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 March 31, 2013, 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 $91 million including $33 million in employee costs, $32 million in fixed asset accelerated depreciation and write-downs, and $26 million in other facility consolidation costs. These amounts exclude any potential gain to be recognized on the sale of property. Expenses in the first quarter of 2013 were $5.9 million, primarily consisting of equipment relocation ($3.2 million) and accelerated depreciation ($1.0 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
2013 year-to-date net expense accrued	5.9		—		—		—		5.9
Expense incurred through March 31, 2013	61.6		13.6		2.7		0.8		78.7
Estimated future expense	12.4		—		—		—		12.4
Total estimated costs	$	74.0	$	13.6	$	2.7	$	0.8	$	91.1

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, 2012	$	14.6		$	—		$	—		$	14.6
Net expense accrued	1.1			0.8			4.0			5.9
Utilization (cash payments or otherwise settled)	(3.1		)	(0.8		)	(4.0		)	(7.9		)
Translation adjustments and other	(0.2		)	—			—			(0.2		)
Reserve balance at March 31, 2013	$	12.4		$	—		$	—		$	12.4

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 United States, and the relocation of the majority of the production to other facilities. As of March 31, 2013, manufacturing operations had ceased at all of these manufacturing facilities. The total estimated 2012 Program costs of approximately $50 million include $18 million in employee-related costs, $17 million in fixed asset accelerated depreciation and write-downs, and $15 million in other facility consolidation costs. Expenses in the first quarter of 2013 were $3.4 million, which is net of a $1.4 million gain on the sale of equipment which occurred during the first quarter. Expenses in 2013 consisted primarily of equipment relocation ($2.0 million) and accelerated depreciation ($0.8 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
2013 year-to-date net expense accrued	3.5		(0.1		)	3.4
Expense incurred through March 31, 2013	16.2		21.5			37.7
Estimated future expense	7.9		4.7			12.6
Total estimated costs	$	24.1	$	26.2		$	50.3

An analysis of the 2012 Program accruals follows:



(in millions)	Employee Costs			Fixed Asset Related			Other Costs			Total Facility Consolidation and Other Costs
Reserve balance at December 31, 2012	$	10.0		$	—		$	0.1		$	10.1
Expense accrued	0.9			0.3			2.9			4.1
Utilization (cash payments or otherwise settled)	(2.0		)	(0.4		)	(2.9		)	(5.3		)
Translation adjustments and other	(0.8		)	—			—			(0.8		)
Reserve balance at March 31, 2013	$	8.1		$	(0.1	)	$	0.1		$	8.1

Cash payments for these facility consolidation programs in the three months ended March 31, 2013 and 2012 totaled $10.8 million and $8.0 million, respectively. Cash payments in 2013 are net of proceeds of $1.4 million received for the sale of equipment. Cash payments for the balance of 2013 are expected to be approximately $40 million. These amounts exclude any potential cash proceeds to be received on the 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. 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. The accruals related to facility consolidation activities have been recorded on the consolidated balance sheet as other current liabilities.