Discontinued Operations

12 Months Ended

Dec. 25, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 19. DISCONTINUED OPERATIONS

We evaluate our businesses and product lines periodically for their strategic fit within our operations. In December of 2011, we began actively marketing our Banking Security Systems Integration business unit included in our Shrink Management Solutions segment. As a result of this divestiture decision, we are accounting for this business as discontinued operations. The classification of this business as discontinued operations was determined to be a triggering event for testing goodwill impairment. As a result of this impairment test, we determined that there was a $3.4 million impairment charge in the goodwill reporting unit of our Shrink Management Solutions segment and a $2.8 million impairment of customer relationship intangible assets.  These impairment charges were included in discontinued operations on the Consolidated Statement of Operations.

The Company's discontinued operations reflect the operating results for the disposal group.  The results for the years ended December 25, 2011, December 26, 2010 and December 27, 2009 have been reclassified to show the results of operations for the Banking Security Systems Integration business unit as discontinued operations, net of tax, on the Consolidated Statement of Operations. Below is a summary of these results:

(amounts in thousands)	December 25, 2011	December 26, 2010	December 27, 2009
Net revenue	$ 13,565	$  12,820	$  10,467
Gross profit	2,541	2,874	2,511
Selling, general, & administrative expense	4,095	4,043	3,978
Restructuring expenses	113	—	—
Intangible asset impairment	2,781	—	—
Goodwill impairment	3,411	—	—
Operating loss	(7,859)	(1,169)	(1,467)
Loss from discontinued operations before income taxes	(7,859)	(1,169)	(1,467)
Loss from discontinued operations, net of tax	$ (7,514)	$    (773)	$    (911)

The assets and liabilities associated with this business have been adjusted to fair value, less costs to sell, and reclassified into assets of discontinued operations held for sale and liabilities of discontinued operations held for sale, as appropriate, on the Consolidated Balance Sheet. As of December 25, 2011 the classification was as follows:

(amounts in thousands)	December 25, 2011
Accounts receivable, net	$ 1,519
Inventories	1,087
Property, plant, and equipment , net	11
Goodwill	370
Other intangibles, net	1,754
Other assets	1,579
Assets of discontinued operations held for sale	$ 6,320
Accounts payable	$    551
Accrued compensation and related taxes	40
Other accrued expenses	599
Unearned revenues	169
Restructuring reserve	78
Other liabilities	3
Liabilities of discontinued operations held for sale	$ 1,440

Net cash flows of our discontinued operations from each of the categories of operating, investing and financing activities were not significant.