11. Restructuring and Impairment Charges

Cost Savings, Restructuring and Integration Plans

In addition to the other restructuring plans implemented by the Company’s segments described below, the Company currently has one active and five residual cost savings, restructuring and integration plans: (i) the plan related to the integration of the EPG acquisition (the “EPG Plan”) and (ii) the plans related to the integration of the Nashua Corporation and Glyph acquisitions (collectively with the EPG Plan the “Acquisition Integration Plans”), the 2009 Cost Savings and Restructuring Plan, the 2007 Cost Savings and Integration Plan and the 2005 Cost Savings and Restructuring Plan (collectively referred to as the “Residual Plans”).

EPG Plan

Upon the completion of the EPG acquisition, the Company developed and implemented its preliminary plan to integrate EPG into its existing envelope operations. Since the date of acquisition, activities related to the EPG Plan have included the closure and consolidation of two manufacturing facilities into the Company’s existing operations and the elimination of duplicative headcount. In the second quarter of 2011, the Company has also announced the closure and consolidation of a third EPG facility. The Company anticipates that the integration of EPG will continue for at least the next twelve months and may include additional closure or consolidation of manufacturing facilities and further headcount reductions.

Other Restructuring Plans

In 2011, the envelopes, forms and labels and commercial printing segments have implemented further cost savings initiatives (“Other Restructuring Plans”) in order to provide enhanced customer service and centralize various back office functions within their businesses. These Other Restructuring Plans also include the realignment of certain manufacturing platforms, which has resulted in the closure and consolidation of two commercial printing plants into our existing operations. The Company anticipates that the execution and completion of these initiatives will be completed by the end of 2011.

As a result of actions taken in the first six months of 2011, including the EPG Plan, the Company reduced its headcount by approximately 400 employees.

The following tables present the details of the expenses recognized as a result of all the cost savings, restructuring and integration initiatives.

2011 Activity

Restructuring and impairment charges for the three months ended July 2, 2011 were as follows (in thousands):

		Employee Separation Costs	Asset Impairments net of gain on sale	Equipment Moving Expenses	Lease Termination Expenses	Building Clean-up & Other Expenses	Total
Envelopes, Forms and Labels
	Other Restructuring Plans	$ 230	$ —	$ —	$ —	$ —	$ 230
	2009 Plan	—	—	31	(106)	279	204
	2007 Plan	—	—	—	5	—	5
	2005 Plan	—	—	—	—	1	1
	Acquisition Integration Plans	857	594	796	10	200	2,457
Total Envelopes, Forms and Labels		1,087	594	827	(91)	480	2,897

Commercial Printing
	Other Restructuring Plans	522	24	—	6	10	562
	2009 Plan	—	864	126	403	455	1,848
	2007 Plan	—	77	—	—	31	108
	2005 Plan	—	—	—	—	6	6
Total Commercial Printing		522	965	126	409	502	2,524

Corporate
	2009 Plan	—	—	—	7	33	40
	2007 Plan	—	—	—	4	—	4
Total Corporate		—	—	—	11	33	44
Total Restructuring and Impairment Charges		$ 1,609	$ 1,559	$ 953	$ 329	$ 1,015	$ 5,465

Restructuring and impairment charges for the six months ended July 2, 2011 were as follows (in thousands):

		Employee Separation Costs	Asset Impairments net of gain on sale	Equipment Moving Expenses	Lease Termination Expenses	Building Clean-up & Other Expenses	Total
Envelopes, Forms and Labels
	Other Restructuring Plans	$ 230	$ —	$ —	$ —	$ —	$ 230
	2009 Plan	388	—	31	(63)	357	713
	2007 Plan	—	—	—	12	(32)	(20)
	2005 Plan	—	—	—	—	41	41
	Acquisition Integration Plans	1,109	637	1,093	14	345	3,198
Total Envelopes, Forms and Labels		1,727	637	1,124	(37)	711	4,162

Commercial Printing
	Other Restructuring Plans	522	24	—	6	10	562
	2009 Plan	(158)	1,800	522	899	1,118	4,181
	2007 Plan	—	77	—	26	136	239
	2005 Plan	—	—	—	3	6	9
Total Commercial Printing		364	1,901	522	934	1,270	4,991

Corporate
	2009 Plan	—	—	—	12	65	77
	2007 Plan	—	—	—	4	—	4
	2005 Plan	—	—	—	58	—	58
Total Corporate		—	—	—	74	65	139
Total Restructuring and Impairment Charges		$ 2,091	$ 2,538	$ 1,646	$ 971	$ 2,046	$ 9,292

