Business Segments And Geographic Information

12 Months Ended

Dec. 25, 2011

Business Segments And Geographic Information [Abstract]

Business Segments And Geographic Information

Note 18. BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

Historically, we have reported RF and EM Hard Tags as part of the SMS EAS Systems product line. During the first quarter of 2010, we began reporting our RF and EM Hard Tags as part of the Alpha® product line. This change results in all hard tags for in-store application being recorded in the same product line as the Alpha® hard tags. Because both product lines are reported within the Shrink Management Solutions segment, the change in classification does not impact segment reporting. The year ended 2009 has been conformed to reflect the product line change within the SMS segment.

Our reportable business segments are strategic business units that offer distinctive products and services that are marketed through different channels. We have three reportable business segments:

i.	Shrink Management Solutions — includes electronic article surveillance (EAS) systems, EAS consumables, Alpha®, CheckView®, and radio frequency identification (RFID) tags and labels.
ii.	Apparel Labeling Solutions — includes our web-enabled apparel labeling solutions platform and network of service bureaus to manage the printing of variable information on price and promotional tickets, adhesive labels, fabric and woven tags and labels, and apparel branding tags.
iii.	Retail Merchandising Solutions — includes hand-held labeling systems (HLS) and retail display systems (RDS).

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

The business segment information set forth below is that viewed by the chief operating decision maker:

(A)   Business Segments

(amounts in thousands)	December 25, 2011	December 26, 2010	December 27, 2009
		(As Revised)	(As Revised)
Business segment net revenue:
Shrink Management Solutions	$    593,519	$    576,749	$    543,233
Apparel Labeling Solutions	198,158	172,937	141,910
Retail Merchandising Solutions	73,666	71,992	77,108
Total	$    865,343	$    821,678	$    762,251
Business segment gross profit:
Shrink Management Solutions	$    241,167	$    247,040	$    239,585
Apparel Labeling Solutions	56,860	61,805	52,543
Retail Merchandising Solutions	34,823	34,929	36,645
Total gross profit	332,850	343,774	328,773
Operating expenses	326,357(1)	300,403(2)	287,519(3)
Interest (expense) income, net	(4,542)	(3,389)	(5,415)
Other gain (loss), net	(1,523)	(2,237)	(180)
Earnings from continuing operations before income taxes	$         428	$      37,745	$      35,659
Business segment total assets:
Shrink Management Solutions	$    652,895	$    706,300
Apparel Labeling Solutions	284,301	191,092
Retail Merchandising Solutions	107,285	136,518
Total	$ 1,044,481	$ 1,033,910

(1)   Includes a $28.6 million restructuring charge, $2.3 million in acquisition costs, a $0.9 million litigation settlement, a $0.6 million intangible asset impairment, and income of $0.2 million related to improper and fraudulent Canadian activities.

(2)   Includes an $8.2 million restructuring charge, a $0.8 million selling, general and administrative charge related to an adjustment to an acquisition related liability pertaining to the period prior to the acquisition date, and a $1.5 million charge related to improper and fraudulent Canadian activities.

(3)   Includes a $5.4 million restructuring charge, a $1.3 million charge related to improper and fraudulent Canadian activities, and a $1.3 million litigation settlement charge.

(B)   Geographic Information

Operating results are prepared on a "country of domicile" basis, meaning that net revenues are included in the geographic area where the selling entity is located. Assets are included in the geographic area in which the producing entities are located. A direct sale from the U.S. to an unaffiliated customer in South America is reported as a sale in the U.S. Inter-area sales between our locations are made at transfer prices that approximate market price and have been eliminated from consolidated net revenues. International Americas is defined as all countries in North and South America, excluding the United States, Puerto Rico, and Dominican Republic.

The following table shows net revenues, and other financial information by geographic area for the years 2011, 2010, and 2009:

(amounts in thousands)	United States, Puerto Rico, & Dominican Republic		Europe		International Americas	Asia Pacific		Total
2011
Net revenues from unaffiliated customers	$  283,674	(1)	$  346,834		$ 45,307	$ 189,528		$  865,343
Long-lived assets	$    37,179	(2)	$    16,698		$   3,557	$   76,647	(3)	$  134,081
2010
Net revenues from unaffiliated customers	$    275,462	(4)	$   352,347		$  41,868	$   152,001		$    821,678
Long-lived assets	$      41,274	(5)	$     17,815		$    2,280	$     62,229	(6)	$    123,598
2009
Net revenues from unaffiliated customers	$    254,306	(7)	$   362,639	(8)	$  30,289	$   115,017		$    762,251

(1)   Includes net revenue from the United States of $283.7 million.

(2)   Includes long-lived assets from the United States of $29.9 million.

(3)   Includes long-lived assets from China and Japan of $40.3 million and $15.0 million, respectively.

(4)   Includes net revenue from the United States of $275.5 million.

(5)   Includes long-lived assets from the United States and Puerto Rico of $23.7 million and $15.2 million, respectively.

(6)   Includes long-lived assets from China, Hong Kong, and Japan of $28.8 million, $15.9 million and $15.4 million, respectively.

(7)   Includes net revenue from the United States of $254.3 million.

(8)   Includes net revenue from Germany of $84.2 million.