Restructuring and Other Charges

6 Months Ended

Jul. 01, 2017

Restructuring and Related Activities [Abstract]

The Company currently has two active cost savings, restructuring and integration plans, which are 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 "2017 Plan," and the "2016 Plan"). Each plan is primarily associated with a specific fiscal year of the planned cost actions.

During 2016, the Company began implementing the 2017 Plan and continued activity under the 2016 Plan. The Company is still contemplating additional cost actions that would be associated with the 2017 Plan. The Company expects to be substantially complete with the 2016 Plan and the 2017 Plan in the 2017 fiscal year and the 2018 fiscal year, respectively. The Company currently has certain residual actions associated with finalizing prior restructuring and acquisition 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. During the first six months of 2017, the Company announced and completed the closure of one envelope facility and one print facility.

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 (benefits) recognized as a result of these plans.

2017 Activity

Restructuring and other charges for the three months ended July 1, 2017, 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
	2017 Plan	$	67		$	513	$	417	$	27	$	—	$	392		$	1,416
	2016 Plan	—			—		77		—		—		—			77
	Residual Plans	—			—		—		—		—		19			19
Total Envelope		67			513		494		27		—		411			1,512
Print
	2017 Plan	(54		)	393		261		28		—		577			1,205
	Residual Plans	—			—		—		—		337		(21		)	316
Total Print		(54		)	393		261		28		337		556			1,521
Label
	2017 Plan	18			93		—		1,128		—		—			1,239
	Residual Plans	—			—		—		—		—		11			11
Total Label		18			93		—		1,128		—		11			1,250
Corporate
	2017 Plan	105			—		—		—		—		21			126
	2016 Plan	7			—		—		—		—		—			7
Total Corporate		112			—		—		—		—		21			133
Total Restructuring and Other Charges		$	143		$	999	$	755	$	1,183	$	337	$	999		$	4,416

Restructuring and other charges for the six months ended July 1, 2017, 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
	2017 Plan	$	642		$	963		$	446	$	54	$	—	$	417		$	2,522
	2016 Plan	(33		)	(2		)	124		18		—		70			177
	Residual Plans	—			—			—		—		—		22			22
Total Envelope		609			961			570		72		—		509			2,721
Print
	2017 Plan	172			1,061			374		37		4,933		966			7,543
	Residual Plans	—			—			—		—		599		24			623
Total Print		172			1,061			374		37		5,532		990			8,166
Label
	2017 Plan	(151		)	93			—		1,128		—		—			1,070
	2016 Plan	(17		)	—			—		—		—		—			(17		)
	Residual Plans	(196		)	—			—		—		—		(4		)	(200		)
Total Label		(364		)	93			—		1,128		—		(4		)	853
Corporate
	2017 Plan	815			—			—		—		—		34			849
	2016 Plan	7			—			—		—		—		—			7
Total Corporate		822			—			—		—		—		34			856
Total Restructuring and Other Charges		$	1,239		$	2,115		$	944	$	1,237	$	5,532	$	1,529		$	12,596

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
	Residual Plans	6			146		—		—		7		—			159
Total Envelope		38			146		—		—		7		—			191
Print
	2016 Plan	11			—		—		—		—		—			11
	Residual Plans	(1		)	—		—		118		290		116			523
Total Print		10			—		—		118		290		116			534
Label
	2016 Plan	5			—		—		—		—		1			6
	Residual Plans	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
	Residual Plans	13			146		276		—		54		120		609
Total Envelope		110			146		276		—		54		120		706
Print
	2016 Plan	15			—		—		—		—		—		15
	Residual Plans	(2		)	—		—		158		512		159		827
Total Print		13			—		—		158		512		159		842
Label
	2016 Plan	33			—		—		—		—		1		34
	Residual Plans	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

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
2017 Plan
Balance as of December 31, 2016	$	2,000		$	—		$	—		$	—		$	2,000
Accruals, net	1,478			1,219			4,933			2,237			9,867
Payments	(2,182		)	(236		)	—			(2,229		)	(4,647		)
Balance as of July 1, 2017	$	1,296		$	983		$	4,933		$	8		$	7,220

2016 Plan
Balance as of December 31, 2016	$	844		$	—		$	—		$	—		$	844
Accruals, net	(43		)	18			—			194			169
Payments	(704		)	(18		)	—			(194		)	(916		)
Balance as of July 1, 2017	$	97		$	—		$	—		$	—		$	97

Residual Plans
Balance as of December 31, 2016	$	247		$	—		$	17,482		$	359		$	18,088
Accruals, net	(196		)	—			599			42			445
Payments	(51		)	—			(1,828		)	(401		)	(2,280		)
Balance as of July 1, 2017	$	—		$	—		$	16,253		$	—		$	16,253

Total Restructuring Liability	$	1,393		$	983		$	21,186		$	8		$	23,570

As of July 1, 2017, the total restructuring liability was $23.6 million, of which $3.7 million is included in other current liabilities and $19.9 million is included in other liabilities in the Company's condensed consolidated balance sheet.