SUMMARY OF SIGNIFICANT ACCOUNTING POLICES

Revision of Previously Issued Consolidated Financial Statements

Checkpoint Systems, Inc. (the "Company") is revising herein its historical financial statements for the three and nine months ended September 25, 2011. As previously disclosed in our Annual Report on Form 10-K for the year ended December 25, 2011, the revision is the result of the Company making corrections for the combined effect of financial statement errors attributable to the intentional misstatement of expenses due to the improper and fraudulent activities of a certain former employee of the Company's Canada sales subsidiary. The Company assessed the impact of these errors on its prior interim financial statements and concluded that these errors were not material, individually or in the aggregate to those financial statements. Although the effect of these errors was not material to any previously issued financial statements, the cumulative effect of correcting the newly identified errors in the prior year would have been material for the fiscal year 2011. Consequently, the Company has revised its prior period financial statements. All amounts in this Quarterly Report on Form 10-Q affected by the revision adjustments reflect such amounts as revised.

Description of Revision Adjustments

Set forth below is a description of the revision adjustments reflected in the revision of previously issued financial statements.

Overstatement of expenses due to the improper and fraudulent activities of a certain former employee of the Company’s Canada sales subsidiary - In December of 2011, we identified errors in our financial statements resulting from improper and fraudulent activities of a certain former employee of our Canada sales subsidiary as part of the transition of our Canadian operations into our shared service environment in North America. Subsequent to the discovery of such errors, we retained outside counsel to undertake an investigation with the assistance of forensic accountants and internal auditors. The results of this investigation concluded that in the period from 2005 through the fourth quarter of 2011, the then Controller of our Canadian operations was able to misappropriate cash through various schemes. The defalcation of cash was concealed by overriding internal controls at the subsidiary which had the effect of misstating certain accounts including cash, accounts receivable, and inventories as well as income taxes and non-income taxes payable and operating expenses. Based on this investigation, it was determined that improper and fraudulent activities by a certain employee of the subsidiary affected the financial reporting of the subsidiary and that the improper and fraudulent activities were contained within the Canada sales subsidiary.

The total cumulative gross financial statement impact of the improper and fraudulent activities was approximately $5.2 million and impacted fiscal years 2005 through 2011 of which $1.1 million was recovered by the Company from the perpetrator during the fourth quarter of 2011, resulting in a net cumulative financial statement impact of $4.1 million. The fiscal year 2011 financial statement impact was $0.2 million income due to the recovery of $1.1 million offset by expense of $0.9 million. We incurred additional expenses related to the improper and fraudulent activities of $0.7 million during 2012. The financial statement impacts of the improper and fraudulent Canadian activities have been included in other expense in the Consolidated Statements of Operations. We filed a claim during the second quarter of 2012 with our insurance provider for the unrecovered amount of the loss. On October 10, 2012, the Company received compensation of $4.7 million for the financial impact of the fraudulent Canadian activities from our insurance provider. The income from the settlement will be recorded in the fourth quarter of 2012 in other expense in the Consolidated Statement of Operations. For further information, refer to Note 15, "Subsequent Events".

The improper and fraudulent activities by a certain former employee of the subsidiary included (i) the misappropriation of cash including cash payments to improper vendors; (ii) the intentional overstatement of cash balances; (iii) the intentional understatement of accounts receivable and inventory reserve accounts; (iv) the intentional understatement of income taxes and non-income taxes payable; and (v) recording arbitrary balance sheet adjustments to increase cash and liabilities.

In addition to the revisions described above, the effects of discontinued operations presentation on previously reported amounts have been included in order to reconcile between previously reported amounts and the final amounts as revised in this Quarterly Report on Form 10-Q.

The following tables summarize the effects of the adjustments on basic (loss) earnings per share, diluted (loss) earnings per share, operating (loss) income, income taxes, (loss) earnings from continuing operations before income taxes, and net (loss) earnings attributable to Checkpoint Systems, Inc. for the three and nine months ended September 25, 2011.



