10-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 30, 2012

Commission File No. 1-11257

CHECKPOINT SYSTEMS, INC.

(Exact name of Registrant as specified in its Articles of Incorporation)

Pennsylvania	22-1895850
(State of Incorporation)	(IRS Employer Identification No.)
101 Wolf Drive, PO Box 188, Thorofare, New Jersey	08086
(Address of principal executive offices)	(Zip Code)

856-848-1800

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class so registered	Name of each exchange on which registered
Common Stock, Par Value $.10 Per Share	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

None

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o   No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o   No þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ    No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.05 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ     No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.:

Large accelerated filer o	Accelerated filer þ	Non-accelerated filer o	Smaller reporting company o
	(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o   No þ

As of June 24, 2012, the aggregate market value of the Common Stock held by non-affiliates of the Registrant was approximately $328,793.687.

As of February 28, 2013, there were 40,778.455 shares of the Common Stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant’s Definitive Proxy Statement for its 2013 Annual Meeting of Shareholders are incorporated by reference into Part III of this Form 10-K.

CHECKPOINT SYSTEMS, INC.

FORM 10-K

Table of Contents

			Page
PART I.
	Item 1.	Business	3
	Item 1A.	Risk Factors	15
	Item 1B.	Unresolved Staff Comments	25
	Item 2.	Properties	25
	Item 3.	Legal Proceedings	25
	Item 4.	Mine Safety Disclosures	25
PART II.
	Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	27
	Item 6.	Selected Financial Data	28
	Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
	Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	61
	Item 8.	Financial Statements and Supplementary Data	63
	Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	116
	Item 9A.	Controls and Procedures	116
	Item 9B.	Other Information	117
PART III.
	Item 10.	Directors and Executive Officers and Corporate Governance	117
	Item 11.	Executive Compensation	117
	Item 12.	Security Ownership of Certain Beneficial Owners and Management	118
	Item 13.	Certain Relationships and Related Transactions, and Director Independence	118
	Item 14.	Principal Accounting Fees and Services	118
PART IV.
	Item 15.	Exhibits and Financial Statement Schedules	119
		SIGNATURES	120
		INDEX TO EXHIBITS	121
		SCHEDULE II – Valuation and Qualifying Accounts	123

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PART I

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties and reflect the Company’s judgment as of the date of this report. Forward-looking statements often address our expected future business and financial performance, and often contain words such as “expect,” “forecast,” “anticipate,” “intend,” “plan,” “believe,” “seek,” or “will.” By their nature, forward-looking statements address matters that are subject to risks and uncertainties. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited, to the following: the impact upon operations of legal and tax compliance matters or internal controls review, improvement and remediation, including the detection of wrongdoing, improper activities, or circumvention of internal controls; our ability to successfully implement our strategic plan; the impact of our working capital improvement initiatives; our ability to manage growth effectively including our ability to integrate acquisitions and to achieve our financial and operational goals for our acquisitions; our ability to manage risks associated with business divestitures; changes in economic or international business conditions; foreign currency exchange rate and interest rate fluctuations; lower than anticipated demand by retailers and other customers for our products; slower commitments of retail customers to chain-wide installations and/or source tagging adoption or expansion; possible increases in per unit product manufacturing costs due to less than full utilization of manufacturing capacity as a result of slowing economic conditions or other factors; our ability to provide and market innovative and cost-effective products; the development of new competitive technologies; our ability to maintain our intellectual property; competitive pricing pressures causing profit erosion; the availability and pricing of component parts and raw materials; possible increases in the payment time for receivables as a result of economic conditions or other market factors; our ability to comply with covenants and other requirements of our debt agreements; changes in regulations or standards applicable to our products; our ability to successfully implement global cost reductions in operating expenses including, field service, sales, and general and administrative expense, and our manufacturing and supply chain operations without significantly impacting revenue and profits; our ability to maintain effective internal control over financial reporting; risks generally associated with information systems upgrades and our company-wide implementation of an enterprise resource planning (ERP) system; and additional matters discussed more fully in this report under Item 1A. “Risk Factors Related to Our Business” and Item 7. “Management’s Discussion and Analysis.” Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We do not undertake to update our forward-looking statements, except as required by applicable securities laws.

Item 1. BUSINESS

Checkpoint Systems, Inc. is a leading global manufacturer and provider of technology-driven, loss prevention, inventory management and labeling solutions to the retail and apparel industry. Our core loss-prevention business is built on more than 40 years of radio-frequency (RF) technology expertise. The systems and services included in this business enable retailers and their suppliers to reduce shrink while leveraging real-time data generated by our systems to improve operational efficiency.

Within loss-prevention, we are a leading provider of electronic article surveillance (EAS) systems and tags using RF and electro-magnetic (EM) technology. We also engineer systems using RF and acousto-magnetic (AM) technology. Our loss prevention solutions enable retailers to safely display merchandise in an open environment. We also offer customers the convenience of tagging their merchandise or associated packaging at the manufacturing source.

Increasingly, retailers and manufacturers are focused on tracking assets moving through the supply chain. In response to this growing market opportunity, we provide a portfolio of inventory management solutions in the form of Radio Frequency Identification (RFID) products and services principally for closed-loop apparel retailers and department stores. Our products give customers precise details on merchandise location and quantity as it travels from the manufacturing source through to the retail store.

We manufacture and sell worldwide a variety of tickets, tags and labels for customers in the retail and apparel industry. Applications include variable data management and printing, with size, care, content, pricing information, and brand identification. In addition, we offer barcode printing and integrated EAS tags for loss prevention and integrated RFID tags for item tracking and inventory management.

In Europe, we are a leading provider of retail display systems (RDS) and hand-held labeling systems (HLS) used for retail price marking.

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We operate directly in 29 countries. Our products are principally developed and manufactured in-house and sold through direct distribution and reseller channels.

In October 2012, we completed the sale of the Banking Security Systems Integration business unit, which was focused on the financial services sector and previously was part of our CheckView^® business. We are also pursuing the divestiture of our U.S. and Canada based CheckView^® business so that we can focus on the growth of our core business. As such, both businesses are excluded from continuing operations. Unless otherwise noted, all information in this Annual Report on Form 10-K is presented on the basis of continuing operations.

COMPANY HISTORY

We were founded in 1969 and incorporated in Pennsylvania as a wholly-owned subsidiary of Logistics Industries Corporation (Logistics). In 1977, pursuant to the terms of its merger into Lydall, Inc., Logistics distributed our common stock to Logistics' shareholders as a dividend.

Historically, we expanded our business both domestically and internationally through acquisitions, internal growth via wholly-owned subsidiaries, and independent distributors. In 1993 and 1995, we completed two acquisitions that gave us direct access into Western Europe. We acquired ID Systems International BV and ID Systems Europe BV in 1993 and Actron Group Limited in 1995. These companies manufactured, distributed, and sold EAS systems throughout Europe.

In December 1999, we acquired Meto AG, a German multinational corporation and a leading provider of value-added labeling solutions for article identification and security. This acquisition doubled our revenues and broadened our product offering and global reach.

In January 2001, we acquired A.W. Printing Inc., a U.S.-based printer of tags, labels, and packaging material for the apparel industry.

In January 2006, we completed the sale of our barcode systems business to SATO, a global leader in barcode printing, labeling, and Electronic Product Code (EPC)/ RFID solutions.

In November 2006, we acquired ADS Worldwide (ADS). Based in the U.K., ADS supplied tags, labels and trim to apparel manufacturers, retailers and brands around the world. This acquisition gave us new technological and production capabilities and enhanced our product offerings and solutions for apparel customers.

In November 2007, we acquired the Alpha S3 business from Alpha Security Products, Inc. Headquartered in the U.S., the Alpha S3 business offers security solutions designed to protect merchandise most likely to be stolen on open display in retail environments. The Alpha^® S3 portfolio complements our EAS source tagging program, and is in line with our strategy to provide retailers with a comprehensive line of loss-prevention solutions.

In November 2007, we also acquired SIDEP, an established supplier of EAS systems operating in France and China, and Shanghai Asialco Electronics Co. Ltd. (Asialco), a China-based manufacturer of RF-EAS labels. With facilities in Shanghai, China, Asialco significantly increased our label manufacturing capacity in Asia. These businesses are helping us to meet growing regional demand.

In January 2008, we purchased the business of Security Corporation, Inc., a privately held company that provided technology and physical security solutions to the financial services sector and served as the foundation for the Banking Security Systems Integration business unit that was focused on the southeast region of the U.S. In October 2012, we completed the sale of this non-strategic business unit that was formerly part of our Shrink Management Solutions segment.

In June 2008, we acquired OATSystems, Inc., a recognized leader in RFID-based application software. This acquisition positioned us to offer a complete end-to-end solution of RFID hardware and software, tags and labels, service and supply to closed-loop apparel retailers and department stores for inventory tracking and management purposes. We believe this single-source capability gives us an advantage over competing providers.

In August 2009, we acquired Brilliant Label Manufacturing Ltd., a China-based manufacturer of paper, fabric and woven tags and labels. Through its facilities in Hong Kong and China, Brilliant Label added capacity to Checkpoint's apparel labeling business and expanded our manufacturing footprint, enabling us to meet greater demand.

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In May 2011, through the acquisition of equity and/or assets, we acquired the Shore to Shore businesses. Shore to Shore designs, manufactures and sells tags and labels, brand protection and EAS solutions for apparel and footwear application. This acquisition further expanded our tag and label production capabilities and global reach.

BUSINESS STRATEGY

In 2012, we refined our business strategy to transition from a product protection business to a provider of inventory management solutions that give retailers ready insight into the on-shelf availability of merchandise in their stores. In support of this strategy, we continue to provide to retailers, manufacturers and distributors our EAS systems and consumables, Alpha^® high-theft solutions, Merchandise Visibility^™ (RFID) products and services, and METO^® hand-held labeling products. In apparel labeling, we are focusing on those products that support our refined strategy and leveraging our competitive advantage in the transfer and printing of variable data onto apparel labels. We are and will consider divesting certain businesses and product lines not advantageous to our refined strategy.

Our solutions help customers identify, track, and protect their assets. We believe that innovative new products and expanded product offerings will provide opportunities to enhance the value of legacy products while expanding the product base in existing customer accounts. We intend to maintain our leadership position in key hard goods markets (supermarkets, drug stores, mass merchandisers, and music and electronics retailers); to expand our market share in soft goods markets (specifically apparel), and maximize our position in under-penetrated markets. We also intend to continue to capitalize on our installed base with large global retailers to promote source tagging. Furthermore, we plan to leverage our knowledge of RF and identification technologies to assist retailers and manufacturers in realizing the benefits of RFID.

To achieve these objectives, we expect to continuously enhance and expand our technologies and products, and provide superior service to our customers. We intend to offer customers a wide variety of integrated shrink management solutions, apparel labeling, and retail merchandising solutions characterized by superior quality, ease-of-use, and good value, with enhanced merchandising opportunities.

We continue to evaluate our sales, productivity, manufacturing, supply chain efficiency and overhead structure, and we will take action where specific opportunities exist to improve profitability.

Products and Offerings

We report results of operations in three segments: Shrink Management Solutions (SMS), Apparel Labeling Solutions (ALS), and Retail Merchandising Solutions (RMS). The revenues and gross profit margins for each of the segments and the identifiable assets attributable to each reporting segment are set forth in Note 18 Business Segments and Geographic Information to the Consolidated Financial Statements.

Each of these segments offers an assortment of products and services that in combination are designed to provide a comprehensive, single-source solution to help retailers, manufacturers, and distributors identify, track, and protect their assets throughout the supply chain. Each segment and its respective products and services are described below.

SHRINK MANAGEMENT SOLUTIONS

Our largest segment provides shrink management and inventory management (RFID) solutions to retailers. The diversified line of products offered in this segment is designed to help retailers in a number of ways: prevent inventory losses caused by theft, reduce selling costs through lower staff requirements, enhance consumer shopping, improve inventory management, and boost sales by having the right goods available when consumers are ready to buy.

Our EAS products let retailers openly display their merchandise, which contributes to maximizing sales. We believe that we hold a significant share of installed worldwide EAS systems through the deployment of our proprietary EAS-RF and EAS-EM technologies. EAS systems revenues accounted for 28%, 26%, and 25% of our 2012, 2011, and 2010 total revenues, respectively.

Our Alpha^® solutions are focused on two niche areas in retail theft: the need to protect high-risk merchandise and the need to safely display merchandise in ways that permit consumers to pick up and handle goods before deciding to buy. For 2012, 2011, and 2010, the Alpha S3 business represented 18%, 18%, and 19% of our revenues, respectively.

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We offer a wide variety of EAS-RF and EAS-EM labels and tags, collectively called EAS consumables, matched to specific retail requirements. Under our source tagging program, EAS labels and tags are attached to or embedded in products or packaging at the point of manufacture. Our Hard Tag @ Source^™ program is designed for apparel customers who prefer to use hard tags for garment security but who also wish to avoid the expense of in-store tag application. These light-weight tags are recyclable.

All participants in the retail supply chain look for ways to operate with maximum efficiency. Many of our products and services, including labels that are fully integrated with EAS and/or RFID capability, help our customers to achieve critical objectives, such as meeting tight delivery schedules and preventing losses caused by tracking failure, theft, misplacement or counterfeiting. EAS consumables revenues represented 14%, 16% and 18% of our total revenues for 2012, 2011, and 2010, respectively.

Our CheckView^® business offers retailers physical and electronic security solutions in the form of fire and intrusion alarms, digital video surveillance solutions and 24/7 alarm monitoring. Consistent with our refined strategy to focus on inventory management systems that focus on on-shelf availability, we decided to reduce our emphasis on CheckView^® services and solutions. In October 2012, we completed the sale of the Banking Security Systems Integration business unit, which was focused on the financial services sector and previously was part of our CheckView^® business. We are also pursuing the divestiture of our U.S. and Canada based CheckView^® business so that we can focus on the growth of our core business. As such, both businesses are excluded from continuing operations. We will continue to provide CheckView^® CCTV services in Asia in conjunction with EAS systems when customers require a combined security solution.

No other product group in this segment accounted for as much as 10% of our revenues.

These broad and flexible product lines are marketed and serviced by our sales and service organizations, positioning Checkpoint to be a preferred supplier to retailers around the world. Shrink Management Solutions represented approximately65%, 64%, and 66% of total revenues in 2012, 2011, and 2010, respectively.

Electronic Article Surveillance Systems

We offer a wide variety of EAS-RF and EAS-EM systems tailored to meet the varied requirements of retail store configurations in multiple market segments. Our systems are designed to act as a visible deterrent to merchandise theft. They are comprised of antennas and deactivation units which respond to or act upon our EAS tags and labels. Antennas include readers, sometimes integrated, sometimes external, that can be RFID-enabled. Our business model typically relies on customer commitments for EAS product installations in a large number of stores over a period of several months.

Our antennas and deactivators are technology-rich and upgradable. Our foremost EVOLVE^™ platform sets a new standard in retail loss prevention and customer tracking. With its advanced data analytics and networking capabilities, EVOLVE^™ delivers superior performance coupled with significant energy savings. Its data analytics enable customers to maximize returns on hardware investments. EVOLVE^™ is compatible with our EAS software suite and EAS and RFID tags and labels, as well as products of other suppliers.

In 2012, we introduced a new range of antennas that provides retailers with similarly enhanced functionality. Available in varied design options, including aesthetically pleasing formats to complement our customers' retail stores, the CLASSIC IP range offers wider aisle-width protection plus the energy-savings electronics found in EVOLVE^®.

Our EAS products are designed and built to comply with applicable Federal Communications Commission (FCC) and European Community (EC) regulations governing RF, signal strengths, and other factors.

Electronic Article Surveillance Consumables

We produce EAS-RF and EAS-EM labels that work in combination with our EAS systems. Our diversified line of discrete, disposable labels is designed to enable retailers to protect a wide array of easily-pocketed, high-shrink merchandise. While EAS labels can be applied in retail stores and distribution centers, many customers take advantage of our source tagging program. In source tagging programs, EAS labels and hard tags are configured to customers' merchandise and specific security requirements and applied at the point of manufacture. Our paper-thin EAS labels have characteristics that are easily integrated with high-speed, automated application systems.

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We believe our enhanced performance (EP) labels carry the smallest circuit design on the worldwide market, while simultaneously delivering superior detection and deactivation. These labels offer protection to health and beauty items, CDs, and other small-sized merchandise. Included in this range is EP CLEAR, a see-through format that that allows brand and packaging information to remain visible. The EP CLEAR Tamper Tag, features an added benefit, a strong adhesive bond designed to degrade packaging if removed. This acts as a further deterrent to thieves intending to steal and then resell the merchandise.

In 2012 we introduced our Infinite Solutions (iS) product series developed based on input from our retail customers who desired to have a merchandise protection solution for merchandise that might otherwise be left unprotected. Available in varying formats, this disposable product line offers the visual protection of a hard tag with flexible options for attaching to merchandise.

Alpha^® 

Alpha pioneered the “open display” security philosophy by providing retailers a truly safe means to bring merchandise from behind locked cabinets and openly display it. The Alpha^® product line supplies retailers with innovative and technically advanced solutions to protect high-risk, and in some cases, high-value, merchandise. Applications are many and varied depending on the merchandise and location to be protected. Products include Keepers™, Spider Wraps^®, Bottle Security, Cable Loks^®, hard tags, NanoGates^® and Showsafe™. All Alpha^® products are available in AM, RF, or EM formats.

Historically, we reported RF and EM hard tags as part of the SMS EAS systems product line. During the first quarter of 2010, we began reporting these products within 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 SMS segment, the change in classification does not impact segment reporting. Fiscal year 2009 is conformed to reflect the product line change within the SMS segment and all prior year comparative amounts and explanations are adjusted within Management's Discussion and Analysis to reflect this change in classification to be consistent for all periods presented.

CheckView^®- Safety and Security Solutions

We provide physical and electronic store monitoring solutions, including fire alarms, intrusion alarms, digital video surveillance systems and 24/7 central station monitoring for retail environments. CheckView^®'s exclusive focus on retail offers centralized project coordination supported by a large field management structure. Our product and application teams evaluate and support new technology development and our design department engineers each project.Our video surveillance solutions address shoplifting and internal theft as well as customer and employee safety and security needs. The product line consists of closed circuit television products and services including fixed and high-speed pan/tilt/zoom camera systems, programmable switcher controls, time-lapse recording, and remote video surveillance. CheckView^®'s Interactive Public View monitor (IPV), introduced in 2010, is the first of its kind designed with retail integration in mind and with the ability to connect to smart alert fixtures. IPV enables retailers to better leverage their video surveillance investment.

Our fire and intrusion systems provide life safety and property protection, completing Checkpoint Systems' line of loss prevention solutions. In addition to the system installations, we offer a U.S.-based, 24-hour central station monitoring service.

We are significantly reducing our focus on CheckView^® by pursuing the divestiture of our U.S. and Canada CheckView^® business and will limit our focus on opportunistic sales in Asia. In October 2012, we completed the sale of our non-strategic Banking Security Systems Integration business unit that was formerly part of our Shrink Management Solutions segment.

Merchandise Visibility Solutions (RFID)

Our Merchandise Visibility^™ product line gives retailers and their suppliers key insights into the location and quantity of merchandise as it travels through the supply chain. Our solutions integrate RFID at point of manufacture, through logistics and distribution operations, into and throughout the store, including exit points. Our Merchandise Visibility Solutions encompass a comprehensive, integrated set of hardware, software, tags and services. These solutions are based on RFID technology, and enable closed-loop apparel retailers and department stores to achieve key operational objectives including reducing out-of-stocks, reducing working capital requirements, and increasing sales.

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Our Merchandise Visibility Solutions are tailored to each retailer's unique requirements, and we take full, end-to-end responsibility for all aspects of planning, development, deployment and training. We are unique in our ability to provide and support the full range of products and services needed to implement a complete RFID solution for retailers. These solutions employ a number of innovative products and technologies, including a broad range of RFID tags and labels for a wide variety of products and applications. Among our key enabling and differentiable technologies is Wirama Radar™, a patented technology that improves tag-reading accuracy at a store's point of exit and helps retailers make better use of valuable front-of-store real estate by reducing “stray reads” and improving tag-reading integrity. Another unique capability is our RFID middleware and application software, which was the catalyst behind the company's 2008 acquisition of RFID software pioneer OATSystems Inc.

We also have taken the important step of using our technical and applications expertise to develop solutions that seamlessly integrate Merchandise Visibility with loss prevention; the RFID Overhead EAS solution helps retailers improve their operations by using a single RFID tag to deliver both benefits.

APPAREL LABELING SOLUTIONS

Apparel Labeling Solutions (ALS) is our second largest segment. We provide apparel retailers, brand owners, and manufacturers with a single source for their apparel labeling requirements. ALS also includes our web-based data management service and network of 25 service bureaus strategically located in 18 countries close to where apparel is manufactured. Our data management service offers order entry, logistics, and data management capabilities. It facilitates on-demand printing of variable information onto apparel tags and labels.

In the third quarter of 2012, following an extensive strategic review, we developed a comprehensive plan to address operational performance in ALS. The business is being fundamentally restructured, including consolidating certain manufacturing operations in order to provide quality merchandising products profitably and on time. We are also reducing our product capabilities to deliver those products that support our refined on-shelf availability strategy and we are rationalizing our customer base. For a more detailed outline of our refined strategy, see the Business Strategy section within this Item.

In line with our refined strategy, we intend to leverage our competitive advantage in the transfer and printing of variable data onto apparel labels, which increasingly serve as carriers for RFID solutions used in item-level tagging. We believe that our data management and service bureau network is one of the most robust in the industry and we believe our ability to integrate RFID as well as EAS-RF at manufacturing source will place Checkpoint Systems among just a handful of suppliers offering fully integrated, intelligence-gathering apparel labeling.

As we narrow our manufacturing focus in apparel labeling, we intend to continue offering our customers all the labeling solutions they need to effectively merchandise their products. We will do this by partnering with qualified suppliers as necessary.

ALS revenues represented 27%, 26%, and 24% of our total revenues for 2012, 2011, and 2010, respectively.

RETAIL MERCHANDISING SOLUTIONS

The Retail Merchandising Solutions segment includes hand-held label applicators and tags, promotional displays, and queuing systems. These traditional products broaden our reach among retailers. Many of the products in this segment represent high-margin items with a high level of recurring sales of associated consumables such as labels. As a result of the increasing use of scanning technology in retail, our hand-held labeling systems serve a declining market. Retail Merchandising Solutions, which is focused on European and Asian markets, represents approximately 8% of our business, with no product group in this segment accounting for as much as 10% of our revenues.

Hand-held Labeling Systems

Our METO^® hand-held labeling systems (HLS) include a complete line of hand-held price marking and label application solutions, primarily sold to retailers. Sales of labels, consumables, and service generate a significant source of recurring revenues. As retail scanning becomes widespread, in-store retail price marking applications continue to decline. Our HLS products possess a market-leading position in several European countries.

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Retail Display Systems

Our retail display systems (RDS) include a wide range of products for customers in certain retail sectors, such as supermarkets and do-it-yourself, where high-quality signage and in-store price promotion are important. Product categories include traditional retail promotional systems for in-store communication and electronic graphics display, and customer queuing systems.

PRINCIPAL MARKETS AND MARKETING STRATEGY

Our mission is to discover meaningful insights into what retailers need in order to sell more and lose less merchandise. We translate those insights into noticeably superior products and solutions that address retailers' needs with a clear return on their investment. We communicate the superiority of our solutions through compelling claims, performance demonstrations and superior benefit visualization.

We design, engineer, and manufacture the majority of our products, and in particular our key differentiated products. Additionally, we distribute, sell, service and support all of our products. Our core business has evolved from helping retailers reduce theft to improving retailers' merchandise availability at their stores. We do this through merchandise protection, improving inventory visibility to prevent out-of-stocks, and helping improve the shoppers' experiences.

We offer a broad product portfolio that includes EAS systems comprised of hardware, consumables and software, Alpha^® high-theft security solutions, and RFID merchandise visibility solutions including hardware, software, tags and labels, and services and supply. All of this is complemented by our global field services expertise in worldwide implementations, maintenance and monitoring of our solutions. As an innovative technology company, we consistently measure our revenues with the expectation that 25% will come from new product innovations. We invest time and resources with our partner customers in identifying their critical needs and we commission our innovation team to continue developing solutions that address those needs.

We sell our product solutions primarily to retailers worldwide in traditional brick-and-mortar stores, and also for extended use in their supply chain. As the retail marketplace continues to change, our solutions have also changed to help retailers address new challenges with omni-channel retailing. We also work closely with merchandise brand owners to apply our security solutions at the point of manufacture, and develop innovative display merchandising that helps to promote their brand in stores. As one of the industry leaders, we enjoy significant market share, particularly in the supermarket, drug store, hypermarket, and mass merchandiser market segments.

In addition, we offer integrated shrink management and merchandise visibility solutions, apparel labeling solutions and retail merchandising solutions to retail customers worldwide through our Intelligent Merchandise Availability Program (iMAP). This approach entails a broadened focus within the entire retail market to deliver integrated solutions for loss prevention, inventory management, and display merchandising, working seamlessly together to help retailers ensure they have the right merchandise available when consumers want to buy.

Shoplifting and employee theft are major causes of retail shrinkage. The Global Retail Theft Barometer estimates that shrink averages 1.45% of retail sales. Data collection systems highlight the problem to retailers. As a result, retailers recognize that the implementation of effective electronic security solutions can significantly reduce shrinkage, increase their merchandise availability, and enhance their customers' shopping experience. These are among the ways that we help retailers lose less merchandise.

As reported by the University of Arkansas, average retail inventory accuracy is 60-65%, which can lead to out-of-stocks. With RFID, however, inventory accuracy typically increases to between 95% and 99%. This increase in inventory accuracy enables retailers to reduce out-of-stocks and increase sales significantly. Checkpoint's RFID-based solutions help retailers sell more merchandise.

We are committed to helping retailers grow profitability by providing our customers with a wide variety of solutions. Our ongoing marketing strategy includes the following:

▪ communicating the synergies within our product portfolio to demonstrate the collective value they offer in merchandise protection, preventing out-of-stocks and improving shoppers' experience;

▪ continuing to develop new product solutions that offer a compelling return-on-investment for retailers to enable us to expand penetration within existing retail accounts and gain new customer accounts;

▪ establishing business-to-business web-based capabilities to enable retailers and manufacturers to initiate and track their orders through the supply chain on a global basis;

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▪ continuing to promote source tagging around the world with extensive integration and automation capabilities;

▪ measuring and improving retailers' merchandise availability ratio, which has a direct impact on a consumer's shopping experience and the retailers' profitability;

▪ providing a clear migration path from EAS to RFID and from shrink management to merchandise visibility that protects retailers' past investment while improving the effectiveness of their purchased assets; and

▪ assisting retailers in maximizing the benefits of merchandise visibility through their supply chain all the way to their stores' shelves.

We market our products primarily by:

▪ becoming a trusted advisor to our retail customers where we can offer actionable insights to protect merchandise, prevent out-of-stocks, and improve display merchandising;

▪ communicating, messaging and highlighting Checkpoint's unique position as a one-stop provider of integrated and complete solutions for retailers;

▪ helping retailers sell more merchandise by avoiding stock-outs, reducing shrink, and making merchandise available to consumers;

▪ working directly with brand owners to improve source-tagging automation;

▪ directing sales, comprehensive public relations, online marketing and targeted trade show participation;

▪ delivering superior field service and support capabilities; and

▪ actively participating in and supporting of industry associations focused on identifying needs, trends, and innovation.

We focus on partnering with retail suppliers worldwide in our source tagging program. Ongoing strategies to increase acceptance of source tagging are as follows:

• increasing installation of EAS equipment on a chain-wide basis with leading retailers around the world;

• offering integrated tag solutions, including custom tag conversion, that address the multiple but synergistic needs for branding, tracking, and loss prevention;

• assisting retailers in promoting source tagging with vendors and brand owners;

• broadening the penetration of existing accounts by promoting our in-house printing, global service bureau network, and labeling solution capabilities;

• supporting manufacturers and suppliers to speed implementation;

• expanding RF tag technologies and products to accommodate the needs of the packaging industry;

• developing compatibility with EPC/RFID technologies; and

MANUFACTURING, RAW MATERIALS, AND INVENTORY

Electronic Article Surveillance

We manufacture our EAS systems and consumables, including Alpha^® and RFID products, in facilities located in Japan, China, the U.S., and Germany. Our manufacturing strategy for EAS products is to rely primarily on in-house capability for core components and to outsource manufacturing to the extent economically beneficial. We manage the integration of our in-house capability and our outsourced manufacturing in a way that provides significant control over costs, quality, and responsiveness to market demand, which we believe results in a distinct competitive advantage.

We involve customers, engineering, manufacturing, and marketing in the design and development of our products. For the majority of our RF sensor product lines, we purchase raw materials from outside suppliers and assemble electronic components at our facilities in China. The manufacture of some RF sensors sold in Europe and all EM hardware is outsourced. For our EAS disposable tag production, we purchase raw materials and components from suppliers and complete the manufacturing process at our facilities in Japan, Germany, and China. For our Alpha^® product line production, we purchase raw materials and components from suppliers and complete the manufacturing process at our facilities in the U.S. as well as using outsourced manufacturing in China.

The principal raw materials and components used by us in the manufacture of our products are electronic components and circuit boards for our systems; aluminum foil, resins, paper, and ferric chloride and hydrochloric acid solutions for our disposable tags; and polymer resin for our Alpha^® products. While most of these materials are purchased from several suppliers, there are alternative sources for all such materials. The products that are not manufactured by us are sub-contracted to manufacturers selected for their manufacturing and assembly skills, quality, and price.

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Apparel Labeling Solutions

We manufacture labels and tags for apparel. Our main production facilities are located in the Netherlands, the U.S., and China. Local production facilities are also situated in China, Hong Kong, Bangladesh, India, and Turkey.

Our facilities in the Netherlands and the U.S. manufacture apparel labels and tags for laser overprinting and we produce fabric and woven labels in our facilities in China. The ALS network of 25 service bureaus located in 18 countries supplies apparel customers with customized apparel tags and labels to the location where their goods are manufactured.

Price-marking labels and print heads for hand-held labeling tools are manufactured in Germany. Our Malaysian facility produces standard bodies for hand-held labeling tools for the European market, complete hand-held tools for the rest of the world, and price-marking labels for the local market.

Retail Merchandising Solutions

We manufacture hand-held labeling tools and price-marking labels for retail merchandising. Our main production facilities are located in Germany and Malaysia.

Price-marking labels and print heads for hand-held labeling tools are manufactured in Germany. Our Malaysian facility produces standard bodies for hand-held labeling tools for the European market, complete hand-held tools for the rest of the world, and price-marking labels for the local market.

DISTRIBUTION

For our major product lines, we principally sell to end customers using our direct sales force of more than 400 people. To improve our sales efficiency, we also distribute products through an independent network of resellers. This distribution channel supports and services smaller customers. This indirect channel, which has primarily sold EAS solutions, is being broadened and expanded to include more product lines as we focus on improved sales productivity.

Electronic Article Surveillance

We sell our EAS systems and consumables, including Alpha^® and RFID products principally throughout North America, South America, Europe, and the Asia Pacific regions. In North America, we market our EAS products through our own sales personnel and independent representatives.

Internationally, we market our EAS products principally through foreign subsidiaries which sell directly to the end user and through independent distributors. Our international sales operations are currently located in 11 European countries and in Argentina, Australia, Brazil, Canada, Hong Kong, India, Japan, Malaysia, China, Mexico, New Zealand, Sri Lanka and Turkey.

CheckView^®- Safety and Security Solutions

We market digital video surveillance solutions and services in selected countries throughout the world using our own sales staff. These products and services are provided to EAS retail customers, as well as non-EAS retailers. Fire and intrusion alarms are marketed exclusively in the U.S. through a direct sales force.

