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 three manufacturing facilities into the Company’s existing operations and the elimination of duplicative headcount. The Company anticipates that the integration of EPG will continue into 2012 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, centralize various back office functions or rationalize 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 these initiatives will be completed by the end of 2011.

As a result of actions taken in the nine months ended October 1, 2011, including the EPG Plan, the Company reduced its headcount by approximately 600 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 October 1, 2011 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
	Other Restructuring Plans	$ 315	$ —	$ —	$ —	$ —	$ —	$ 315
	2009 Plan	(1)	—	—	(30)	(166)	16	(181)
	2007 Plan	—	—	—	6	—	—	6
	Acquisition Integration Plans	696	131	543	17	—	90	1,477
Total Envelopes, Forms and Labels		1,010	131	543	(7)	(166)	106	1,617

Commercial Printing
	Other Restructuring Plans	248	42	53	131	—	187	661
	2009 Plan	—	—	—	87	1,907	308	2,302
	2007 Plan	—	—	—	337	(389)	50	(2)
Total Commercial Printing		248	42	53	555	1,518	545	2,961

Corporate
	2009 Plan	—	—	—	3	—	122	125
	2007 Plan	—	—	—	5	—	—	5
	2005 Plan	—	—	—	—	—	(23)	(23)
Total Corporate		—	—	—	8	—	99	107
Total Restructuring and Impairment Charges		$ 1,258	$ 173	$ 596	$ 556	$ 1,352	$ 750	$ 4,685

Restructuring and impairment charges for the nine months ended October 1, 2011 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
	Other Restructuring Plans	$ 545	$ —	$ —	$ —	$ —	$ —	$ 545
	2009 Plan	387	—	31	(93)	(166)	373	532
	2007 Plan	—	—	—	18	—	(32)	(14)
	2005 Plan	—	—	—	—	—	41	41
	Acquisition Integration Plans	1,805	768	1,636	31	—	435	4,675
Total Envelopes, Forms and Labels		2,737	768	1,667	(44)	(166)	817	5,779

Commercial Printing
	Other Restructuring Plans	770	66	53	137	—	197	1,223
	2009 Plan	(158)	1,800	522	986	1,907	1,426	6,483
	2007 Plan	—	77	—	363	(389)	186	237
	2005 Plan	—	—	—	3	—	6	9
Total Commercial Printing		612	1,943	575	1,489	1,518	1,815	7,952

Corporate
	2009 Plan	—	—	—	15	—	187	202
	2007 Plan	—	—	—	9	—	—	9
	2005 Plan	—	—	—	58	—	(23)	35
Total Corporate		—	—	—	82	—	164	246
Total Restructuring and Impairment Charges		$ 3,349	$ 2,711	$ 2,242	$ 1,527	$ 1,352	$ 2,796	$ 13,977

2010 Activity

Restructuring and impairment charges for the three months ended October 2, 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	$ 45	$ (7)	$ —	$ 139	$ 2,266	$ 70	$ 2,513
	2007 Plan	—	—	—	(23)	—	17	(6)
	2005 Plan	—	—	—	—	—	(46)	(46)
	Acquisition Integration Plans	96	39	66	2	—	267	470
Total Envelopes, Forms and Labels		141	32	66	118	2,266	308	2,931

Commercial Printing
	2009 Plan	413	(320)	404	210	—	937	1,644
	2007 Plan	—	—	—	(2)	—	150	148
	2005 Plan	—	—	—	8	—	31	39
	Acquisition Integration Plans	78	—	—	159	—	—	237
Subtotal		491	(320)	404	375	—	1,118	2,068
	Asset Impairments	—	181,419	—	—	—	—	181,419
Total Commercial Printing		491	181,099	404	375	—	1,118	183,487

Corporate
	2009 Plan	1,504	—	—	2	—	67	1,573
	2005 Plan	—	—	—	81	—	43	124
Total Corporate		1,504	—	—	83	—	110	1,697
Total Restructuring and Impairment Charges		$ 2,136	$ 181,131	$ 470	$ 576	$ 2,266	$ 1,536	$ 188,115

Restructuring and impairment charges for the nine months ended October 2, 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	$ 2,931	$ 64	$ 191	$ 297	$ 3,854	$ 376	$ 7,713
	2007 Plan	—	—	—	43	—	46	89
	2005 Plan	—	—	—	(73)	—	(37)	(110)
	Acquisition Integration Plans	1,349	337	700	194	—	553	3,133
Total Envelopes, Forms and Labels		4,280	401	891	461	3,854	938	10,825

Commercial Printing
	2009 Plan	3,516	1,134	1,385	4,153	—	3,399	13,587
	2007 Plan	—	74	—	40	—	437	551
	2005 Plan	—	(165)	—	(42)	—	208	1
	Acquisition Integration Plans	78	—	—	159	—	—	237
Subtotal		3,594	1,043	1,385	4,310	—	4,044	14,376
	Asset Impairments	—	181,419	—	—	—	—	181,419
Total Commercial Printing		3,594	182,462	1,385	4,310	—	4,044	195,795

Corporate
	2009 Plan	1,634	—	—	348	—	292	2,274
	2005 Plan	—	—	—	214	—	110	324
Total Corporate		1,634	—	—	562	—	402	2,598
Total Restructuring and Impairment Charges		$ 9,508	$ 182,863	$ 2,276	$ 5,333	$ 3,854	$ 5,384	$ 209,218

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		Multi-Employer Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	—	$	—	$	—	$	—	$	—
Accruals, net		137		1,315		—		197		1,649
Payments		(39)		(771)		—		(197)		(1,007)
Balance as of October 1, 2011	$	98	$	544	$	—	$	—	$	642

2009 Plan		Lease Termination		Employee Separation Costs		Multi-Employer 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		908		229		1,741		1,986		4,864
Payments		(3,376)		(1,205)		(767)		(1,986)		(7,334)
Balance as of October 1, 2011	$	1,929	$	357	$	20,486	$	—	$	22,772
2007 Plan		Lease Termination		Employee Separation Costs		Multi-Employer Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	1,113	$	—	$	3,230	$	—	$	4,343
Accruals, net		390		—		(389)		154		155
Payments		(447)		—		(221)		(154)		(822)
Balance as of October 1, 2011	$	1,056	$	—	$	2,620	$	—	$	3,676

2005 Plan		Lease Termination		Employee Separation Costs		Multi-Employer Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	959	$	—	$	46	$	—	$	1,005
Accruals, net		61		—		—		24		85
Payments		(1,020)		—		(46)		(24)		(1,090)
Balance as of October 1, 2011	$	—	$	—	$	—	$	—	$	—
Acquisition Integration Plans		Lease Termination		Employee Separation Costs		Multi-Employer Pension Withdrawal Liabilities		Building Clean-up & Other Expenses		Total
Balance as of January 1, 2011	$	1,643	$	227	$	—	$	—	$	1,870
Accruals, net		31		1,805		—		435		2,271
Payments		(332)		(1,338)		—		(435)		(2,105)
Balance as of October 1, 2011	$	1,342	$	694	$	—	$	—	$	2,036

Goodwill and Other Long-Lived Asset Impairments

In the third quarter of 2010, the Company recorded non-cash impairment charges of $132.2 million related to goodwill and $49.2 million related to other long-lived assets, of which $22.0 million related to an indefinite lived trade name and $27.2 million related to customer relationships in its Publisher Services Group reporting unit.