	Quarter						Nine Months
	(13 weeks) Ended						(39 weeks) Ended
	September 25, 2011						September 25, 2011
Loss attributable to Checkpoint Systems, Inc. per share	Basic EPS			Diluted EPS			Basic EPS			Diluted EPS
As Previously Reported	$	(1.21	)	$	(1.21	)	$	(1.21	)	$	(1.21	)
Revision Adjustments:
Canada Adjustments	0.01			0.01			0.04			0.04
As Revised for Revision Adjustments	$	(1.20	)	$	(1.20	)	$	(1.17	)	$	(1.17	)
Discontinued Operations Adjustments	—			—			—			—
As Revised in this Quarterly Report on Form 10-Q	$	(1.20	)	$	(1.20	)	$	(1.17	)	$	(1.17	)



	Quarter						Nine Months
	(13 weeks) Ended						(39 weeks) Ended
	September 25, 2011						September 25, 2011
(amounts in thousands)	Net Loss Attributable to Checkpoint Systems, Inc.			Loss from Continuing Operations Before Income Taxes			Net Loss Attributable to Checkpoint Systems, Inc.			Loss from Continuing Operations Before Income Taxes
As Previously Reported	$	(49,259	)	$	(10,623	)	$	(49,050	)	$	(10,727	)
Revision Adjustments:
Canada Adjustments	597			797			1,535			2,050
As Revised for Revision Adjustments	$	(48,662	)	$	(9,826	)	$	(47,515	)	$	(8,677	)
Discontinued Operations Adjustments	—			636			—			1,874
As Revised in this Quarterly Report on Form 10-Q	$	(48,662	)	$	(9,190	)	$	(47,515	)	$	(6,803	)



	Quarter						Nine Months
	(13 weeks) Ended						(39 weeks) Ended
	September 25, 2011						September 25, 2011
(amounts in thousands)	Income Tax Expense			Operating Loss			Income Tax Expense		Operating Loss
As Previously Reported	$	38,588		$	(8,603	)	$	38,273	$	(6,574	)
Revision Adjustments:
Canada Adjustments	200			797			515		2,050
As Revised for Revision Adjustments	$	38,788		$	(7,806	)	$	38,788	$	(4,524	)
Discontinued Operations Adjustments	(433		)	636			—		1,874
As Revised in this Quarterly Report on Form 10-Q	$	38,355		$	(7,170	)	$	38,788	$	(2,650	)

Comparison of revised financial statements to financial statements as originally reported

The following tables compare our previously reported Consolidated Statements of Operations, Stockholders’ Equity, Comprehensive Income, and Cash Flows for the three and nine months ended September 25, 2011 to the corresponding financial statements for those years As Revised.

CONSOLIDATED STATEMENTS OF OPERATIONS



	Quarter
	(13 weeks) Ended
	September 25, 2011
(amounts in thousands, except per share data)	As Previously Reported			As Revised for Revision Adjustments			As Revised in this Quarterly Report on Form 10-Q
Net revenues	$	218,126		$	218,126		$	215,049
Cost of revenues	136,506			136,506			133,961
Gross profit	81,620			81,620			81,088
Selling, general, and administrative expenses	69,943			68,857			67,802
Research and development	5,476			5,476			5,476
Restructuring expenses	17,392			17,392			17,279
Acquisition costs	2			2			2
Other expense	—			289			289
Other operating income	2,590			2,590			2,590
Operating loss	(8,603		)	(7,806		)	(7,170		)
Interest income	984			984			984
Interest expense	2,221			2,221			2,221
Other gain (loss), net	(783		)	(783		)	(783		)
Loss from continuing operations before income taxes	(10,623		)	(9,826		)	(9,190		)
Income taxes	38,588			38,788			38,355
Net loss from continuing operations	(49,211		)	(48,614		)	(47,545		)
Loss from discontinued operations, net of tax expense of $0, $0, and $433	—			—			(1,069		)
Net loss	(49,211		)	(48,614		)	(48,614		)
Less: gain attributable to non-controlling interests	48			48			48
Net loss attributable to Checkpoint Systems, Inc.	$	(49,259	)	$	(48,662	)	$	(48,662	)
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(1.21	)	$	(1.20	)	$	(1.17	)
Loss from discontinued operations, net of tax	—			—			(0.03		)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	(1.21	)	$	(1.20	)	$	(1.20	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(1.21	)	$	(1.20	)	$	(1.17	)
Loss from discontinued operations, net of tax	—			—			(0.03		)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	(1.21	)	$	(1.20	)	$	(1.20	)