Apparel Labeling Solutions

We market our apparel labeling products to apparel retailers and manufacturers, brand owners, and department stores.

Large national and international customers are handled centrally by key account sales specialists supported by appropriate business specialists.

Retail Merchandising Solutions

We market our retail merchandising solutions to customers in food retailing and do-it-yourself (DIY). Large national and international customers are handled centrally by key account sales specialists supported by appropriate business specialists. Smaller customers are served by either a general sales force capable of representing all products or, if the complexity or size of the business demands, a dedicated business specialist.

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BACKLOG

Our backlog of orders was approximately $48.2 million at December 30, 2012, compared to approximately $52.2 million at December 25, 2011. We anticipate that substantially all of the backlog at the end of 2012 will be delivered during 2013. In the opinion of management, the amount of backlog is not indicative of trends in our business. Our security business generally follows the retail cycle so that revenues are weighted toward the last half of the calendar year as retailers prepare for the holiday season.

TECHNOLOGY, PATENTS & LICENSING

We believe that our patented and proprietary technologies are important to our business and future growth opportunities, and provide us with distinct competitive advantages. We continually evaluate our domestic and international patent portfolio, and where the cost of maintaining the patent exceeds its value, such patent may not be renewed. The majority of our revenues are derived from products or technologies that are patented or licensed. There can be no assurance, however, that a competitor could not develop products comparable to ours. Our competitive position is also supported by our extensive manufacturing experience and know-how.

We focus our in-house development efforts on product areas where we believe we can achieve and sustain a competitive cost and positioning advantage, and where service delivery is critical. We also develop and maintain technological expertise in areas that are believed to be important for new product development in our principal business areas. We have a base of technology expertise in the variable data management business, flexographic, offset, laser and thermal transfer printing business and have a particular focus on RF and RFID insertion capabilities to support the development of higher value-added labels.

We license technologies relating to RFID applications and EAS products. These license arrangements have various expiration dates and royalty terms, which are not considered by us to be material.

SEASONALITY

Our business is subject to seasonal influences, which generally results in higher levels of sales and income in the second half of the year. The seasonality of our business substantially follows the retail cycle of our customers, which generally has revenues weighted toward the last half of the calendar year in preparation for the holiday season.

COMPETITION

Electronic Article Surveillance

Currently, EAS systems and consumables are sold to two principal markets: retail establishments and libraries. Our principal global competitor in the EAS industry is Tyco International Ltd. (Tyco), through its Tyco Retail Solutions business in the NA Installation & Services and ROW Installation & Services segments. Tyco is a diversified global company with interests in security products and services, fire protection and detection products and services, valves and controls and other industrial products. Tyco’s 2012 revenues were approximately $10.4 billion, of which $8.3 billion was attributable to the NA Installation & Services and ROW Installation & Services segments.

Within the U.S. market, additional competitors include Sentry Technology Corporation and Ketec, Inc. in EAS systems and consumables, and All-Tag Security in EAS-RF labels, principally in the retail market. Within our international markets, mainly Europe, Nedap^® is our most significant competitor. The largest competitors of the Alpha^® product line include Universal Surveillance Systems, Vanguard Protex Global Corporation, Se-Kure Controls, Inc., Invue Security Products, and Century. The largest competitors of the RFID product line are the Tyco Retail Solutions business, Avery Dennison Corporation and Nedap^®.

We believe that our product line offers a more extensive, varied range of products than our competition with robust systems, a wide variety of disposable and reusable tags and labels, integrated scan/deactivation capabilities, and RF source tagging embedded into products or packaging. As a result, we compete in marketing our products primarily on the basis of their versatility, reliability, affordability, accuracy, and integration into operations. This combination provides many system solutions and gives excellent protection against retail merchandise theft. Furthermore, we believe that our manufacturing know-how and efficiencies relating to disposable tags give us a cost advantage over our competitors.

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CheckView^®- Safety and Security Solutions

Our digital video surveillance solutions, fire and intrusion products, which are sold domestically through CheckView, and video products sold internationally through our international sales subsidiaries, compete primarily with similar products offered by Tyco, Vector Security, Inc., and Stanley Security Solutions.

Apparel Labeling Solutions

We sell our apparel labeling solutions to apparel retailers, brand owners and apparel manufacturers. Major competitors are the Retail Branding and Information Solutions business at Avery Dennison Corporation, SML Group, R-Pac International Corporation, NexGen, and Fineline Technologies. Several competitive labeling companies are also customers since they purchase EAS circuits from Checkpoint Systems to integrate into their labels.

Retail Merchandising Solutions

We face no single competitor in any international market across our entire retail merchandising solutions product range. HL Display AB and VFK Renzel GMBH are our largest competitors in retail display systems, primarily in Europe. In hand-held labeling solutions, we compete with Contact Labeling Systems, SATO DCS & Labeling Worldwide, Garvey Products Inc., Hallo, Avery Dennison Corporation, and Prix International.

OTHER MATTERS

Research and Development

We spent $16.4 million, $19.3 million, and $19.7 million, in research and development activities during 2012, 2011, and 2010, respectively. Our R&D emphasis is on continually broadening our product lines, reducing costs, and expanding the markets and applications for all products. We believe that our future growth is dependent, in part, on the products and technologies resulting from these efforts.

We continue to develop and expand our product lines with new solutions, performance improvements, and the introduction of products targeted toward international growth markets. In line with our refined strategy announced in 2012, we also intend to introduce technologies and processes that support our single source, best-in-class RFID capability.

Employees

As of December 30, 2012, we had 5,132 employees, including five executive officers, 118 employees engaged in research and development activities, 430 field service employees, and 478 employees engaged in sales and marketing activities. There were 1,433 fewer employees on December 30, 2012 than on December 25, 2011. In the United States, 8 of our employees are represented by a union. In Europe, approximately 350 of our employees are represented by various unions or work councils.

Financial Information about Geographic and Business Segments

We operate both domestically and internationally in the three distinct business segments described previously. The financial information regarding our geographic and business segments, which includes net revenues and gross profit for each of the years in the three-year period ended December 30, 2012, and long-lived assets as of December 30, 2012 and December 25, 2011, is provided in Note 18 of the Consolidated Financial Statements.

Available Information

Our internet website is at www.checkpointsystems.com. Information on our website is not part of this Annual Report on Form 10-K. Investors can obtain copies of our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act on our website as soon as reasonably practicable after we have filed such materials with, or furnished them to, the Securities and Exchange Commission (SEC). We will also furnish a paper copy of such filings free of charge upon request. Investors can also read and copy any materials filed by us with the SEC at the SEC's Public Reference Room which is located at 100 F Street, NE, Room 1580, Washington, DC 20549. Information about the operation of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. Our filings can also be accessed at the SEC's internet website: www.sec.gov.

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We have adopted a code of business conduct and ethics (the “Code of Ethics”) as required by the listing standards of the New York Stock Exchange and the rules of the SEC. This Code of Ethics applies to all of our directors, officers, and employees. We have also adopted corporate governance guidelines (the “Governance Guidelines”) and a charter for each of our Audit Committee, Compensation Committee and Governance and Nominating Committee (collectively, the “Committee Charters”). We have posted the Code of Ethics, the Governance Guidelines and each of the Committee Charters on our website at www.checkpointsystems.com, and will post on our website any amendments to, or waivers from, the Code of Ethics applicable to any of our directors or executive officers. The foregoing information will also be available in print upon request.

Executive Officers of the Company

The following table sets forth certain current information concerning our executive officers, including their ages, position, and tenure as of the date hereof:

Name	Age	Tenure with Company	Position with the Company and Date of Election to Position
George Babich, Jr.	60	6 years	President and Chief Executive Officer since February 2013; Director since 2006
Raymond D. Andrews	59	7 years	Senior Vice President and Chief Financial Officer since December 2007
Per H. Levin	55	18 years	President and Chief Sales Officer, Shrink Management Solutions and Merchandise Visibility Solutions since June 2012
Farrokh Abadi	51	8 years	President and Chief Operating Officer, Shrink Management Solutions since June 2012
S. James Wrigley	59	3 years	President, Apparel Labeling Solutions since June 2012

Mr. Babich was appointed President and Chief Executive Officer of Checkpoint Systems, Inc. on February 4, 2013, after serving as Interim President and Chief Executive Officer since May 3, 2012. He has served as a member of the Board of Checkpoint since 2006. Mr. Babich was President of Pep Boys - Manny Moe & Jack from 2002 until 2005; from 2000 until 2004 he was Chief Financial Officer of Pep Boys and served as an Officer of Pep Boys since 1996. Previously, he was a Financial Executive for Morgan, Lewis & Bockius, The Franklin Mint, Pepsico Inc. and Ford Motor Company. Mr. Babich has served as a member of the Board of Teleflex Inc. from 2005 to present and has served on their Audit Committee from 2005 to present. He holds a BS in Accounting from the University of Michigan.

Mr. Andrews was appointed Senior Vice President and Chief Financial Officer on December 6, 2007. Mr. Andrews was Vice President and Chief Accounting Officer from August 2005 until December 2007. He previously served as Controller of INVISTA S.a'r.l., a subsidiary of Koch Industries, where he oversaw the company's accounting operations in North and South America, Europe and Asia. Prior to the acquisition by Koch Industries, Mr. Andrews was Director of Accounting Operations of INVISTA Inc. From 1998 to 2002, Mr. Andrews served as Controller for DuPont Pharmaceuticals Company and then Bristol-Myers Squibb Pharma Company, a subsidiary of Bristol-Myers Squibb, when that company acquired DuPont Pharmaceuticals in 2001. Prior to being appointed Controller, he held positions of increasing responsibility at DuPont Merck Pharmaceutical Company and the DuPont Company. Mr. Andrews is a Certified Public Accountant and a Chartered Global Management Accountant.

Mr. Levin was appointed President and Chief Sales Officer, Shrink Management Solutions and Merchandise Visibility in June 2012. He was President Merchandise Visibility and Apparel Labeling Solutions from September 2011 until June 2012 and was President Merchandise Visibility from September 2010 until September 2011. He was President, Shrink Management and Merchandise Visibility Solutions from March 2006 until September 2010. He was President of Europe from June 2004 until March 2006, Executive Vice President, General Manager, Europe from May 2003 until June 2004, and Vice President, General Manager, Europe from February 2001 until May 2003. Mr. Levin was Regional Director, Southern Europe from 1997 to 2001 and joined the Company in January 1995 as Managing Director of Spain.

Mr. Abadi was appointed President and Chief Operating Officer, Shrink Management Solutions in June 2012. He was President, Shrink Management Solutions from September 2010 until June 2012. He was Senior Vice President and Chief Innovation Officer from October 2008 until September 2010. Mr. Abadi retains responsibility for our procurement and systems supply chain. He also served as Senior Vice President, Worldwide Operations from April 2006 until October 2008 and Vice President and General Manager, Worldwide Research and Development from November 2004 until April 2006. Prior to joining Checkpoint, Mr. Abadi was Senior Vice President of Global Cross-Industry Practices at Atos Origin from February 2004 until November 2004. Mr. Abadi held various senior management positions with Schlumberger for over eighteen years.

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Mr. Wrigley was appointed President, Apparel Labeling Solutions in June 2012. He joined Checkpoint as Group President, Global Customer Management in March 2010. Prior to joining Checkpoint, Mr. Wrigley was Vice President, EMEA and South Asia, at Avery Dennison Corporation's Retail Information Services business from June 2007 to March 2010. Prior to Avery's acquisition of Paxar Corporation in 2007, Mr. Wrigley was Group President, Global Apparel Solutions from January 2007 until June 2007. Mr. Wrigley was President, Paxar EMEA from 1996 to 2006. Mr. Wrigley served as International Director of the Pepe Group from 1991 until 1996.

Item 1A. RISK FACTORS

The risks described below are among those that could materially and adversely affect our business, financial condition or results of operations. These risks could cause actual results to differ materially from historical experience and from results predicted by any forward-looking statements related to conditions or events that may occur in the future.

Current economic conditions could adversely impact our business and results of operations.

Our operations and results depend significantly on global market worldwide economic conditions, which have experienced deterioration in recent years. Future economic factors may continue to be less favorable than in years past and may continue to result in diminished liquidity and tighter credit conditions, leading to decreased credit availability, as well as declines in economic growth and employment levels. These conditions may increase the difficulty for us to accurately forecast and plan future business. Customer demand could be impacted by decreased spending by businesses and consumers alike, and competitive pricing pressures could increase. We are unable to predict the length or severity of the current economic conditions. A continuation or further deterioration of these economic factors may have a material and adverse effect on the liquidity and financial condition of our customers and on our results of operations, financial condition, liquidity, including our ability to refinance maturing liabilities, and access the capital markets to meet liquidity needs.

We have significant foreign operations, which are subject to political, economic and other risks inherent in operating in foreign countries.

We are a multinational manufacturer and marketer of identification, tracking security, and merchandising solutions for the retail industry. We have significant operations outside of the U.S. We currently operate directly in 29 countries, and our international operations generate approximately 73% of our revenue. We expect net revenue generated outside of the U.S. to continue to represent a significant portion of total net revenue. Business operations outside of the U.S. are subject to political, economic and other risks inherent in operating in certain countries, such as:

▪ The difficulty in enforcing agreements, collecting receivables and protecting assets through foreign legal systems;

▪ trade protection measures and import or export licensing requirements;

▪ difficulty in staffing and managing widespread operations and the application of foreign labor regulations;

▪ compliance with a variety of foreign laws and regulations;

▪ compliance with the Foreign Corrupt Practices Act, the UK Bribery Act and the Office of Foreign Assets Control;

▪ changes in the general political and economic conditions in the countries where we operate, particularly in emerging markets;

▪ the threat of nationalization and expropriation;

▪ increased costs and risks of doing business in a number of foreign jurisdictions;

▪ changes in enacted tax laws;

▪ limitations on repatriation of earnings; and

▪ fluctuations in equity and revenues due to changes in foreign currency exchange rates.

Changes in the political or economic environments in the countries in which we operate, as well as the impact of economic conditions on underlying demand for our products could have a material adverse effect on our financial condition, results of operations or cash flows.

As we continue to explore the expansion of our global reach, an increasing focus of our business may be in emerging markets, including South America and Southern Asia. In many of these emerging markets, we may be faced with risks that are more significant than if we were to do business in developed countries, including undeveloped legal systems, unstable governments and economies, and potential governmental actions affecting the flow of goods and currency.

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Volatility in currency exchange rates and interest rates may adversely affect our financial condition, results of operations or cash flows.

We are exposed to a variety of market risks, including the effects of changes in currency exchange rates and interest rates. Refer to Part 7A. Quantitative and Qualitative Disclosures about Market Risk.

Our net revenue derived from sales in non-U.S. markets is approximately 73% of our total net revenue, and we expect revenue from non-U.S. markets to continue to represent a significant portion of our net revenue. When the U.S. dollar strengthens in relation to the currencies of the foreign countries where we sell our products, our U.S. dollar reported revenue and income will decrease. Changes in the relative values of currencies occur regularly and, in some instances, may have a significant effect on our results of operations. Our financial statements reflect recalculations of items denominated in non-U.S. currencies to U.S. dollars, which is our functional currency.

We monitor these exposures as an integral part of our overall risk management program. In some cases, we enter into contracts to reduce the risks of currency fluctuations on short-term inter-company receivables and payables, and on projected future billings in non-functional currencies and use third-party borrowings in foreign currencies to hedge a portion of our net investments in, and cash flows derived from, our foreign subsidiaries. Nevertheless, changes in currency exchange rates and interest rates may have a material adverse effect on our financial condition, results of operations, or cash flows.

Our business could be materially adversely affected as a result of lower than anticipated demand by retailers and other customers for our products, particularly in the current economic environment.

Our business is heavily dependent on the retail marketplace. Changes in the economic environment including the liquidity and financial condition of our customers or reductions in retailer spending could adversely affect our revenues and results of operations. In a period of decreased consumer spending, retailers could respond by reducing their spending on new store openings and loss prevention budgets. This reduction could directly impact our SMS business, as a reduction in new store openings will lower demand for SMS EAS systems and consumables, CheckView^® installations and item level RFID solutions. Additionally, lower loss prevention budgets could reduce the amount retailers will be willing to spend to upgrade existing store technology. Label demand could also be impacted due to lower loss prevention budgets as retailers may reduce the percentage of items covered. In addition, our label volume increases as more items are sold through the retailer and lower demand decreases the volume related to the items tagged by the retailer. As retail sales volumes decline, label demand may also decline. The factors could also impact our Apparel labeling and Retail Merchandising Solutions business. A decrease in the demand for our products resulting from reduced spending by retailers due to fewer store openings, reduced loss prevention budgets and slower adoption of our new technology could have a material adverse effect on our revenues and results of operations.

Our business could be materially adversely affected as a result of slower commitments of retail customers to chain-wide installations and/or source tagging adoption or expansion.

Our revenues are dependent on our ability to maintain and increase our system installation base. The SMS EAS system installation base leads to additional revenues, which we term as “recurring revenues,” through the sale of maintenance services and SMS EAS consumables, including sensor tags. In addition, we partner with manufacturers to include our sensor tags into the product during manufacturing, an approach known as source tagging.

The level of commitments for chain-wide installations may decline due to decreased consumer spending which results in reduced spending on loss prevention by our retail customers, our failure to develop new technology that entices the customer to maintain their commitment to our loss prevention products and services, competing technologies and retailers' decisions to defer the capital investment and expense. A reduction in the commitment for chain-wide installations may also impact our ability to expand utilization of our source tagging program. A reduction in commitments to chain-wide installations and utilization of our source tagging program could have an adverse effect on our revenues and results of operations.

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The markets we serve are highly competitive and we may be unable to compete effectively if we are unable to provide and market innovative and cost-effective products at competitive prices.

We face competition around the world, including competition from other large, multinational companies and other regional companies. Some of these companies may have substantially greater financial and other resources than the Company. We face competition in several aspects of our business. In the SMS EAS systems and Alpha S3 businesses and SMS EAS consumables business, we compete primarily on the basis of integrated security solutions and diversified, sophisticated, and quality product lines targeted at meeting the loss prevention needs of our retail customers. We also compete on the basis of merchandise visibility (RFID) solutions that meet the item level product identification needs of our customers. In our CheckView^® business, we compete primarily on the basis of efficient installation capability that is in place in North America. In the ALS business, we compete primarily on the capability to effectively and quickly deliver retail customer specified tags and labels to manufacturing sites in multiple countries. It is possible that our competitors will be able to offer additional products, services, lower prices, or other incentives that we cannot offer or that will make our products less profitable. It is also possible that our competitors will offer incentive programs or will market and advertise their products in a way that will impact customers' preferences, and we may not be able to compete effectively.

We may be unable to anticipate the timing and scale of our competitors' activities and initiatives, or we may be unable to successfully counteract them, which could harm our business. In addition, the cost of responding to our competitors' activities may affect our financial performance in the relevant period. Our ability to compete also depends on our ability to attract and retain key talent, protect patent and trademark rights, and develop innovative and cost-effective products. A failure to compete effectively could adversely affect our growth and profitability.

Our long term success is largely dependent upon our ability to develop new technologies, and if we are unable to successfully develop those technologies, our business could be materially adversely affected.

Our growth depends on continued sales of existing products, as well as the successful development and introduction of new products, which face the uncertainty of retail and consumer acceptance and reaction from competitors. In addition, our ability to create new products and to sustain existing products is affected by whether we can:

▪ develop and fund technological innovations, such as those related to our next generation EAS product solutions, evolving RFID technologies, and other innovative security device, software, and systems initiatives;

▪ receive and maintain necessary patent and trademark protection; and

▪ successfully anticipate customer needs and preferences.

The failure to develop and launch successful new products could hinder the growth of our business. Research and development for each of our operating segments is complex and uncertain and requires innovation and anticipation of market trends. Also, delay in the development or launch of a new product could compromise our competitive position, particularly if our competitors announce or introduce new products and services in advance of us.

An inability to acquire, protect or maintain our intellectual property, including patents, could harm our ability to compete or grow.

Because our products involve complex technology and chemistry, we rely on protections of our intellectual property and proprietary information to maintain a competitive advantage. The expiration of these patents will reduce the barriers to entry into our existing lines of business and may result in loss of market share and a decrease in our competitive abilities, thus having a potential adverse effect on our financial condition, results of operations and cash flows. At this time we do not anticipate any significant impact from the expiration of patents over the next two to three years.

There is no assurance that the patents we have obtained will provide adequate protection to ensure any competitive advantages for our products. We also cannot assure investors that those patents will not be successfully challenged, invalidated or circumvented prior to their expiration. In addition, we cannot provide assurance that competitors have not already applied for or obtained, or will not seek to apply for and obtain, patents that will prevent, limit or interfere with our ability to make, use and sell our products either in the U.S. or in international markets.

We cannot assure you that we will not become subject to patent infringement claims. The defense and prosecution of intellectual property lawsuits generally are costly and time-consuming. If other parties violate our proprietary rights, further litigation may be necessary to enforce our patents, to protect trade secrets or know-how we own or to determine the enforceability, scope and validity of the proprietary rights of others. Any litigation will be costly and cause significant diversion of effort by our technical and management personnel.

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Our business could be materially adversely affected as a result of possible increases in per unit product manufacturing costs as a result of slowing economic conditions or other factors.

Our manufacturing capacity is designed to meet our current and future anticipated demands. If our product demand decreases as a result of economic conditions and other factors, it could increase our cost per unit. If an increase in our cost per unit is passed on to our customers, it may decrease our competitive position, which may have an adverse effect on our revenues and results of operations. If an increase in cost per unit is not passed on to our customers, it may reduce our gross margins, which may have an adverse effect on our results of operations. Our SMS EAS consumables, RFID consumables, Alpha and ALS products have various low price competitors globally. In order for us to maintain and improve our market position, we need to continuously monitor and seek to improve our manufacturing effectiveness, capacity utilization and demand planning while maintaining our high quality standard. If we are unsuccessful in our efforts to improve manufacturing and supply chain effectiveness, then our cost per unit may increase which could have an adverse impact on our results of operations.

If we cannot obtain sufficient quantities of raw materials and component parts required for our manufacturing activities at competitive prices and quality and on a timely basis, our financial condition, results of operations or cash flows may suffer.

We purchase materials and component parts from third parties for use in our manufacturing operations. Our ability to grow earnings will be affected by inflationary and other increases in the cost of component parts and raw materials, including electronic components, circuit boards, aluminum foil, resins, paper, and ferric chloride, hydrochloric acid solutions and rare earth magnets. Inflationary and other increases in the costs of raw materials, labor, and energy have occurred in the past and are expected to recur, and our performance depends in part on our ability to pass these cost increases on to customers in the prices for our products and to effect improvements in productivity. We may not be able to fully offset the effects of higher component parts and raw material costs through price increases, productivity improvements or cost reduction programs. If we cannot obtain sufficient quantities of these items at competitive prices and quality and on a timely basis, we may not be able to produce sufficient quantities of product to satisfy market demand, product shipments may be delayed, or our material or manufacturing costs may increase. A disruption to our supply chain could adversely affect our sales and profitability. Any of these problems could result in the loss of customers and revenue, provide an opportunity for competing products to gain market acceptance and otherwise adversely affect our financial condition, results of operations, or cash flows.

Possible increases in the payment time for receivables as a result of economic conditions or other market factors could have a material effect on our results from operations and anticipated cash from operating activities.

The majority of our customer base is in the retail marketplace. Although we have a rigorous process to administer credit granted to customers and believe our allowance for doubtful accounts is adequate, we have experienced, and in the future may experience, losses as a result of our inability to collect our accounts receivable. During the past several years, various retailers have experienced significant financial difficulties, which in some cases have resulted in bankruptcies, liquidations and store closings. The financial difficulties of a customer could result in reduced business with that customer. We may also assume higher credit risk relating to receivables of a customer experiencing financial difficulty. If these developments occur, our inability to shift sales to other customers or to collect on our trade accounts receivable from a major customer could substantially reduce our income and have a material adverse effect on our results of operations and cash flows from operating activities.

Our working capital initiatives may fail to deliver our expected cash flow improvements.

We have initiated enhanced cash flow controls to tighten our cash flow management of accounts receivable, inventory, accounts payable and local operating cash flows. There can be no assurance that these controls and initiatives or others will be beneficial to the extent anticipated, or that the incremental cost savings or cash flow improvements will be realized as anticipated or at all. Our failure to administer, monitor, and effectively manage cash related activities could result in our failure to deliver our expected cash flow improvements.

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The effectiveness of our strategic plan is subject to the successful implementation of our plans and actions.

As a result of a comprehensive and strategic operational review during the second quarter of 2012, we redefined our strategic focus. Our strategic plan is designed to improve revenues and profitability, reduce costs, and improve working capital management. We have a disciplined process for deploying this strategic plan. During the second quarter of 2012, in conjunction with our strategic shift, we launched a new profit improvement initiative, Project LEAN, which is designed to restructure our company to support a more focused product range while positioning Checkpoint to return to profitable growth. This plan focuses on consolidating certain manufacturing facilities and administrative functions to improve efficiency. In the third quarter of 2012, we developed a comprehensive plan to address operational performance in ALS. In addition to our restructuring plans including Project LEAN, we have many plans and actions underway to improve the management of our business. These include the following:    

▪ Improved financial forecasting abilities

▪ Enhanced management reporting

▪ New sales compensation incentive plans

▪ Refined product pricing approach

▪ Continuous cost-improvement process improvement plans

▪ Systematic talent assessment process

▪ Developing a culture focused on accountability

There is a risk that we may not be successful in executing these measures to achieve the expected results for a variety of reasons, including market developments, economic conditions, shortcomings in establishing appropriate action plans, or challenges with executing multiple initiatives simultaneously. We may not be able to acquire businesses that fit our strategic plan or divest of those that do not fit our strategic plan on acceptable business terms, and we may not achieve our other strategic priorities.

Our ability to implement cost reductions in field services, selling, general and administrative expenses, and our manufacturing and supply chain operations may have a significant impact on our business and future revenues and profits.

We have taken actions to rationalize our field service, improve our sales productivity, reduce our general and administrative expenses, and reconfigure our manufacturing and supply chain operations. Such rationalization actions require management judgment on the development of cost reduction strategies and precision on the execution of those strategies. We may not realize, in full or in part, the anticipated benefits from these initiatives, and other events and circumstances, such as difficulties, delays, or unexpected costs may occur, which could result in our not realizing all or any of the anticipated benefits. We also cannot predict whether we will realize improved operating performance as a result of any cost reduction strategies. Further, in the event the market continues to fluctuate, we may not have the appropriate level of resources and personnel to react to the change. We are also subject to the risk of business disruption in connection with our restructuring initiatives, which could have a material adverse effect on our business and future revenues and profits.

We continue to evaluate opportunities to restructure our business and rationalize our operations in an effort to optimize our cost structure and efficiencies consistent with our strategy. As a result of these evaluations, we may take similar rationalization steps in the future. Future actions could result in restructuring and related charges, including but not limited to workforce reduction costs and charges relating to consolidation of excess facilities that could be significant.

If we fail to manage our growth effectively, our business could be harmed.

Our strategy is to maximize value by achieving growth both organically and through acquisitions. Our ability to effectively manage and control any future growth may be limited. To manage any growth, our management must continue to improve our operational, information and financial systems, procedures and controls and expand, train, retain and effectively manage our employees. If our systems, procedures and controls are inadequate to support our operations, any expansion could effectively decrease or stop, and investors may lose confidence in our operations or financial results. If we are unable to manage growth effectively, our business and operating results could be adversely affected, and any failure to develop and maintain adequate internal controls over financial reporting could cause the trading price of our shares to decline substantially.

19

Our ability to integrate acquisitions and to achieve our financial and operational goals for these acquired businesses could have an impact on future revenues and profits.

In August 2009, we acquired Brilliant, a Hong Kong and China-based manufacturer of woven and printed labels, which allowed us to strengthen and expand our core apparel labeling offering and provides us with additional capacity in a key geographical location. In May 2011, we acquired the equity and/or assets of Shore to Shore, Inc., including the Adapt Group and related assets. Together, this acquisition represents a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, hang tags, price tickets, printed paper tags, pressure sensitive products, woven labels, leather and leather-like labels, heat transfer labels and brand protection and EAS solutions/labels which may or may not contain RFID tags, chips or inlays.

Issues with the integration of these acquired businesses coupled with broad based weaknesses in the apparel retail markets into which we sell, negatively impacted post-acquisition performance of these businesses. In July 2012, we reassessed our strategy and decided to re-engineer the apparel labeling footprint, including portions of these acquisitions to improve financial performance and productivity.

Various risks, uncertainties and costs are associated with acquisitions. Effective integration of systems, key business processes, controls, objectives, personnel, management practices, product lines, markets, customers, supply chain operations, and production facilities can be difficult to achieve and the results are uncertain, particularly across our internationally diverse organization. We may not be able to retain key personnel of an acquired company and we may not be able to successfully execute integration strategies or achieve projected performance targets set for the business segment into which an acquired company is integrated. Our ability to execute the integration plans could have an impact on future revenues and profits and may adversely affect our financial condition, results of operations or cash flows. There can be no assurance that these acquisitions or others will be successful and contribute to our profitability.

Any acquisition, strategic relationship, joint venture or investment could disrupt our business and harm our financial condition.

We actively pursue acquisitions, strategic relationships, joint ventures, collaborations and investments that we believe may allow us to complement our growth strategy, increase market share in our current markets or expand into adjacent markets, or broaden our technology and intellectual property. Such transactions may be complex, time consuming and expensive, and may present numerous challenges and risks. Lack of control over the actions of our business partners in any strategic relationship, joint venture or collaboration, could significantly delay the introduction of planned products or otherwise make it difficult or impossible to realize the expected benefits of such relationship.

Divestitures of some of our businesses or product lines may materially adversely affect our financial condition, results of operations or cash flows.

We continually evaluate the performance of all of our businesses and may sell businesses or product lines. Specifically, we are significantly reducing our focus on CheckView^® by pursuing the divestiture of our U.S. and Canada CheckView^® business and will limit our focus on opportunistic sales in Asia. In October 2012, we completed the sale of our non-strategic Banking Security Systems Integration business unit that was formerly part of our Shrink Management Solutions segment. We are also pursuing the divestiture of our interest in Shore to Shore PVT Ltd. (Sri Lanka) in our Apparel Labeling Solutions segment. Divestitures involve risks, including difficulties in the separation of operations, services, products and personnel, the diversion of management's attention from other business concerns, the disruption of our business, the potential loss of key employees and the retention of uncertain environmental or other contingent liabilities related to the divested business. In addition, divestitures may result in significant asset impairment charges, including those related to goodwill and other intangible assets, which could have a material adverse effect on our financial condition and results of operations. We cannot assure you that we will be successful in managing these or any other significant risks that we encounter in divesting a business or product line.

20

An impairment in the carrying value of goodwill or other assets could negatively affect our consolidated results of operations and net worth.

Pursuant to accounting principles generally accepted in the United States, we are required to annually assess our goodwill, intangibles and other long-lived assets to determine if they are impaired. In addition, interim reviews must be performed whenever events or changes in circumstances indicate that impairment may have occurred. If the testing performed indicates that impairment has occurred, we are required to record a non-cash impairment charge for the difference between the carrying value of the goodwill or other intangible assets and the implied fair value of the goodwill or other intangible assets in the period the determination is made. Disruptions to our business, end market conditions and protracted economic weakness, unexpected significant declines in operating results of reporting units, divestitures and market capitalization declines may result in additional charges for goodwill and other asset impairments. We have significant intangible assets, including goodwill with an indefinite life, which are susceptible to valuation adjustments as a result of changes in such factors and conditions. We assess the potential impairment of goodwill and indefinite lived intangible assets on an annual basis, as well as when interim events or changes in circumstances indicate that the carrying value may not be recoverable. We assess definite lived intangible assets when events or changes in circumstances indicate that the carrying value may not be recoverable.

