporate
	2016 Plan	1,448			—		—		—		—		—			1,448
	2015 Plan	(54		)	—		—		—		—		—			(54		)
	Residual Plans	—			—		—		—		—		11			11
Total Corporate		1,394			—		—		—		—		11			1,405
Total Restructuring and Other Charges		$	1,983		$	—	$	22	$	—	$	203	$	206		$	2,414

Restructuring and other charges for the nine months ended October 1, 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	$	481		$	—	$	22	$	—	$	—	$	66	$	569
	2015 Plan	13			—		—		—		—		—		13
	Residual Plans	—			—		—		—		54		7		61
	Acquisition Integration Plans	—			146		276		—		—		137		559
Total Envelope		494			146		298		—		54		210		1,202
Print
	2016 Plan	107			—		—		—		—		—		107
	2015 Plan	(3		)	—		—		—		—		283		280
	Residual Plans	1			—		—		113		715		58		887
	Acquisition Integration Plans	—			—		—		45		—		—		45
Total Print		105			—		—		158		715		341		1,319
Label
	2016 Plan	191			—		—		—		—		5		196
	2015 Plan	558			—		—		—		—		1,078		1,636
	Asset Impairments	—			2,300		—		—		—		—		2,300
Total Label		749			2,300		—		—		—		1,083		4,132
Corporate
	2016 Plan	1,655			—		—		—		—		3		1,658
	2015 Plan	(54		)	—		—		—		—		—		(54		)
	Residual Plans	—			—		—		—		—		27		27
Total Corporate		1,601			—		—		—		—		30		1,631
Total Restructuring and Other Charges		$	2,949		$	2,446	$	298	$	158	$	769	$	1,664	$	8,284

2015 Activity

Restructuring and other charges for the three months ended September 26, 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	$	61		$	—	$	—	$	—	$	—	$	—	$	61
	Residual Plans	(18		)	—		—		—		44		5		31
	Acquisition Integration Plans	—			—		5		—		—		84		89
Total Envelope		43			—		5		—		44		89		181
Print
	2015 Plan	172			—		—		—		—		—		172
	Residual Plans	10			—		4		36		4,160		91		4,301
Total Print		182			—		4		36		4,160		91		4,473
Label
	2015 Plan	(6		)	—		116		—		—		170		280
	Residual Plans	1			—		—		—		—		—		1
Total Label		(5		)	—		116		—		—		170		281
Corporate
	2015 Plan	503			—		—		—		—		45		548
Total Corporate		503			—		—		—		—		45		548
Total Restructuring and Other Charges		$	723		$	—	$	125	$	36	$	4,204	$	395	$	5,483

Restructuring and other charges for the nine months ended September 26, 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	$	147	$	—	$	—	$	—		$	—	$	—	$	147
	Residual Plans	252		—		—		(22		)	126		62		418
	Acquisition Integration Plans	45		1,895		33		286			—		494		2,753
Total Envelope		444		1,895		33		264			126		556		3,318
Print
	2015 Plan	384		—		—		—			—		—		384
	Residual Plans	72		181		39		127			4,448		1,089		5,956
Total Print		456		181		39		127			4,448		1,089		6,340
Label
	2015 Plan	20		—		133		—			—		197		350
	Residual Plans	129		—		—		—			—		—		129
Total Label		149		—		133		—			—		197		479
Corporate
	2015 Plan	1,309		—		—		—			—		69		1,378
	Residual Plans	—		—		—		—			—		14		14
Total Corporate		1,309		—		—		—			—		83		1,392
Total Restructuring and Other Charges		$	2,358	$	2,076	$	205	$	391		$	4,574	$	1,925	$	11,529

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	2,434			—			—			96			2,530
Payments	(837		)	—			—			(96		)	(933		)
Balance as of October 1, 2016	$	1,597		$	—		$	—		$	—		$	1,597

2015 Plan
Balance as of January 2, 2016	$	276		$	—		$	—		$	—		$	276
Accruals, net	514			—			—			1,361			1,875
Payments	(493		)	—			—			(1,102		)	(1,595		)
Balance as of October 1, 2016	$	297		$	—		$	—		$	259		$	556

Residual Plans
Balance as of January 2, 2016	$	3		$	411		$	19,842		$	—		$	20,256
Accruals, net	1			113			769			92			975
Payments	(4		)	(524		)	(2,542		)	(92		)	(3,162		)
Balance as of October 1, 2016	$	—		$	—		$	18,069		$	—		$	18,069

Acquisition Integration Plans
Balance as of January 2, 2016	$	—		$	392		$	—		$	—		$	392
Accruals, net	—			45			—			413			458
Payments	—			(437		)	—			(413		)	(850		)
Balance as of October 1, 2016	$	—		$	—		$	—		$	—		$	—

Total Restructuring Liability	$	1,894		$	—		$	18,069		$	259		$	20,222

As of October 1, 2016, the total restructuring liability was $20.2 million, of which $4.3 million is included in other current liabilities and $15.9 million is included in other liabilities in the Company's condensed consolidated balance sheet.