The As Revised in this Quarterly Report on Form 10-Q amounts include the effects of discontinued operations presentation on previously reported amounts. Refer to Note 14 to the Consolidated Financial Statements for discontinued operations presentation adjustments to previously reported amounts.



	Nine Months
	(39 weeks) Ended
	September 25, 2011
(amounts in thousands, except per share data)	As Previously Reported			As Revised for Revision Adjustments			As Revised in this Quarterly Report on Form 10-Q
Net revenues	$	622,730		$	622,730		$	613,745
Cost of revenues	385,244			385,244			377,588
Gross profit	237,486			237,486			236,157
Selling, general, and administrative expenses	225,021			222,384			219,294
Research and development	15,612			15,612			15,612
Restructuring expenses	20,484			20,484			20,371
Acquisition costs	2,205			2,205			2,205
Other expense	—			587			587
Other operating income	19,262			19,262			19,262
Operating loss	(6,574		)	(4,524		)	(2,650		)
Interest income	2,677			2,677			2,677
Interest expense	5,781			5,781			5,781
Other gain (loss), net	(1,049		)	(1,049		)	(1,049		)
Loss from continuing operations before income taxes	(10,727		)	(8,677		)	(6,803		)
Income taxes expense	38,273			38,788			38,788
Net loss from continuing operations	(49,000		)	(47,465		)	(45,591		)
Loss from discontinued operations, net of tax expense of $0, $0, and $0	—			—			(1,874		)
Net loss	(49,000		)	(47,465		)	(47,465		)
Less: gain attributable to non-controlling interests	50			50			50
Net loss attributable to Checkpoint Systems, Inc.	$	(49,050	)	$	(47,515	)	$	(47,515	)
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(1.21	)	$	(1.17	)	$	(1.13	)
Loss from discontinued operations, net of tax	—			—			(0.04		)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	(1.21	)	$	(1.17	)	$	(1.17	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(1.21	)	$	(1.17	)	$	(1.13	)
Loss from discontinued operations, net of tax	—			—			(0.04		)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	(1.21	)	$	(1.17	)	$	(1.17	)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS



	Quarter						Nine Months
	(13 weeks) Ended						(39 weeks) Ended
	September 25, 2011						September 25, 2011
(amounts in thousands)	As Previously Reported			As Revised in this Quarterly Report on Form 10-Q			As Previously Reported			As Revised in this Quarterly Report on Form 10-Q
Net loss	$	(49,211	)	$	(48,614	)	$	(49,000	)	$	(47,465	)
Amortization of pension plan actuarial losses, net of tax	253			253			9			9
Change in realized and unrealized gains on derivative hedges, net of tax	1,814			1,814			52			52
Foreign currency translation adjustment	(12,464		)	(12,423		)	9,621			9,594
Comprehensive loss	(59,608		)	(58,970		)	(39,318		)	(37,810		)
Less: comprehensive income attributable to non-controlling interests	48			48			50			50
Comprehensive loss attributable to Checkpoint Systems, Inc.	$	(59,656	)	$	(59,018	)	$	(39,368	)	$	(37,860	)

There is no discontinued operations impact on the presentation of the As Revised in this Quarterly Report on Form 10-Q amounts.

