Facility consolidation and asset impairment charges

9 Months Ended

Sep. 29, 2013

Restructuring and Related Activities [Abstract]

Facility consolidation and asset impairment charges

Facility consolidation charges

The carrying values of property, plant and equipment at certain publishing businesses were evaluated due to facility consolidation efforts. The Company revised the useful lives of certain assets to reflect the use of those assets over a shortened period. In addition, certain assets classified as held-for-sale in accordance with Accounting Standards Codification (ASC) Topic 360 resulted in non-cash charges being recognized in 2013 as the carrying values were reduced to equal the fair value less cost to dispose. The fair values were based on estimates of prices for similar assets. Charges in 2013 also include amounts for future lease payments for facilities abandoned in connection with consolidation efforts. The Company recorded pre-tax charges for facility consolidations of $5.9 million and $15.2 million in the third quarter and year-to-date 2013, respectively. For the third quarter and year-to-date periods of 2012, the pre-tax charges were $4.2 million and $14.1 million, respectively. Current and deferred tax benefits were recognized for these charges and, therefore, the after-tax impact for the third quarter and year-to-date periods of 2013 was $3.6 million (or $0.02 per share) and $9.2 million (or $0.04 per share), respectively. For the third quarter and year-to-date periods of 2012, the after tax impact was $2.4 million (or $0.01 per share) and $8.4 million (or $0.04 per share), respectively. In addition, the year-to-date period of 2013 also included $0.9 million pre-tax and $0.6 million after tax (or less than $0.01 per share) write off of certain publishing assets that were donated in the first quarter of 2013.