During the second quarter of 2012, we experienced deterioration in revenues, gross margins and operating results in each of our segments as compared to the forecasted amounts in the most recent impairment test. Due to the declines in operating results in our segments, a change in management, and a revised strategic focus, we determined that impairment triggering events had occurred and that an assessment of goodwill was warranted. This resulted in our assessment that the carrying value of the Apparel Labeling Solutions reporting unit exceeded its fair value. As a result of our interim impairment test, a $64.4 million non-cash goodwill impairment charge was recorded as of June 24, 2012 in our Apparel Labeling Solutions segment. The goodwill impairment expense was due to the decline in estimated future Apparel Labeling Solutions cash flow impacted by our plan to refocus the business, coupled with recent declines in revenue and profitability.

There were no additional impairment indicators during the third quarter ended September 23, 2012. Our 2012 annual impairment test resulted in our assessment that the carrying value of the Europe and International Americas Retail Merchandising Solutions reporting unit exceeded its fair value. As a result of our annual impairment test, a $38.3 million non-cash goodwill impairment charge was assessed as of October 21, 2012 and recorded in the fourth quarter of 2012. The goodwill impairment expense was due to the decline in estimated future Europe Retail Merchandising Solutions cash flows impacted by current economic conditions in Europe resulting in decreased customer investments in new stores and refurbishments. Additionally, increased competition and pricing pressures are factors that have negatively impacted this business.

The basis of the fair value was determined by projecting future cash flows using assumptions concerning future operating performance and economic conditions that may differ from actual cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of the evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate and through our stock price that we use to determine our market capitalization. Although our analysis regarding the fair values of the goodwill and indefinite lived intangible assets for the remaining reporting units indicates that they exceed their respective carrying values, materially different assumptions regarding the future performance of our businesses or significant declines in our stock price could result in additional goodwill and intangible impairment losses. Specifically, an unanticipated deterioration in revenues and gross margins generated by our Shrink Management Solutions and Retail Merchandising Solutions segments could trigger future impairment in those segments. While we currently believe that our projected results will not result in future impairment, a continued deterioration in results could trigger a future impairment.

21

We have entered into a senior secured credit facility agreement and senior secured notes agreement that restrict certain activities, and failure to comply with these agreements may have an adverse effect on our financial condition, results of operations and cash flows.

We maintain a senior secured credit facility and senior secured notes that contain restrictive financial covenants, including financial covenants that require us to comply with specified financial ratios. We may have to curtail some of our operations to comply with these covenants. In addition, our senior secured credit facility and senior secured notes agreements contain other affirmative and negative covenants that could restrict our operating and financing activities. These provisions limit our ability to, among other things, incur future indebtedness, contingent obligations or liens, guarantee indebtedness, make certain investments and capital expenditures, sell stock or assets and pay dividends, and consummate certain mergers or acquisitions. Because of the restrictions on our ability to create or assume liens, we may find it difficult to secure additional indebtedness if required. Furthermore, if we fail to comply with the requirements of the senior secured credit facility and/or senior secured notes agreements, we may be in default, and we may not be able to obtain the necessary amendments to the respective agreements or waivers of an event of default. Upon an event of default, if the respective agreements are not amended or the event of default is not waived, the lenders could declare all amounts outstanding, together with accrued interest, to be immediately due and payable. If this happens, we may not be able to make those payments or borrow sufficient funds from alternative sources to make those payments. Even if we were to obtain additional financing, that financing may be on unfavorable terms. The impacts of our restructuring initiatives and on-going economic conditions have put pressure on our debt covenants during 2012.

During the first quarter of 2012, we pursued an amendment to temporarily increase the leverage ratio through the end of the third quarter of 2012. This amendment was approved and deemed effective as of February 17, 2012.

On July 31, 2012, we reached an agreement with our lenders to amend our debt agreements to facilitate our ability to execute our redefined strategy and expanded restructuring plan. The July 2012 Amendment increased the required leverage ratio covenant, which is now based on adjusted EBITDA, and decreased the required fixed charge coverage ratio through the first quarter of 2013, and includes a waiver of the fixed charge coverage ratio through the third quarter of 2012 and a decrease for the fourth quarter of 2012. Absent the waiver and additional amendment, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge covenant as of September 23, 2012. We are in compliance with the amended leverage ratio and fixed charge coverage ratio covenants as of December 30, 2012.

Changes in legislation or governmental regulations, policies or standards applicable to our products may have a significant impact on our ability to compete in our target markets.

We operate in regulated industries. Our U.S. operations are subject to regulation by federal, state, and local governmental agencies with respect to safety of operations and equipment, labor and employment matters, and financial responsibility. Our SMS EAS products are subject to FCC regulation, and our international operations are regulated by the countries in which they operate, including regulation of the Conformité Européene (CE) in Europe. Failure to comply with laws or regulations could result in substantial fines or revocation of our operating permits or licenses. If laws and regulations change and we fail to comply, our financial condition, results of operations, or cash flows could be materially and adversely affected.

Our future results may be affected by various legal and regulatory proceedings.

We cannot predict with certainty the outcome of litigation matters, government proceedings and investigations, and other contingencies and uncertainties that may arise out of the conduct of our business, including matters relating to intellectual property, employment, commercial and other matters. Resolution of such matters can be prolonged and costly, and the ultimate results or judgments are uncertain due to the inherent uncertainty in litigation and other proceedings. Moreover, our potential liabilities are subject to change over time due to new developments, changes in settlement strategy or the impact of evidentiary requirements, and we may be required to pay fines, damage awards or settlements, or become subject to fines, damage awards or settlements, that could have a material adverse effect on our results of operations, financial condition, and liquidity.

22

The failure to effectively maintain and upgrade our information systems could adversely affect our business.

Our business depends significantly on effective information systems, and we have many different information systems for our various businesses. Our information systems require an ongoing commitment of significant resources to maintain and enhance existing systems and develop new systems in order to keep pace with continuing changes in information processing technology, evolving industry and regulatory standards, and changing customer preferences. In addition, we may from time to time obtain significant portions of our systems-related or other services or facilities from independent third parties, which may make our operations vulnerable to such third parties' failure to perform adequately. Our failure to maintain effective and efficient information systems, or our failure to efficiently and effectively consolidate our information systems to eliminate redundant or obsolete applications, could have a material adverse effect on our business, financial condition and results of operations. Additionally, any disruption or failure of such networks, systems, or other technology may disrupt our operations, cause customer dissatisfaction, and loss of customer revenues.

Risks generally associated with a company-wide implementation of an enterprise resource planning (ERP) system may adversely affect our business and results of operations or the effectiveness of our internal control over financial reporting.

We have been implementing a company-wide ERP system to handle the business and financial processes within our operations and corporate functions. Due to our cost savings initiatives, the implementation of our European ERP system is temporarily suspended, with costs accumulated in construction-in-progress of $4.7 million as of December 30, 2012. ERP implementations are complex and time-consuming projects that involve substantial expenditures on system software and implementation activities that can continue for several years. ERP implementations also require transformation of business and financial processes in order to reap the benefits of the ERP system. Our business and results of operations may be adversely affected if we experience operating problems and/or cost overruns during the ERP implementation process, decide to forgo a company-wide implementation, or if the ERP system and the associated process changes do not give rise to the benefits that we expect. Additionally, if we do not effectively implement the ERP system as planned or if the system does not operate as intended, it could adversely affect the effectiveness of our internal control over financial reporting.

As a global business, we have a relatively complex tax structure, and there is a risk that tax authorities will disagree with our tax positions.

Since we conduct operations worldwide through our foreign subsidiaries, we are subject to complex transfer pricing regulations in the countries in which we operate. Transfer pricing regulations generally require that, for tax purposes, transactions between us and our foreign affiliates be priced on a basis that would be comparable to an arm's length transaction and that contemporaneous documentation be maintained to support the tax allocation. Although uniform transfer pricing standards are emerging in many of the countries in which we operate, there is still a relatively high degree of uncertainty and inherent subjectivity in complying with these rules. To the extent that any foreign tax authorities disagree with our transfer pricing policies, we could become subject to significant tax liabilities and penalties. Our tax returns are subject to review by taxing authorities in the jurisdictions in which we operate. Although we believe that we have provided for all tax exposures, the ultimate outcome of a tax review could differ materially from our provisions.

We record a valuation allowance to reduce our deferred tax assets to the amount that it is more likely than not to be realized. Our assessments about the realizability of our deferred tax assets are based on estimates of our future taxable income by tax jurisdiction, the prudence and feasibility of possible tax planning strategies, and the economic environments in which we do business. Any changes in these assessments could have a material impact on our results of operations.

23

In 2011 we identified a material weakness in our internal control over financial reporting that resulted in revisions of our Consolidated Financial Statements. This material weakness could continue to adversely affect our ability to report our results of operations and financial condition accurately and in a timely manner.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our management assessed the effectiveness of our internal control over financial reporting as of December 25, 2011, and identified a material weakness related to our controls to prevent or detect management override of controls at certain of our foreign subsidiaries that were not integrated into our shared services environments in the United States and Europe. Specifically, the monitoring controls over certain locations, including internal audits, periodic reviews of segregation of duties and review of the effectiveness of key balance sheet reconciliations were not designed to prevent or detect management override of controls that could circumvent internal control over financial reporting. As a result of this control deficiency, we failed to detect on a timely basis fraudulent misappropriation of company funds, which contributed to the revision of the annual financial statements for 2010 and 2009 and the interim financial information for 2011 and 2010. The impacted accounts were cash, accounts receivable and inventory as well as income taxes and non-income taxes payable and operating expenses. Although the effect of these errors was not material to any previously issued financial statements, the cumulative effect of correcting the newly identified errors would have been material for the fiscal year 2011. Additionally, this control deficiency could result in misstatements of the aforementioned accounts or other accounts that could result in a material misstatement of the consolidated financial statements that would not be prevented or detected. As a result of this material weakness, our management concluded that our internal control over financial reporting was ineffective as of December 25, 2011. We remediated this material weakness during fiscal year 2012 and our internal control over financial reporting is effective as of December 30, 2012. See Part II - “Item 9A: Controls and Procedures.”

A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim Consolidated Financial Statements will not be prevented or detected on a timely basis. Our efforts were time-consuming and expensive. The effectiveness of any controls and procedures is subject to certain limitations, and, as a result, there can be no assurance that our controls and procedures will detect all errors or fraud. A control, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system will be attained. We also cannot assure you that other material weaknesses will not arise as a result of our past failure to maintain adequate internal controls and procedures or that circumvention of those controls and procedures will not occur. Additionally, even our improved controls and procedures may not be adequate to prevent or identify errors or irregularities or ensure that our financial statements are prepared in accordance with generally accepted accounting principles.

The investigations by internal management into some of our historical accounting practices and the determination of various accounting adjustments, which resulted in the revision of our previously issued Consolidated Financial Statements, have been time-consuming and expensive, and may continue to have an adverse effect on our financial condition, results of operations and cash flows.

Commencing December 2011, our internal management devoted substantial internal and external resources to the investigation of certain unsubstantiated accounting entries in our Canada operations. Over substantially the same period, we devoted substantial additional resources to preparing the revised financial statements and information included in the 2011 Annual Report on Form 10-K. As a result of these efforts, we have incurred substantial fees and expenses during the fourth quarter of fiscal 2011 and first quarter of fiscal 2012, primarily for additional accounting, tax, legal and related consulting costs. On October 10, 2012, the Company received reimbursement of $4.7 million for the financial impact of the fraudulent Canadian activities from our insurance provider, a portion of which covered our expenses related to this matter. These costs, as well as the substantial management time devoted to address these issues, have adversely affected and may continue to adversely affect our financial condition, results of operations and cash flows.

24

Regulations that impose disclosure requirements regarding the use of “conflict” minerals mined from the Democratic Republic of Congo and adjoining countries in our products will result in additional cost and expense and could result in other significant adverse effects.

Rules adopted by the SEC implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act impose diligence and disclosure requirements regarding the use of “conflict” minerals mined from the Democratic Republic of Congo and adjoining countries in our products. Compliance with these rules may result in additional cost and expense, including for due diligence to determine and verify the sources of any conflict minerals used in our products, in addition to the cost of remediation and other changes to products, processes, or sources of supply as a consequence of such verification activities. These rules may also affect the sourcing and availability of minerals used in the manufacture of our products to the extent that there may be only a limited number of suppliers offering “conflict free” metals that can be used in our products. There can be no assurance that we will be able to obtain such metals in sufficient quantities or at competitive prices. Also, since our supply chain is complex, we may face reputational challenges with our customers, stockholders and other stakeholders if we are unable to sufficiently verify the origins of the metals used in our products. We may also encounter customers who require that all of the components of our products be certified as conflict free. If we are not able to meet customer requirements, such customers may choose to disqualify us as a supplier, which could impact our sales and the value of portions of our inventory.

Item 1B. UNRESOLVED STAFF COMMENTS

None.

Item 2. PROPERTIES

Our principal corporate offices are located at 101 Wolf Drive, Thorofare, New Jersey. As of December 30, 2012, we owned or leased approximately 2.6 million square feet of space worldwide which is used primarily for sales, distribution, manufacturing, and general administration. These facilities include offices located throughout North and South America, Europe, Asia, and Australia. Our principal manufacturing facilities are located in Bangladesh, China, Germany, Hong Kong, India, Japan, Malaysia, the Netherlands, Sri Lanka, Turkey, the U.K. and the U.S. We believe our current manufacturing capacity will support our needs for the foreseeable future.

Item 3. LEGAL PROCEEDINGS

We are involved in certain legal and regulatory actions, all of which have arisen in the ordinary course of business, except for the matters described in the following paragraphs. Management believes that the ultimate resolution of such matters is unlikely to have a material adverse effect on our Consolidated Results of Operations and/or Financial Condition, except as described below.

Matter related to All-Tag Security S.A., et al

We originally filed suit on May 1, 2001, alleging that the disposable, deactivatable radio frequency security tag manufactured by All-Tag Security S.A. and All-Tag Security Americas, Inc.’s (jointly “All-Tag”) and sold by Sensormatic Electronics Corporation (Sensormatic) infringed on a U.S. Patent No. 4,876,555 (Patent) owned by us. On April 22, 2004, the United States District Court for the Eastern District of Pennsylvania granted summary judgment to defendants All-Tag and Sensormatic on the ground that our Patent was invalid for incorrect inventorship. We appealed this decision. On June 20, 2005, we won an appeal when the Federal Circuit reversed the grant of summary judgment and remanded the case to the District Court for further proceedings. On January 29, 2007 the case went to trial, and on February 13, 2007, a jury found in favor of the defendants on infringement, the validity of the Patent and the enforceability of the Patent. On June 20, 2008, the Court entered judgment in favor of defendants based on the jury’s infringement and enforceability findings. On February 10, 2009, the Court granted defendants’ motions for attorneys’ fees designating the case as an exceptional case and awarding an unspecified portion of defendants’ attorneys’ fees under 35 U.S.C. § 285. Defendants are seeking approximately $5.7 million plus interest. We recognized this amount during the fourth fiscal quarter ended December 28, 2008 in litigation settlements on the Consolidated Statement of Operations. On March 6, 2009, we filed objections to the defendants’ bill of attorneys’ fees. On November 2, 2011, the Court finalized the decision to order us to pay the attorneys’ fees and costs of the defendants in the amount of $6.6 million. The additional amount of $0.9 million was recorded in the fourth quarter ended December 25, 2011 in the Consolidated Statement of Operations. On November 15, 2011, we filed objections to and appealed the Court's award of attorneys' fees to the defendants.

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Item 4. MINE SAFETY DISCLOSURES

Not Applicable.

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PART II

Item 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is listed on the New York Stock Exchange (NYSE) under the symbol CKP. The following table sets forth, for the periods indicated, the high and low sale prices for our common stock as reported on the NYSE Composite Tape.

	Market Price Per Share
	High		Low
Fiscal year ended December 30, 2012
First Quarter	$	12.64	$	10.50
Second Quarter	$	11.66	$	7.12
Third Quarter	$	9.32	$	6.69
Fourth Quarter	$	10.77	$	7.70
Fiscal year ended December 25, 2011
First Quarter	$	23.00	$	19.29
Second Quarter	$	22.69	$	15.89
Third Quarter	$	18.24	$	12.41
Fourth Quarter	$	14.95	$	10.58

Holders of Record

As of February 28, 2013, there were 557 holders of record of our common stock.

Dividends

We have never paid a cash dividend on our common stock (except for a nominal cash distribution in April 1997 to redeem the rights outstanding under our 1988 Shareholders’ Rights Plan). We do not anticipate paying any cash dividends in the near future. We have retained, and expect to continue to retain, our earnings for reinvestment into the business. The declaration and payment of dividends in the future, and their amounts, will be determined by the Board of Directors in light of conditions then existing, including our earnings, our financial condition and business requirements (including working capital needs), and other factors.

Recent Sales of Unregistered Securities

There has been no sale of unregistered securities in fiscal years 2012, 2011, or 2010.

STOCK PERFORMANCE GRAPH

The following graph compares the cumulative total shareholder return on the Common Stock of the Company for the period beginning December 30, 2007 and ending on December 30, 2012, with the cumulative total return on the Center for Research in Security Prices Index (CRSP Index) for NYSE/AMEX/NASDAQ Stock market, and the CRSP Index for NASDAQ Electronic Components and Accessories, assuming the investment of $100 in the Company’s Stock, the CRSP Index for NYSE/AMEX/NASDAQ Stock market, and the CRSP Index for NASDAQ Electronic Components and Accessories and the reinvestment of all dividends.

27

Year	Checkpoint Systems, Inc.	NYSE/AMEX/NASDAQ Stock Market Index	NASDAQ Electronic Components and Accessories Index
2007	100.00	100.00	100.00
2008	37.18	60.71	49.25
2009	57.59	82.03	83.79
2010	78.20	95.58	96.91
2011	42.26	97.15	90.63
2012	39.25	110.44	89.91

This Stock Performance Graph shall not be deemed incorporated by reference by any general statement incorporating by reference this annual report into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates this information by reference, and shall not otherwise be deemed filed under such Acts.

Comparison of 5 Year Cumulative Total Return

Assumes Initial Investment of $100

December 2012

Notes:

A. Note: Data complete through last fiscal year.

B. Note: Corporate Performance Graph with peer group uses peer group only performance (excludes only company).

C. Note: Peer group indices use beginning of period market capitalization weighting.

D. Note: Data and graph are calculated from CRSP Total Return Index for the NYSE/AMEX/NASDAQ Stock Market (US Companies), Center for Research in Security Prices (CRSP), Graduate School of Business, The University of Chicago.

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Item 6. SELECTED FINANCIAL DATA

The following tables set forth our selected financial data based on continuing operations and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and Notes thereto included elsewhere herein.

(amounts in thousands, except per share data)
Year ended	December 30, 2012				December 25, 2011				December 26, 2010			December 27, 2009			December 28, 2008
STATEMENT OF OPERATIONS DATA
Net revenues	$	690,789			$	763,749			$	716,451		$	674,829		$	783,569
(Loss) earnings from continuing operations before income taxes	$	(131,082	)		$	(5,888	)		$	23,117		$	22,421		$	(45,903	)
Income taxes expense (benefit)	$	7,364			$	59,573			$	3,828		$	5,446		$	(5,451	)
(Loss) earnings from continuing operations	$	(138,446	)		$	(65,461	)		$	19,289		$	16,975		$	(40,452	)
(Loss) earnings from discontinued operations, net of tax	$	(7,959	)		$	(1,165	)		$	8,325		$	6,690		$	10,326
Net (loss) earnings attributable to Checkpoint Systems, Inc.	$	(145,876	)	(1)	$	(66,569	)	(2)	$	27,730	(3)	$	24,112	(4)	$	(30,003	)	(5)
Net (loss) earnings from continuing operations per share:
Basic	$	(3.36	)		$	(1.61	)		$	0.48		$	0.44		$	(1.02	)
Diluted	$	(3.36	)		$	(1.61	)		$	0.48		$	0.44		$	(1.02	)
(Loss) earnings attributable to Checkpoint Systems, Inc. per share:
Basic	$	(3.56	)		$	(1.64	)		$	0.69		$	0.61		$	(0.76	)
Diluted	$	(3.56	)		$	(1.64	)		$	0.69		$	0.61		$	(0.76	)
Depreciation and amortization	$	32,714			$	37,348			$	34,477		$	32,325		$	30,788

⁽¹⁾  Includes a $106.3 million goodwill impairment ($106.3 million, net of tax), a $28.4 million restructuring charge ($23.9 million, net of tax), a $2.9 million charge related to our CEO transition ($2.9 million, net of tax), a $1.8 million asset impairment ($1.8 million net of tax), a $1.1 million make-whole premium on Senior Secured Notes ($1.1 million, net of tax), a $0.3 million valuation allowance adjustment, $0.3 million in acquisition costs ($0.3 million, net of tax), a $0.3 million litigation settlement ( $0.3 million, net of tax), income of $3.9 million related to improper and fraudulent Canadian activities including insurance proceeds ($2.9 million, net of tax) and a $1.7 million gain on sale of our non-strategic Suzhou, China subsidiary ($1.4 million, net of tax).

⁽²⁾  Includes a $47.7 million valuation allowance adjustment, a $28.6 million restructuring charge ($25.8 million, net of tax), a $3.4 million intangible impairment ($3.2 million, net of tax), a $3.4 million goodwill impairment ($3.1 million, net of tax), $2.3 million in acquisition costs ($2.3 million, net of tax), a $1.0 million change related to an indefinite tax reversal assertion, and a $0.9 million litigation settlement ($0.9 million, net of tax), and income of $0.2 million related to improper and fraudulent Canadian activities ($0.1 million, net of tax).

⁽³⁾  Includes an $8.2 million restructuring charge ($6.2 million, net of tax), a valuation allowance adjustment of $4.3 million, a $1.7 million tax charge, a $1.5 million expense related to improper and fraudulent Canadian activities ($1.2 million, net of tax), and a $0.8 million selling, general and administrative charge ($0.8 million, net of tax) related to adjustments to acquisition related liabilities pertaining to the period prior to the acquisition date.

⁽⁴⁾  Includes a $5.4 million restructuring charge ($4.0 million, net of tax), a valuation allowance adjustment of $5.3 million, a $1.3 million expense related to improper and fraudulent Canadian activities ($1.1 million, net of tax), and a $1.3 million litigation settlement charge ($0.8 million, net of tax).

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⁽⁵⁾  Includes a $59.6 million goodwill impairment charge ($58.5 million, net of tax), a $6.4 million restructuring charge ($4.6 million, net of tax), a $6.2 million litigation settlement charge ($3.8 million, net of tax), a $3.0 million intangible asset impairment charge ($2.2 million, net of tax), a $1.5 million fixed asset impairment charge ($1.1 million, net of tax), a $1.0 million gain from the sale of our Czech subsidiary ($1.0 million, net of tax), and a $0.1 million expense related to improper and fraudulent Canadian activities ($0.1 million, net of tax).

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010			December 27, 2009			December 28, 2008
AT YEAR END
Working capital	$	227,714		$	233,116		$	295,138		$	238,733		$	281,788
Total debt	$	113,288		$	150,462		$	141,949		$	116,872		$	145,286
Total equity	$	377,546		$	529,340		$	581,554		$	555,558		$	510,407
Total assets	$	859,809		$	1,044,481		$	1,033,910		$	1,022,290		$	991,881
FOR THE YEAR ENDED
Capital expenditures	$	(12,401	)	$	(22,981	)	$	(23,712	)	$	13,757		$	15,217
Cash provided by operating activities	$	62,213		$	10,385		$	11,727		$	113,045		$	77,061
Cash used in investing activities	$	(2,449	)	$	(98,280	)	$	(23,185	)	$	(38,645	)	$	(54,704	)
Cash (used in) provided by financing activities	$	(35,166	)	$	5,897		$	28,891		$	(50,316	)	$	(4,460	)
RATIOS
Return on net sales(a)	(21.12		)%	(8.72		)%	3.87		%	3.57		%	(3.83		)%
Return on average equity(b)	(32.17		)%	(11.98		)%	4.88		%	4.52		%	(5.43		)%
Return on average assets(c)	(15.32		)%	(6.41		)%	2.70		%	2.39		%	(2.96		)%
Current ratio(d)	2.01			1.90			2.37			1.99			2.33
Percent of total debt to capital(e)	23.08		%	22.13		%	19.62		%	17.38		%	22.16		%

^(a)  “Return on net sales” is calculated by dividing net earnings (loss) after the cumulative effect of change in accounting principle by net sales.

^(b)  “Return on average equity” is calculated by dividing net earnings (loss) after the cumulative effect of change in accounting principle by average equity.

^(c)  “Return on average assets” is calculated by dividing net earnings (loss) after the cumulative effect of change in accounting principle by average assets.

^(d)  “Current ratio” is calculated by dividing current assets by current liabilities.

^(e)  “Percent of total debt to capital” is calculated by dividing total debt by total debt and equity.

(amounts in thousands, except employee data)	December 30, 2012			December 25, 2011			December 26, 2010		December 27, 2009		December 28, 2008
OTHER INFORMATION
Weighted average number of shares outstanding - diluted	41,000		(1)	40,532		(2)	40,445		39,552		39,408		(3)
Number of employees	5,132			6,565			5,814		5,785		3,878
Backlog	$	48,212		$	52,204		$	47,974	$	50,186	$	51,799

⁽¹⁾  Excludes 61 common shares from stock options and awards and 12 common shares from deferred compensation arrangements as they are anti-dilutive due to our net loss for the year.

⁽²⁾  Excludes 329 common shares from stock options and awards and 11 common shares from deferred compensation arrangements as they are anti-dilutive due to our net loss for the year.

⁽³⁾  Excludes 518 common shares from stock options and awards and 22 common shares from deferred compensation arrangements as they are anti-dilutive due to our net loss for the year.

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Item 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following section highlights significant factors impacting the Consolidated Operations and Financial Condition of the Company and its subsidiaries. The following discussion should be read in conjunction with Item 6 “Selected Financial Data” and Item 8 “Financial Statements and Supplementary Data.”

Overview

We are a leading global manufacturer and provider of technology-driven, loss prevention, inventory management and labeling solutions to the retail and apparel industry. We provide integrated inventory management solutions to brand, track, and secure goods for retailers and consumer product manufacturers worldwide. We are a leading provider of, and earn revenues primarily from the sale of Shrink Management Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. Shrink Management Solutions consists of electronic article surveillance (EAS) systems, EAS consumables, Alpha^® solutions, store security system installations and monitoring solutions (CheckView^®), and radio frequency identification (RFID) systems, software, tags and labels. Apparel Labeling Solutions includes our web-based data management service 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. Retail Merchandising Solutions consists of hand-held labeling systems (HLS) and retail display systems (RDS). Applications of these products include primarily retail security, asset and merchandise visibility, automatic identification, and pricing and promotional labels and signage. Operating directly in 29 countries, we have a global network of subsidiaries and distributors, and provide customer service and technical support around the world.

Our results are heavily dependent upon sales to the retail market. Our customers are dependent upon retail sales, which are susceptible to economic cycles and seasonal fluctuations. Furthermore, as approximately three-quarters of our revenues and operations are located outside the U.S., fluctuations in foreign currency exchange rates have a significant impact on reported results.

In 2012, we refined our business strategy to transition from a product protection business to a provider of inventory management solutions that give retailers ready insight into the on-shelf availability of merchandise in their stores. In support of this strategy, we continue to provide to retailers, manufacturers and distributors our EAS systems and consumables, Alpha^® high-theft solutions, Merchandise Visibility^™ (RFID) products and services, and METO^® hand-held labeling products. In apparel labeling, we are focusing on those products that support our refined strategy and leveraging our competitive advantage in the transfer and printing of variable data onto apparel labels. We are and will consider divesting certain businesses and product lines not advantageous to our refined strategy.

Our solutions help customers identify, track, and protect their assets. We believe that innovative new products and expanded product offerings will provide opportunities to enhance the value of legacy products while expanding the product base in existing customer accounts. We intend to maintain our leadership position in key hard goods markets (supermarkets, drug stores, mass merchandisers, and music and electronics retailers); to expand our market share in soft goods markets (specifically apparel), and to maximize our position in under-penetrated markets. We also intend to continue to capitalize on our installed base with large global retailers to promote source tagging. Furthermore, we plan to leverage our knowledge of RF and identification technologies to assist retailers and manufacturers in realizing the benefits of RFID.

Our Apparel Labeling business, which was assembled over the past few years through numerous acquisitions to support our penetration into the apparel industry and to support the growth of our RFID strategy, needs a narrower focus. We will achieve this by right-sizing the Apparel Labeling footprint in order to profitably provide on-time, high quality products to our apparel customers so that retailers can effectively merchandise their products. Simultaneously, we will reduce our Apparel Labeling product offering to only those that are also necessary to support our RFID strategy.

Our operations and results depend significantly on global market worldwide economic conditions, which have experienced deterioration in recent years. In response to these market conditions, we continue to focus on providing customers with innovative products that will be valuable in addressing shrink, which is particularly important during a difficult economic environment. We have also implemented initiatives to reduce costs and improve working capital to mitigate the effects of the economy on our business. We believe that these restructuring initiatives coupled with the strength of our core business and our ability to generate positive cash flow will sustain us through this challenging period.

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During 2009, we initiated the SG&A Restructuring Plan focused on reducing our overall operating expenses by consolidating certain administrative functions to improve efficiencies. The first phase of this plan was implemented in the fourth quarter of 2009 with the remaining phases of the plan substantially completed by the end of the first quarter of 2012. In the third quarter of 2011, the Company approved the Global Restructuring Plan, an expansion of our previous SG&A Restructuring Plan to include manufacturing and other cost reduction initiatives.

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan will impact over 2,400 existing employees. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are expected to approximate $70 million to $75 million by the end of 2013, with $52 million to $55 million in total anticipated costs for the Global Restructuring Plan and $18 million of costs incurred for the SG&A Restructuring Plan, which is substantially complete. Total annual savings of the two plans are expected to approximate $100 million to $105 million by the end of 2013, with $81 million to $85 million in total anticipated savings for the Global Restructuring Plan including Project LEAN and $19 million to $20 million in total anticipated savings for the SG&A Restructuring Plan. Through our Global Restructuring Plan including Project LEAN, we plan to stabilize sales, actively manage margins, dramatically reduce operating expenses, more effectively manage working capital and improve global cash management control.

In the third quarter of 2012, following an extensive strategic review, we developed a comprehensive plan to address operational performance in ALS. The business is being fundamentally restructured, including consolidating certain manufacturing operations in order to provide quality merchandising products profitably and on time. We are also reducing our product capabilities to deliver those products that support our refined on-shelf availability strategy and we are rationalizing our customer base.

In August 2008, we announced a manufacturing and supply chain restructuring program designed to accelerate profitable growth in our ALS business and to support incremental improvements in our EAS systems and labels businesses. The implementation of this program was substantially completed in 2010, with total restructuring charges incurred of approximately $4.2 million. We realized approximately $6 million of annualized cost savings related to this program.

On February 17, 2012, we received amendments to our Senior Secured Credit Facility and Senior Secured Notes ("Debt Agreements") which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35, and 3.25 for the periods ended March 25, 2012, June 24, 2012 and September 23, 2012, respectively. Had we not received these amendments, we would have been in violation of the leverage ratio covenant as of March 25, 2012.

On July 31, 2012, we received additional amendments to our Debt Agreements ("July 2012 Amendments"), which contained several modifications. The July 2012 Amendments reduced the total commitment of the Senior Secured Credit Facility from $125.0 million to $75.0 million. The July 2012 Amendments reduced the sublimit for the issuance of letters of credit of the Senior Secured Credit Facility from $25.0 million to $5.0 million. The July 2012 Amendments reduced the sublimit for swingline loans of the Senior Secured Credit Facility from $25.0 million to $5.0 million. The July 2012 Amendments increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, and June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Amendments waived the fixed charge coverage ratio covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Amendments permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions. The July 2012 Amendments also contained a provision whereby if our cash balance exceeds $65 million as of weekly measurement dates, we must prepay any additional borrowings made subsequent to the July 2012 Amendments. This provision is effective until we are in compliance with our original covenant requirements for two consecutive quarters. There were no required prepayments during 2012.