CONSOLIDATED STATEMENTS OF CASH FLOWS



(amounts in thousands)	September 25, 2011
Nine months (39 weeks) ended	As Previously Reported			As Revised in this Quarterly Report on Form 10-Q
Cash flows from operating activities:
Net loss	$	(49,000	)	$	(47,465	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	27,367			27,367
Deferred taxes	47,530			48,045
Stock-based compensation	6,208			6,208
Provision for losses on accounts receivable	2,237			2,237
Excess tax benefit on stock compensation	(598		)	(598		)
Gain on disposal of fixed assets	(19		)	(19		)
Restructuring-related asset impairment	7,479			7,479
Increase in current assets, net of the effects of acquired companies:
Accounts receivable	(1,850		)	(2,035		)
Inventories	(35,199		)	(35,329		)
Other current assets	(29,458		)	(29,507		)
Increase (decrease) in current liabilities, net of the effects of acquired companies:
Accounts payable	4,405			4,242
Income taxes	(2,850		)	(2,869		)
Unearned revenues	11,798			11,798
Restructuring reserve	7,526			7,526
Other current and accrued liabilities	7,150			7,855
Net cash provided by operating activities	2,726			4,935
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(14,424		)	(14,424		)
Acquisition of businesses, net of cash acquired	(75,937		)	(75,937		)
Change in restricted cash	(82		)	(82		)
Other investing activities	408			408
Net cash used in investing activities	(90,035		)	(90,035		)
Cash flows from financing activities:
Proceeds from stock issuances	2,336			2,336
Excess tax benefit on stock compensation	598			598
Proceeds from short-term debt	16			16
Payment of short-term debt	(1,612		)	(1,612		)
Net change in factoring and bank overdrafts	(2,391		)	(2,391		)
Proceeds from long-term debt	63,750			63,750
Payment of long-term debt	(47,701		)	(47,701		)
Net cash provided by financing activities	14,996			14,996
Effect of foreign currency rate fluctuations on cash and cash equivalents	4,116			4,031
Net decrease in cash and cash equivalents	(68,197		)	(66,073		)
Cash and cash equivalents:
Beginning of period	173,802			172,473
End of period	$	105,605		$	106,400

The Consolidated Financial Statements include the accounts of Checkpoint Systems, Inc. and its majority-owned subsidiaries (collectively, the “Company”). All inter-company transactions are eliminated in consolidation. The Consolidated Financial Statements and related notes are unaudited and do not contain all disclosures required by generally accepted accounting principles in annual financial statements. Refer to our Annual Report on Form 10-K for the fiscal year ended December 25, 2011 for the most recent disclosure of the Company’s accounting policies.

The Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position at September 23, 2012 and December 25, 2011 and our results of operations for the thirteen and thirty-nine weeks ended September 23, 2012 and September 25, 2011 and changes in cash flows for the thirty-nine weeks ended September 23, 2012 and September 25, 2011. The results of operations for the interim period should not be considered indicative of results to be expected for the full year.

Restricted Cash

We classify restricted cash as cash that cannot be made readily available for use. Restrictions may include legally restricted deposits held as compensating balances against short-term borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits. During the third quarter ended September 23, 2012, we completed a project for which we had received a grant from the Chinese government that was recorded within restricted cash in the accompanying Consolidated Balance Sheet.

Accounts Receivable

At September 25, 2011, proceeds from the sale of accounts receivable related to a sales-type lease extension with a customer to a third party financial institution totaled $30.9 million. Proceeds from the initial sale of the accounts receivable are used to fund operations. This transaction meets the criteria for sale treatment in accordance with ASC 860 "Accounting for Transfers and Servicing of Financial Assets". We have presented the earnings recognized on the sale of the receivables separately under the line item captioned other operating income on our Consolidated Statements of Operations for the three and nine months ended September 25, 2011. There is no comparable amount for the three and nine months ended September 23, 2012.

Internal-Use Software

Included in fixed assets is the capitalized cost of internal-use software. We capitalize costs incurred during the application development stage of internal-use software and amortize these costs over their estimated useful lives, which generally range from three to five years. Costs incurred related to design or maintenance of internal-use software is expensed as incurred.

