For the years ended | |||||||||||
December 31, 2013 | December 29, 2012 | December 31, 2011 | |||||||||
(In millions) | |||||||||||
Employee-related charges | |||||||||||
Restructuring(1) | |||||||||||
Canada | $ | 10.6 | $ | 10.1 | $ | 0.6 | |||||
Europe | 14.5 | 19.8 | 2.1 | ||||||||
MCI | 0.4 | 3.0 | — | ||||||||
Corporate | 1.3 | 2.0 | — | ||||||||
Special termination benefits | |||||||||||
Canada(2) | 2.2 | 5.0 | 5.2 | ||||||||
Impairments or asset abandonment charges | |||||||||||
Canada - Intangible asset impairment(3) | 17.9 | — | — | ||||||||
Europe - Asset abandonment(4) | — | 7.2 | — | ||||||||
Europe - Intangible asset impairment(5) | 150.9 | — | — | ||||||||
MCI - China impairment and related costs(6) | — | 39.2 | — | ||||||||
Unusual or infrequent items | |||||||||||
Canada - Flood loss (insurance reimbursement)(7) | — | (1.4 | ) | 0.2 | |||||||
Canada - BRI loan guarantee adjustment(8) | — | — | (2.0 | ) | |||||||
Canada - Fixed asset adjustment(9) | — | — | 7.6 | ||||||||
Europe - Release of non-income-related tax reserve(10) | (4.2 | ) | (3.5 | ) | (2.3 | ) | |||||
Europe - Flood loss (insurance reimbursement)(11) | (2.0 | ) | — | — | |||||||
Europe - Costs associated with strategic initiatives | — | — | (0.1 | ) | |||||||
MCI - Costs associated with outsourcing and other strategic initiatives | — | — | 1.0 | ||||||||
Termination fees and other (gains)/losses | |||||||||||
Europe - Tradeteam transactions(12) | 13.2 | — | — | ||||||||
MCI - Sale of China joint venture(6) | (4.8 | ) | — | — | |||||||
Total Special items, net | $ | 200.0 | $ | 81.4 | $ | 12.3 | |||||
(1) | During 2013, 2012 and 2011, we recognized expenses associated with restructuring programs related to severance and other employee related charges. See further discussion of restructuring activities below. |
(2) | During 2013, 2012 and 2011, we recognized charges for pension curtailment and special termination benefits related to certain defined benefit pension plans in Canada. See Note 16, "Employee Retirement Plans and Postretirement Benefits" for impact to our defined benefit pension plans. |
(3) | During the fourth quarter of 2013, we recognized an impairment charge related to our definite-lived intangible asset associated with our licensing agreement with Miller in Canada. See Note 19, "Commitments and Contingencies" for further discussion. |
(4) | During the second quarter of 2012, we recognized an asset abandonment charge related to the discontinuation of primary packaging in the U.K. We determined that our Home Draft package was not meeting expectations driven by a lack of demand in the U.K. market and as a result, we recognized a loss related to the write-off of the Home Draft packaging line, tooling equipment and packaging materials inventory. |
(5) | During the third quarter of 2013, we recognized impairment charges related to indefinite-lived intangible assets in Europe. See Note 12, "Goodwill and Intangible Assets" for further discussion. |
(6) | In December of 2013, we sold our interest in the MC Si'hai joint venture in China and recognized a gain of $6.0 million. The gain consists of the non-cash release of the $5.4 million liability representing the fair value of our remaining investment upon deconsolidation of the joint venture in 2012, as well as $0.6 million of proceeds received for our interest in the joint venture. We also recognized legal and related fees in relation to the sale of $1.2 million during 2013. |
(7) | During 2012, we received insurance proceeds in excess of expenses incurred related to flood damages at our Toronto offices. During 2011, we incurred expenses in excess of insurance proceeds related to these damages. |
(8) | During the second quarter of 2011, we recognized a $2.0 million gain resulting from a reduction of our guarantee of BRI debt obligations. |
(9) | During the second quarter of 2011, we recognized a $7.6 million loss related to the correction of an immaterial error in prior periods in the Canada segment, resulting from the performance of a fixed asset count that reduced properties by $13.9 million in 2011. The adjustment also resulted in an increase to goodwill of $6.3 million for the assets identified as not present as of the Merger date. The impact of the error and the related correction in 2011 was not material to any prior annual or interim financial statements and was not material to the fiscal year results for 2011. |
(10) | During 2009, we established a non-income-related tax reserve of $10.4 million that was recorded as a special item. Our estimates indicated a range of possible loss relative to this reserve of zero to $22.3 million, inclusive of potential penalties and interest. The amounts recorded in 2013, 2012 and 2011 represent the release of this reserve as a result of a change in estimate. As a result, the remaining amount of this non-income-related tax reserve was fully released in 2013. |
(11) | During 2013, we recorded losses and related net costs of $5.4 million in our Europe business related to significant flooding in Czech Republic in the second quarter of 2013. These losses were offset by $7.4 million insurance proceeds received in 2013. |
(12) | Upon termination of our Tradeteam distribution agreements and subsequent termination of the joint venture and sale of our 49.9% interest in Tradeteam to DHL, we recognized a loss of $13.2 million in December 2013. See Note 5, "Investments" for further discussion. |