FACILITY CONSOLIDATION AND OTHER COSTS

2011 Program

During the fourth quarter of 2011, the Company initiated a facility consolidation and other costs program (“2011 Program”) to improve efficiencies and reduce fixed costs. As a part of this program, the Company announced the planned closure of five facilities. As of December 31, 2012, manufacturing operations had ceased at four of these manufacturing facilities. Most of the production from these five facilities has been transferred to other facilities. The total estimated 2011 Program costs are approximately $86 million, including $32 million in employee costs, $33 million in fixed asset accelerated depreciation and write-downs, and $21 million in other facility consolidation costs. These amounts exclude any potential gain to be recognized on the sale of property. Expenses in 2012 were $34.4 million, primarily consisting of accelerated depreciation ($13.4 million) and equipment relocation ($9.5 million). The estimated 2011 Program costs by reportable segment follow:



(in millions)	U.S. Packaging		Global Packaging		Pressure Sensitive		Corporate		Total Facility Consolidation and Other Costs
2011 net expense accrued	$	26.3	$	8.6	$	2.7	$	0.8	$	38.4
2012 net expense accrued	29.4		5.0		—		—		34.4
Expense incurred through December 31, 2012	55.7		13.6		2.7		0.8		72.8
Estimated future expense	13.2		—		—		—		13.2
Total estimated costs	$	68.9	$	13.6	$	2.7	$	0.8	$	86.0

An analysis of the 2011 Program accruals follows:



(in millions)	Employee Costs			Fixed Asset Related			Other Costs			Total Facility Consolidation and Other Costs
Reserve balance at December 31, 2011	$	23.1		$	—		$	0.2		$	23.3
Net expense accrued	5.3			16.2			12.9			34.4
Utilization (cash payments or otherwise settled)	(14.9		)	(16.2		)	(13.1		)	(44.2		)
Translation adjustments and other	1.1			—						1.1
Reserve balance at December 31, 2012	$	14.6		$	—		$	—		$	14.6

2012 Program

During the second quarter of 2012, the Company expanded its facility consolidation and other costs program (“2012 Program”) to further improve efficiencies and reduce costs within its U.S. and Global Packaging segments. As a part of this program, the Company announced the planned closure of an additional four production locations, including three facilities outside of the U.S., and the relocation of the majority of the production to other facilities. As of December 31, 2012, manufacturing operations had ceased at three of these manufacturing facilities. The total estimated 2012 Program costs of approximately $55 million include $18 million in employee-related costs, $21 million in fixed asset accelerated depreciation and write-downs, and $16 million in other facility consolidation costs. Expenses in 2012 were $34.3 million, which is net of a $1.7 million gain on the sale of equipment which occurred during the fourth quarter. Expenses in 2012 consisted primarily of accelerated depreciation ($16.1 million) and employee related costs ($15.6 million). The estimated 2012 Program costs by reportable segment follow:



(in millions)	U.S. Packaging		Global Packaging		Total Facility Consolidation and Other Costs
2012 net expense accrued	$	12.7	$	21.6	$	34.3
Estimated future expense	10.7		10.4		21.1
Total estimated costs	$	23.4	$	32.0	$	55.4

An analysis of the 2012 Program accruals follows:



(in millions)	Employee Costs			Fixed Asset Related			Other Costs			Total Facility Consolidation and Other Costs
Net expense accrued	$	15.6		$	14.4		$	4.3		$	34.3
Utilization (cash payments or otherwise settled)	(6.2		)	(14.4		)	(4.2		)	(24.8		)
Translation adjustments and other	0.6			—			—			0.6
Reserve balance at December 31, 2012	$	10.0		$	—		$	0.1		$	10.1

Plant closings associated with each of the facility consolidation programs are expected to be completed in early 2013, with the majority of program costs incurred by the end of the second quarter. Included in employee-related costs is a partial withdrawal liability provision which represents the Company’s best estimate for the cost to exit a multiemployer pension plan. Cash payments for these programs in 2012 and 2011 totaled $35.2 million and $3.3 million, respectively. Cash payments in 2012 are net of proceeds of $1.7 million received for the sale of equipment in the fourth quarter. Cash payments in 2013 are expected to be approximately $50 million, excluding the impact of any potential proceeds on sale of property. The costs related to facility consolidation activities have been recorded on the consolidated statement of income as facility consolidation and other costs. The accruals related to facility consolidation activities have been recorded on the consolidated balance sheet as other current liabilities.