6. Restructuring and Impairment Charges

Restructuring and Impairment Costs Charged to Results of Operations

For the three months ended September 30, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:


	Three Months Ended September 30, 2012								Three Months Ended September 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	5.1	$	2.7	$	1.6	$	9.4	$	11.0	$	6.9	$	10.2	$	28.1
International		2.3		2.1		—		4.4		2.9		1.7		—		4.6
Corporate		0.1		—		—		0.1		0.3		0.8		0.4		1.5

Total	$	7.5	$	4.8	$	1.6	$	13.9	$	14.2	$	9.4	$	10.6	$	34.2

For the nine months ended September 30, 2012 and 2011, the Company recorded the following net restructuring and impairment charges:


	Nine Months Ended September 30, 2012								Nine Months Ended September 30, 2011
	Employee Terminations		Other Charges		Impairment		Total		Employee Terminations		Other Charges		Impairment		Total
U.S. Print and Related Services	$	44.0	$	14.6	$	16.6	$	75.2	$	47.8	$	42.9	$	40.7	$	131.4
International		9.1		3.2		1.0		13.3		17.5		5.1		1.0		23.6
Corporate		5.0		2.8		1.6		9.4		2.9		1.5		1.3		5.7

Total	$	58.1	$	20.6	$	19.2	$	97.9	$	68.2	$	49.5	$	43.0	$	160.7

For the three and nine months ended September 30, 2012, the Company recorded net restructuring charges of $7.5 million and $58.1 million, respectively, for employee termination costs for 2,100 employees, of whom 1,919 were terminated as of September 30, 2012. These terminations resulted from the reorganization of sales and administrative functions across all segments, as well as facility closures and the reorganization of certain operations. The facility closures in the nine months ended September 30, 2012 included five manufacturing facilities within the U.S. Print and Related Services segment and one manufacturing facility within the International segment. Additionally, the Company incurred lease termination and other restructuring charges of $4.8 million and $20.6 million for the three and nine months ended September 30, 2012, respectively. The Company also recorded $1.6 million and $19.2 million of impairment charges primarily related to machinery and equipment associated with the facility closings and other asset disposals for the three and nine months ended September 30, 2012, respectively. The fair values of the machinery and equipment 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 current marketplace conditions.

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, for employee termination costs for 2,534 employees, all of whom were terminated as of September 30, 2012. These charges primarily related to the closings of certain facilities and headcount reductions due to the acquisition of Bowne. In addition, these charges included the closing of five manufacturing facilities within the U.S. Print and Related Services segment. Additionally, the Company incurred multi-employer 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 current marketplace conditions.

Restructuring Reserve

Activity impacting the Company’s restructuring reserve for the nine months ended September 30, 2012 was as follows:


	December 31, 2011		Restructuring Charges			Foreign Exchange and Other			Cash Paid			September 30, 2012
Employee terminations	$	27.2	$	58.1		$	(0.2	)	$	(55.3	)	$	29.8
Multi-employer pension withdrawal obligations		27.9		(0.5	)		—			(1.9	)		25.5
Lease terminations and other		32.6		21.1			2.7			(23.2)			33.2

Total	$	87.7	$	78.7		$	2.5		$(80.4)			$	88.5

The current portion of restructuring reserves of $46.2 million at September 30, 2012 was included in accrued liabilities, while the long-term portion of $42.3 million at September 30, 2012, primarily related to multi-employer pension plan withdrawal obligations and lease termination costs, was included in other noncurrent liabilities.

The Company anticipates that payments associated with the employee terminations, reflected in the above table, will be substantially completed by September of 2013 and payments on the multi-employer pension plan withdrawal obligations are scheduled to be substantially completed by 2031.

As of September 30, 2012, the restructuring liabilities classified as “lease terminations and other” consisted of lease terminations, other facility closing costs and contract termination costs. Payments on certain of the lease obligations are scheduled to continue until 2026. Market conditions and the Company’s ability to sublease these properties could affect the ultimate charge related to these lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Condensed Consolidated Financial Statements of future periods.