During 2009, we announced that we are in the initial stages of implementing a company-wide ERP system to handle the business and finance processes within our operations and corporate functions. The total amount of internal-use software costs capitalized since the beginning of the ERP implementation as of September 23, 2012 and December 25, 2011 were $22.3 million and $21.4 million, respectively. As of September 23, 2012, $18.1 million was recorded in machinery and equipment related to supporting software packages that were placed in service. The remaining costs of $4.2 million and $6.0 million as of September 23, 2012 and December 25, 2011, respectively, are capitalized as construction-in-progress until such time as the ERP system has been placed in service.

Assets Held For Sale

As a result of our restructuring plans, certain long-lived assets of our manufacturing facilities met held for sale criteria during the second quarter ended June 24, 2012 and $3.7 million of property, plant, and equipment, net was reclassified into other current assets on the Consolidated Balance Sheet. In the third quarter ended September 23, 2012, these long-lived assets of our manufacturing facilities were sold, resulting in a gain on sale of $0.8 million that was recognized in other exit costs within restructuring expenses on the Consolidated Statement of Operations.

Non-controlling Interests

On May 16, 2011, Checkpoint Holland Holding B.V., a wholly-owned subsidiary of the Company, acquired 51% of the outstanding voting shares of Shore to Shore PVT Ltd. (Sri Lanka) in exchange for $1.7 million in cash. The fair value of the non-controlling interest was estimated by applying a market approach. Key assumptions include control premiums associated with guideline transactions of entities deemed to be similar to Shore to Shore PVT Ltd. (Sri Lanka), and adjustments because of the lack of control that market participants would consider when measuring the fair value of the non-controlling interest.

We have classified non-controlling interests as equity on our Consolidated Balance Sheets as of September 23, 2012 and December 25, 2011 and presented net income attributable to non-controlling interests separately on our Consolidated Statements of Operations for the three and nine months ended September 23, 2012 and September 25, 2011.

Warranty Reserves

We provide product warranties for our various products. These warranties vary in length depending on product and geographical region. We establish our warranty reserves based on historical data of warranty transactions.

The following table sets forth the movement in the warranty reserve which is located in the Other Accrued Expenses section of our Consolidated Balance Sheets:



(amounts in thousands)
Nine months ended	September 23, 2012
Balance at beginning of year	$	5,857
Accruals for warranties issued, net	4,176
Settlements made	(4,182		)
Foreign currency translation adjustment	31
Balance at end of period	$	5,882

Recently Adopted Accounting Standards

In April 2011, the FASB issued ASU 2011-03 “Reconsideration of Effective Control for Repurchase Agreements” (ASU 2011-03). The amendments to Topic 860 (Transfers and Servicing) affect all entities that enter into agreements to transfer financial assets that both entitle and obligate the transferor to repurchase or redeem the financial assets before their maturity. The amendments do not affect other transfers of financial assets. The amendments remove from the assessment of effective control (1) the criterion requiring the transferor to have the ability to repurchase or redeem the financial assets on substantially the agreed terms, even in the event of default by the transferee, and (2) the collateral maintenance implementation guidance related to that criterion. ASU 2011-03 is effective for the first interim or annual periods beginning on or after December 15, 2011, which for us was December 26, 2011, the first day of our 2012 fiscal year. This amendment should be applied prospectively to transactions or modifications of existing transactions that occur on or after December 26, 2011. The adoption of the standard has not had a material impact on our Consolidated Results of Operations and Financial Condition.

