Cost Reduction Actions

6 Months Ended

Jul. 02, 2011

Note 8. Cost Reduction Actions

Severance charges under the restructuring actions below were recorded to “Other current liabilities” in the unaudited Condensed Consolidated Balance Sheets. Severance and related costs represented cash paid or to be paid to employees terminated under these actions. Asset impairments were based on the estimated market value of the assets. Charges below were included in “Other expense, net” in the unaudited Consolidated Statements of Income.

2011

During the first six months of 2011, the Company implemented restructuring actions and recorded charges of $13.5 million, which consisted of $9.6 million of severance and related costs and $3.9 million of asset impairment and lease cancellation charges. These actions will result in the reduction of approximately 355 positions impacting all segments and geographic regions. As of July 2, 2011, approximately 85 of these employees remained with the Company and are expected to leave in 2011.

Accruals and payments for severance and related costs and charges for asset impairments and lease cancellations, by reportable segment and other businesses during the periods presented, were as follows:


				Retail
				Branding						Other
	Pressure-			and			Office and			specialty
	sensitive			Information			Consumer			converting
(In millions)	Materials			Solutions			Products			businesses			Total

Severance and related costs accrued during the periods ended:
April 2, 2011	$	1.9		$	.6		$	(.3	)	$	.3		$	2.5
July 2, 2011		3.8			2.1			.7			.5			7.1

Total expense accrued during 2011		5.7			2.7			.4			.8			9.6
2011 settlements		(1.1	)		(1.4	)		.4			(.3	)		(2.4	)

Balance at July 2, 2011	$	4.6		$	1.3		$	.8		$	.5		$	7.2


Asset impairment and lease cancellation charges for the six months ended:
July 2, 2011	$	1.5		$	1.4		$	.6		$	.4		$	3.9

2010

In 2010, the Company continued its cost reduction program initiated in late 2008 and implemented additional restructuring actions resulting in the reduction of approximately 1,040 positions, impairment of certain assets, and lease cancellations. At July 2, 2011, approximately 235 employees impacted by these actions remained with the Company, and are expected to leave in 2011. In 2010, charges related to these actions totaled $19 million, including severance and related costs of $15.3 million, and asset impairment and lease cancellation charges of $3.7 million.


				Retail
				Branding						Other
	Pressure-			and			Office and			Specialty
	sensitive			Information			Consumer			converting
(In millions)	Materials			Solutions			Products			businesses			Total

Severance and related costs accrued during the periods ended:
April 3, 2010	$	1.5		$	2.2		$	.7		$	.3		$	4.7
July 3, 2010		2.0			—			(.1	)		—			1.9
October 2, 2010		.1			.9			4.5			.3			5.8
January 1, 2011		.9			(.4	)		.2			2.2			2.9

Total expense accrued during 2010		4.5			2.7			5.3			2.8			15.3
2010 settlements		(3.9	)		(1.9	)		(.5	)		(.6	)		(6.9	)
2011 settlements		(.6	)		(.8	)		(2.4	)		(2.0	)		(5.8	)

Balance at July 2, 2011	$	—		$	—		$	2.4		$	.2		$	2.6


Asset impairment and lease cancellation charges for the year ended:
January 1, 2011	$	1.4		$	1.3		$	.9		$	.1		$	3.7

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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