Restructuring

6 Months Ended

Jun. 30, 2013

Harland Clarke and Corporate

The Company adopted plans during 2011, 2012 and 2013 to realize cost savings in the Harland Clarke segment and Corporate by consolidating printing plants, contact centers and selling, general and administrative functions.

The following table details the components of the Company's restructuring accruals under its plans related to the Harland Clarke segment and Corporate for the six months ended June 30, 2013 and 2012:



	Beginning Balance		Expensed		Paid in Cash			Non-Cash Utilization			Ending Balance
Six months ended June 30, 2013:
Severance and severance-related	$	6.4	$	1.1	$	(3.1	)	$	—		$	4.4
Facilities closures and other costs	2.4		4.9		(1.0		)	(3.4		)	2.9
Total	$	8.8	$	6.0	$	(4.1	)	$	(3.4	)	$	7.3

Six months ended June 30, 2012:
Severance and severance-related	$	4.5	$	1.6	$	(0.4	)	$	—		$	5.7
Facilities closures and other costs	3.0		1.1		(0.9		)	(0.5		)	2.7
Total	$	7.5	$	2.7	$	(1.3	)	$	(0.5	)	$	8.4

The non-cash utilization of $3.4 and $0.5 in 2013 and 2012, respectively, in the table above includes adjustments to the carrying value of other property, plant and equipment. The Company expects to incur in future periods an additional $2.5 for costs related to these plans. The Company expects to make payments for severance and severance-related costs through 2014. Ongoing lease commitments related to these plans continue through 2017.

Harland Financial Solutions

During 2012, the Company adopted a plan to realize additional cost savings in the Harland Financial Solutions segment by eliminating certain selling, general and administrative expenses.

The following table details the components of the Company's restructuring accruals related to the Harland Financial Solutions segment for the six months ended June 30, 2013 and 2012:



	Beginning Balance		Expensed			Paid in Cash			Non-Cash Utilization		Ending Balance
Six months ended June 30, 2013:
Severance and severance-related	$	0.1	$	0.2		$	—		$	—	$	0.3
Facilities and other costs	1.3		(0.2		)	(0.2		)	0.2		1.1
Total	$	1.4	$	—		$	(0.2	)	$	0.2	$	1.4

Six months ended June 30, 2012:
Severance and severance-related	$	—	$	0.4		$	(0.3	)	$	—	$	0.1
Facilities and other costs	1.5		—			(0.1		)	—		1.4
Total	$	1.5	$	0.4		$	(0.4	)	$	—	$	1.5

Scantron

During the six months ended June 30, 2013, the Company adopted a plan in the Scantron segment to exit certain product lines in the education market. The plan resulted in the closure of four leased facilities and the elimination of operations and selling, general and administrative expenses associated with those product lines, largely occurring in the second quarter of 2013.

The Company previously adopted plans during 2011 and 2012 to realize cost savings in the Scantron segment by consolidating certain operations and eliminating certain selling, general and administrative expenses.

The following table details the components of the Company's restructuring accruals related to the Scantron segment for the six months ended June 30, 2013 and 2012:



	Beginning Balance		Expensed		Paid in Cash			Non-Cash Utilization			Ending Balance
Six months ended June 30, 2013:
Severance and severance-related	$	3.2	$	3.8	$	(4.1	)	$	—		$	2.9
Facilities and other costs	0.9		3.1		(0.8		)	(0.8		)	2.4
Total	$	4.1	$	6.9	$	(4.9	)	$	(0.8	)	$	5.3

Six months ended June 30, 2012:
Severance and severance-related	$	2.0	$	1.3	$	(1.4	)	$	—		$	1.9
Facilities and other costs	1.4		0.3		(0.9		)	—			0.8
Total	$	3.4	$	1.6	$	(2.3	)	$	—		$	2.7

The non-cash utilization in the table above includes adjustments to the carrying value of other property, plant and equipment. Ongoing lease commitments related to these plans continue to 2018. The Company expects to make payments for severance and severance-related costs through 2014.

Faneuil

The Company adopted a plan in 2012 to realize cost savings in the Faneuil segment by consolidating certain operations and eliminating certain selling, general and administrative expenses. The following table details the components of the Company's restructuring accruals related to the Faneuil segment for the six months ended June 30, 2013 and 2012:



	Beginning Balance		Expensed		Paid in Cash			Ending Balance
Six months ended June 30, 2013:
Severance and severance-related	$	0.6	$	0.4	$	(0.7	)	$	0.3
Facilities and other costs	0.2		—		—			0.2
Total	$	0.8	$	0.4	$	(0.7	)	$	0.5

Six months ended June 30, 2012:
Facilities and other costs	$	—	$	0.3	$	(0.3	)	$	—
Total	$	—	$	0.3	$	(0.3	)	$	—

Restructuring accruals for all of the segments' plans are reflected in other current liabilities and other liabilities in the accompanying consolidated balance sheets. The Company expects to pay the remaining severance, facilities and other costs related to the segments’ restructuring plans through 2018.

- 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.

+ References+ Details

HARLAND CLARKE HOLDINGS CORP 10-Q