In May 2011, the FASB issued ASU 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (ASU 2011-04). The amendments to Topic 820 (Fair Value Measurement) establish common requirements for measuring fair value and related disclosures in accordance with accounting principles generally accepted in the United States and international financial reporting standards. This amendment did not require additional fair value measurements. ASU 2011-04 is effective for the first interim and annual periods beginning after December 15, 2011, which for us was December 26, 2011, the first day of our 2012 fiscal year. This amendment should be applied prospectively. The adoption of the standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In June 2011, the FASB issued ASU 2011-05 “Presentation of Comprehensive Income” (ASU 2011-05). The amendments to Topic 220 (Comprehensive Income) eliminate the option of presenting the components of other comprehensive income as part of the statement of changes in stockholders' equity, require consecutive presentation of the statement of net income and other comprehensive income and require reclassification adjustments from other comprehensive income to net income to be shown on the financial statements. In December 2011, the FASB issued ASU 2011-12, "Comprehensive Income -- Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items out of Accumulated Other Comprehensive Income in ASU 2011-05," to defer the effective date of the provision requiring entities to present reclassification adjustments out of accumulated other comprehensive income by component in both the statement in which net income is presented and the statement in which other comprehensive income is presented. However, the remaining requirements of ASU 2011-05 are effective for the first interim and annual periods beginning after December 15, 2011, which for us was December 26, 2011, the first day of our 2012 fiscal year. Any required changes in presentation requirements and disclosures have been included in our Consolidated Financial Statements beginning with the first quarter ended March 25, 2012. The adoption of the standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In September 2011, the FASB issued ASU 2011-08, "Intangibles – Goodwill and Other," (ASU 2011-08), which amends current guidance to allow a company to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. The amendment also improves previous guidance by expanding upon the examples of events and circumstances that an entity should consider between annual impairment tests in determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011, which for us was December 26, 2011, the first day of our 2012 fiscal year. The adoption of the standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In September 2011, the FASB issued ASU 2011-09, "Compensation – Retirement Benefits – Multiemployer Plans (Subtopic 715-80)," (ASU 2011-09). ASU 2011-09 requires that employers provide additional separate disclosures for multiemployer pension plans and multiemployer other postretirement benefit plans. The additional quantitative and qualitative disclosures will provide users with more detailed information about an employer's involvement in multiemployer pension plans. ASU 2011-09 is effective for fiscal years ending after December 15, 2011. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

New Accounting Pronouncements and Other Standards

In December 2011, the FASB issued ASU 2011-11, "Balance Sheet – Disclosures about Offsetting Assets and Liabilities (Topic 210-20)," (ASU 2011-11). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for fiscal years beginning on or after January 1, 2013, with retrospective application for all comparable periods presented. The adoption of this standard is not expected to have a material effect on our Consolidated Results of Operations and Financial Condition.

In July 2012, the FASB issued ASU 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," (ASU 2012-02). ASU 2012-02 amends the guidance in ASC 350-302 on testing indefinite-lived intangible assets, other than goodwill, for impairment by allowing an entity to perform a qualitative impairment assessment before proceeding to the two-step impairment test. If the entity determines, on the basis of qualitative factors, that the fair value of the indefinite-lived intangible asset is not more likely than not (i.e., a likelihood of more than 50 percent) impaired, the entity would not need to calculate the fair value of the asset. In addition, the ASU does not amend the requirement to test these assets for impairment between annual tests if there is a change in events or circumstances; however, it does revise the examples of events and circumstances that an entity should consider in interim periods. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, with early adoption being permitted. The adoption of this standard is not expected to have a material effect on our Consolidated Results of Operations and Financial Condition.

In October 2012, the FASB issued ASU 2012-04, "Technical Corrections and Improvements," (ASU 2012-04). ASU 2012-04 amends current guidance by clarifying the FASB Accountings Standards Codification (Codification), correcting unintended application of guidance, or making minor improvements to the Codification. These amendments are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Additionally, the amendments included in ASU 2012-04 intend to make the Codification easier to understand and the fair value measurement guidance easier to apply by eliminating inconsistencies and providing needed clarifications. The amendments in ASU 2012-04 that will not have transition guidance will be effective upon issuance. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. The adoption of this standard is not expected to have a material effect on our Consolidated Results of Operations and Financial Condition.