Restructuring And Impairment Charges

9 Months Ended

Sep. 30, 2011

Restructuring And Impairment Charges [Abstract]

Restructuring And Impairment Charges

6. Restructuring and Impairment Charges

Restructuring and Impairment Costs Charged to Results of Operations

For the three months ended September 30, 2011 and 2010, the Company recorded the following net restructuring and impairment charges:

	Three Months Ended September 30, 2011								Three Months Ended September 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations			Other Charges			Impairment		Total
U.S. Print and Related Services	$	11.0	$	6.9	$	10.2	$	28.1	$	0.7		$	16.9		$	0.9	$	18.5
International		2.9		1.7		—		4.6		2.6			(0.6	)		27.6		29.6
Corporate		0.3		0.8		0.4		1.5		(0.1	)		0.7			—		0.6
Total	$	14.2	$	9.4	$	10.6	$	34.2	$	3.2		$	17.0		$	28.5	$	48.7

For the nine months ended September 30, 2011 and 2010, the Company recorded the following net restructuring and impairment charges:

	Nine Months Ended September 30, 2011								Nine Months Ended September 30, 2010
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations			Other Charges		Impairment		Total
U.S. Print and Related Services	$	47.8	$	42.9	$	40.7	$	131.4	$	4.8		$	20.2	$	2.9	$	27.9
International		17.5		5.1		1.0		23.6		13.9			3.8		27.9		45.6
Corporate		2.9		1.5		1.3		5.7		(0.2	)		1.4		0.2		1.4
Total	$	68.2	$	49.5	$	43.0	$	160.7	$	18.5		$	25.4	$	31.0	$	74.9

For the three and nine months ended September 30, 2011, the Company recorded net restructuring charges of $14.2 million and $68.2 million, respectively, related to employee termination costs for 2,534 employees, of whom 1,991 were terminated as of September 30, 2011. These charges related to the closings of certain facilities and headcount reductions due to the Bowne acquisition, as well as the completed or announced closing of four books and directories manufacturing facilities and one commercial manufacturing facility within the U.S. Print and Related Services segment. These actions included the reorganization of certain operations within the books and directories and the magazines, catalogs and retail inserts reporting units within the U.S. Print and Related Services segment. These actions also included the reorganization of certain operations within the Latin America reporting unit within the International segment. Additionally, the Company incurred multi-employer pension plan partial withdrawal charges, lease termination and other restructuring charges of $9.4 million and $49.5 million for the three and nine months ended September 30, 2011, respectively. Of the charges for the nine months ended September 30, 2011, $15.0 million related to multi-employer pension plan partial withdrawal charges primarily attributable to the closing of three manufacturing facilities within the U.S. Print and Related Services segment. For the three and nine months ended September 30, 2011, the Company also recorded $10.6 million and $43.0 million, respectively, of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings. The fair values of the machinery and equipment and leasehold improvements were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with machinery and equipment brokers, dealer quotes and internal expertise related to the equipment and current marketplace conditions.

For the three and nine months ended September 30, 2010, the Company recorded a non-cash charge of $26.9 million for the impairment of acquired customer relationship intangible assets in the Global Turnkey Solutions reporting unit within the International segment. The impairment of these intangible assets primarily resulted from the termination of a customer contract. After recording the impairment charge, remaining customer relationship intangible assets in the Global Turnkey Solutions reporting unit were $46.6 million as of September 30, 2010. In addition, for the three and nine months ended September 30, 2010, the Company recorded net restructuring charges of $3.2 million and $18.5 million, respectively, for employee termination costs for 1,137 employees, substantially all of whom were terminated as of September 30, 2011. These terminations were associated with actions resulting from the reorganization of certain operations, including those within the business process outsourcing and Latin America reporting units. In addition, continuing charges resulting from the closing of two Global Turnkey Solutions manufacturing facilities in 2009 within the International segment were recorded in 2010. These actions also included the reorganization of certain operations within the magazines, catalogs and retail inserts and variable print reporting units and the closing of one forms and labels manufacturing facility within the U.S. Print and Related Services segment.

Additionally, the Company incurred other restructuring charges of $17.0 million and $25.4 million, respectively, for the three and nine months ended September 30, 2010. Of this amount, $13.6 million related to multi-employer pension plan partial withdrawal charges primarily attributable to two closed manufacturing facilities within the U.S. Print and Related Services segment. The remaining charges included lease termination and other facility closure costs partially offset by the gain on the sale of a previously closed facility in the International segment. For the three and nine months ended September 30, 2010, the Company also recorded $1.6 million and $4.1 million, respectively, of impairment charges primarily for machinery and equipment and leasehold improvements associated with the facility closings. The fair values of the machinery and equipment and leasehold improvements were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with machinery and equipment brokers, dealer quotes, and internal expertise related to the equipment and current marketplace conditions. In addition, the impairment of the acquired customer relationship intangible assets was determined using Level 3 inputs and was estimated based on cash flow analysis and management's assumptions related to the future revenues and profitability of certain customers.

Restructuring Reserve

The restructuring reserve as of September 30, 2011 and December 31, 2010 and changes during the nine months ended September 30, 2011 were as follows:

	December 31, 2010		Restructuring Costs Charged to Results of Operations		Foreign Exchange and Other			Cash Paid			September 30, 2011
Employee terminations	$	11.2	$	68.2	$	(0.5	)	$	(42.7	)	$	36.2
Multi-employer pension withdrawal obligations		13.6		15.0		—			(0.5	)		28.1
Lease terminations and other		29.2		34.5		0.1			(35.6	)		28.2
Total	$	54.0	$	117.7	$	(0.4	)	$	(78.8	)	$	92.5

The current portion of restructuring reserves of $52.4 million was included in accrued liabilities at September 30, 2011, while the long-term portion of $40.1 million, primarily related to multi-employer pension plan partial withdrawal charges and lease termination costs, was included in other noncurrent liabilities at September 30, 2011.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by September of 2012.

As September 30, 2011, the restructuring liabilities classified as "lease terminations and other" consist of lease terminations, other facility closing and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2026 and payments on certain of the multi-employer pension plan partial withdrawal charges are scheduled to continue until 2031. Market conditions and the Company's ability to sublease these properties could affect the ultimate charge related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Condensed Consolidated Financial Statements of future periods.