Absent the waiver and additional July 2012 Amendments, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage ratio covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the amended leverage ratio and fixed charge coverage ratio covenants as of December 30, 2012. Although we cannot provide full assurance, we project to be in compliance with all of our covenants during 2013.

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During the Waiver Period, the interest rate spread on the Senior Secured Credit Facility increases to a maximum of 4.25% over the Base Rate or 5.25% over the LIBOR rate. The “Base Rate” is the highest of (a) our lender's prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. The unused line fee will increase to a maximum of 1.00% per annum. The maximum is based in accordance with changes in our leverage ratio.

During the Waiver Period, and until such time as the financial covenants return to the original covenants for two consecutive quarters, the coupon rate on the Senior Secured Notes will increase to 5.75%, 6.13%, and 6.50% for the Series A Senior Secured Notes, Series B Senior Secured Notes, and Series C Senior Secured Notes, respectively.

In July 2009, we entered into an agreement to purchase the business of Brilliant Label, a China-based manufacturer of woven and printed labels, and settled the acquisition in August 2009. As of the second quarter of 2010, our financial statements reflected the final allocations of the Brilliant Label purchase price based on estimated fair values at the date of acquisition. The results from the acquisition and related goodwill are included in the Apparel Labeling Solutions segment. Through its facilities in Hong Kong and China, Brilliant Label added capacity to our apparel labeling business and expanded our manufacturing footprint, enabling us to meet greater demand.

In January 2011, the Company entered into an agreement to acquire the business of Shore to Shore, through the acquisition of equity and/or assets, which together is a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels. The acquisition settled in May 2011 for a purchase price of approximately $78.7 million. During the second quarter of 2012, we finalized the purchase accounting for the acquisition and the financial statements reflect the final allocations of the purchase price based on estimated fair values at the date of acquisition. The results from the acquisition and related goodwill are included in the Apparel Labeling Solutions segment. This acquisition further expanded our tag and label production capabilities and global reach.

In October 2012, we completed the sale of the Banking Security Systems Integration business unit, which was focused on the financial services sector and previously was part of our CheckView^® business. We are also pursuing the divestiture of our U.S. and Canada based CheckView^® business so that we can focus on the growth of our core business.

Future financial results will be dependent upon our ability to successfully implement our redefined strategic focus, expand the functionality of our existing product lines, develop or acquire new products for sale through our global distribution channels, convert new large chain retailers to our solutions for shrink management, merchandise visibility and apparel labeling, and reduce the cost of our products and infrastructure to respond to competitive pricing pressures.

We believe that our base of recurring revenue (revenues from the sale of consumables into the installed base of security systems, apparel tags and labels, and hand-held labeling tools and services from monitoring and maintenance), repeat customer business, the anticipated effect of our restructuring activities, and our borrowing capacity should provide us with adequate cash flow and liquidity to execute our business plan.

Revision of Previously Issued Consolidated Financial Statements

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 and with the assistance of forensic accountants and internal audit. 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. 

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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. The fiscal year 2010 financial statement impact was $1.5 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 was recorded in the fourth quarter of 2012 as a reduction of other expense in the Consolidated Statement of Operations.

We revised our historical annual and quarterly filings for the effects of these revision adjustments in our 2011 Annual Report on Form 10-K and our 2012 Quarterly Reports on Form 10-Q. All historical amounts presented in this 2012 Annual Report on Form 10-K reflect these historical revision adjustments. 

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities.

Note 1 of the Notes to the Consolidated Financial Statements describes the significant accounting policies used in the preparation of the Consolidated Financial Statements. Certain of these significant accounting policies are considered to be critical accounting policies. A critical accounting policy is defined as one that is both material to the presentation of our Consolidated Financial Statements and requires management to make difficult, subjective or complex judgments that could have a material effect on our financial condition or results of operations.

Specifically, these policies have the following attributes: (1) we are required to make assumptions about matters that are highly uncertain at the time of the estimate; and (2) different estimates we could reasonably have used, or changes in the estimate that are reasonably likely to occur, would have a material effect on our financial condition or results of operations. Estimates and assumptions about future events and their effects cannot be determined with certainty. On an on-going basis, we evaluate our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have historically been minor and have been included in the Consolidated Financial Statements as soon as they became known. Senior management reviews the development and selection of our accounting policies and estimates with the Audit Committee. The critical accounting policies have been consistently applied throughout the accompanying financial statements.

We believe the following accounting policies are critical to the preparation of our Consolidated Financial Statements:

Revenue Recognition. We recognize revenue when revenue is realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectability is reasonably assured.

We enter into contracts to sell our products and services, and, while the majority of our sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, significant contract interpretation is sometimes required to determine the appropriate accounting, including whether the deliverables specified in a multiple element arrangement should be treated as separate units of accounting for revenue recognition purposes, and, if so, how the selling price should be allocated among the elements and when to recognize revenue for each element.

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For arrangements with multiple elements, we allocate total arrangement consideration to all deliverables based on their relative selling price using a specific hierarchy and recognize revenue when each element’s revenue recognition criteria are met. The hierarchy is as follows: vendor-specific objective evidence (“VSOE”), third-party evidence of selling price (“TPE”) or best estimate of selling price (“BESP”). VSOE of fair value for each element is established based on the price charged when the same element is sold separately. We recognize revenue when installation is complete or other post-shipment obligations have been satisfied. Unearned revenue is recorded when payments are received in advance of performing our service obligations and is recognized over the service period.

Products leased to customers under sales-type leases are accounted for as the equivalent of a sale. The present value of such lease revenues is recorded as net revenues, and the related cost of the products is charged to cost of revenues. The deferred finance charges applicable to these leases are recognized over the terms of the leases, or when sold. Rental revenue from products under operating leases is recognized over the term of the lease. Installation revenue from SMS EAS products is recognized when the systems are installed. Service revenue is recognized, for service contracts, on a straight-line basis over the contractual period, and, for non-contract work, as services are performed.

Revenues from software license agreements are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, no significant vendor obligations are remaining to be fulfilled, the fee is fixed or determinable, and collection is probable. Revenue from software contracts for both licenses and professional services that require significant production, modification, customization, or implementation are recognized together using the percentage of completion method based upon the ratio of labor incurred to total estimated labor to complete each contract. In instances where there is a term license combined with services, revenue is recognized ratably over the term.

We record estimated reductions to revenue for customer incentive offerings, including volume-based incentives and rebates. We record revenues net of an allowance for estimated return activities. Return activity was immaterial to revenue and results of operations for all periods presented.

We believe the following judgments and estimates have a significant effect on our Consolidated Financial Statements:

Allowance for Doubtful Accounts. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. These allowances are based on specific facts and circumstances surrounding individual customers as well as our historical experience. The adequacy of the reserves for doubtful accounts is continually assessed by periodically evaluating each customer’s receivable balance, considering our customers’ financial condition and credit history, and considering current economic conditions. Historically, our reserves have been adequate to cover all losses associated with doubtful accounts. If the financial condition of our customers were to deteriorate, impairing their ability to make payments, additional allowances may be required. If economic or political conditions were to change in the countries where we do business, it could have a significant impact on the results of operations, and our ability to realize the full value of our accounts receivable. Furthermore, we are dependent on customers in the retail markets. Economic difficulties experienced in those markets could have a significant impact on our results of operations and our ability to realize the full value of our accounts receivables. If our historical experiences changed by 10%, it would require an increase or decrease of $0.4 million to our reserve.

Inventory Valuation. We write down our inventory for estimated obsolescence or unmarketable items equal to the difference between the cost of the inventory and the estimated net realizable value based upon assumptions of future demand and market conditions. If actual market conditions are less favorable than those projected by management, additional inventory write-downs may be required. If our estimates were to change by 10%, it would cause a change in inventory value of $0.8 million.

Valuation of Long-lived Assets.Our long-lived assets include property, plant, and equipment, goodwill, and identified intangible assets.With the exception of goodwill and indefinite-lived intangible assets, long-lived assets are depreciated or amortized over their estimateduseful lives, and are reviewed for impairment whenever changes in circumstances indicate the carrying value may not be recoverable.Recoverability is determined based upon our estimates of future undiscounted cash flows. If the carrying value is determined to be notrecoverable, an impairment charge would be necessary to reduce the recorded value of the assets to their fair value. The fair value of thelong-lived assets other than goodwill is based upon appraisals, quoted market prices of similar assets, or discounted cash flows.

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Goodwill and indefinite-lived intangible assets are subject to tests for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We test for impairment on an annual basis as of fiscal month end October of each fiscal year, relying on a number of factors including operating results, business plans, and anticipated future cash flows. Our management uses its judgment in assessing whether goodwill has become impaired between annual impairment tests. Reporting units are primarily determined as the geographic areas comprising our business segments, except in situations when aggregation of the reporting units is appropriate. Recoverability of goodwill is evaluated using a two-step process. The first step involves acomparison of the fair value of a reporting unit with its carrying value. If the carrying amount of the reporting unit exceeds the fair value, then the second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the fair value of that goodwill, an impairment loss is recognized in anamount equal to the excess. The nonrecurring fair value measurement of goodwill is developed using significant unobservable inputs (Level 3).

The implied fair value of our reporting units is dependent upon our estimate of future discounted cash flows and other factors. Our estimates of future cash flows include assumptions concerning future operating performance and economic conditions and may differ from actual future cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate, and through our stock price that we use to determine our market capitalization. Therefore, changes in the stock price may also affect the result of the impairment test. Market capitalization is determined by multiplying the number of shares outstanding on the assessment date by the average market price of our common stock over a 30-day period before each assessment date. We use this 30-day duration to consider inherent market fluctuations that may affect any individual closing price. We believe that our market capitalization alone does not fully capture the fair value of our business as a whole, or the substantial value that an acquirer would obtain from its ability to obtain control of our business. The difference between the sum total of the fair value of our reporting units and our market capitalization represents the control premium. As of the date of our goodwill impairment test, management has assessed our control premium to be within a reasonable range.

We have not made any changes to our methodology used in our annual impairment test since the adoption of ASC 350. Determination of the fair value of a reporting unit is a matter of judgment and involves the use of estimates and assumptions, which are based on management’s best estimates at the time.

We use an income approach (discounted cash flow approach) for the determination of fair value of our reporting units. Our projected cash flows incorporate many assumptions, the most significant of which include variables such as future sales, growth rates, operating margin, and the discount rates applied.

Assumptions related to revenue, growth rates and operating margin are based on management’s annual and ongoing forecasting, budgeting and planning processes and represent our best estimate of the future results of operations across the company. These estimates are subject to many assumptions, such as the economic environment across the segments in which we operate, end demand for our products, and competitor actions. The use of different assumptions would increase or decrease estimated discounted future cash flows and could increase or decrease an impairment charge. If the use of these assets or the projections of future cash flows change in the future, we may be required to record impairment charges. An erosion of future business results in any of the business units or significant declines in our stock price could result in an impairment to goodwill or other long-lived assets. These risks are discussed in Item 1A. Risk Factors.

During the second quarter of 2012, we experienced deterioration in revenues, gross margins and operating results in each of our segments as compared to the forecasted amounts in the most recent annual impairment test. Due to the declines in operating results in our segments, a change in management, and a revised strategic focus, we determined that impairment triggering events had occurred and that an assessment of goodwill was warranted. This resulted in the Company's assessment that the carrying value of the Apparel Labeling Solutions reporting unit exceeded its fair value. The basis of the fair value was determined by projecting future cash flows using assumptions concerning future operating performance and economic conditions that may differ from actual cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of the evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate and through our stock price that we use to determine our market capitalization. As a result of our interim impairment test, a $64.4 million non-cash impairment charge was recorded as of June 24, 2012 in our Apparel Labeling Solutions segment. The goodwill impairment expense was due to the decline in estimated future Apparel Labeling Solutions cash flow impacted by our plan to refocus the business, coupled with recent declines in revenue and profitability. The impairment charge of the entire goodwill balance in our Apparel Labeling Solutions segment was recorded in goodwill impairment on the Consolidated Statement of Operations.

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As a result of interim impairment indicators in the second quarter of 2012, we performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the long-lived assets in our Apparel Labeling Solutions reporting unit to their carrying amounts. The undiscounted cash flow analysis resulted in no impairment charge.

There were no additional impairment indicators during the third quarter ended September 23, 2012. Our 2012 annual impairment test resulted in our assessment that the carrying value of the Europe and International Americas Retail Merchandising Solutions reporting unit exceeded its fair value. As a result of our annual impairment test, a $38.3 million non-cash goodwill impairment charge was assessed as of October 21, 2012, and recorded in the fourth quarter of 2012. The goodwill impairment expense was due to the decline in estimated future Europe Retail Merchandising Solutions cash flows impacted by current economic conditions in Europe resulting in decreased customer investments in new stores and refurbishments. Additionally, increased competition and pricing pressures are factors that have negatively impacted this business. The impairment charge in our Retail Merchandising Solutions segment was recorded in goodwill impairment on the Consolidated Statement of Operations.

In connection with our annual impairment test, we performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the long-lived assets in our Europe Retail Merchandising Solutions reporting unit to their carrying amounts. The undiscounted cash flow analysis resulted in no impairment charge.

As of the date of our fiscal 2012 annual impairment test, the total fair values for the remaining reporting units in all of our segments exceeded their total carrying values by more than 45%. Based on our most recent goodwill impairment assessment of the reporting units of our segments and our understanding of currently projected trends of the business and the economy, we do not believe that there is a significant risk of impairment for these reporting units for a reasonable period of time. Although our analysis regarding the fair values of the goodwill and indefinite lived intangible assets indicates that they exceed their respective carrying values, materially different assumptions regarding the future performance of our businesses or significant declines in our stock price could result in additional goodwill impairment losses. Specifically, an unanticipated deterioration in revenues and gross margins generated by our Shrink Management Solutions and Retail Merchandising Solutions segments could trigger future impairment in those segments. Refer to Notes 1 and 5 of the Consolidated Financial Statements.

Income Taxes. In determining income for financial statement purposes, we must make certain estimates and judgments. These estimates and judgments affect the calculation of certain tax liabilities and the determination of recoverability of certain of the deferred tax assets, which arise from temporary differences between tax and financial statement recognition of revenue and expense. We record a valuation allowance to reduce our deferred tax assets to the amount that it is more likely than not to be realized. In assessing the realizability of deferred tax assets, we consider future taxable income by tax jurisdictions and tax planning strategies. If we were to determine that we would be able to realize deferred tax assets in the future in excess of the net recorded amount, an adjustment to the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax assets in the future, an adjustment to the valuation allowance would decrease income in the period such determination was made. Refer to Note 12 of the Consolidated Financial Statements.

Changes in tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. We are not aware of any such changes that would have a material effect on our results of operations, cash flows or financial position.

In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations in a multitude of jurisdictions across our global operations. We record tax liabilities for the anticipated settlement of tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and the extent to which, additional taxes will be due. Our income tax expense includes amounts intended to satisfy income tax assessments that result from these audit issues. Determining the income tax expense for these potential assessments and recording the related assets and liabilities requires management judgments and estimates. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is different from our estimate of tax liabilities. If payment of these amounts ultimately proves to be greater or less than the recorded amounts, the change of the liabilities would result in tax expense or benefit being recognized in that period. We’ve evaluated our uncertain tax positions and believe that our reserve for uncertain tax positions, including related interest and penalty, is adequate.

Pension Plans. We have various unfunded pension plans outside the U.S. These plans have significant pension costs and liabilities that are developed from actuarial valuations. Inherent in these valuations are key assumptions including discount rates, expected return on plan assets, mortality rates, and merit and promotion increases. We are required to consider current market conditions, including changes in interest rates, in selecting these assumptions. Changes in the related pension costs or liabilities may occur in the future due to changes in the assumptions. A change in discount rates of 0.25% would have less than a $0.1 million effect on pension expense.

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Stock Compensation. We recognize stock-based compensation expense for all share-based payment awards net of an estimated forfeiture rate and only recognize compensation cost for those shares expected to vest. Stock compensation expense is recognized for all share-based payments on a straight-line basis over the requisite service period of the award.

Determining the fair value of share-based payment awards requires the input of highly subjective assumptions, including the expected life of the share-based payment awards and stock price volatility. The assumptions used in calculating the fair value of share-based payment awards represent management’s best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our share-based compensation expense could be materially different in the future. In addition, we are required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. If our actual forfeiture rate is materially different from our estimate, the share-based compensation expense could be significantly different from what we have recorded in the current period. A change in the estimated forfeiture rate of 10% would have a $0.2 million effect on stock compensation expense. As of December 30, 2012, there was $1.4 million and $1.4 million of unrecognized stock-based compensation expense related to nonvested stock options and restricted stock units, respectively. Such costs are expected to be recognized over a weighted-average period of 2.1 years and 1.5 years, respectively. Refer to Note 8 of the Consolidated Financial Statements.

Liquidity and Capital Resources

As we continue to implement our strategic plan in a volatile global economic environment, our focus will remain on operating our business in a manner that addresses the reality of the current economic marketplace without sacrificing the capability to effectively execute our strategy when economic conditions and the retail environment stabilize. Our liquidity needs have been, and are expected to continue to be driven by acquisitions, capital investments, product development costs, potential future restructuring related to the rationalization of the business, and working capital requirements. In 2012 our focus has been on cost control, including restructuring, and working capital management. We have met our liquidity needs primarily through cash generated from operations. The impacts of our restructuring activities and on-going economic conditions put pressure on our debt covenants during 2012. We are addressing the issues discussed below by managing worldwide cash levels and obtaining debt covenant waivers and amendments to facilitate timely execution of our worldwide restructuring efforts. Based on an analysis of liquidity utilizing conservative assumptions for the next twelve months, we believe that cash on hand from operating activities and funding available under our credit agreements should be adequate to service debt and working capital needs, meet our capital investment requirements, other potential restructuring requirements, and product development requirements.

On February 17, 2012, we received amendments to our Senior Secured Credit Facility and Senior Secured Notes ("Debt Agreements") which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35, and 3.25 for the periods ended March 25, 2012, June 24, 2012, and September 23, 2012. Had we not received these amendments, we would have been in violation of the leverage ratio covenant as of March 25, 2012.

On July 31, 2012, we received additional amendments to our Debt Agreements ("July 2012 Amendments"), which contained several modifications. The July 2012 Amendments reduced the total commitment of the Senior Secured Credit Facility from $125.0 million to $75.0 million. The July 2012 Amendments reduced the sublimit for the issuance of letters of credit of the Senior Secured Credit Facility from $25.0 million to $5.0 million. The July 2012 Amendments reduced the sublimit for swingline loans of the Senior Secured Credit Facility from $25.0 million to $5.0 million. The July 2012 Amendments increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, and June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Amendments waived the fixed charge covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Amendments permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions. The July 2012 Amendments also contained a provision whereby if our cash balance exceeds $65 million as of weekly measurement dates, we must prepay any additional borrowings made subsequent to the July 2012 Amendments. This provision is effective until we are in compliance with our original covenant requirements for two consecutive quarters. There were no required prepayments during 2012.

Absent the waiver and additional July 2012 Amendments, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the amended leverage ratio covenant and the fixed charge covenant as of December 30, 2012. Although we cannot provide full assurance, we project to be in compliance with all of our covenants during 2013.

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During the Waiver Period, the interest rate spread on the Senior Secured Credit Facility increases to a maximum of 4.25% over the Base Rate or 5.25% over the LIBOR rate. The “Base Rate” is the highest of (a) our lender's prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. The unused line fee will increase to a maximum of 1.00% per annum. The maximum is based in accordance with changes in our leverage ratio.

During the Waiver Period, and until such time as the financial covenants return to the original covenants for two consecutive quarters, the coupon rate on the Senior Secured Notes will increase to 5.75%, 6.13%, and 6.50% for the Series A Senior Secured Notes, Series B Senior Secured Notes, and Series C Senior Secured Notes, respectively.

In the fourth quarter of 2011, we changed our assertion on unremitted earnings for certain foreign subsidiaries, primarily due to pressure on our leverage ratio for debt covenants. This resulted in the repatriation of foreign earnings in order to reduce worldwide debt to the levels stipulated by our covenants. Also impacting the change in assertion was the projected cash impact of the 2011 Global Restructuring Plan. As of December 30, 2012, the majority of our unremitted earnings of subsidiaries outside the United States were deemed not to be permanently reinvested.

The ongoing financial and credit crisis has reduced credit availability and liquidity for many companies. We believe, however, that the strength of our core business, cash position, access to credit markets, and our ability to generate positive cash flow will sustain us through this challenging period. We are working to reduce our liquidity risk by accelerating efforts to improve working capital while reducing expenses in areas that will not adversely impact the future potential of our business. Additionally, we have increased our monitoring of counterparty risk. We evaluate the creditworthiness of all existing and potential counterparties for all debt, investment, and derivative transactions and instruments. Our policy allows us to enter into transactions with nationally recognized financial institutions with a credit rating of “A” or higher as reported by one of the credit rating agencies that is a nationally recognized statistical rating organization by the U.S. Securities and Exchange Commission. The maximum exposure permitted to any single counterparty is $50.0 million. Counterparty credit ratings and credit exposure are monitored monthly and reviewed quarterly by our Treasury Risk Committee.

As of December 30, 2012, our cash and cash equivalents were $118.8 million compared to $93.5 million as of December 25, 2011. Cash and cash equivalents increased in 2012 primarily due to $62.2 million of cash provided by operating activities and $0.8 million effect of foreign currency, partially offset by $35.2 million of cash used in financing activities and $2.4 million of cash used in investing activities.

Cash provided by operating activities was $51.8 million greater during 2012 compared to 2011. In 2012 compared to 2011, our cash from operating activities was impacted positively by decreases in inventories, accounts receivable, and other current assets, which were partially offset by decreases in the restructuring reserve and unearned revenues. Inventory fluctuations are due to decreased customer orders during 2012 in comparison with 2011 combined with a focus on decreasing inventory levels. Accounts receivable decreased primarily due to decreased sales during 2012 compared to 2011 and a concerted effort to improve collections. The fluctuation in other current assets is associated with a decrease in unbilled receivables. The restructuring reserve decreased due to making cash payments for severance related to our existing restructuring plans. Unearned revenues decreased primarily due to the decrease in future contracted customer orders during 2012. This is partially offset by decreases in income excluding non-cash charges.

Cash used in investing activities was $95.8 million less during 2012 compared to 2011. This was primarily due to the Shore to Shore acquisition that took place in the second quarter of 2011. In addition, 2012 increases in cash from investing activities related to a decrease in 2012 capital expenditures, and proceeds from the sales of our Puerto Rico facility, Banking Security Systems Integration business unit and Suzhou, China subsidiary.

Cash used in financing activities was $41.1 million greater during 2012 compared to 2011. The increase was due primarily to the reductions of debt levels during 2012 compared to an increase in borrowings in 2011. In addition, we incurred $2.1 million in debt issuance costs during 2012 in connection with the July 2012 Amendments to the Senior Secured Credit Facility and Senior Secured Notes.

Our percentage of total debt to total equity as of December 30, 2012, was 30.0% compared to 28.4% as of December 25, 2011. As of December 30, 2012, our working capital was $227.7 million compared to $233.1 million as of December 25, 2011.

We continue to reinvest in the Company through our investment in technology and process improvement. During 2012, our investment in research and development amounted to $16.4 million, as compared to $19.3 million in 2011. These amounts are reflected in cash used in operations, as we expense our research and development as it is incurred. In 2013, we anticipate spending of approximately $20 million on research and development to support the achievement of our strategic plan.

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We have various unfunded pension plans outside the U.S. These plans have significant pension costs and liabilities that are developed from actuarial valuations. For fiscal 2012, our contribution to these plans was $4.7 million. Our funding expectation for 2013 is $5.2 million. We believe our current cash position, cash generated from operations, and the availability of cash under our revolving line of credit will be adequate to fund these requirements. The Contractual Obligation table details our anticipated funding requirements related to pension obligations for the next ten years.

Acquisition of property, plant, and equipment and intangibles during 2012 totaled $12.4 million compared to $23.0 million during 2011. During 2012, our acquisition of property, plant, and equipment and intangibles included $1.4 million of capitalized internal-use software costs related to an ERP system implementation, compared to $8.3 million during 2011. We anticipate our capital expenditures, used primarily to upgrade information technology and improve our production capabilities, to approximate $19 million in 2013.

In January 2011, we entered into an agreement to acquire the business of Shore to Shore, through the acquisition of equity and/or assets, which together is a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels. The acquisition was settled on May 16, 2011 for approximately $78.7 million, net of cash acquired of $1.9 million and the assumption of debt of $4.2 million. The purchase price was funded by $66.7 million of cash from operations and $9.2 million of borrowings under our Senior Secured Credit Facility. The payment for the acquisition is reflected in the acquisition of businesses line within investing activities on the Consolidated Statement of Cash Flows.

In October 2010, we acquired a software programming and development business based in the Philippines from Napar Contracting and Allied Services, Inc. for $0.5 million. The transaction was paid in cash. Based on the terms of the transaction, 60% of the purchase price was due upon signing the agreement and the remaining 40% was due on January 1, 2011.

In December 2011, $4.2 million (HKD 32.5 million) was paid in order to extinguish our existing Hong Kong banking facility and other outstanding Hong Kong debt.  In December 2011, we entered into a new five-year Hong Kong banking facility. As of December 25, 2011, $8.4 million (HKD 65.0 million) was outstanding on the term loan. In June 2012, $8.0 million (HKD 61.8 million) was paid in order to extinguish our existing Hong Kong term loan. The term loan was included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In connection with the acquisition of the Shore to Shore businesses, the Company assumed debt of $4.2 million. In June 2012, $0.7 million (INR 37.2 million) was paid in order to extinguish an overdraft facility and other short-term borrowings in the accompanying Consolidated Balance Sheets. As of December 30, 2012 and December 25, 2011, $3.9 million and $3.8 million related to the assumed debt remained outstanding, respectively. The debt assumed includes capital leases, accounts receivable factoring arrangements, term loans, an overdraft facility, and other short-term loans. With the exception of the capital leases, the banking facilities are subject to the banks’ rights to call the liabilities at any time, and are therefore included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In February 2012, the Company entered into a $3.2 million Sri Lanka banking facility, which includes a $2.7 million term loan, and a combined $0.5 million sublimit for an overdraft/import line. As of December 30, 2012, $2.3 million and $0.5 million were outstanding on the term loan and overdraft/import line, respectively.

In November 2010, we entered into a Japanese local line of credit for $1.8 million (¥150 million). During the fourth quarter of 2011, our Japanese local line of credit of $1.9 million (¥150 million) was paid down.

In October 2009, the Company entered into a $12.0 million (€8.0 million) full-recourse factoring arrangement. As of December 25, 2011, our short-term full-recourse factoring arrangement equaled $8.8 million (€6.8 million) and was included in short-term borrowings in the accompanying Consolidated Balance Sheets. In September 2012, $7.4 million (€5.7 million) was paid in order to extinguish our existing short-term full-recourse factoring agreement in Germany. The arrangement was included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In December 2009, we entered into a full-recourse factoring arrangements. The arrangements are secured by trade receivables. The Company received a weighted average of 92.4% of the face amount of receivables that it desired to sell and the bank agreed, at its discretion, to buy. As of December 30, 2012 the factoring arrangements had a balance of $0.9 million (€0.7 million), of which $0.3 million (€0.3 million) was included in the current portion of long-term debt and $0.6 million (€0.4 million) was included in long-term borrowings in the accompanying Consolidated Balance Sheets since the receivables are collectable through 2016.

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On July 1, 1997, Checkpoint Systems Japan Co. Ltd. (Checkpoint Japan), a wholly-owned subsidiary of the Company, issued newly authorized shares to Mitsubishi Materials Corporation (Mitsubishi) in exchange for cash. In February 2006, Checkpoint Japan repurchased 26% of these shares from Mitsubishi in exchange for $0.2 million in cash. In August 2010, Checkpoint Manufacturing Japan Co., LTD. repurchased the remaining 74% of these shares from Mitsubishi in exchange for $0.8 million in cash.

Senior Secured Credit Facility

On July 22, 2010, we entered into an Amended and Restated Senior Secured Credit Facility (the “Senior Secured Credit Facility”) with a syndicate of lenders. The Senior Secured Credit Facility provides us with a $125.0 million four-year senior secured multi-currency revolving credit facility.

The Senior Secured Credit Facility amended and restated the terms of our existing $125.0 million senior secured multi-currency revolving credit agreement (“Secured Credit Facility”). The amendments primarily reflect an extension of the terms of the Secured Credit Facility, reductions in the interest rates charged on the outstanding balances, and favorable changes with regard to the collateral provided under the Senior Secured Credit Facility. Prior to entering into the Senior Secured Credit Facility, $102.2 million of the Secured Credit Facility was paid down during the third quarter of 2010.

On February 17, 2012, we received an amendment to our Senior Secured Credit Facility which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35, and 3.25 for the periods ended March 25, 2012, June 24, 2012, and September 23, 2012, respectively. Had we not received the amendment, we would have been in violation of the leverage ratio covenant as of March 25, 2012.  

On July 31, 2012, we received an additional amendment to our Senior Secured Credit Facility ("July 2012 Amendment"), which contained several modifications. The July 2012 Amendment reduced the total commitment of the Senior Secured Credit Facility from $125.0 million to $75.0 million. The July 2012 Amendment reduced the sublimit for the issuance of letters of credit from $25.0 million to $5.0 million. The July 2012 Amendment reduced the sublimit for swingline loans from $25.0 million to $5.0 million. The July 2012 Amendment increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, and June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Amendment waived the fixed charge covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Amendment permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions. The July 2012 Amendment also contained a provision whereby if our cash balance exceeds $65.0 million as of weekly measurement dates, we must prepay any additional borrowings made subsequent to the July 2012 Amendments. This provision is effective until we are in compliance with our original covenant requirements for two consecutive quarters. There were no required prepayments in 2012.

Absent the waiver and additional July 2012 Amendment, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the leverage ratio covenant and the fixed charge covenant as of December 30, 2012. Although we cannot provide full assurance, we project to be in compliance with all of our covenants during 2013.

During the Waiver Period, the interest rate spread on the Senior Secured Credit Facility increases to a maximum of 4.25% over the Base Rate or 5.25% over the LIBOR rate. The “Base Rate” is the highest of (a) our lender's prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. The unused line fee will increase to a maximum of 1.00% per annum. The maximum is based in accordance with changes in our leverage ratio.

During the year ended December 30, 2012, the Company incurred $1.3 million in fees and expenses in connection with the July 2012 Amendment to the Senior Secured Credit Facility, which were capitalized and will be amortized over the term of the Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations. In connection with the reduction in borrowing capacity of the Senior Secured Credit Facility, the Company recognized $0.8 million of unamortized debt issuance costs. The cost was recognized in interest expense on the Consolidated Statement of Operations in 2012.

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On September 21, 2012, the Company repaid $6.1 million on the Senior Secured Credit Facility. Pursuant to the terms of the July 2012 Amendment, the repayment permanently reduced the outstanding borrowing capacity from $75.0 million to $68.9 million. In connection with the reduction in borrowing capacity of the Senior Secured Credit Facility, the Company recognized $0.2 million of unamortized debt issuance costs. The cost was recognized in interest expense on the Consolidated Statement of Operations in the third quarter of 2012.

The Senior Secured Credit Facility provides for a revolving commitment of up to $75.0 million with a term of four years from the effective date of July 22, 2010. We may borrow, prepay and re-borrow under the Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the Senior Secured Credit Facility of up to an aggregate of $50.0 million, for a potential total commitment of $118.9 million. As of December 30, 2012, we were not eligible to request the $50.0 million expansion option due to financial covenant restrictions.

