6. Restructuring and Impairment Charges

Restructuring and Impairment Costs Charged to Results of Operations

For the three months ended June 30, 2013 and 2012, the Company recorded the following net restructuring and impairment charges:

	Three Months Ended June 30, 2013											Three Months Ended June 30, 2012
	Employee Terminations		Other Charges			Impairment			Total			Employee Terminations			Other Charges			Impairment			Total
U.S. Print and Related Services	$	2.4	$	8.0	$		2.8	$		13.2	$		10.5	$		8.6	$		7.0	$		26.1
International		4.1		0.8			0.9			5.8			3.0			0.5			—			3.5
Corporate		0.8		-			-			0.8			0.3			2.8			1.3			4.4
Total	$	7.3	$	8.8	$		3.7	$		19.8	$		13.8	$		11.9	$		8.3	$		34.0

For the six months ended June 30, 2013 and 2012, the Company recorded the following net restructuring and impairment charges:

	Six Months Ended June 30, 2013											Six Months Ended June 30, 2012
	Employee Terminations		Other Charges			Impairment			Total			Employee Terminations			Other Charges			Impairment			Total
U.S. Print and Related Services	$	9.5	$	16.5	$		6.7	$		32.7	$		38.9	$		11.9	$		15.0	$		65.8
International		5.8		1.3			0.7			7.8			6.8			1.1			1.0			8.9
Corporate		0.8		0.8			0.4			2.0			4.9			2.8			1.6			9.3
Total	$	16.1	$	18.6	$		7.8	$		42.5	$		50.6	$		15.8	$		17.6	$		84.0

For the three and six months ended June 30, 2013, the Company recorded net restructuring charges of $7.3 million and $16.1 million, respectively, for employee termination costs for 579 employees, of whom 504 were terminated as of June 30, 2013. These charges primarily related to the closing of two manufacturing facilities within the U.S. Print and Related Services segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $8.8 million and $18.6 million, respectively, for the three and six months ended June 30, 2013, including charges related to multi-employer pension plan withdrawal obligations. For the three and six months ended June 30, 2013, the Company also recorded $3.7 million and $7.8 million, respectively, of impairment charges primarily related to buildings and machinery and equipment associated with facility closings.

For the three and six months ended June 30, 2012, the Company recorded net restructuring charges of $13.8 million and $50.6 million, respectively, for employee termination costs for 1,820 employees, substantially all of whom were terminated as of June 30, 2013. These charges primarily related to actions resulting from the reorganization of sales and administrative functions across all segments, the closing of four manufacturing facilities within the U.S. Print and Related Services segment and one manufacturing facility within the International segment and the reorganization of certain operations. Additionally, the Company incurred lease termination and other restructuring charges of $11.9 million and $15.8 million for the three and six months ended June 30, 2012, respectively. The Company also recorded $8.3 million and $17.6 million, respectively, of impairment charges primarily related to machinery and equipment associated with the facility closings and other asset disposals for the three and six months ended June 30, 2012, respectively.

The fair values of the buildings and machinery and equipment were determined to be Level 3 under the fair value hierarchy and were estimated based on discussions with real estate brokers, review of comparable properties, if available, 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 six months ended June 30, 2013 was as follows:

	December 31, 2012		Restructuring Charges		Foreign Exchange and Other			Cash Paid			June 30, 2013
Employee terminations	$	23.4	$	16.1	$	(0.3	)	$	(18.6	)	$	20.6
Multi-employer pension plan withdrawal obligations		25.1		10.6		(0.1	)		(1.3	)		34.3
Lease terminations and other		30.0		8.0		0.7			(14.6	)		24.1
Total	$	78.5	$	34.7	$	0.3		$	(34.5	)	$	79.0

The current portion of restructuring reserves of $30.1 million at June 30, 2013 was included in accrued liabilities, while the long-term portion of $48.9 million, primarily related to multi-employer pension plan complete or partial withdrawal obligations and lease termination costs, was included in other noncurrent liabilities at June 30, 2013.

The Company anticipates that payments associated with the employee terminations reflected in the above table will be substantially completed by June of 2014. Payments on the multi-employer pension plan complete or partial withdrawal obligations are scheduled to be substantially completed by 2032. Changes based on uncertainties in these estimated withdrawal obligations, such as the financial stability of other employers participating in the plan, could affect the ultimate charges related to multi-employer pension plan withdrawals.

As of June 30, 2013, 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 charges related to the lease obligations. Any potential recoveries or additional charges could affect amounts reported in the Condensed Consolidated Financial Statements of future periods.