Property, Plant and Equipment

9 Months Ended

Oct. 01, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

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

	October 1, 2016			January 2, 2016
Land and land improvements	$	8,537		$	9,194
Buildings and building improvements	79,443			82,206
Machinery and equipment	536,224			525,914
Furniture and fixtures	9,463			8,696
Construction in progress	15,920			10,181
	649,587			636,191
Accumulated depreciation	(440,877		)	(425,613		)
	$	208,710		$	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 options to renew for up to two additional five year periods. In connection with the sale, the Company maintained continuing involvement in one capital improvement project which, under ASC 840 "Leases," resulted in the deferral of sale-leaseback accounting. During the three months ended October 1, 2016, the Company no longer maintained any continuing involvement obligations and accordingly the transaction qualified for sales-leaseback accounting. As a result, the Company recorded a gain of approximately $2.1 million in other income, net in the condensed consolidated statement of operations and a deferred gain of approximately $2.8 million which will be recognized ratably over the original five year lease.