As of December 30, 2012, $1.8 million issued in letters of credit were outstanding under the Senior Secured Credit Facility.

Borrowings under the Senior Secured Credit Facility, other than swingline loans, bear interest at our option of either a spread ranging from 1.25% to 2.50% over the Base Rate (as described below), or a spread ranging from 2.25% to 3.50% over the LIBOR rate, and in each case fluctuating in accordance with changes in our leverage ratio, as defined in the Senior Secured Credit Facility. The “Base Rate” is the highest of (a) our lender’s prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. Swingline loans bear interest of (i) a spread ranging from 1.25% to 2.50% over the Base Rate with respect to swingline loans denominated in U.S. dollars, or (ii) a spread ranging from 2.25% to 3.50% over the LIBOR rate for one month U.S. dollar deposits, as of 11:00 a.m., London time. We pay an unused line fee ranging from 0.30% to 0.75% per annum based on the unused portion of the commitment under the Senior Secured Credit Facility.

All obligations of domestic borrowers under the Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by our domestic subsidiaries. The obligations of foreign borrowers under the Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by certain of our foreign subsidiaries as well as the domestic guarantors. Collateral under the Senior Secured Credit Facility includes a 100% stock pledge of domestic subsidiaries and a 65% stock pledge of all first-tier foreign subsidiaries, excluding our Japanese sales subsidiary. As a condition of the July 2012 Amendment, all domestic assets are also pledged as collateral. The approximate net book value of the collateral as of December 30, 2012 was $143.0 million.

Pursuant to the original terms of the Senior Secured Credit Facility, we are subject to various requirements, including covenants requiring the maintenance of a maximum total leverage ratio of 2.75 and a minimum fixed charge coverage ratio of 1.25. The Senior Secured Credit Facility also contains customary representations and warranties, affirmative and negative covenants, notice provisions and events of default, including change of control, cross-defaults to other debt, and judgment defaults. Upon a default under the Senior Secured Credit Facility, including the non-payment of principal or interest, our obligations under the Senior Secured Credit Facility may be accelerated and the assets securing such obligations may be sold. Certain wholly-owned subsidiaries with respect to the Company are guarantors of our obligations under the Senior Secured Credit Facility.

Senior Secured Notes

On July 22, 2010, we entered into a Note Purchase and Private Shelf Agreement (the “Senior Secured Notes Agreement”) with a lender, and certain other purchasers party thereto (together with the lender, the “Purchasers”).

On February 17, 2012, we received an amendment to our Senior Secured Notes which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35, and 3.25 for the periods ended March 25, 2012, June 24, 2012, and September 23, 2012. Had we not received the amendment, we would have been in violation of the leverage ratio covenant as of March 25, 2012.  

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On July 31, 2012, we received an additional amendment to our Senior Secured Notes ("July 2012 Note Amendment"), which contained several modifications. The July 2012 Note Amendment increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Note Amendment waived the fixed charge covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Note Amendment permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions.

Absent the waiver and additional July 2012 Note Amendment, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the leverage ratio covenant and the fixed charge covenant as of December 30, 2012. Although we cannot provide full assurance, we project to be in compliance with all of our covenants during 2013.

During the Waiver Period, and until such time the financial covenants return to the original covenants for two consecutive quarters, the coupon rate on the Senior Secured Notes will increase to 5.75%, 6.13%, and 6.50% for the Series A Senior Secured Notes, Series B Senior Secured Notes, and Series C Senior Secured Notes, respectively.

During the year ended December 30, 2012, the Company incurred $1.4 million in fees and expenses in connection with the July 2012 Amendment to the Senior Secured Notes, of which $0.6 million were recognized in selling, general, and administrative expenses on the Consolidated Statement of Operations in 2012 and $0.8 million, which were capitalized and will be amortized over the term of the Senior Secured Notes to interest expense on the Consolidated Statement of Operations.

On September 21, 2012, the Company repaid $8.9 million in principal as well as a make-whole premium of $1.1 million related to the Senior Secured Notes. In connection with the repayment on the Senior Secured Notes, the Company recognized $0.1 million of unamortized debt issuance costs. The unamortized debt issuance costs and make whole premium fees were recognized in interest expense on the Consolidated Statement of Operations in 2012.

Under the Senior Secured Notes Agreement, we issued to the Purchasers its Series A Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series A Notes”), its Series B Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series B Notes”), and its Series C Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series C Notes”); together with the Series A Notes and the Series B Notes, (the “2010 Notes”). The Series A Notes bear interest at a rate of 4.00% per annum and mature on July 22, 2015. The Series B Notes bear interest at a rate of 4.38% per annum and mature on July 22, 2016. The Series C Notes bear interest at a rate of 4.75% per annum and mature on July 22, 2017. The 2010 Notes are not subject to any scheduled prepayments. The entire outstanding principal amount of each of the 2010 Notes shall become due on their respective maturity date.

The Senior Secured Notes Agreement also provides that for a three-year period ending on July 22, 2013, we may issue, and our lender may, in its sole discretion, purchase, additional fixed-rate senior secured notes (the “Shelf Notes”); together with the 2010 Notes, (the “Notes”), up to an aggregate amount of $50.0 million. The aggregate principal amount of the Shelf Notes issued at any time shall be no less than $5.0 million. The Shelf Notes will have a maturity date of no more than 10 years from the respective maturity date and an average life of no more than 7 years after the date of issue. The Shelf Notes will have such other terms, including principal amount, interest rate and repayment schedule, as agreed with our lender at the time of issuance. As of December 30, 2012, we were not eligible to elect to request the $50.0 million expansion option due to financial covenant restrictions.

We may prepay the Notes in a minimum principal amount of $1.0 million and in $0.1 million increments thereafter, at 100% of the principal amount so prepaid, plus an amount equal to the excess, if any, of the present value of the remaining scheduled payments of principal and interest on the amount repaid, over the principal amount repaid.  Either we or our lender may terminate the private shelf facility with respect to undrawn amounts upon 30 days’ written notice, and our lender may terminate the private shelf facility with respect to undrawn amounts upon the occurrence and/or continuation of an event of default or acceleration of any Note.

All obligations under the Senior Secured Notes are irrevocably and unconditionally guaranteed on a joint and several basis by our domestic subsidiaries. Collateral under the Senior Secured Notes includes a 100% stock pledge of domestic subsidiaries and a 65% stock pledge of all first-tier foreign subsidiaries, excluding our Japanese sales subsidiary. As a condition of the July 2012 Amendment, all domestic assets are also pledged as collateral. The approximate net book value of the collateral as of December 30, 2012 was $143.0 million.

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The original Senior Secured Notes Agreement is subject to covenants that are substantially similar to the covenants in the Senior Secured Credit Facility Agreement, including covenants requiring the maintenance of a maximum total leverage ratio of 2.75 and a minimum fixed charge coverage ratio of 1.25. The Senior Secured Notes Agreement also contains representations and warranties, affirmative and negative covenants, notice provisions and events of default, including change of control, cross-defaults to other debt, and judgment defaults that are substantially similar to those contained in the Senior Secured Credit Facility, and those that are customary for similar private placement transactions. Upon a default under the Senior Secured Notes Agreement, including the non-payment of principal or interest, our obligations under the Senior Secured Notes Agreement may be accelerated and the assets securing such obligations may be sold. Additionally, the Senior Secured Notes have a make-whole provision that requires the discounted value of the remaining payments on the Senior Secured Notes expected through the end term of each of the Senior Secured Notes to be paid in full upon early termination, acceleration, or prepayment.  Certain of our wholly-owned subsidiaries are also guarantors of our obligations under the Senior Secured Notes.

We have never paid a cash dividend (except for a nominal cash distribution in April 1997 to redeem the rights outstanding under our 1988 Shareholders’ Rights Plan). We do not anticipate paying any cash dividends in the near future.

As we continue to implement our strategic plan in a volatile global economic environment, our focus will remain on operating our business in a manner that addresses the reality of the current economic marketplace without sacrificing the capability to effectively execute our strategy when economic conditions and the retail environment stabilize. Based upon an analysis of liquidity using our current forecast, management believes that our anticipated cash needs can be funded from cash and cash equivalents on hand, the availability of cash under the Senior Secured Credit Facility, Senior Secured Notes, and cash generated from future operations over the next twelve months.

Off-Balance Sheet Arrangements

We do not utilize material off-balance sheet arrangements apart from operating leases that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources. We use operating leases as an alternative to purchasing certain property, plant, and equipment. Our future rental commitment under all non-cancelable operating leases was $34.7 million as of December 30, 2012. The scheduled timing of these rental commitments is detailed in our “Contractual Obligations” section.

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Contractual Obligations

Our contractual obligations and commercial commitments at December 30, 2012 are summarized below:

Contractual Obligation (amounts in thousands)	Total		Due in less than 1 year		Due in 1-3 years		Due in 3-5 years		Due after 5 years
Long-term debt(1)	$	123,437	$	6,815	$	71,684	$	44,938	—
Capital leases(2)	544		319		207		18		—
Operating leases	34,657		11,150		12,862		7,014		3,631
Pension obligations(3)	50,258		4,689		9,597		9,868		26,104
Inventory purchase commitments(4)	3,269		3,269		—		—		—
Total contractual cash obligations	$	212,165	$	26,242	$	94,350	$	61,838	$	29,735

Commercial Commitments (amounts in thousands)	Total		Due in less than 1 year		Due in 1-3 years		Due in 3-5 years		Due after 5 years
Standby letters of credit	$	1,754	$	1,754	$	—	$	—	$	—
Surety bonds	9,960		9,798		162		—		—
Total commercial commitments	$	11,714	$	11,552	$	162	$	—	$	—

⁽¹⁾  Includes Senior Secured Credit Facility, Senior Secured Notes, long-term full-recourse factoring liabilities, and related interest payments through maturity of $14,360.

⁽²⁾  Includes interest payments through maturity of $62.

⁽³⁾  Amounts represent undiscounted projected benefit payments to our unfunded plans over the next 10 years. The expected benefit payments are estimated based on the same assumptions used to measure our accumulated benefit obligation at the end of 2012 and include benefits attributable to estimated future employee service of current employees.

⁽⁴⁾  Inventory purchase commitments represent our legally binding agreements to purchase fixed or minimum quantities of goods at determinable prices.

The table above excludes our gross liability for uncertain tax positions, including accrued interest and penalties, which totaled $20.6 million as of December 30, 2012, since we cannot predict with reasonable reliability the timing of cash settlements to the respective taxing authorities.

Pension Plans

We maintain several defined benefit pension plans, principally in Europe. The majority of these pension plans are unfunded. Our pension expense for 2012, 2011, and 2010 was $5.1 million, $5.7 million, and $5.2 million, respectively.

We review our pension assumptions annually. Our assumptions for the year ended December 30, 2012, were a discount rate of 4.77%, an expected return of 5.25% and an expected rate of increase in future compensation of 2.52%. In developing the discount rate assumption for each country, we use a yield curve approach. The yield curve is based on the AA rated bonds underlying the Barclays Capital corporate bond index. As of December 30, 2012, and December 25, 2011, the weighted average discount rate was 3.53% and 4.77%, respectively. We calculate the weighted average duration of the plans in each country, and then select the discount rate from the appropriate yield curve which best corresponds to the plans' liability profile. The expected rate of the return was developed using the historical rate of returns of the foreign government bonds currently held.

The primary components of the unrecognized losses are actuarial losses, a transition obligation, and prior period service costs. Unrecognized losses are amortized over the average remaining service period of the employees expected to receive the benefit in accordance with pension accounting rules. The weighted average remaining service period is approximately 11 years. The impact of recognizing the actuarial gains on 2012, 2011, and 2010 pension expense are $0.3 million, $0.1 million, and $0.1 million, respectively. The total projected amortization for these gains in 2013 is approximately $1.6 million.

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Exposure to Foreign Currency

We manufacture products in the U.S., Europe, and the Asia Pacific regions for both the local marketplace and for export to our foreign subsidiaries. The foreign subsidiaries, in turn, sell these products to customers in their respective geographic areas of operation, generally in local currencies. This method of sale and resale gives rise to the risk of gains or losses as a result of currency exchange rate fluctuations on inter-company receivables and payables. Additionally, the sourcing of product in one currency and the sales of product in a different currency can cause gross margin fluctuations due to changes in currency exchange rates.

We selectively purchase currency forward exchange contracts to reduce the risks of currency fluctuations on short-term inter-company receivables and payables. These contracts guarantee a predetermined exchange rate at the time the contract is purchased. This allows us to shift the effect of positive or negative currency fluctuations to a third party. Transaction gains or losses resulting from these contracts are recognized at the end of each reporting period. We use the fair value method of accounting, recording realized and unrealized gains and losses on these contracts. These gains and losses are included in other gain (loss), net on our Consolidated Statements of Operations. As of December 30, 2012, we had currency forward exchange contracts with notional amounts totaling approximately $17.1 million. The fair values of the forward exchange contracts were reflected as a $0.2 million asset and $0.2 million liability and are included in other current assets and other current liabilities in the accompanying Consolidated Balance Sheets. The contracts are in the various local currencies covering primarily our operations in the U.S., the Caribbean, and Western Europe. Historically, we have not purchased currency forward exchange contracts where it is not economically efficient, specifically for our operations in South America and Asia, with the exception of Japan.

Hedging Activity

Beginning in the second quarter of 2008, we entered into various foreign currency contracts to reduce our exposure to forecasted Euro-denominated inter-company revenues. These contracts were designated as cash flow hedges. The foreign currency contracts mature at various dates from January 2013 to March 2013. The purpose of these cash flow hedges is to reduce the currency risk associated with Euro-denominated forecasted inter-company revenues due to changes in exchange rates. These cash flow hedging instruments are marked to market and the changes are recorded in other comprehensive income. Amounts recorded in other comprehensive income are recognized in cost of goods sold as the inventory is sold to external parties. Any hedge ineffectiveness is charged to other gain (loss), net on our Consolidated Statements of Operations. As of December 30, 2012, the fair value of these cash flow hedges was reflected as a $14 thousand asset and is included in other current assets in the accompanying Consolidated Balance Sheets. The total notional amount of these hedges is $3.9 million (€2.9 million) and the unrealized gain recorded in other comprehensive income was $0.2 million (net of taxes of $6 thousand), of which $0.2 million is expected to be reclassified to earnings over the next twelve months. During the year ended December 30, 2012, a $2.0 million benefit related to these foreign currency hedges was recorded to cost of goods sold as the inventory was sold to external parties. The Company recognized a $0.1 million gain during the year ended December 30, 2012 for hedge ineffectiveness.

During the first quarter of 2008, we entered into an interest rate swap agreement with a notional amount of $40 million. The purpose of this interest rate swap agreement was to hedge potential changes to our cash flows due to the variable interest nature of our senior unsecured credit facility. The interest rate swap was designated as a cash flow hedge. This cash flow hedging instrument was marked to market and the changes were recorded in other comprehensive income. The interest rate swap matured on February 18, 2010.

Provision for Restructuring

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

46

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan will impact over 2,400 existing employees. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are expected to approximate $70 million to $75 million by the end of 2013, with $52 million to $55 million in total anticipated costs for the Global Restructuring Plan and $18 million of costs incurred for the SG&A Restructuring Plan, which is substantially complete. Total annual savings of the two plans, including related cost reduction initiatives, are expected to approximate $100 million to $105 million by the end of 2013, with $81 million to $85 million in total anticipated savings for the Global Restructuring Plan including Project LEAN and $19 million to $20 million in total anticipated savings for the SG&A Restructuring Plan. Through our Global Restructuring Plan including Project LEAN, we plan to stabilize sales, actively manage margins, dramatically reduce operating expenses, more effectively manage working capital and improve global cash management control.

Restructuring expense for the periods ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	16,945		$	11,115		$	—
Asset impairments	6,506			7,761			—
Other exit costs	5,068			519			—
SG&A Restructuring Plan
Severance and other employee-related charges	(86		)	7,015			6,993
Asset impairments	—			72			—
Other exit costs	64			2,203			—
Manufacturing Restructuring Plan
Severance and other employee-related charges	—			(146		)	641
Other exit costs	(75		)	101			577
Total	$	28,422		$	28,640		$	8,211

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Restructuring accrual activity for the periods ended December 30, 2012, and December 25, 2011, were as follows:

(amounts in thousands)
Fiscal 2012	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 30, 2012
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	9,710	$	21,558	$	(4,613	)	$	(19,044	)	$	141		$	7,752
Other exit costs(1)	—		5,068		—			(4,600		)	(8		)	460
SG&A Restructuring Plan
Severance and other employee-related charges(3)	6,718		1,100		(1,186		)	(5,363		)	(63		)	1,206
Other exit costs(2)	1,109		64		—			(1,012		)	—			161
Manufacturing Restructuring Plan
Other exit costs	75		—		(75		)	—			—			—
Total	$	17,612	$	27,790	$	(5,874	)	$	(30,019	)	$	70		$	9,579

⁽¹⁾  During 2012, there was a net charge to earnings of $5.1 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, pension settlements, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2012, there was a net charge to earnings of $0.1 million primarily due to lease termination costs and outplacement costs in connection with the restructuring plan.

⁽³⁾  During 2012, there was a severance charge reversed to earnings of $5.8 million primarily due to eliminations of individuals from the plans, replacements of individuals in the plans with other individuals, resignations, and other final accrual adjustments. The eliminations and replacements were primarily the result of our change in management and strategic vision in 2012.

(amounts in thousands)
Fiscal 2011	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 25, 2011
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	—	$	11,382	$	(267	)	$	(1,268	)	$	(137	)	$	9,710
Other exit costs(1)	—		519		—			(519		)	—			—
SG&A Restructuring Plan
Severance and other employee-related charges	$	6,660	$	7,147	$	(132	)	$	(6,718	)	$	(239	)	$	6,718
Other exit costs(2)	—		2,214		(11		)	(1,095		)	1			1,109
Manufacturing Restructuring Plan
Severance and other employee-related charges	719		69		(215		)	(583		)	10			—
Other exit costs(3)	143		112		(11		)	(169		)	—			75
Total	$	7,522	$	21,443	$	(636	)	$	(10,352	)	$	(365	)	$	17,612

⁽¹⁾  During 2011, there was a net charge to earnings of $0.5 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2011, there was a net charge to earnings of $2.2 million primarily due to the closing of an operating facility and one-time payment related to a lease modification for an operating facility as well as lease payment accruals after exiting one of our facilities.

⁽³⁾  During 2010, costs were recorded due to the closing of a manufacturing facility. For the year ended 2011, there was a net charge to earnings of $0.1 million due to other exit costs associated with the manufacturing closings.

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Global Restructuring Plan (including LEAN)

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

As of December 30, 2012, the net charge to earnings of $28.5 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. The anticipated total costs related to the plan are expected to approximate $52 million to $55 million, of which $47.9 million have been incurred. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,100, of which 1,484 have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

SG&A Restructuring Plan

During 2009, we initiated the SG&A Restructuring Plan focused on reducing our overall operating expenses by consolidating certain administrative functions to improve efficiencies. The first phase of this plan was implemented in the fourth quarter of 2009 with the remaining phases of the plan substantially completed by the end of the first quarter of 2012.

As of December 30, 2012, the net charge reversed earnings of $22 thousand represents the current year activity related to the SG&A Restructuring Plan. The implementation of the SG&A Restructuring Plan is substantially complete, with total costs incurred of approximately $18 million. The total number of employees planned to be affected by the SG&A Restructuring Plan is approximately 369, of which substantially all have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

Manufacturing Restructuring Plan

In August 2008, we announced a manufacturing and supply chain restructuring program designed to accelerate profitable growth in our Apparel Labeling Solutions (ALS) business, formerly Check-Net^®, and to support incremental improvements in our EAS systems and labels businesses. For the year ended December 30, 2012, there was a $0.1 million charge reversed to earnings recorded in connection with the Manufacturing Restructuring Plan.

The total number of employees planned to be affected by the Manufacturing Restructuring Plan is 420, all of which have been terminated. As of December 30, 2012 the implementation of the Manufacturing Restructuring Plan is substantially complete, with total costs incurred of $4.1 million.

Goodwill Impairments

We perform an assessment of goodwill by comparing each individual reporting unit’s carrying amount of net assets, including goodwill, to their fair value at least annually during the fourth quarter of each fiscal year and whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

During the second quarter of 2012, we experienced deterioration in revenues, gross margins and operating results in each of our segments as compared to the forecasted amounts in the most recent impairment test. Due to the declines in operating results in our segments, a change in management, and a revised strategic focus, we determined that impairment triggering events had occurred and that an assessment of goodwill was warranted. This resulted in our assessment that the carrying value of the Apparel Labeling Solutions reporting unit exceeded its fair value. As a result of our interim impairment test, a $64.4 million non-cash goodwill impairment charge was recorded in goodwill impairment expense on the Consolidated Statement of Operations as of June 24, 2012 in our Apparel Labeling Solutions segment. The goodwill impairment expense was due to the decline in estimated future Apparel Labeling Solutions cash flow impacted by our plan to refocus the business, coupled with recent declines in revenue and profitability.

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There were no additional impairment indicators during the third quarter ended September 23, 2012. Our 2012 annual impairment test resulted in our assessment that the carrying value of the Europe Retail Merchandising Solutions reporting unit exceeded its fair value. As a result of our annual impairment test, a $38.3 million non-cash goodwill impairment charge was assessed as of October 21, 2012, and recorded in goodwill impairment expense on the Consolidated Statement of Operations in the fourth quarter of 2012 in our Retail Merchandising Solutions segment. The goodwill impairment expense was due to the decline in estimated future Europe Retail Merchandising Solutions cash flows impacted by current economic conditions in Europe resulting in decreased customer investments in new stores and refurbishments. Additionally, increased competition and pricing pressures are factors that have negatively impacted this business.

Our 2011 and 2010 annual assessments did not result in an impairment charge. Future annual assessments could result in impairment charges, which would be accounted for as an operating expense.

As a result of the plan to divest the Banking Security Systems Integration business unit in 2011, we assessed the related goodwill asset for impairment. In the fourth quarter ended December 25, 2011, we recorded a goodwill impairment charge of $3.4 million. During the second quarter of 2012, we performed an impairment test based on updated fair value information regarding the Banking Security Systems Integration business unit. As a result of this impairment test, we determined that there was a $0.4 million impairment charge in the goodwill reporting unit of our Shrink Management Solutions segment. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations during the respective periods.

As a result of the plan to divest our U.S. and Canada based CheckView^® business unit in 2012, we assessed the related goodwill asset for impairment. In the fourth quarter ended December 30, 2012, we recorded a goodwill impairment charge of $3.3 million in our Shrink Management Solutions segment. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations. After a full impairment of its long-lived assets, the remaining carrying value of our CheckView^® business at December 30, 2012 exceeded its fair value by approximately $0.8 million.

Asset Impairments

There was no asset impairment expense from continuing operations in 2012 ($1.8 million including discontinued operations) as compared to asset impairment expense from continuing operations in 2011 of $0.6 million ($3.4 million including discontinued operations).

During our 2011 goodwill and indefinite-lived intangibles annual impairment test, we determine that an indefinite-lived trade name intangible asset in our SMS segment was impaired. As a result we recorded an impairment charge of $0.6 million in the fourth quarter of 2011. This charge was recorded in asset impairment expense on the Consolidated Statement of Operations.

In the fourth quarter ended December 25, 2011, as a result of the plan to divest the Banking Security Systems Integration business unit, we assessed the related customer relationship intangible assets for impairment and recorded an intangible impairment charge of $2.8 million. The impairment charge was recorded in discontinued operations on the Consolidated Statement of Operations.

During the second quarter of 2012, we performed an impairment test based on updated fair value information regarding the Banking Security Systems Integration business unit. As a result of this impairment test, we determined that there was a $0.7 million impairment of customer relationship intangible assets. During the third quarter of 2012, we performed an impairment test based on final negotiations of the selling price for the Banking Security Systems Integration business unit. As a result of this impairment test, we determined that there was a $0.8 million additional impairment of customer relationship intangible assets. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations during the second and third quarters ended June 24, 2012 and September 23, 2012, respectively.

As a result of the plan to divest our U.S. and Canada based CheckView^® business unit in 2012, we performed an impairment test of our long-lived assets. In the fourth quarter ended December 30, 2012, we recorded a $0.3 million impairment of property, plant and equipment in our Shrink Management Solutions segment. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations.

As a result of interim impairment indicators in the second quarter of 2012, we performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the long-lived assets in our Apparel Labeling Solutions reporting unit to their carrying amounts. The undiscounted cash flow analysis resulted in no impairment charge.

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In connection with our annual impairment test, we performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the long-lived assets in our Europe Retail Merchandising Solutions reporting unit to their carrying amounts. The undiscounted cash flow analysis resulted in no impairment charge.

Results of Operations

(All comparisons are with the previous fiscal year, unless otherwise stated.)

Net Revenues

Our unit volume is driven by product offerings, number of direct sales personnel, recurring sales and, to some extent, pricing. Our base of installed systems provides a source of recurring revenues from the sale of disposable tags, labels, and service revenues.

Our customers are substantially dependent on retail sales, which are seasonal, subject to significant fluctuations, and difficult to predict. In addition, current economic trends have particularly affected our customers, and consequently our net revenues have been, and may continue to be impacted in the future. Historically, we have experienced lower sales in the first half of each year.

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Analysis of Statement of Operations

The following table presents for the periods indicated certain items in the Consolidated Statement of Operations as a percentage of total revenues and the percentage change in dollar amounts of such items compared to the indicated prior period:

	Percentage of Total Revenues						Percentage Change in Dollar Amount
Year ended	December 30, 2012 (Fiscal 2012)		December 25, 2011 (Fiscal 2011)		December 26, 2010 (Fiscal 2010)		Fiscal 2012 vs. Fiscal 2011		Fiscal 2011 vs. Fiscal 2010
Net revenues:
Shrink Management Solutions	65.1	%	64.4	%	65.8	%	(8.5	)%	4.3	%
Apparel Labeling Solutions	26.8		26.0		24.1		(6.7	)	14.6
Retail Merchandising Solutions	8.1		9.6		10.1		(24.4	)	2.3
Net revenues	100.0		100.0		100.0		(9.6	)	6.6
Cost of revenues	60.8		59.1		56.1		(7.0	)	12.3
Total gross profit	39.2		40.9		43.9		(13.3	)	(0.7	)
Selling, general, and administrative expenses	36.1		36.6		35.7		(11.0	)	9.4
Research and development	2.4		2.5		2.8		(14.9	)	(2.1	)
Restructuring expenses	4.1		3.8		1.1		(0.8	)	248.8
Asset impairment	—		0.1		—		(100.0	)	N/A
Goodwill impairment	14.9		—		—		N/A		N/A
Litigation settlement	—		0.1		—		(68.7	)	N/A
Acquisition costs	—		0.3		0.1		(85.7	)	343.4
Other (income) expense	(0.6	)	—		0.2		N/A		(111.6	)
Other operating income	0.3		2.5		—		(89.4	)	N/A
Operating (loss) income	(17.4	)	—		4.0		N/A		(99.4	)
Interest income	0.3		0.4		0.4		(48.0	)	8.4
Interest expense	1.5		1.0		0.9		34.4		21.8
Other gain (loss), net	(0.4	)	(0.2	)	(0.3	)	13.7		(31.9	)
(Loss) earnings from continuing operations before income taxes	(19.0	)	(0.8	)	3.2		N/A		(125.5	)
Income taxes expense	1.0		7.8		0.5		(87.6	)	N/A
Net (loss) earnings from continuing operations	(20.0	)	(8.6	)	2.7		111.5		(439.4	)
(Loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	(1.2	)	(0.1	)	1.2		583.2		(114.0	)
Net (loss) earnings	(21.2	)	(8.7	)	3.9		119.7		(341.3	)
Less: loss attributable to non-controlling interests	(0.1	)	—		—		828.1		(50.9	)
Net (loss) earnings attributable to Checkpoint Systems, Inc.	(21.1	)%	(8.7	)%	3.9	%	119.1		(340.1	)%

N/A - Comparative percentages are not meaningful.

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Fiscal 2012 compared to Fiscal 2011

Net Revenues

During 2012, revenues decreased by $72.9 million, or 9.5%, from $763.7 million to $690.8 million. Foreign currency translation had a negative impact on revenues of $25.7 million for the full year of 2012.

(amounts in millions)
Year ended	December 30, 2012 (Fiscal 2012)		December 25, 2011 (Fiscal 2011)		Dollar Amount Change Fiscal 2012 vs. Fiscal 2011			Percentage Change Fiscal 2012 vs. Fiscal 2011
Net Revenues:
Shrink Management Solutions	$	450.1	$	491.9	$	(41.8	)	(8.5	)%
Apparel Labeling Solutions	185.0		198.1		(13.1		)	(6.7	)
Retail Merchandising Solutions	55.7		73.7		(18.0		)	(24.4	)
Net Revenues	$	690.8	$	763.7	$	(72.9	)	(9.5	)%

Shrink Management Solutions

Shrink Management Solutions (SMS) revenues decreased $41.8 million, or 8.5%, in 2012 compared to 2011. Foreign currency translation had a negative impact of approximately $16.4 million. The remaining decrease of $25.4 million in Shrink Management Solutions was due to declines in EAS consumables, Alpha^®, EAS systems and CheckView^®. These decreases were partially offset by an increase in Merchandise Visibility (RFID).

The EAS consumables revenues decrease in 2012 as compared to 2011 was primarily due to a decline in Hard Tag @ Source^™ revenues, which were below levels of one year ago when we experienced high volumes associated with the initial program roll-out to a major European retailer. Also contributing to the decrease was a decline in EAS label volumes with certain customers in Europe, Asia, and the U.S. Economic uncertainty and soft markets present an ongoing challenge to our revenue growth in consumable products. These declines were partially offset by increased orders in International Americas.

Alpha^® revenues decreased in 2012 as compared to 2011 due to worsened market conditions in Europe, the U.S., and Asia for high theft prevention products during 2012. This factor was partially offset by a strong demand for Alpha^® products in the International Americas. We expect global Alpha revenues to increase in 2013 as a result of an increased focus on execution as well as increased attention on marketing of existing and new products.

The CheckView^® revenue from continuing operations in Europe and Asia decreased in 2012 as compared to 2011 was due to the impact of the movement of a portion of this business to a distributor model, as well as lower volumes of installations and on-going services with existing customers. CheckView^® has been dependent on new store openings and capital spending of our customers, all of which have been adversely impacted, and may continue to be impacted by, current economic trends. We are significantly reducing our focus on CheckView^® by pursuing the divestiture of our U.S. and Canada CheckView^® business and will limit our focus on opportunistic sales in Asia.

EAS systems revenues in Europe decreased in 2012 as compared to 2011. The decrease was primarily due to lower volumes of new product installation with existing customers. Historically, new store openings are a significant contributor to EAS systems revenues. These have been scaled back in 2012 by many of our European based customers who have increased their focus on margin improvement at existing stores.

The Merchandise Visibility (RFID) revenues increased in 2012 as compared to 2011, as the business continues to gain traction with installations at several major retailers. The increase was primarily due to a roll-out with RFID enabled technology in Europe in 2012, which did not occur in 2011, as well as increased business in the U.S. We expect RFID revenues to increase in 2013 as a result of the conversion of certain current pilots into installation contracts and the expansion of certain installation contracts to additional stores.

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Apparel Labeling Solutions

Apparel Labeling Solutions revenues decreased $13.1 million, or 6.7%, in 2012 as compared to 2011. After considering the foreign currency translation negative impact of approximately $5.3 million, the remaining decrease of $7.8 million was due to a $26.2 million decline in organic revenues, primarily due to declines in sales volumes across Europe, the U.S., and International Americas. The weakness in these markets is broad based. A large portion of our European customer base includes hyper-markets and mainstream apparel retailers which have seen a significant impact from the economic downturn. In the U.S., retailers are recovering slowly. As a result, we have seen a cautious approach to purchases from apparel vendors that resulted in delays in peak season ordering. This decline in revenues was partially offset by the inclusion of $18.3 million in revenues attributable to the Shore to Shore businesses, which we acquired in May 2011.