2010 Activity

Restructuring and impairment charges for the three months ended July 3, 2010 were as follows (in thousands):

		Employee Separation Costs	Asset Impairments net of gain on sale	Equipment Moving Expenses	Lease Termination Expenses	Building Clean-up & Other Expenses	Total
Envelopes, Forms and Labels
	2009 Plan	$ 2,034	$ (9)	$ 41	$ 107	$ 51	$ 2,224
	2007 Plan	—	—	—	(2)	15	13
	2005 Plan	—	—	—	—	9	9
	Acquisition Integration Plans	1,114	298	382	59	209	2,062
Total Envelopes, Forms and Labels		3,148	289	423	164	284	4,308

Commercial Printing
	2009 Plan	965	1,061	460	2,634	1,179	6,299
	2007 Plan	—	—	—	223	179	402
	2005 Plan	—	—	—	—	64	64
Total Commercial Printing		965	1,061	460	2,857	1,422	6,765

Corporate
	2009 Plan	130	—	—	—	125	255
	2005 Plan	—	—	—	81	67	148
Total Corporate		130	—	—	81	192	403
Total Restructuring and Impairment Charges		$ 4,243	$ 1,350	$ 883	$ 3,102	$ 1,898	$ 11,476

Restructuring and impairment charges for the six months ended July 3, 2010 were as follows (in thousands):

		Employee Separation Costs	Asset Impairments net of gain on sale	Equipment Moving Expenses	Lease Termination Expenses	Multi-employer Pension Withdrawal Expenses	Building Clean-up & Other Expenses	Total
Envelopes, Forms and Labels
	2009 Plan	$ 2,886	$ 71	$ 191	$ 158	$ 1,588	$ 306	$ 5,200
	2007 Plan	—	—	—	66	—	29	95
	2005 Plan	—	—	—	(73)	—	9	(64)
	Acquisition Integration Plans	1,253	298	634	192	—	286	2,663
Total Envelopes, Forms and Labels		4,139	369	825	343	1,588	630	7,894

Commercial Printing
	2009 Plan	3,103	1,454	981	3,943	—	2,462	11,943
	2007 Plan	—	74	—	42	—	287	403
	2005 Plan	—	(165)	—	(50)	—	177	(38)
Total Commercial Printing		3,103	1,363	981	3,935	—	2,926	12,308

Corporate
	2009 Plan	130	—	—	345	—	226	701
	2005 Plan	—	—	—	133	—	67	200
Total Corporate		130	—	—	478	—	293	901
Total Restructuring and Impairment Charges		$ 7,372	$ 1,732	$ 1,806	$ 4,756	$ 1,588	$ 3,849	$21,103

A summary of the activity related to the restructuring liabilities for all the cost savings, restructuring and integration initiatives were as follows (in thousands):

Other Restructuring Plans		Lease Termination		Employee Separation Costs		Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	—	$	—	$	—	$	—	$	—
Accruals, net		6		752		—		10		768
Payments		(6)		(253)		—		(10)		(269)
Balance as of July 2, 2011	$	—	$	499	$	—	$	—	$	499

2009 Plan		Lease Termination		Employee Separation Costs		Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	4,397	$	1,333	$	19,512	$	—	$	25,242
Accruals, net		848		230		—		1,540		2,618
Payments		(2,621)		(1,027)		(492)		(1,540)		(5,680)
Balance as of July 2, 2011	$	2,624	$	536	$	19,020	$	—	$	22,180
2007 Plan		Lease Termination		Employee Separation Costs		Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	1,113	$	—	$	3,230	$	—	$	4,343
Accruals, net		42		—		—		104		146
Payments		(326)		—		(106)		(104)		(536)
Balance as of July 2, 2011	$	829	$	—	$	3,124	$	—	$	3,953

2005 Plan		Lease Termination		Employee Separation Costs		Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	959	$	—	$	46	$	—	$	1,005
Accruals, net		61		—		—		47		108
Payments		(1,020)		—		(29)		(47)		(1,096)
Balance as of July 2, 2011	$	—	$	—	$	17	$	—	$	17
Acquisition Integration Plans		Lease Termination		Employee Separation Costs		Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	1,643	$	227	$	—	$	—	$	1,870
Accruals, net		14		1,109		—		345		1,468
Payments		(265)		(611)		—		(345)		(1,221)
Balance as of July 2, 2011	$	1,392	$	725	$	—	$	—	$	2,117