XML 23 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Restructuring and Other
6 Months Ended
Jun. 30, 2019
Restructuring And Related Activities [Abstract]  
Restructuring and Other

6. Restructuring and Other

For the three months ended June 30, 2019 and 2018, we recorded the following net restructuring and other expenses:

 

 

 

Three Months Ended

 

 

 

June 30, 2019

 

 

 

Employee

 

 

Other

Restructuring

 

 

Multi-Employer Pension Plan

 

 

 

 

 

 

 

 

 

 

 

Terminations

 

 

Charges

 

 

Charges

 

 

Other

 

 

Total

 

Business Services

 

$

10.2

 

 

$

3.0

 

 

$

0.6

 

 

$

 

 

$

13.8

 

Marketing Solutions

 

 

0.3

 

 

 

0.1

 

 

 

0.1

 

 

 

 

 

 

0.5

 

Corporate

 

 

0.3

 

 

 

1.4

 

 

 

 

 

 

 

 

 

1.7

 

Total

 

$

10.8

 

 

$

4.5

 

 

$

0.7

 

 

$

 

 

$

16.0

 

 

 

 

Three Months Ended

 

 

 

June 30, 2018

 

 

 

Employee

 

 

Other

Restructuring

 

 

Multi-Employer Pension Plan

 

 

 

 

 

 

 

 

 

 

 

Terminations

 

 

Charges

 

 

Charges

 

 

Other

 

 

Total

 

Business Services

 

$

4.3

 

 

$

1.0

 

 

$

0.6

 

 

$

0.2

 

 

$

6.1

 

Marketing Solutions

 

 

0.7

 

 

 

 

 

 

0.1

 

 

 

1.2

 

 

 

2.0

 

Corporate

 

 

0.2

 

 

 

2.7

 

 

 

 

 

 

 

 

 

2.9

 

Total

 

$

5.2

 

 

$

3.7

 

 

$

0.7

 

 

$

1.4

 

 

$

11.0

 

For the six months ended June 30, 2019 and 2018, we recorded the following net restructuring and other expenses:

 

 

 

Six Months Ended

 

 

 

June 30, 2019

 

 

 

Employee

 

 

Other

Restructuring

 

 

Multi-Employer Pension Plan

 

 

 

 

 

 

 

 

 

 

 

Terminations

 

 

Charges

 

 

Charges

 

 

Other

 

 

Total

 

Business Services

 

$

18.0

 

 

$

7.7

 

 

$

1.2

 

 

$

0.1

 

 

$

27.0

 

Marketing Solutions

 

 

0.4

 

 

 

0.1

 

 

 

0.2

 

 

 

 

 

 

0.7

 

Corporate

 

 

0.5

 

 

 

4.9

 

 

 

 

 

 

 

 

 

5.4

 

Total

 

$

18.9

 

 

$

12.7

 

 

$

1.4

 

 

$

0.1

 

 

$

33.1

 

 

 

 

Six Months Ended

 

 

 

June 30, 2018

 

 

 

Employee

 

 

Other

Restructuring

 

 

Multi-Employer Pension Plan

 

 

 

 

 

 

 

 

 

 

 

Terminations

 

 

Charges

 

 

Charges

 

 

Other

 

 

Total

 

Business Services

 

$

6.1

 

 

$

1.8

 

 

$

1.3

 

 

$

(4.7

)

 

$

4.5

 

Marketing Solutions

 

 

1.8

 

 

 

 

 

 

0.2

 

 

 

1.5

 

 

 

3.5

 

Corporate

 

 

0.5

 

 

 

3.3

 

 

 

 

 

 

 

 

 

3.8

 

Total

 

$

8.4

 

 

$

5.1

 

 

$

1.5

 

 

$

(3.2

)

 

$

11.8

 

Restructuring and Other

For the three and six months ended June 30, 2019, we recorded net restructuring charges of $10.8 million and $18.9 million, respectively, for employee termination costs. These charges primarily relate to the relocation of a printing facility in Shenzhen, China, other announced facility closures in the Business Services segment and the reorganization of selling, general and administrative functions across each segment. Other restructuring charges of $4.5 million and $12.7 million for the three and six months ended June 30, 2019 are primarily comprised of increased reserves for employee termination litigation, environmental matters and lease terminations.

For the three and six months ended June 30, 2018, we recorded net restructuring charges of $5.2 million and $8.4 million, respectively, for employee termination costs. These charges primarily related to the reorganization of selling, general and administrative functions across each segment and two announced facility closures in the Business Services segment. We also incurred charges for lease termination and other restructuring of $3.7 million and $5.1 million and MEPP withdrawal obligations of $0.7 million and $1.5 million for the three and six months ended June 30, 2018, respectively. Additionally, we recorded a $4.9 million net gain on the sale of previously impaired assets in the Business Services segment for the six months ended June 30, 2018. These assets were impaired in 2015. We also recorded impairment charges related to facility closures of $1.7 million for the six months ended June 30, 2018.

Restructuring and MEPP Reserves

Restructuring and MEPP reserves as of December 31, 2018 and June 30, 2019, and changes during the six months ended June 30, 2019, were as follows:

 

 

 

 

 

 

 

Restructuring

 

 

Foreign

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

and Other

 

 

Exchange and

 

 

Cash

 

 

June 30,

 

 

 

2018

 

 

Charges

 

 

Other

 

 

Paid

 

 

2019

 

Employee terminations

 

$

4.8

 

 

$

18.9

 

 

$

(1.3

)

 

$

(15.1

)

 

$

7.3

 

MEPP withdrawal obligations

 

 

44.2

 

 

 

1.4

 

 

 

 

 

 

(3.2

)

 

 

42.4

 

Other

 

 

6.2

 

 

 

12.7

 

 

 

1.5

 

 

 

(7.7

)

 

 

12.7

 

Total

 

$

55.2

 

 

$

33.0

 

 

$

0.2

 

 

$

(26.0

)

 

$

62.4

 

The current portion of restructuring reserves of $22.7 million at June 30, 2019 was included in Accrued liabilities and other, while the long-term portion of $39.7 million, primarily related to MEPP withdrawal obligations, employee terminations in litigation, environmental matters and lease liabilities related to restructured facilities, was included in Other noncurrent liabilities at June 30, 2019. The liabilities for the withdrawal obligations associated with our decision to withdraw from all MEPPs included in Accrued liabilities and other and Other noncurrent liabilities are $6.5 million and $35.9 million, respectively, as of June 30, 2019.

We anticipate that payments associated with the employee terminations reflected in the above table will be substantially completed by June 2020, excluding employee terminations in litigation within the Business Services segment.

Payments on all of our MEPP withdrawal obligations are scheduled to be substantially completed by 2034. Changes based on uncertainties in these estimated withdrawal obligations could affect the ultimate charges related to MEPP withdrawals.

The restructuring liabilities classified as “other” primarily consisted of reserves for employee termination litigation, environmental matters and lease liabilities related to restructured facilities. Any potential recoveries or additional charges could affect amounts reported in our consolidated financial statements.