Retail Merchandising Solutions

Retail Merchandising Solutions revenues decreased $18.0 million, or 24.4%, in 2012 as compared to 2011. After considering the foreign currency translation negative impact of $4.0 million, the $14.0 million decrease in revenues is primarily related to the impact of the movement of a portion of this business to a distributor model and a decrease in Hand-held Labeling Solutions (HLS). We anticipate HLS will face difficult revenue trends due to the continued shifts in market demand for HLS products. Our Retail Merchandising Solutions business has also been negatively impacted by fewer new store openings and remodels of existing stores at our European customers.

Gross Profit

During 2012, gross profit decreased $41.5 million, or 13.3%, from $312.3 million to $270.8 million. The negative impact of foreign currency translation on gross profit was approximately $7.1 million. Gross profit, as a percentage of net revenues, decreased from 40.9% to 39.2%.

Shrink Management Solutions

Shrink Management Solutions gross profit as a percentage of Shrink Management Solutions revenues decreased to 44.1% in 2012, from 44.8% in 2011. The decrease in the gross profit percentage of Shrink Management Solutions was due primarily to lower margins in EAS consumables and Merchandise Visibility (RFID). The decrease was partially offset by higher margins in EAS systems and Alpha^®. EAS consumables margins were lower due to the decline in higher margin Hard Tag @ Source revenues, as well as increased Hard Tag @ Source product costs. Merchandise Visibility (RFID) margins were lower due to the impact of a large roll-out with RFID enabled technology in Europe in 2012. EAS systems margins increased due to favorable manufacturing variances and decreased field service costs, primarily related to our restructuring efforts. Alpha margins increased due to decreased inventory costs as well as reduced shipping charges.

Apparel Labeling Solutions

Apparel Labeling Solutions gross profit as a percentage of Apparel Labeling Solutions revenues decreased to 25.2% in 2012, from 28.7% in 2011. Recent actions to restructure and right size our manufacturing footprint contributed to a temporary reduction in gross margins, including an impact on inventory reserves and shipping costs. The impact of the Shore to Shore acquisition also contributed to the decline. During the third quarter of 2012, we successfully implemented the initial phases of restructuring in Asia and North America and began to see positive gross margin impact starting near the end of the third quarter through the fourth quarter of 2012.

Retail Merchandising Solutions

The Retail Merchandising Solutions gross profit as a percentage of Retail Merchandising Solutions revenues decreased to 45.7% in 2012 from 47.3% in 2011. The decrease in Retail Merchandising Solutions gross profit percentage was primarily due to the net impact of the movement of a portion of this business to a distributor model. Further, lower margins were caused by unfavorable manufacturing variances related to lower volumes in HLS in 2012.

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Selling, General, and Administrative Expenses

Selling, general, and administrative (SG&A) expenses decreased $30.7 million, or 11.0%, during 2012 compared to 2011. Foreign currency translation decreased SG&A expenses by approximately $7.8 million. The SG&A and enhanced Global Restructuring programs reduced expenses by $19.9 million. The Shore to Shore acquisition increased SG&A expense by $4.8 million. Also contributing to the decrease were declines in consulting, operations and shared services expenses resulting from the second quarter of 2011 North American and Caribbean implementation of our company wide ERP system, reductions in temporary staff added in the second quarter of 2011 to add capabilities required for future process and cost improvement initiatives, and decreased commissions expenses associated with the renewal/extension of sales-type leases in the second quarter of 2011. Reductions in stock-based compensation expense, bad debt expense. amortization expense on fully amortized intangible assets, and tax consulting fees also contributed to the decline. Partially offsetting the decrease were increases in performance incentive accruals, costs associated with the CEO transition, and increased payroll related costs associated with the 53 week fiscal year 2012.

Research and Development Expenses

Research and development (R&D) expenses were $16.4 million, or 2.4% of revenues, in 2012 and $19.3 million, or 2.5% of revenues in 2011.

Restructuring Expenses

Restructuring expenses were $28.4 million, or 4.1% of revenues in 2012 compared to $28.6 million or 3.8% of revenues in 2011.

Asset Impairment

Asset impairment expense was $0.6 million, or 0.1% of revenues in 2011, without a comparable charge in 2012. The 2011 expense is detailed in the "Asset Impairments" section of Item 7.

Goodwill Impairment

Goodwill impairment expense was $102.7 million, or 14.9% of revenues in 2012, without a comparable charge in 2011. The non-cash impairment expense in 2012 is detailed in the “Goodwill Impairments” section of Item 7.

Litigation Settlement

Litigation settlement expense was $0.3 million in 2012 compared to $0.9 million of revenues in 2011. The 2012 litigation settlement expense is attributable to a $0.3 million accrual recorded during the fourth quarter of 2012 related to the settlement of a service contract termination dispute. The 2011 litigation settlement expense is attributable to a $0.9 million accrual recorded during the fourth quarter of 2011 related to a patent infringement counter suit in which we were found liable for the other party’s associated legal fees. We have submitted an appeal of the ruling to the Court but have accrued the full amount of the judgment.

Acquisition Costs

Acquisition Costs in 2012 were $0.3 million compared to $2.3 million in 2011. The decrease in acquisition costs was primarily due to the closing of the acquisition of the Shore to Shore businesses in May 2011.

Other (Income) Expense

Other income was $3.9 million in 2012 compared to other income of $0.2 million in 2011. These amounts represent the income statement impacts of the improper and fraudulent activities of a certain former employee of the Company's Canada sales subsidiary. During 2012, compensation received from our insurance provider of $4.7 million for the financial impact of the fraudulent Canadian activities was partially offset by legal and forensic costs incurred in connection with the Canada matter.

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Other Operating Income

Other operating income was $2.0 million, or 0.3% of revenues in 2012 compared to $19.3 million, or 2.5% of revenues in 2011. The 2012 other operating income represents the gain on sale of our non-strategic Suzhou, China subsidiary, as well as income attributable to the sale of customer related receivables associated with the renewal and extension of sales-type lease arrangements. The 2011 other operating income was attributable to the sale of customer related receivables associated with the renewal and extension of sales-type lease arrangements. The customers were based mostly in Europe and relate to our Shrink Management Solutions segment.

Interest Income and Interest Expense

Interest income in 2012 decreased $1.6 million from the comparable period in 2011. The decrease in interest income was primarily due to lower cash balances and decreased interest income recognized for sales-type leases during 2012 compared to 2011.

Interest expense for 2012 increased $2.7 million from the comparable period in 2011. The increase in interest expense was primarily due to the amendment of our Senior Secured Credit Facility and Senior Secured Notes, as well as a make-whole premium of $1.1 million on the Senior Secured Notes.

Other Gain (Loss), net

Other gain (loss), net was a net loss of $1.7 million in 2012 compared to a net loss of $1.5 million in 2011. There was a $1.7 million foreign exchange loss during 2012 compared to a $2.1 million foreign exchange loss partially offset by $0.5 million of other income during 2011. During 2012 the primary drivers of the foreign currency loss were fluctuations in the value of the U.S. Dollar to the Euro and Sri Lankan Rupee and the Great British Pound to the Euro.

Income Taxes

The effective tax rate for 2012 was negative 5.6% as compared to negative 1,011.8% for 2011. The 2012 tax rate was impacted by the 2012 goodwill impairment charges. The 2011 tax rate was impacted by a charge of $47.7 million to establish a valuation allowance on the U.S. Federal net deferred tax assets.

Loss from Discontinued Operations, Net of Tax

Loss from discontinued operations, net of tax, was $8.0 million and $1.2 million in 2012 and 2011, respectively. Consistent with our refined strategy to focus on inventory management systems that focus on on-shelf availability, we decided to reduce our emphasis on CheckView^® services and solutions. In October 2012, we completed the sale of the Banking Security Systems Integration business unit, which was focused on the financial services sector and previously was part of our CheckView^® business. We are also pursuing the divestiture of our U.S. and Canada based CheckView^® business so that we can focus on the growth of our core business. As such, both businesses, which were included in our Shrink Management Solutions segment, are excluded from continuing operations. The loss from discontinued operations included impairment charges of $5.4 million and $6.2 million for 2012 and 2011, respectively.

Net (Loss) Earnings Attributable to Checkpoint Systems, Inc.

Net loss attributable to Checkpoint Systems, Inc. was $145.9 million, or $3.56 per diluted share, during 2012 compared to $66.6 million, or $1.64 per diluted share, during 2011. The weighted-average number of shares used in the diluted earnings per share computation were 41.0 million and 40.5 million for 2012 and 2011, respectively.

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Fiscal 2011 compared to Fiscal 2010

Net Revenues

During 2011, revenues increased by $47.2 million, or 6.6%, from $716.5 million to $763.7 million. Foreign currency translation had a positive impact on revenues of $23.7 million for the full year of 2011.

(amounts in millions)
Year ended	December 25, 2011 (Fiscal 2011)		December 26, 2010 (Fiscal 2010)		Dollar Amount Change Fiscal 2011 vs. Fiscal 2010		Percentage Change Fiscal 2011 vs. Fiscal 2010
Net Revenues:
Shrink Management Solutions	$	491.9	$	471.6	$	20.3	4.3	%
Apparel Labeling Solutions	198.1		172.9		25.2		14.6
Retail Merchandising Solutions	73.7		72.0		1.7		2.3
Net Revenues	$	763.7	$	716.5	$	47.2	6.6	%

Shrink Management Solutions

Shrink Management Solutions revenues increased $20.3 million, or 4.3%, in 2011 compared to 2010. Foreign currency translation had a positive impact of approximately$17.6 million. After considering the impact of the foreign currency translation, the increases in EAS systems were offset by decreases in EAS consumables.

The EAS systems revenue increase was driven by growth in Asia and Europe resulting from the addition of new customers and also due to the extensions of arrangements and new product installations with existing customers. Historically, new store openings are a significant contributor to EAS systems revenues. These have been scaled back by many of our European and North American based customers, who have increased their focus on margin improvement at existing stores.

The EAS consumables revenue decrease was primarily due to Hard Tag @ Source^™ revenues, which were below levels of one year ago when we experienced high volumes associated with the initial program roll-out to a major European retailer. A decline in Europe EAS label revenues due to reduced volumes with certain customers was also a factor.

Apparel Labeling Solutions

Apparel Labeling Solutions revenues increased $25.2 million, or 14.6%, in 2011 compared to 2010. After considering the foreign currency translation positive impact of approximately $2.1 million, the remaining increase of $23.1 million was due to $35.3 million in revenues from the acquisition of Shore to Shore on May 16, 2011, which were offset by a $12.2 million decline in organic revenues, primarily due to a decline in sales volumes in Europe.

Retail Merchandising Solutions

Retail Merchandising Solutions revenues increased $1.7 million, or 2.3%, in 2011 compared to 2010. After considering the foreign currency translation positive impact of approximately $4.0 million, the decrease in revenues is primarily related to a decrease in Hand-held Labeling Solutions (HLS). HLS has faced difficult trends due to the impact of continued shifts in market demand for HLS products.

Gross Profit

During 2011, gross profit decreased $2.1 million, or 0.7%, from $314.4 million to $312.3 million. The positive impact of foreign currency translation on gross profit was approximately $7.4 million. Gross profit, as a percentage of net revenues, decreased from 43.9% to 40.9%.

57

Shrink Management Solutions

Shrink Management Solutions gross profit as a percentage of Shrink Management Solutions revenues decreased to 44.8% in 2011, from 46.2% in 2010. The decrease in the gross profit percentage of Shrink Management Solutions was due primarily to lower margins in Alpha^®, EAS consumables, and EAS systems. The decline in Alpha^® margins was due to customer and product mix coupled with rising raw material prices. The decline in EAS consumables margins was due to delays in capturing expected cost efficiencies as we expanded new product and specialty label capacity, coupled with pricing that does not yet reflect the enhanced capabilities of these products that we experienced earlier this year. EAS consumables margins were also impacted by the year over year reduction in higher margin Hard Tag @ Source^™. The decline in EAS Systems margins were driven by lower volumes and product mix.

Apparel Labeling Solutions

Apparel Labeling Solutions gross profit as a percentage of Apparel Labeling Solutions revenues decreased to 28.7% in 2011, from 35.7% in 2010. The decline was largely attributable to weaker operational performance at certain Asia facilities, inventory adjustments, and the impact of the Shore to Shore acquisition, which includes a purchase accounting based mark-up of acquired inventory as well as the deferred transfer to the Company of certain Asia based printing operations. The efficiency issues that impacted EAS consumables margins in the Shrink Management Solutions segment also contributed to the Apparel Labeling Solutions margin decline.

Retail Merchandising Solutions

Retail Merchandising Solutions gross profit as a percentage of Retail Merchandising Solutions revenues decreased to 47.3% in 2011, from 48.5% in 2010. The decrease in Retail Merchandising Solutions gross profit percentage was due primarily to lower margins in HLS resulting from unfavorable manufacturing variances related to lower volumes.

Selling, General, and Administrative Expenses

Selling, general, and administrative (SG&A) expenses increased $24.0 million, or 9.4%, in 2011 compared to 2010. Foreign currency translation increased SG&A expenses by approximately $7.9 million. The remaining increase in SG&A expense of $16.1 million was due primarily to the impact of the Shore to Shore acquisition, increases in selling expenses, and temporary increases in consulting, operations and shared services expenses resulting from the 2011 North American and Caribbean implementation of our company wide ERP system. Also contributing to the increase were additions to staff to add capabilities required for future process and cost improvement initiatives, and increased commissions expenses associated with the renewal/extension of sales-type leases in the 2011. Offsetting these increases were the effects of an incentive compensation adjustment, fee reductions from external service providers and decreased marketing activities. We expect the impact of the SG&A and enhanced Global Restructuring program to contribute to meaningful reductions in SG&A expense.

Research and Development Expenses

Research and development (R&D) expenses were $19.3 million, or 2.5% of revenues, in 2011 and $19.7 million, or 2.8% of revenues in 2010.

Restructuring Expenses

Restructuring expenses were $28.6 million, or 3.8% of revenues in 2011 compared to $8.2 million or 1.1% of revenues in 2010. The increase is due to the implementation of the Global Restructuring Plan and continued SG&A Plan activities, which included $7.8 million in restructuring related asset impairment charges for various locations around the world as well as $18.0 million of severance charges and other costs of $2.8 million primarily in connection with the enhanced Global Restructuring Plan and the SG&A Restructuring Plan.

Asset Impairments

Asset impairment expense was $0.6 million in 2011, without a comparable charge in 2010. The 2011 expense is detailed in the “Asset Impairments” section following “Liquidity and Capital Resources.”

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Litigation Settlement Expense

Litigation settlement expense was $0.9 million or 0.1% of revenues in 2011 without comparable expense in 2010. The litigation settlement expense is primarily attributable to a $0.9 million accrual recorded during the fourth quarter of 2011 related to a patent infringement counter suit in which the Company was found liable for the other party’s associated legal fees. The Company has submitted an appeal of the ruling to the Court but has accrued the full amount of the judgment.

Acquisition Costs

Acquisition costs were $2.3 million in 2011 and $0.5 million in 2010.

Other (Income) Expense

Other (income) expense was $0.2 million of income in 2011 compared to $1.5 million of expense in 2010. These amounts represent the income statement impacts of the improper and fraudulent activities of a certain former employee of the Company’s Canada sales subsidiary.

Other Operating Income

Other operating income was $19.3 million, or 2.5% of revenues in 2011 without comparable income in 2010. The increase was due to the sales of customer related receivables associated with the renewal and extension of sales-type lease arrangements. The customers are based mostly in Europe and relate to our Shrink Management Solutions segment.

Interest Income and Interest Expense

Interest income in 2011 increased $0.3 million from the comparable period in 2010. The increase in interest income was primarily due to higher subsidiary cash balances and increased interest income recognized for sales-type leases during 2011 compared to 2010.

Interest expense for 2011 increased $1.4 million from the comparable period in 2010 due to an increase in debt related to the Shore to Shore acquisition as well as the funding of the temporary cash flow impact of the 2011 ERP implementation in North America and Caribbean operations. Interest expense was also impacted by an increase in interest charged on our revolving credit facility due to an increase in our total leverage ratio.

Other Gain (Loss), net

Other gain (loss), net was a net loss of $1.5 million in 2011 compared to a net loss of $2.2 million in 2010. The change in other net loss was primarily due to a $2.1 million foreign currency loss during 2011 compared to a $2.7 million foreign currency loss during 2010. The primary drivers of the change in foreign currency loss were fluctuations in the value of the U.S. Dollar to the Euro and the Japanese Yen.

Income Taxes

The effective rate of tax at December 25, 2011 was negative 1,011.8%. At December 26, 2010, the effective tax rate was 16.6%. The 2011 tax rate was primarily impacted by a charge of $47.7 million to establish a valuation allowance on the U.S. Federal net deferred tax assets.

The 2010 tax rate was impacted by a $7.9 million release of tax reserves, partially offset by charges of $5.1 million related to establishing a full valuation allowance against the U.S. State deferred tax assets and provision to return adjustments of $4.0 million and $1.1 million, respectively. The 2010 effective tax rate was also impacted by a $1.7 million adjustment of an acquisition related liability pertaining to the period prior to the acquisition date.

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(Loss) Earnings from Discontinued Operations, Net of Tax

Loss from discontinued operations, net of tax, was $1.2 million2011, compared to earnings from discontinued operations, net of tax of $8.3 million in 2010, respectively. In December of 2011, we began actively marketing our Banking Security Systems Integration business unit. In December 2012, we also began pursuing the divestiture of our U.S. and Canada based CheckView^® business so that we can focus on the growth of our core business. As such, both businesses, which were included in our Shrink Management Solutions segment, are excluded from continuing operations. The Banking Security Systems Integration business unit's 2011 loss from discontinued operations included impairment charges of $6.2 million, net of tax.

Net (Loss) Earnings Attributable to Checkpoint Systems, Inc.

Net loss attributable to Checkpoint Systems, Inc. was $66.6 million, or $1.64 per diluted share, for 2011 compared to net earnings attributable to Checkpoint Systems, Inc. of $27.7 million, or $0.69 per diluted share, for 2010. The weighted-average number of shares used in the diluted earnings per share computation was 40.5 million and 40.4 million for 2011 and 2010, respectively.

Other Matters

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.

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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. In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities," which clarifies the scope of the offsetting disclosures of ASU 2011-11. Both ASUs are 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.

In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The Company is currently evaluating the impact of adopting this guidance.

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Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market Risk Factors

Fluctuations in interest and foreign currency exchange rates affect our financial position and results of operations. We enter into forward exchange contracts denominated in foreign currency to reduce the risks of currency fluctuations on short-term inter-company receivables and payables. We also enter into various foreign currency contracts to reduce our exposure to forecasted Euro-denominated inter-company revenues. We have historically not used financial instruments to minimize our exposure to currency fluctuations on our net investments in and cash flows derived from our foreign subsidiaries. We have used third party borrowings in foreign currencies to hedge a portion of our net investments in and cash flows derived from our foreign subsidiaries. As of December 30, 2012, substantially all third party borrowings were in the functional currency of the subsidiary borrower. Additionally, we enter, on occasion, into interest rate swaps to reduce the risk of significant interest rate increases in connection with our floating rate debt.

We are subject to foreign currency exchange risk on our foreign currency forward exchange contracts which represent a $0.2 million asset position and $0.2 million liability position as of December 30, 2012, and a $0.5 million asset position and $0.4 million liability position as of December 25, 2011. The sensitivity analysis assumes an instantaneous 10% change in foreign currency exchange rates from year-end levels, with all other variables held constant. At December 30, 2012, a 10% strengthening of the U.S. dollar versus other currencies would result in an increase of $0.7 million in the net asset position, while a 10% weakening of the dollar versus all other currencies would result in a decrease of $0.7 million.

Foreign exchange forward contracts are used to hedge certain of our firm foreign currency cash flows. Thus, there is either an asset or cash flow exposure related to all the financial instruments in the above sensitivity analysis for which the impact of a movement in exchange rates would be in the opposite direction and substantially equal to the impact on the instruments in the analysis. Certain of our foreign subsidiaries have restrictions on the remittance of funds generated by our operations outside the U.S. At December 30, 2012, the majority of our unremitted earnings of subsidiaries outside the U.S. were deemed not to be permanently reinvested.

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Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Index to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm	64
Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011	65
Consolidated Statements of Operations for each of the years in the three-year period ended December 30, 2012	66
Consolidated Statements of Comprehensive (Loss) Income for each of the years in the three-year period ended December 30, 2012	67
Consolidated Statements of Equity for each of the years in the three-year period ended December 30, 2012	68
Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 30, 2012	69
Notes to Consolidated Financial Statements	70
Financial Statement Schedules, Schedule II – Valuation and Qualifying Accounts	123

63

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of

Checkpoint Systems, Inc.

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, comprehensive (loss) income, equity and cash flows present fairly, in all material respects, the financial position of Checkpoint Systems, Inc. and its subsidiaries at December 30, 2012 and December 25, 2011, and the results of their operations and their cash flows for each of the three years in the period ended December 30, 2012 in conformity with accounting principles generally accepted in the United States of America. In addition, in our opinion, the financial statement schedule listed in the accompanying indexpresents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 30, 2012, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The Company's management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

March 5, 2013

64

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)	December 30, 2012			December 25, 2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	118,829		$	93,481
Restricted cash	—			291
Accounts receivable, net of allowance of $13,242 and $12,627	177,173			208,889
Inventories	82,154			130,987
Other current assets	36,147			44,548
Deferred income taxes	8,930			7,720
Assets of discontinued operations held for sale	29,864			6,320
Total Current Assets	453,097			492,236
REVENUE EQUIPMENT ON OPERATING LEASE, net	1,748			1,920
PROPERTY, PLANT, AND EQUIPMENT, net	107,184			132,161
GOODWILL	182,741			286,103
OTHER INTANGIBLES, net	74,950			84,557
DEFERRED INCOME TAXES	26,843			27,241
OTHER ASSETS	13,246			20,263
TOTAL ASSETS	$	859,809		$	1,044,481
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term debt	$	4,367		$	21,778
Accounts payable	68,929			68,886
Accrued compensation and related taxes	28,258			27,620
Other accrued expenses	54,425			58,242
Income taxes	2,560			4,080
Unearned revenues	17,035			22,142
Restructuring reserve	9,579			17,612
Accrued pensions — current	4,687			4,453
Other current liabilities	25,855			32,867
Liabilities of discontinued operations held for sale	9,688			1,440
Total Current Liabilities	225,383			259,120
LONG-TERM DEBT, LESS CURRENT MATURITIES	108,921			128,684
ACCRUED PENSIONS	95,839			78,815
OTHER LONG-TERM LIABILITIES	36,540			29,894
DEFERRED INCOME TAXES	15,580			18,628
COMMITMENTS AND CONTINGENCIES	—			—
CHECKPOINT SYSTEMS, INC. STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, 500,000 shares authorized, none issued	—			—
Common stock, par value $.10 per share, 100,000,000 shares authorized, issued 44,763,404 and 44,241,105 shares	4,476			4,424
Additional capital	424,715			418,211
Retained earnings	18,392			164,268
Common stock in treasury, at cost, 4,035,912 and 4,035,912 shares	(71,520		)	(71,520		)
Accumulated other comprehensive income, net of tax	795			12,741
TOTAL CHECKPOINT SYSTEMS, INC. STOCKHOLDERS’ EQUITY	376,858			528,124
NON-CONTROLLING INTERESTS	688			1,216
TOTAL EQUITY	377,546			529,340
TOTAL LIABILITIES AND EQUITY	$	859,809		$	1,044,481

See Notes to the Consolidated Financial Statements.

65

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands, except per share data)
Year ended	December 30, 2012			December 25, 2011			December 26, 2010
Net revenues	$	690,789		$	763,749		$	716,451
Cost of revenues	419,947			451,459			402,002
Gross profit	270,842			312,290			314,449
Selling, general, and administrative expenses	249,089			279,791			255,759
Research and development	16,400			19,269			19,676
Restructuring expenses	28,422			28,640			8,211
Asset impairment	—			592			—
Goodwill impairment	102,715			—			—
Litigation settlement	295			943			—
Acquisition costs	332			2,319			523
Other (income) expense	(3,907		)	(179		)	1,537
Other operating income	2,043			19,262			—
Operating (loss) income	(120,461		)	177			28,743
Interest income	1,757			3,381			3,118
Interest expense	10,647			7,923			6,507
Other gain (loss), net	(1,731		)	(1,523		)	(2,237		)
(Loss) earnings from continuing operations before income taxes	(131,082		)	(5,888		)	23,117
Income taxes expense	7,364			59,573			3,828
Net (loss) earnings from continuing operations	(138,446		)	(65,461		)	19,289
(Loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	(7,959		)	(1,165		)	8,325
Net (loss) earnings	(146,405		)	(66,626		)	27,614
Less: loss attributable to non-controlling interests	(529		)	(57		)	(116		)
Net (loss) earnings attributable to Checkpoint Systems, Inc.	$	(145,876	)	$	(66,569	)	$	27,730
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	$	(0.20	)	$	(0.03	)	$	0.21
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	$	(0.20	)	$	(0.03	)	$	0.21
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69

See Notes to the Consolidated Financial Statements.

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CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(amounts in thousands)
Year ended	December 30, 2012			December 25, 2011			December 26, 2010
Net (loss) earnings	$	(146,405	)	$	(66,626	)	$	27,614
Amortization of pension plan actuarial losses, net of tax expense of $65, $63, and $29	218			137			103
Change in realized and unrealized (losses) gains on derivative hedges, net of tax (benefit) expense of ($71), $31, and $247	(1,521		)	1,165			679
Recognized loss on pension, net of tax benefit of $4,410, $1,029, and $1,344	(11,176		)	(2,571		)	(3,405		)
Foreign currency translation adjustment	534			3,542			(15,321		)
Comprehensive (loss) income	$	(158,350	)	$	(64,353	)	$	9,670
Less: comprehensive loss attributable to non-controlling interests	(528		)	(55		)	(834		)
Comprehensive (loss) income attributable to Checkpoint Systems, Inc.	$	(157,822	)	$	(64,298	)	$	10,504

See Notes to the Consolidated Financial Statements.

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CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(amounts in thousands)	Checkpoint Systems, Inc. Stockholders
	Common Stock			Additional Capital			Retained Earnings			Treasury Stock				Accumulated Other Comprehensive Income			Non-controlling Interests			Total Equity
	Shares	Amount								Shares	Amount
Balance, December 27, 2009	43,078	$	4,307	$	390,379		$	203,107		4,036	$	(71,520	)	$	28,451		$	834		$	555,558
Net earnings (loss)							27,730										(116		)	27,614
Exercise of stock-based compensation and awards released	765	77		5,945																6,022
Tax benefit of stock-based compensation				133																133
Stock-based compensation expense				8,751																8,751
Deferred compensation plan				2,112																2,112
Repurchase of non-controlling interests				63													(755		)	(692		)
Amortization of pension plan actuarial losses, net of tax														103						103
Change in realized and unrealized losses on derivative hedges, net of tax														679						679
Recognized gain on pension, net of tax														(3,405		)				(3,405		)
Foreign currency translation adjustment														(15,358		)	37			(15,321		)
Balance, December 26, 2010	43,843	$	4,384	$	407,383		$	230,837		4,036	$	(71,520	)	$	10,470		$	—		$	581,554
Net loss							(66,569		)								(57		)	(66,626		)
Exercise of stock-based compensation and awards released	398	40		2,170																2,210
Tax benefit on stock-based compensation				77																77
Stock-based compensation expense				7,408																7,408
Deferred compensation plan				1,173																1,173
Non-controlling interest of acquired entities																	1,271			1,271
Amortization of pension plan actuarial losses, net of tax														137						137
Change in realized and unrealized gains on derivative hedges, net of tax														1,165						1,165
Recognized loss on pension, net of tax														(2,571		)				(2,571		)
Foreign currency translation adjustment														3,540			2			3,542
Balance, December 25, 2011	44,241	$	4,424	$	418,211		$	164,268		4,036	$	(71,520	)	$	12,741		$	1,216		$	529,340
Net loss							(145,876		)								(529		)	(146,405		)
Exercise of stock-based compensation and awards released	522	52		1,108																1,160
Tax benefit on stock-based compensation				(306		)														(306		)
Stock-based compensation expense				4,837																4,837
Deferred compensation plan				865																865
Amortization of pension plan actuarial losses, net of tax														218						218
Change in realized and unrealized losses on derivative hedges, net of tax														(1,521		)				(1,521		)
Recognized loss on pension, net of tax														(11,176		)				(11,176		)
Foreign currency translation adjustment														533			1			534
Balance, December 30, 2012	44,763	$	4,476	$	424,715		$	18,392		4,036	$	(71,520	)	$	795		$	688		$	377,546

See Notes to the Consolidated Financial Statements.

68

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)
Year ended	December 30, 2012			December 25, 2011			December 26, 2010
Cash flows from operating activities:
Net (loss) earnings	$	(146,405	)	$	(66,626	)	$	27,614
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	32,714			37,348			34,477
Deferred taxes	(2,075		)	47,612			(2,859		)
Stock-based compensation	4,753			7,408			8,751
Provision for losses on accounts receivable	3,024			3,765			123
Excess tax benefit on stock compensation	(98		)	(634		)	(1,662		)
(Gain) loss on disposal of fixed assets	(1,326		)	106			133
Asset impairment	1,771			3,373			—
Goodwill impairment	106,348			3,411			—
Gain on sale of subsidiary	(1,657		)	—			—
Loss on sale of discontinued operations	15			—			—
Restructuring-related asset impairment	6,506			7,843			—
Decrease (increase) in current assets, net of the effects of acquired companies:
Accounts receivable	22,105			(25,567		)	(8,753		)
Inventories	37,748			(23,821		)	(20,535		)
Other current assets	5,357			(14,065		)	162
Increase (decrease) in current liabilities, net of the effects of acquired companies:
Accounts payable	2,631			1,064			2,705
Income taxes	(1,502		)	(506		)	(5,653		)
Unearned revenues	(4,393		)	10,780			(9,750		)
Restructuring reserve	(8,178		)	10,544			3,044
Other current and accrued liabilities	4,875			8,350			(16,070		)
Net cash provided by operating activities	62,213			10,385			11,727
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(12,401		)	(22,981		)	(23,712		)
Acquisitions of businesses, net of cash acquired	—			(75,937		)	(300		)
Change in restricted cash	291			15			504
Proceeds from sale of real estate	4,560			—			—
Net cash proceeds from the sale of discontinued operations	1,180			—			—
Net cash proceeds from the sale of subsidiary	2,250			—			—
Other investing activities	1,671			623			323
Net cash used in investing activities	(2,449		)	(98,280		)	(23,185		)
Cash flows from financing activities:
Proceeds from stock issuances	1,653			2,210			6,022
Excess tax benefit on stock compensation	98			634			1,662
Proceeds from short-term debt	3,467			8,565			7,621
Payment of short-term debt	(11,869		)	(7,895		)	(12,344		)
Net change in factoring and bank overdrafts	(8,932		)	(4,364		)	1,413
Proceeds from long-term debt	3,000			74,117			141,747
Payment of long-term debt	(20,498		)	(67,370		)	(114,458		)
Debt issuance costs	(2,085		)	—			(1,991		)
Repurchase of non-controlling interests	—			—			(781		)
Net cash (used in) provided by financing activities	(35,166		)	5,897			28,891
Effect of foreign currency rate fluctuations on cash and cash equivalents	750			3,006			(4,970		)
Net increase (decrease) in cash and cash equivalents	25,348			(78,992		)	12,463
Cash and cash equivalents:
Beginning of period	93,481			172,473			160,010
End of period	$	118,829		$	93,481		$	172,473

See Notes to the Consolidated Financial Statements.

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CHECKPOINT SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

We are a leading global manufacturer and provider of technology-driven, loss prevention, inventory management and labeling solutions to the retail and apparel industry. We provide integrated inventory management solutions to brand, track, and secure goods for retailers and consumer product manufacturers worldwide. We are a leading provider of, and earn revenues primarily from the sale of Shrink Management, Apparel Labeling and Retail Merchandising Solutions. Shrink Management Solutions consists of electronic article surveillance (EAS) systems, EAS consumables, Alpha^® solutions, store security system installations and monitoring solutions (CheckView^®), and radio frequency identification (RFID) systems, software, tags and labels. Apparel Labeling Solutions includes our web-based data management service 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. Retail Merchandising Solutions consists of hand-held labeling systems (HLS) and retail display systems (RDS). Applications of these products include primarily retail security, asset and merchandise visibility, automatic identification, and pricing and promotional labels and signage. Operating directly in 29 countries, we have a global network of subsidiaries and distributors, and provide customer service and technical support around the world.

Revision of Previously Issued Consolidated Financial Statements

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 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. The fiscal year 2010 financial statement impact was $1.5 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 was recorded in the fourth quarter of 2012 in other (income) expense in the Consolidated Statement of Operations.

We revised our historical annual and quarterly filings for the effects of these revision adjustments in our 2011 Annual Report on Form 10-K and our 2012 Quarterly Reports on Form 10-Q. All historical amounts presented in this 2012 Annual Report on Form 10-K reflect these historical revision adjustments. 

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Checkpoint Systems, Inc. and its majority-owned subsidiaries (Company). All inter-company transactions are eliminated in consolidation.

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Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fiscal Year

Our fiscal year is the 52 or 53 week period ending the last Sunday of December. References to 2012 are for the 53 weeks ended December 30, 2012, while references to 2011 and 2010 are for the 52 weeks ended December 25, 2011 and December 26, 2010, respectively.

Reclassifications

Certain reclassifications and retrospective adjustments have been made to prior period information to conform to current period presentation.

Discontinued Operations

We evaluate our businesses and product lines periodically for their strategic fit within our operations. In December 2011, we began actively marketing our Banking Security Systems Integration business unit and we completed its sale in October 2012. In December 2012, our U.S. and Canada based CheckView^® business met held for sale reporting criteria. In connection with our decisions to sell these businesses, for all periods presented, the operating results associated with these businesses have been reclassified into earnings from discontinued operations, net of tax in the Consolidated Statements of Operations. The assets and liabilities associated with the U.S. and Canada based CheckView^® business have been adjusted to fair value, less costs to sell, and reclassified into assets of discontinued operations, net of taxand liabilities of discontinued operations, net of tax, as appropriate, in the Consolidated Balance Sheets. Refer to Note 19 of the Consolidated Financial Statements.

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.

Sale of Subsidiary

On November 15, 2012, we sold our Suzhou, China subsidiary, resulting in a gain on sale of $1.7 million that was recognized in other operating income 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. In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the entity holding the non-controlling interest.

On July 1, 1997, Checkpoint Systems Japan Co. Ltd. (Checkpoint Japan), a wholly-owned subsidiary of the Company, issued newly authorized shares to Mitsubishi Materials Corporation (Mitsubishi) in exchange for cash. In February 2006, Checkpoint Japan repurchased 26% of these shares from Mitsubishi in exchange for $0.2 million in cash. In August 2010, Checkpoint Manufacturing Japan Co., LTD. repurchased the remaining 74% of these shares from Mitsubishi in exchange for $0.8 million in cash.

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We have classified non-controlling interests as equity on our Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011 and presented net income attributable to non-controlling interests separately on our Consolidated Statements of Operations for the years ended December 30, 2012, December 25, 2011, and December 26, 2010.

Subsequent Events

We perform a review of subsequent events in connection with the preparation of our financial statements. The accounting for and disclosure of events that occur after the balance sheet date, but before our financial statements are issued or available to be issued are reflected where appropriate or required in our financial statements. Refer to Note 20 of the Consolidated Financial Statements.

Cash and Cash Equivalents

Cash in excess of operating requirements is invested in short-term, income-producing instruments or used to pay down debt. Cash equivalents include commercial paper and other securities with original maturities of 90 days or less at the time of purchase. Book value approximates fair value because of the short maturity of those instruments.

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 year ended December 30, 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

Accounts receivables are recorded at net realizable values. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. These allowances are based on specific facts and circumstances surrounding individual customers as well as our historical experience. Provisions for the losses on receivables are charged to income to maintain the allowance at a level considered adequate to cover losses. Receivables are charged off against the reserve when they are deemed uncollectible. From time to time, we sell customer related receivables to third party financial institutions and evaluate these transactions to determine if they meet the criteria for sale accounting treatment. If it is determined that the criteria for sale treatment is met, the receivables are removed from the Consolidated Balance Sheet and earnings are reported on the Consolidated Statement of Operations. If it is determined that the criteria for sale accounting treatment is not met, the receivables remain on the Consolidated Balance Sheet and the transaction is treated as a secured financing.

During 2011, cash proceeds from the sale of accounts receivable related to sales-type lease extensions with customers to third party financial institutions totaled $38.0 million. Proceeds from the initial sale of the accounts receivables are used to fund operations. This transaction meets the criteria for sale accounting treatment. We have presented the earnings recognized on the sale of the receivables and other related matters separately in other operating income on the Consolidated Statements of Operations for the years ended December 25, 2011 and December 30, 2012.

Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market. A provision is made to reduce excess or obsolete inventory to its net realizable value.

Revenue Equipment on Operating Lease

The cost of the equipment leased to customers under operating leases is depreciated on a straight-line basis over the lesser of the length of the contract or estimated useful life of the asset, which is usually between three and five years.

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Property, Plant, and Equipment

Property, plant, and equipment is carried at cost less accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Additions, improvements, and major renewals are capitalized. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Assets subject to capital leases are depreciated over the lesser of the estimated useful life of the asset or length of the contract. Buildings, equipment rented to customers, and leased equipment on capitalized leases use the following estimated useful lives of fifteen to thirty years, three to five years, and five years, respectively. Machinery and equipment estimated useful lives range from three to ten years. Leasehold improvement useful lives are the lesser of the minimum lease term or the useful life of the item. The cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is included in income.

We review our property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If it is determined that an impairment, based on expected future undiscounted cash flows, exists, then the loss is recognized on the Consolidated Statements of Operations. The amount of the impairment is the excess of the carrying amount of the impaired asset over its fair value.

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 were 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 December 30, 2012 and December 25, 2011 were $22.8 million and $21.4 million respectively. As of December 30, 2012, $18.1 million was recorded in machinery and equipment related to portions of the ERP system that were placed in service. The remaining costs of $4.7 million and $6.0 million as of December 30, 2012 and December 25, 2011, respectively, are capitalized as construction-in-progress until such time as the these portions of the ERP system have been placed in service.

Goodwill

Goodwill is carried at cost and is not amortized. We test goodwill for impairment on an annual basis as of fiscal month end October of each fiscal year, relying on a number of factors including operating results, business plans and anticipated future cash flows. Company management uses its judgment in assessing whether goodwill has become impaired between annual impairment tests. Reporting units are primarily determined as the geographic areas comprising the Company’s business segments, except in situations when aggregation of the reporting units is appropriate. Recoverability of goodwill is evaluated using a two-step process when we conclude a qualitative analysis is not sufficient. The first step involves a comparison of the fair value of a reporting unit with its carrying value. If the carrying amount of the reporting unit exceeds its fair value, then the second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The nonrecurring fair value measurement of goodwill is developed using significant unobservable inputs (Level 3). We considered whether applying a purely qualitative assessment of goodwill would be sufficient (i.e. a qualitative assessment without quantitative support and bypassing Step 1). We reviewed the implied headroom for each reporting unit as of the most recent goodwill assessment, noting that three of our reporting units had headroom of less than 12% and would require a quantitative analysis. Therefore, we decided to proceed to Step 1 for all reporting units.

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The fair value of our reporting units is dependent upon our estimate of future discounted cash flows and other factors. Our estimates of future cash flows include assumptions concerning future operating performance and economic conditions and may differ from actual future cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate and through our stock price that we use to determine our market capitalization. Therefore, changes in the stock price may also affect the amount of impairment recorded. Market capitalization is determined by multiplying the shares outstanding on the assessment date by the average market price of our common stock over a 30-day period before each assessment date. We use this 30-day duration to consider inherent market fluctuations that may affect any individual closing price. We believe that our market capitalization alone does not fully capture the fair value of our business as a whole, or the substantial value that an acquirer would obtain from its ability to obtain control of our business. As such, in determining fair value, we add a control premium to our market capitalization. To estimate the control premium, we considered our unique competitive advantages that would likely provide synergies to a market participant. In addition, we considered external market factors which we believe contributed to the decline and volatility in our stock price that did not reflect our underlying fair value. Refer to Note 5 of the Consolidated Financial Statements.

Other Intangibles

Indefinite-lived intangible assets are carried at cost and are not amortized, but are subject to tests for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Definite-lived intangibles are amortized on a straight-line basis over their useful lives (or legal lives if shorter). We review our other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

If it is determined that an impairment, based on expected future cash flows, exists, then the loss is recognized on the Consolidated Statements of Operations. The amount of the impairment is the excess of the carrying amount of the impaired asset over the fair value of the asset. The fair value represents expected future cash flows from the use of the assets, discounted at the rate used to evaluate potential investments. Refer to Note 5 of the Consolidated Financial Statements.

Other Assets

Included in other assets are $6.0 million and $11.2 million of net long-term customer-based receivables at December 30, 2012 and December 25, 2011, respectively.

Deferred Financing Costs

Financing costs are capitalized and amortized to interest expense over the life of the debt. The net deferred financing costs at December 30, 2012 and December 25, 2011 were $2.6 million and $2.8 million, respectively. The financing cost amortization expense was $2.3 million, $1.1 million, and $1.2 million, for 2012, 2011, and 2010, respectively.

Revenue Recognition

We recognize revenue when revenue is realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectability is reasonably assured.

We enter into contracts to sell our products and services, and, while the majority of our sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, significant contract interpretation is sometimes required to determine the appropriate accounting, including whether the deliverables specified in a multiple element arrangement should be treated as separate units of accounting for revenue recognition purposes, and, if so, how the selling price should be allocated among the elements and when to recognize revenue for each element.

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For arrangements with multiple elements, we allocate total arrangement consideration to all deliverables based on their relative selling price using a specific hierarchy and recognize revenue when each element’s revenue recognition criteria are met. The hierarchy is as follows: vendor-specific objective evidence (“VSOE”), third-party evidence of selling price (“TPE”) or best estimate of selling price (“BESP”). VSOE of fair value for each element is established based on the price charged when the same element is sold separately. We recognize revenue when installation is complete or other post-shipment obligations have been satisfied. Unearned revenue is recorded when payments are received in advance of performing our service obligations and is recognized over the service period.

Products leased to customers under sales-type leases are accounted for as the equivalent of a sale. The present value of such lease revenues is recorded as net revenues, and the related cost of the products is charged to cost of revenues. The deferred finance charges applicable to these leases are recognized over the terms of the leases. Rental revenue from products under operating leases is recognized over the term of the lease. Installation revenue from SMS EAS products is recognized when the systems are installed. Service revenue is recognized, for service contracts, on a straight-line basis over the contractual period, and, for non-contract work, as services are performed.

Revenues from software license agreements are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, no significant vendor obligations are remaining to be fulfilled, the fee is fixed or determinable, and collection is probable. Revenue from software contracts for both licenses and professional services that require significant production, modification, customization, or implementation are recognized together using the percentage of completion method based upon the ratio of labor incurred to total estimated labor to complete each contract. In instances where there is a term license combined with services, revenue is recognized ratably over the term.

We record estimated reductions to revenue for customer incentive offerings, including volume-based incentives and rebates. The accrual for these incentives and rebates, which are included in the Other Accrued Expenses section of our Consolidated Balance Sheet, was $15.2 million and $11.7 million as of December 30, 2012 and December 25, 2011, respectively. We record revenues net of an allowance for estimated return activities. Return activity was immaterial to revenue and results of operations for all periods presented.

Shipping and Handling Fees and Costs

Shipping and handling fees are accounted for in net revenues and shipping and handling costs in cost of revenues.

Cost of Revenues

The principal elements of cost of revenues are product cost, field service and installation cost, freight, and product royalties paid to third parties.

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 Sheet:

(amounts in thousands)	December 30, 2012			December 25, 2011
Balance at beginning of year	$	5,857		$	6,170
Accruals for warranties issued	5,205			5,882
Settlements made	(5,429		)	(6,194		)
Adjustment for discontinued operations	(1,668		)	—
Foreign currency translation adjustment	30			(1		)
Balance at end of period	$	3,995		$	5,857

Royalty Expense

Royalty expenses related to security products approximated $0.2 million, $0.2 million, and $0.1 million, in 2012, 2011, and 2010, respectively. These expenses are included as part of cost of revenues.

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Research and Development Costs

Research and development costs are expensed as incurred and consist of development work associated with our existing and potential products and processes. Our research and development expenses relate primarily to payroll costs for engineering personnel, costs associated with various projects, including testing, developing prototypes and related expenses.

Stock Options

We recognize stock-based compensation expense for all share-based payments net of an estimated forfeiture rate and only recognize compensation cost for those shares expected to vest. Stock compensation expense is recognized for all share-based payments on a straight-line basis over the requisite service period of the award.

We use the Black-Scholes option pricing model to value all stock options. The table below presents the weighted average expected life in years. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.

The fair value of share-based payment units was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows:

Year Ended	December 30, 2012			December 25, 2011			December 26, 2010
Weighted-average fair value of grants	$	4.38		$	9.74		$	7.51
Valuation assumptions:
Expected dividend yield	0.00		%	0.00		%	0.00		%
Expected volatility	.5208			.4991			.4829
Expected life (in years)	5.06			4.98			4.93
Risk-free interest rate	0.750		%	2.138		%	1.845		%

Refer to Note 8 of the Consolidated Financial Statements.

Income Taxes

Deferred tax liabilities and assets are determined based on the difference between the financial statement basis and the tax basis of assets and liabilities, using enacted statutory tax rates in effect at the balance sheet date. Changes in enacted tax rates are reflected in the tax provision as they occur. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted.

We utilize a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.  We include interest and penalties related to our tax contingencies in income tax expense.

Sales and Value Added Taxes Collected from Customers

Sales and value added taxes collected from customers are excluded from revenues. The obligation is included in other current liabilities until the taxes are remitted to the appropriate taxing authorities.

Foreign Currency Translation and Transactions

Our balance sheet accounts of foreign subsidiaries are translated into U.S. dollars at the rate of exchange in effect at the balance sheet dates. Revenues, costs, and expenses of our foreign subsidiaries are translated into U.S. dollars at the year-to-date average rate of exchange. The resulting translation adjustments are recorded as a separate component of shareholders’ equity. Gains or losses on certain long-term inter-company transactions are excluded from the net earnings (loss) and accumulated in the cumulative translation adjustment as a separate component of Consolidated Stockholders’ Equity. All other foreign currency transaction gains and losses are included in net earnings (loss) on our Consolidated Statement of Operations.

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Accounting for Hedging Activities

We enter into certain foreign exchange forward contracts in order to hedge anticipated rate fluctuations in Western Europe, Canada, Japan and Australia. Transaction gains or losses resulting from these contracts are recognized at the end of each reporting period. We use the fair value method of accounting, recording realized and unrealized gains and losses on these contracts. These gains and losses are included in other gain (loss), net on our Consolidated Statements of Operations.

We enter into various foreign currency contracts to reduce our exposure to forecasted Euro-denominated inter-company revenues. These cash flow hedging instruments are marked to market and the changes are recorded in other comprehensive income. Amounts recorded in other comprehensive income are recognized in cost of goods sold as the inventory is sold to external parties. Any hedge ineffectiveness is charged to other gain (loss), net on our Consolidated Statements of Operations.

We enter, on occasion, into interest rate swaps to reduce the risk of significant interest rate increases in connection with floating rate debt. This cash flow hedging instrument is marked to market and the changes are recorded in other comprehensive income. Any hedge ineffectiveness is charged to interest expense. Refer to Note 14 of the Consolidated Financial Statements.

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.

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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. In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities," which clarifies the scope of the offsetting disclosures of ASU 2011-11. Both ASUs are 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.

In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The Company is currently evaluating the impact of adopting this guidance.

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Note 2. ACQUISITIONS

Acquisitions in Fiscal 2011

On January 28, 2011, Checkpoint Systems, Inc. and certain of its direct subsidiaries (collectively, the “Company”) entered into a Master Purchase Agreement. The Master Purchase Agreement outlines the general terms and conditions pursuant to which the Company agreed to acquire, through the acquisition of equity and/or assets, a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels (collectively, the “Shore to Shore businesses”). The acquisition was settled on May 16, 2011 for approximately $78.7 million, net of cash acquired of $1.9 million and the assumption of debt of $4.2 million. The purchase price was funded by $66.7 million of cash from operations and $9.2 million of borrowings under our Senior Secured Credit Facility, and includes the acquisition of the following:

• 100% of the voting equity interests of J&F International, Inc. (U.S.), Shore to Shore Far East (Hong Kong), Shore to Shore MIS (India), Shore to Shore Lacar SA (Guatemala), Adapt Identification (HK) Ltd., and W Print Europe Ltd. (UK);

• Assets of Shore to Shore, Inc. (U.S.), Shanghai WH Printing Co. Ltd., Wing Hung (Dongguan) Printing Co., Ltd., and Wing Hung Printing Co., Ltd. (U.S.);

• 51% of the voting equity interests of Shore to Shore PVT Ltd. (Sri Lanka);

• 50% of the voting equity interests of the Cybsa Adapt SA de CV (El Salvador) joint venture. In accordance with ASC 323 “Investments—Equity Method and Joint Ventures”, we have applied the Equity Method in recording this joint venture.

During the second quarter of 2012, we finalized the purchase accounting of the acquisition of the Shore to Shore businesses. At June 24, 2012, the financial statements reflected the final allocation of the purchase price based on estimated fair values at the date of acquisition, including $17.1 million in Property, Plant, and Equipment, $7.1 million in Accounts Receivable, and $2.2 million in Inventories. This final allocation resulted in acquired goodwill of $59.7 million, of which $9.8 million is tax deductible, and intangible assets of $10.5 million. The intangible assets were composed of a non-compete agreement ($0.3 million), customer lists ($9.8 million), and trade names ($0.4 million). The useful lives were 5 years for the non-compete agreement, 10 years for the customer lists, and 7.5 months for the trade names. The results from the acquisition date through December 25, 2011 are included in the Apparel Labeling Solutions segment (revenues of $35.3 million and a net loss of $9 thousand).

The purchase price includes a payment to escrow of $17.5 million related to the 2010 performance of the acquired business. This amount is subject to adjustment pending final determination of the 2010 performance and could result in an additional purchase price payment of up to $6.3 million. We are currently involved in an arbitration process in order to require the seller to provide audited financial information related to the 2010 performance. When this information is received, the final adjustment to the purchase price will be reflected through earnings. Acquisition costs incurred in connection with the transaction are recognized within acquisition costs in the Consolidated Statement of Operations and approximate $0.3 million and $2.3 million for the years ended December 30, 2012 and December 25, 2011, respectively.

As 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, we have classified the non-controlling interests as equity on our Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011, and presented net income attributable to non-controlling interests separately on our Consolidated Statement of Operations for the years ended December 30, 2012 and December 25, 2011. 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.

Pro forma results of operations have not been presented individually or in the aggregate for this acquisition because the effects of the acquisition were not material to our Consolidated Financial Statements.

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Acquisitions in Fiscal 2010

In October, 2010 the Company entered into a Services and Purchase Agreement with Napar Contracting and Allied Services, Inc. (“Napar”) a Philippines based job contracting & outsourcing company with expertise in web development, software development, software quality assurance and such other similar services for $0.5 million. The transaction was paid in cash. Based on the terms of the transaction, 60% of the purchase price was due upon signing the agreement and the remaining 40% was paid on January 1, 2011.

At December 26, 2010, the financial statements reflected the final allocation of the Napar purchase price. This allocation resulted in acquired goodwill of $0.5 million, which is not tax deductible. Equipment included in this acquisition totaled $33 thousand, and is included in property, plant, & equipment, net in the accompanying Consolidated Balance Sheets.  The results from the acquisition are included in the Apparel Labeling Solutions segment and were not material to the Consolidated Financial Statements.

Pro forma results of operations have not been presented individually or in the aggregate for this acquisition because the effects of the acquisition were not material to our Consolidated Financial Statements. 

Note 3. INVENTORIES

Inventories consist of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Raw materials	$	16,702	$	28,128
Work-in-process	6,554		10,481
Finished goods	58,898		92,378
Total	$	82,154	$	130,987

Note 4. REVENUE EQUIPMENT ON OPERATING LEASE AND PROPERTY, PLANT, AND EQUIPMENT

The major classes are:

(amounts in thousands)	December 30, 2012			December 25, 2011
Revenue equipment on operating lease
Equipment rented to customers	$	3,522		$	3,732
Accumulated depreciation	(1,774		)	(1,812		)
Total revenue equipment on operating lease	$	1,748		$	1,920
Property, plant, and equipment
Land	$	8,894		$	9,862
Buildings	56,577			74,402
Machinery and equipment	172,398			204,215
Leasehold improvements	15,218			15,003
Construction in progress	5,724			10,282
	258,811			313,764
Accumulated depreciation	(151,627		)	(181,603		)
Total property, plant, and equipment	$	107,184		$	132,161

Property, plant, and equipment under capital lease had gross values of $2.0 million and $2.2 million and accumulated depreciation of $1.5 million and $1.5 million, as of December 30, 2012 and December 25, 2011, respectively.

Included in property, plant, and equipment as of December 30, 2012 and December 25, 2011, is the impact of asset impairment adjustments of $6.5 million and $7.8 million, respectively, related to our restructuring activities.

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Depreciation expense on our revenue equipment on operating lease and property, plant, and equipment was $20.3 million, $24.4 million, and $21.0 million, for 2012, 2011, and 2010, respectively.

Note 5. GOODWILL AND OTHER INTANGIBLE ASSETS

We had intangible assets with a net book value of $75.0 million, and $84.6 million as of December 30, 2012 and December 25, 2011, respectively.

The following table reflects the components of intangible assets as of December 30, 2012 and December 25, 2011:

		December 30, 2012				December 25, 2011
(amounts in thousands)	Amortizable Life (years)	Gross Amount		Gross Accumulated Amortization		Gross Amount		Gross Accumulated Amortization
Finite-lived intangible assets:
Customer lists	6 to 20	$	81,895	$	50,215	$	81,348	$	43,945
Trade name	1 to 30	30,414		19,143		30,007		18,237
Patents, license agreements	3 to 14	60,682		50,826		60,249		47,704
Other	2 to 6	7,178		6,546		7,160		5,830
Total amortized finite-lived intangible assets		180,169		126,730		178,764		115,716
Indefinite-lived intangible assets:
Trade name		21,511		—		21,509		—
Total identifiable intangible assets		$	201,680	$	126,730	$	200,273	$	115,716

We recorded $11.3 million, $10.8 million, and $11.2 million of amortization expense for 2012, 2011, and 2010, respectively.

During the second quarter of 2012, we experienced deterioration in revenues, gross margins and operating results in each of our segments as compared to the forecasted amounts in the most recent impairment test. Due to the declines in operating results in our segments, a change in management, and a revised strategic focus, we determined that impairment triggering events had occurred and that an assessment of goodwill was warranted. As a result of interim impairment indicators in the second quarter of 2012, we performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the long-lived assets in our Apparel Labeling Solutions reporting unit to their carrying amounts. The undiscounted cash flow analysis resulted in no impairment charge in the quarter ended June 24, 2012. Also, as part of the annual impairment testing, the undiscounted cash flow analysis attributable to the long-lived assets in our European Retail Merchandising Solutions reporting unit resulted in no impairment charge in the quarter ended December 30, 2012. While we currently believe that our projected results will not result in future impairment, a continued deterioration in results could trigger a future impairment.

In December 2011, as a result of our annual impairment test of our indefinite-lived trade names, we recorded a $0.6 million impairment charge to the SIDEP trade name. The impairment charge was recorded in asset impairment expense in the Shrink Management Solutions segment on the Consolidated Statement of Operations.

Estimated amortization expense for each of the five succeeding years is anticipated to be:

(amounts in thousands)
2013	$	8,764
2014	$	8,276
2015	$	8,120
2016	$	7,857
2017	$	6,821

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The changes in the carrying amount of goodwill are as follows:

(amounts in thousands)	Shrink Management Solutions			Apparel Labeling Solutions			Retail Merchandising Solutions			Total
Balance as of December 26, 2010	$	165,324		$	3,915		$	62,086		$	231,325
Acquired during the year	$	—		58,008			$	—		58,008
Discontinued operations	(3,782		)	$	—		$	—		(3,782		)
Translation adjustments	269			661			(378		)	552
Balance as of December 25, 2011	$	161,811		$	62,584		$	61,708		$	286,103
Purchase accounting adjustment	$	—		1,624			$	—		1,624
Discontinued operations	$	(3,263	)	$	—		$	—		(3,263		)
Impairment losses	$	—		(64,437		)	$	(38,278	)	(102,715		)
Translation adjustments	483			229			280			992
Balance as of December 30, 2012	$	159,031		$	—		$	23,710		$	182,741

The following table reflects the components of goodwill as of December 30, 2012 and December 25, 2011:

	December 30, 2012						December 25, 2011
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, net
Shrink Management Solutions	$	208,835	$	49,804	$	159,031	$	213,836	$	52,025	$	161,811
Apparel Labeling Solutions	84,059		84,059		—		81,662		19,078		62,584
Retail Merchandising Solutions	133,707		109,997		23,710		130,640		68,932		61,708
Total goodwill	$	426,601	$	243,860	$	182,741	$	426,138	$	140,035	$	286,103

During fiscal 2011 and 2010 we completed acquisitions which impacted goodwill and intangible assets. Refer to Note 2 of the Consolidated Financial Statements for more information on these acquisitions, including any impact of purchase accounting adjustments.

We perform an assessment of goodwill by comparing each individual reporting unit’s carrying amount of net assets, including goodwill, to their fair value at least annually during the October month-end close and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The 2011 and 2010, annual assessments did not result in an impairment charge.

During the second quarter of 2012, we experienced deterioration in revenues, gross margins and operating results in each of our segments as compared to the forecasted amounts in the most recent annual impairment test. Due to the declines in operating results in our segments, a change in management, and a revised strategic focus, we determined that impairment triggering events had occurred and that an assessment of goodwill was warranted. This resulted in the Company's assessment that the carrying value of the Apparel Labeling Solutions reporting unit exceeded its fair value. The basis of the fair value was determined by projecting future cash flows using assumptions concerning future operating performance and economic conditions that may differ from actual cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of the evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate and through our stock price that we use to determine our market capitalization. As a result of our interim impairment test, a $64.4 million non-cash impairment charge was recorded as of June 24, 2012 in our Apparel Labeling Solutions segment. The goodwill impairment expense was due to the decline in estimated future Apparel Labeling Solutions cash flow impacted by our plan to refocus the business, coupled with recent declines in revenue and profitability. The impairment charge of the entire goodwill balance in our Apparel Labeling Solutions segment was recorded in goodwill impairment on the Consolidated Statement of Operations.

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There were no additional impairment indicators during the third quarter ended September 23, 2012. Our 2012 annual impairment test resulted in our assessment that the carrying value of the European Retail Merchandising Solutions reporting unit exceeded its fair value. As a result of our annual impairment test, a $38.3 million non-cash goodwill impairment charge was assessed as of October 21, 2012, and recorded in goodwill impairment expense on the Consolidated Statement of Operations in the fourth quarter of 2012 in our Retail Merchandising Solutions segment. The goodwill impairment was due to the decline in estimated future European Retail Merchandising Solutions cash flows impacted by current economic conditions in Europe resulting in decreased customer investments in new stores and refurbishments. Additionally, increased competition and pricing pressures are factors that have negatively impacted this business.

Determining the fair value of a reporting unit is a matter of judgment and involves the use of significant estimates and assumptions. The use of different assumptions would increase or decrease estimated discounted future cash flows and could increase or decrease an impairment charge. If the use of these assets or the projections of future cash flows change in the future, we may be required to record additional impairment charges. An erosion of future business results in any of the business units could create impairment in goodwill or other long-lived assets and require a significant charge in future periods.

As of the date of our fiscal 2012 annual impairment test, the total fair values for the remaining reporting units in all of our segments exceeded their total carrying values by more than 45%. Based on our most recent goodwill impairment assessment of the reporting units of our segments and our understanding of currently projected trends of the business and the economy, we do not believe that there is a significant risk of impairment for these reporting units for a reasonable period of time. Although our analysis regarding the fair values of the goodwill and indefinite lived intangible assets indicates that they exceed their respective carrying values, materially different assumptions regarding the future performance of our businesses or significant declines in our stock price could result in additional goodwill impairment losses. Specifically, an unanticipated deterioration in revenues and gross margins generated by our Shrink Management Solutions and Retail Merchandising Solutions segments could trigger future impairment in those segments.

Note 6. SHORT-TERM BORROWINGS AND CURRENT PORTION OF LONG-TERM DEBT

Short-term borrowings and current portion of long-term debt at December 30, 2012 and at December 25, 2011 consisted of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Overdraft	$	568	$	405
Full-recourse factoring liabilities	—		8,809
Term loans	2,272		9,125
Other short-term borrowings	889		2,529
Current portion of long-term debt	638		910
Total short-term borrowings and current portion of long-term debt	$	4,367	$	21,778

In December 2011, $4.2 million (HKD 32.5 million) was paid in order to extinguish our existing Hong Kong banking facility and other outstanding Hong Kong debt. In December 2011, we entered into a new five-year Hong Kong banking facility. As of December 25, 2011, $8.4 million (HKD 65.0 million) was outstanding on the term loan. In June 2012, $8.0 million (HKD 61.8 million) was paid in order to extinguish our existing Hong Kong term loan. The term loan was included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In connection with the acquisition of the Shore to Shore businesses, the Company assumed debt of $4.2 million. In June 2012, $0.7 million (INR 37.2 million) was paid in order to extinguish an overdraft facility and other short-term borrowings in the accompanying Consolidated Balance Sheets. As of December 30, 2012 and December 25, 2011, $3.9 million and $3.8 million related to the assumed debt remained outstanding, respectively. The debt assumed includes capital leases, accounts receivable factoring arrangements, term loans, an overdraft facility, and other short-term loans. With the exception of the capital leases, the banking facilities are subject to the banks’ rights to call the liabilities at any time, and are therefore included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In February 2012, the Company entered into a $3.2 million Sri Lanka banking facility, which includes a $2.7 million term loan, and a combined $0.5 million sublimit for an overdraft/import line. As of December 30, 2012, $2.3 million and $0.5 million were outstanding on the term loan and overdraft/import line, respectively.

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In November 2010, we entered into a Japanese local line of credit for $1.8 million (¥150 million). During the fourth quarter of 2011, our Japanese local line of credit of $1.9 million (¥150 million) was paid down.

In October 2009, the Company entered into a $12.0 million (€8.0 million) full-recourse factoring arrangement. As of December 25, 2011, our short-term full-recourse factoring arrangement equaled $8.8 million (€6.8 million) and was included in short-term borrowings in the accompanying Consolidated Balance Sheets. In September 2012, $7.4 million (€5.7 million) was paid in order to extinguish our existing short-term full-recourse factoring agreement in Germany. The arrangement was included in short-term borrowings in the accompanying Consolidated Balance Sheets.

Note 7. LONG-TERM DEBT

Long-term debt at December 30, 2012 and December 25, 2011 consisted of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Senior Secured Credit Facility:
$69 million variable interest rate revolving credit facility maturing in 2014	$	42,021	$	52,248
Senior Secured Notes:
$22 million 4.00% fixed interest rate Series A senior secured notes maturing in 2015	22,038		25,000
$22 million 4.38% fixed interest rate Series B senior secured notes maturing in 2016	22,038		25,000
$22 million 4.75% fixed interest rate Series C senior secured notes maturing in 2017	22,038		25,000
Full-recourse factoring liabilities	942		1,333
Other capital leases with maturities through 2016	482		1,013
Total(1)	109,559		129,594
Less current portion	638		910
Total long-term portion	$	108,921	$	128,684

⁽¹⁾  The weighted average interest rates for 2012 and 2011 were 5.9% and 4.0%, respectively.

Senior Secured Credit Facility

On July 22, 2010, we entered into an Amended and Restated Senior Secured Credit Facility (the “Senior Secured Credit Facility”) with a syndicate of lenders. The Senior Secured Credit Facility provides us with a $125.0 million four-year senior secured multi-currency revolving credit facility.

The Senior Secured Credit Facility amended and restated the terms of our existing $125.0 million senior secured multi-currency revolving credit agreement (“Secured Credit Facility”). The amendments primarily reflect an extension of the terms of the Secured Credit Facility, reductions in the interest rates charged on the outstanding balances, and favorable changes with regard to the collateral provided under the Senior Secured Credit Facility. Prior to entering into the Senior Secured Credit Facility, $102.2 million of the Secured Credit Facility was paid down during the third quarter of 2010.

On February 17, 2012, we received an amendment to our Senior Secured Credit Facility which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35 and 3.25 for the periods ended March 25, 2012, June 24, 2012, and September 23, 2012, respectively. Had we not received the amendment, we would have been in violation of the leverage ratio covenant as of March 25, 2012.  

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On July 31, 2012, we received an additional amendment to our Senior Secured Credit Facility ("July 2012 Amendment"), which contained several modifications. The July 2012 Amendment reduced the total commitment of the Senior Secured Credit Facility from $125.0 million to $75.0 million. The July 2012 Amendment reduced the sublimit for the issuance of letters of credit from $25.0 million to $5.0 million. The July 2012 Amendment reduced the sublimit for swingline loans from $25.0 million to $5.0 million. The July 2012 Amendment increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, and June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Amendment waived the fixed charge covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Amendment permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions. The July 2012 Amendment also contained a provision whereby if our cash balance exceeds $65.0 million as of weekly measurement dates, we must prepay any additional borrowings made subsequent to the July 2012 Amendments. This provision is effective until we are in compliance with our original covenant requirements for two consecutive quarters. There were no required prepayments during 2012.

Absent the waiver and additional July 2012 Amendment, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the amended leverage ratio covenant and the fixed charge covenant as of December 30, 2012.

During the Waiver Period, the interest rate spread on the Senior Secured Credit Facility increases to a maximum of 4.25% over the Base Rate or 5.25% over the LIBOR rate. The “Base Rate” is the highest of (a) our lender's prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. The unused line fee will increase to a maximum of 1.00% per annum. The maximum is based in accordance with changes in our leverage ratio.

During the year ended December 30, 2012, the Company incurred $1.3 million in fees and expenses in connection with the July 2012 Amendment to the Senior Secured Credit Facility, which were capitalized and will be amortized over the term of the Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations. In connection with the reduction in borrowing capacity of the Senior Secured Credit Facility, the Company recognized $0.8 million of unamortized debt issuance costs. The cost was recognized in interest expense on the Consolidated Statement of Operations in 2012.

On September 21, 2012, the Company repaid $6.1 million on the Senior Secured Credit Facility. Pursuant to the terms of the July 2012 Amendment, the repayment permanently reduced the outstanding borrowing capacity from $75.0 million to $68.9 million. In connection with the reduction in borrowing capacity of the Senior Secured Credit Facility, the Company recognized $0.2 million of unamortized debt issuance costs. The cost was recognized in interest expense on the Consolidated Statement of Operations in the third quarter of 2012.

The Senior Secured Credit Facility provides for a revolving commitment of up to $75.0 million with a term of four years from the effective date of July 22, 2010. We may borrow, prepay and re-borrow under the Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the Senior Secured Credit Facility of up to an aggregate of $50.0 million, for a potential total commitment of $118.9 million. As of December 30, 2012, we were not eligible to request the $50.0 million expansion option due to financial covenant restrictions.

As of December 30, 2012, $1.8 million, issued in letters of credit were outstanding under the Senior Secured Credit Facility.

Borrowings under the Senior Secured Credit Facility, other than swingline loans, bear interest at our option of either a spread ranging from 1.25% to 2.50% over the Base Rate (as described below), or a spread ranging from 2.25% to 3.50% over the LIBOR rate, and in each case fluctuating in accordance with changes in our leverage ratio, as defined in the Senior Secured Credit Facility. The “Base Rate” is the highest of (a) our lender’s prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. Swingline loans bear interest of (i) a spread ranging from 1.25% to 2.50% over the Base Rate with respect to swingline loans denominated in U.S. dollars, or (ii) a spread ranging from 2.25% to 3.50% over the LIBOR rate for one month U.S. dollar deposits, as of 11:00 a.m., London time. We pay an unused line fee ranging from 0.30% to 0.75% per annum based on the unused portion of the commitment under the Senior Secured Credit Facility.

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All obligations of domestic borrowers under the Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by our domestic subsidiaries. The obligations of foreign borrowers under the Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by certain of our foreign subsidiaries as well as the domestic guarantors. Collateral under the Senior Secured Credit Facility includes a 100% stock pledge of domestic subsidiaries and a 65% stock pledge of all first-tier foreign subsidiaries, excluding our Japanese sales subsidiary. As a condition of the July 2012 Amendment, all domestic assets are also pledged as collateral. The approximate net book value of the collateral as of December 30, 2012 was $143 million.

Pursuant to the original terms of the Senior Secured Credit Facility, we are subject to various requirements, including covenants requiring the maintenance of a maximum total leverage ratio of 2.75 and a minimum fixed charge coverage ratio of 1.25. The Senior Secured Credit Facility also contains customary representations and warranties, affirmative and negative covenants, notice provisions and events of default, including change of control, cross-defaults to other debt, and judgment defaults. Upon a default under the Senior Secured Credit Facility, including the non-payment of principal or interest, our obligations under the Senior Secured Credit Facility may be accelerated and the assets securing such obligations may be sold. Certain wholly-owned subsidiaries with respect to the Company are guarantors of our obligations under the Senior Secured Credit Facility.

Senior Secured Notes

Also on July 22, 2010, we entered into a Note Purchase and Private Shelf Agreement (the “Senior Secured Notes Agreement”) with a lender, and certain other purchasers party thereto (together with the lender, the “Purchasers”).

On February 17, 2012, we received an amendment to our Senior Secured Notes which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35 and 3.25 for the periods ended March 25, 2012, June 24, 2012, and September 23, 2012. Had we not received the amendment, we would have been in violation of the leverage ratio covenant as of March 25, 2012.  

On July 31, 2012, we received an additional amendment to our Senior Secured Notes ("July 2012 Note Amendment"), which contained several modifications. The July 2012 Note Amendment increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Amendment waived the fixed charge covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Amendment permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions.

Absent the waiver and additional July 2012 Note Amendment, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the amended leverage ratio covenant and the fixed charge covenant as of December 30, 2012.

During the Waiver Period, and until such time as the financial covenants return to the original covenants for two consecutive quarters, the coupon rate on the Senior Secured Notes will increase to 5.75%, 6.13%, and 6.50% for the Series A Senior Secured Notes, Series B Senior Secured Notes, and Series C Senior Secured Notes, respectively.

During the year ended December 30, 2012, the Company incurred $1.4 million in fees and expenses in connection with the July 2012 Amendment to the Senior Secured Notes, of which $0.6 million were recognized in selling, general, and administrative expenses on the Consolidated Statement of Operations in 2012 and $0.8 million, which were capitalized and will be amortized over the term of the Senior Secured Notes to interest expense on the Consolidated Statement of Operations.

On September 21, 2012, the Company repaid $8.9 million in principal as well as a make-whole premium of $1.1 million related to the Senior Secured Notes. In connection with the repayment on the Senior Secured Notes, the Company recognized $0.1 million of unamortized debt issuance costs. The unamortized debt issuance costs and make whole premium fees were recognized in interest expense on the Consolidated Statement of Operations in 2012.

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Under the Senior Secured Notes Agreement, we issued to the Purchasers its Series A Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series A Notes”), its Series B Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series B Notes”), and its Series C Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series C Notes”); together with the Series A Notes and the Series B Notes, (the “2010 Notes”). The Series A Notes bear interest at a rate of 4.00% per annum and mature on July 22, 2015. The Series B Notes bear interest at a rate of 4.38% per annum and mature on July 22, 2016. The Series C Notes bear interest at a rate of 4.75% per annum and mature on July 22, 2017. The 2010 Notes are not subject to any scheduled prepayments. The entire outstanding principal amount of each of the 2010 Notes shall become due on their respective maturity date.

The Senior Secured Notes Agreement also provides that for a three-year period ending on July 22, 2013, we may issue, and our lender may, in its sole discretion, purchase, additional fixed-rate senior secured notes (the “Shelf Notes”); together with the 2010 Notes, (the “Notes”), up to an aggregate amount of $50.0 million. The aggregate principal amount of the Shelf Notes issued at any time shall be no less than $5.0 million. The Shelf Notes will have a maturity date of no more than 10 years from the respective maturity date and an average life of no more than 7 years after the date of issue. The Shelf Notes will have such other terms, including principal amount, interest rate and repayment schedule, as agreed with our lender at the time of issuance. As of December 30, 2012, we were not eligible to elect to request the $50.0 million expansion option due to financial covenant restrictions.

We may prepay the Notes in a minimum principal amount of $1.0 million and in $0.1 million increments thereafter, at 100% of the principal amount so prepaid, plus an amount equal to the excess, if any, of the present value of the remaining scheduled payments of principal and interest on the amount repaid, over the principal amount repaid.  Either we or our lender may terminate the private shelf facility with respect to undrawn amounts upon 30 days’ written notice, and our lender may terminate the private shelf facility with respect to undrawn amounts upon the occurrence and/or continuation of an event of default or acceleration of any Note.

All obligations under the Senior Secured Notes are irrevocably and unconditionally guaranteed on a joint and several basis by our domestic subsidiaries. Collateral under the Senior Secured Notes includes a 100% stock pledge of domestic subsidiaries and a 65% stock pledge of all first-tier foreign subsidiaries, excluding our Japanese sales subsidiary. As a condition of the July 2012 Amendment, all domestic assets are also pledged as collateral. The approximate net book value of the collateral as of December 30, 2012 was $143.0 million.

The original Senior Secured Notes Agreement is subject to covenants that are substantially similar to the covenants in the Senior Secured Credit Facility Agreement, including covenants requiring the maintenance of a maximum total leverage ratio of 2.75 and a minimum fixed charge coverage ratio of 1.25. The Senior Secured Notes Agreement also contains representations and warranties, affirmative and negative covenants, notice provisions and events of default, including change of control, cross-defaults to other debt, and judgment defaults that are substantially similar to those contained in the Senior Secured Credit Facility, and those that are customary for similar private placement transactions. Upon a default under the Senior Secured Notes Agreement, including the non-payment of principal or interest, our obligations under the Senior Secured Notes Agreement may be accelerated and the assets securing such obligations may be sold. Additionally, the Senior Secured Notes have a make-whole provision that requires the discounted value of the remaining payments on the Senior Secured Notes expected through the end term of each of the Senior Secured Notes to be paid in full upon early termination, acceleration, or prepayment. Certain of our wholly-owned subsidiaries are also guarantors of our obligations under the Senior Secured Notes.

Full-recourse Factoring Arrangements

In December 2009, we entered into a full-recourse factoring arrangements. The arrangements are secured by trade receivables. The Company received a weighted average of 92.4% of the face amount of receivables that it desired to sell and the bank agreed, at its discretion, to buy. As of December 30, 2012 the factoring arrangements had a balance of $0.9 million (€0.7 million), of which $0.3 million (€0.3 million) was included in the current portion of long-term debt and $0.6 million (€0.4 million) was included in long-term borrowings in the accompanying Consolidated Balance Sheets since the receivables are collectible through 2016.

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The aggregate maturities on all long-term debt (including current portion) are:

(amounts in thousands)	Debt		Capital Leases		Total Debt
2013	$	351	$	287	$	638
2014	42,342		122		42,464
2015	22,262		56		22,318
2016	22,084		15		22,099
2017	22,038		2		22,040
Thereafter	—		—		—
Total	$	109,077	$	482	$	109,559

Note 8. STOCK-BASED COMPENSATION

At December 30, 2012, we had stock-based employee compensation plans as described below. For the years ended December 30, 2012, December 25, 2011, and December 26, 2010, the total compensation expense (included in selling, general, and administrative expense) related to these plans was $4.7 million, $7.3 million, and $8.5 million ($4.5 million, $7.1 million, and $6.2 million, net of tax), respectively.

Stock Plans

On April 29, 2004, the shareholders approved the Checkpoint Systems, Inc. 2004 Omnibus Incentive Compensation Plan (2004 Plan). The initial shares available under the 2004 Plan were approximately 3,500,000, which represent the shares that were available at that time under the 1992 Stock Option Plan (1992 Plan). All cancellations and forfeitures related to share units outstanding under the 1992 Plan will be added back to the shares available for grant under the 2004 Plan. No further awards will be issued under the 1992 Plan. The 2004 Plan is designed to provide incentives to employees, non-employee directors, and independent contractors through the award of stock options, stock appreciation rights, stock units, phantom shares, dividend equivalent rights and cash awards. The Compensation Committee (Committee) of our Board of Directors administers the 2004 Plan and determines the terms and conditions of each award. Stock options issued under the 2004 Plan primarily vest over a three-year period and expire not more than 10 years from date of grant. Restricted stock units vest over three to five year periods from date of grant. On June 3, 2009, at the 2009 Annual Meeting of Shareholders of Checkpoint Systems, Inc., the shareholders of the Company approved the Checkpoint Systems, Inc. Amended and Restated 2004 Omnibus Incentive Compensation Plan, Effective Date: February 17, 2009 (the “Omnibus Incentive Plan”), which was amended and restated to extend the term of the Omnibus Incentive Plan by an additional five years and to re-approve the performance goals set forth under the Omnibus Incentive Plan. The 2004 Plan was further amended on June 2, 2010, at the 2010 Annual Meeting of Shareholders of Checkpoint Systems, Inc., when our shareholders approved the Checkpoint Systems, Inc. Amended and Restated 2004 Omnibus Incentive Compensation Plan (the “Plan”), which was amended and restated to:

• increase the number of shares of the Company’s common stock reserved for issuance under the Plan by 3,250,000 shares to an aggregate of 6,687,956 shares;

• revise the “repricing” provision such that the new provision will provide that, except in respect of certain corporate transactions, the terms of outstanding awards may not be amended to (i) reduce the exercise price of outstanding stock options or stock appreciation rights (“SARs”), or (ii) cancel, exchange, substitute, buy out or surrender outstanding options or SARs in exchange for cash, other awards, stock options or SARs with an exercise price that is less than the exercise price of the original stock options or SARs (as applicable) without shareholder approval;

• impose a limitation on certain shares of the Company’s common stock from again being made available for issuance under the Plan such that the following shares of the Company’s common stock may not again be made available for issuance: (i) shares of common stock not issued or delivered as a result of the net settlement of an outstanding SAR or stock option, (ii) shares of common stock used to pay the exercise price or withholding taxes related to an outstanding award, or (iii) shares of common stock repurchased on the open market with the proceeds of the stock option exercise price;

• establish a minimum exercise price with respect to stock options or SARs to be granted under the Plan such that no stock option or SAR may be granted under the Plan with a per share exercise price that is less than 100% of the fair market value of one share of the Company’s common stock on the date of grant; and

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• establish a limitation against the payment of any cash dividend or dividend equivalent right (“DER”) with respect to awards that vest based upon the attainment of one or more performance measures such that no awards granted under the Plan based upon the attainment of one or more performance measures will be entitled to receive payment of any cash dividends or DERs with respect to such awards unless and until such awards vest.

As of December 30, 2012, there were 3,308,264 shares available for grant under the 2004 Plan.

Our 1992 Stock Option Plan (1992 Plan) allowed us to grant either Incentive Stock Options (ISOs) or Non-Incentive Stock Options (NSOs) to purchase up to 16,000,000 shares of common stock. Only employees were eligible to receive ISOs and both employees and non-employee directors of the Company were eligible to receive NSOs. On February 17, 2004, the Plan was amended to allow an independent consultant to receive NSOs. All ISOs under the 1992 Plan expire not more than ten years (plus six months in the case of NSOs) from the date of grant. Both ISOs and NSOs require a purchase price of not less than 100% of the fair market value of the stock at the date of grant. As of December 30, 2012, there were no shares available for grant under the 1992 Plan.

On December 27, 2007, we adopted a stand alone inducement stock option plan authorizing the issuance of options to purchase up to 270,000 shares of our common stock, which were granted to the newly elected President and CEO of the Company in connection with his hire. The non-qualified stock options provide for three vesting instances: 60% on December 31, 2010; 20% on December 31, 2011; and 20% on December 31, 2012. The options also have a market condition. The market condition specifies that any unvested tranche will vest immediately as soon as the Company’s stock price exceeds 200% of the December 27, 2007, strike price of $22.71. In addition, there were 230,000 shares issued out of our Omnibus Incentive Compensation Plan with similar vesting and market based criteria as described above.

To determine the fair value of stock options with market conditions we used the Monte Carlo simulation lattice model using the following assumptions: (i) expected volatility of 37.04%, (ii) risk-free rate of 4.1%, (iii) expected term of 10 years, and (iv) an expected dividend yield of zero. The weighted average fair value of the stock options with market conditions was $12.43 per share.

During fiscal 2005, we initiated a Long-Term Incentive Plan (LTIP). Under this plan, restricted stock units (RSUs) were awarded to eligible executives. During fiscal 2006, we expanded the scope of the LTIP. Under the expanded plan, RSUs were awarded to eligible key employees.

On December 4, 2007, RSUs were awarded to certain key employees of the Company’s Alpha Security Products Division as part of the LTIP plan. The number of shares for these units varies based on the Company’s Alpha^® product revenues. These units had the potential to vest 33% per year, over a three-year period ending at the end of fiscal 2010. The weighted average price for these RSUs was $21.84 per share. At December 26, 2010, we reversed $0.6 million of previously recognized compensation cost since it was determined that the Company did not achieve the revenue targets set forth in the plan. Accordingly, no remaining RSUs were earned under this plan.

On February 17, 2009, RSUs were awarded to certain key employees of the Company as part of the LTIP 2009 plan. The number of shares for these units varies based on the Company achieving specific relative performance goals versus a pool of peer companies during the January 2009 to December 2011 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $8.12 per share. At December 25, 2011, we reversed $0.5 million of previously recognized compensation cost since it was determined that the Company did not achieve the specific relative performance goals set forth in the plan. Accordingly, no RSUs were earned under this plan.

On February 12, 2010, RSUs were awarded to certain key employees of the Company as part of the LTIP 2010 plan. The number of shares for these units varies based on the Company achieving specific relative performance goals versus a pool of peer companies during the January 2010 to December 2012 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $15.83 per share. Additional RSUs related to the LTIP 2010 plan were awarded on February 22, 2010, and March 11, 2010, with a weighted average price of $17.06 and $21.76 per share, respectively. At June 24, 2012, we reversed $0.8 million of previously recognized compensation cost since it was determined that the Company would not achieve the specific relative performance goals set forth in the plan. Accordingly, no RSUs were earned under this plan.

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On February 17, 2011, RSUs were awarded to certain key employees of the Company as part of the LTIP 2011 plan. The number of shares for these units varies based on the Company achieving specific relative performance goals versus the Russell 2000 index during the January 2011 to December 2013 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $22.54 per share. At September 23, 2012, we assessed our performance versus the Russell 2000 index and determined that a portion of the goals identified in the plan would not be achieved. As a result, at September 23, 2012, we reversed $0.3 million of previously recognized compensation cost attributable to these goals. For fiscal year 2012, $0.1 million of income was charged against compensation expense. As of December 30, 2012, total unamortized compensation expense for this grant was $0.2 million. As of December 30, 2012, the maximum achievable RSUs outstanding under this plan are 37,356 units. These RSUs reduce the shares available to grant under the 2004 Plan.

On February 22, 2012, RSUs were awarded to certain key employees of the Company as part of the LTIP 2012 plan. The number of shares for these units varies based on the Company achieving certain levels of earnings before interest, taxes, depreciation, and amortization (EBITDA) during the January 2012 to December 2014 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $11.93 per share. For fiscal year 2012, $0.1 million was charged to compensation expense. As of December 30, 2012, total unamortized compensation expense for this grant was $0.2 million. As of December 30, 2012, the maximum achievable RSUs outstanding under this plan are 29,820 units. These RSUs reduce the shares available to grant under the 2004 Plan.

On July 24, 2012, RSUs were awarded to certain key employees of the Company as part of the LTIP Second Half 2012 plan. The number of shares for these units varies based on individual performance versus second half 2012 goals. These goals were developed for employees who can influence key metrics set forth in the new business strategy during the July 2012 to December 2012 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $7.59 per share. For fiscal year 2012, $0.6 million was charged to compensation expense. Final assessment of these goals, including any compensation expense true-up will be completed in the first half of 2013. As of December 30, 2012, the maximum achievable RSUs outstanding under this plan are 108,960 units. These RSUs reduce the shares available to grant under the 2004 Plan.

Stock Options

Option activity under the principal option plans as of December 30, 2012 and changes during the year then ended were as follows:

	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 25, 2011	2,600,805		$	19.54	4.39	$	512
Granted	801,880		9.70
Exercised	(62,247	)	8.61
Forfeited or expired	(596,381	)	18.03
Outstanding at December 30, 2012	2,744,057		$	17.24	5.01	$	1,321
Vested and expected to vest at December 30, 2012	2,545,483		$	17.83	4.67	$	1,002
Exercisable at December 30, 2012	2,052,214		$	19.54	3.58	$	371

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal 2012 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 30, 2012. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised for the years ended December 30, 2012, December 25, 2011, and December 26, 2010, was $0.1 million, $1.1 million, and $4.3 million, respectively.

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As of December 30, 2012, $1.4 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.1 years.

Tax benefits resulting from tax deductions in excess of the compensation cost recognized for those options are classified as financing cash flows. Cash received from option exercises and purchases under the ESPP for the year ended December 30, 2012 was $1.7 million. The actual tax benefit realized for the tax deduction from option exercises of the share-based payment units totaled $0.1 million and $1.3 million for the fiscal years ended December 30, 2012 and December 25, 2011. We have applied the “Short-cut” method in calculating the historical windfall tax benefits. All tax short falls will be applied against this windfall before being charged to earnings.

Restricted Stock Units

We issue service-based restricted stock units with vesting periods up to five years. These awards are valued using their intrinsic value on the date of grant. The compensation expense is recognized straight-line over the vesting term.

Nonvested service-based restricted stock units as of December 30, 2012 and changes during the year ended December 30, 2012 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 25, 2011	617,672		0.79	$	21.29
Granted	223,795			$	10.58
Vested	(196,254	)		$	11.24
Forfeited	(82,107	)		$	17.15
Nonvested at December 30, 2012	563,106		0.79	$	21.14
Vested and expected to vest at December 30, 2012	511,026		0.65
Vested at December 30, 2012	61,250		—

The total fair value of restricted stock awards vested during 2012 was $2.2 million as compared to $4.0 million during 2011. As of December 30, 2012, there was $1.4 million unrecognized stock-based compensation expense related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.5 years.

Other Compensation Arrangements

During fiscal 2010, we initiated a plan in which time-vested cash unit awards were granted to eligible employees. The time-vested cash unit awards under this plan vest evenly over two or three years from the date of grant. The total amount accrued related to the plan equaled $1.0 million at December 30, 2012, of which $1.2 million, $0.6 million, and $0.2 million was expensed for the years ended December 30, 2012, December 25, 2011, and December 26, 2010, respectively. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.

Note 9. SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments in 2012, 2011, and 2010 includes payments for interest of $8.7 million, $6.7 million, and $3.6 million, respectively and also includes payments for income taxes of $10.8 million, $17.9 million, and $22.4 million, respectively.

In January 2011, the Company entered into an agreement to acquire the business of Shore to Shore, through the acquisition of equity and/or assets, which together is a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels. The acquisition was settled on May 16, 2011 for approximately $78.7 million, net of cash acquired of $1.9 million and the assumption of debt of $4.2 million. The purchase price was funded by $66.7 million of cash from operations and $9.2 million of borrowings under our Senior Secured Credit Facility. The acquisition payment, net of cash acquired, is reflected in the acquisition of businesses line within investing activities on the Consolidated Statement of Cash Flows.

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At December 30, 2012 and December 25, 2011, the Company accrued $0.5 million and $2.3 million, respectively of capital expenditures, with no comparable accrual at December 26, 2010. These amounts were excluded from the Consolidated Statements of Cash Flows at December 30, 2012, December 25, 2011, and December 26, 2010 since they represent non-cash investing activities. Accrued capital expenditures at December 30, 2012, December 25, 2011, and December 26, 2010 are included in accounts payable and other accrued expenses on the Consolidated Balance Sheets.

Also excluded from the Consolidated Statement of Cash Flows for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 are $27 thousand, $0.1 million, and $0.4 million, respectively, of new capital lease obligations and related capitalized assets.

Business Acquisitions

(amounts in thousands)	December 30, 2012		December 25, 2011			December 26, 2010
Fair value of tangible assets acquired, less cash acquired	$	—	$	28,535		$	33
Goodwill and identified intangible assets	—		68,458			467
Liabilities assumed	—		(20,270		)	—
Payment obligation	—		(786		)	(200		)
Cash paid for acquisitions	$	—	$	75,937		$	300

Note 10. STOCKHOLDERS’ EQUITY

The components of accumulated other comprehensive income at December 30, 2012 and at December 25, 2011 are as follows:

(amounts in thousands)	December 30, 2012			December 25, 2011
Actuarial losses on pension plans, net of tax	$	(17,538	)	$	(6,580	)
Derivative hedge contracts, net of tax	21			1,542
Foreign currency translation adjustment	18,312			17,779
Total	$	795		$	12,741

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Note 11. EARNINGS PER SHARE

For fiscal years 2012, 2011, and 2010, basic earnings per share are based on net earnings divided by the weighted average number of shares outstanding during the period. The following data shows the amounts used in computing earnings per share and the effect on net earnings from continuing operations and the weighted average number of shares of dilutive potential common stock:

(amounts in thousands, except per share data)	December 30, 2012			December 25, 2011			December 26, 2010
Basic (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(137,917	)	$	(65,404	)	$	19,405
Basic (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	$	(7,959	)	$	(1,165	)	$	8,325
Diluted (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(137,917	)	$	(65,404	)	$	19,405
Diluted (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	$	(7,959	)	$	(1,165	)	$	8,325
Shares:
Weighted average number of common shares outstanding	40,476			40,070			39,483
Shares issuable under deferred compensation agreements	524			462			452
Basic weighted average number of common shares outstanding	41,000			40,532			39,935
Common shares assumed upon exercise of stock options and awards	—			—			505
Shares issuable under deferred compensation arrangements	—			—			5
Dilutive weighted average number of common shares outstanding	41,000			40,532			40,445
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	(0.20		)	(0.03		)	0.21
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	(0.20		)	(0.03		)	0.21
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69

Anti-dilutive potential common shares are not included in our earnings per share calculation. The Long-term Incentive Plan restricted stock units were excluded from our calculation due to the performance of vesting criteria not being met.

The number of anti-dilutive common share equivalents for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows: 

(amounts in thousands)	December 30, 2012	December 25, 2011	December 26, 2010
Weighted average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	3,107	2,380	1,516

⁽¹⁾  Adjustments for stock options and awards of 61 shares and 329 shares and deferred compensation arrangements of 12 shares and 11 shares were anti-dilutive in fiscal 2012 and 2011, respectively. These shares were therefore excluded from the earnings per share calculation due to our net loss for the years.

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Note 12. INCOME TAXES

The domestic and foreign components of earnings from continuing operations before income taxes are:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Domestic	$	(54,230	)	$	(41,664	)	$	(32,985	)
Foreign	(76,852		)	35,776			56,102
Total	$	(131,082	)	$	(5,888	)	$	23,117

Provision for income taxes:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Currently payable
Federal	$	2,544		$	365		$	(4,004	)
State	88			99			(404		)
Puerto Rico	354			23			(3,950		)
Foreign	6,453			11,474			15,045
Total currently payable	9,439			11,961			6,687
Deferred
Federal	(792		)	49,395			(5,128		)
State	226			526			4,321
Puerto Rico	765			(377		)	(707		)
Foreign	(2,274		)	(1,932		)	(1,345		)
Total deferred	(2,075		)	47,612			(2,859		)
Total provision	$	7,364		$	59,573		$	3,828

Adjustments have been made to prior year figures in the table above to be more presentable with the current year.

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Deferred tax assets/liabilities at December 30, 2012 and December 25, 2011 consist of:

(amounts in thousands)	December 30, 2012			December 25, 2011
Inventory	$	5,390		$	4,930
Accounts receivable	2,733			2,513
Capitalized research and development costs	21,173			18,476
Net operating loss and foreign tax credit carryforwards	65,951			62,685
Restructuring	491			2,537
Pension	12,874			7,890
Warranty	1,138			1,507
Deferred compensation	3,630			4,980
Stock based compensation	7,506			8,148
Depreciation	1,753			1,052
Other	11,759			12,349
Valuation allowance	(104,514		)	(102,148		)
Deferred tax assets	29,884			24,919
Deferred revenue	546			1,316
Intangibles	8,327			9,542
Unremitted earnings	3,081			2,365
Deferred tax liabilities	11,954			13,223
Net deferred tax assets	$	17,930		$	11,696

At December 30, 2012, we had $35.9 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions. Of these, $25.4 million have no expiration, and the remaining $10.5 million will expire in future years through 2022. In the U.S., there were approximately $5.7 million of federal and $6.7 million of state net operating loss carryforwards, which will expire in future years through 2032. Of the $5.7 million of federal net operating loss carryforwards, $5.3 million is subject to IRC § 382 limitations.

In the U.S., a $1.1 million and $3.5 million windfall benefit on stock compensation occurred in 2011 and 2010, respectively.  We have not recorded these amounts to additional capital or increased its related net operating loss carryforward due to the fact that the windfall benefits have not reduced income taxes payable. There was no windfall benefit on stock compensation in 2012. We have adopted a “with and without” approach with regards to utilization of windfall benefits.

At December 30, 2012, we had U.S. foreign tax credit carryforwards of $16.6 million with expiration dates ranging from 2016 to 2022.

We operate under tax holidays in other countries, which are effective through dates ranging from 2015 through 2017, and may be extended if certain additional requirements are satisfied. The tax holidays are conditional upon our meeting certain employment and investment thresholds.

In accordance with ASC 740, “Accounting for Income Taxes”, we evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. ASC 740 requires that companies assess whether valuation allowances should be established against their deferred tax assets based on all available evidence, both positive and negative, using a “more likely than not” standard. In the assessment for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, our experience with loss carryforwards not expiring and tax planning alternatives. We operate and derive income from multiple lines of business across multiple jurisdictions. As each of the respective lines of business experiences changes in operating results across their geographic footprint, we may encounter losses in jurisdictions that have been historically profitable, and as a result might require additional valuation allowances to be recorded against certain deferred tax asset balances.  We are committed to implementing tax planning actions, when deemed appropriate, in jurisdictions that experience losses in order to realize deferred tax assets prior to their expiration.  At December 30, 2012 and December 25, 2011, we had net deferred tax assets of $17.9 million and $11.7 million, respectively.

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During 2010, negative evidence arose in the form of cumulative losses in the U.S. and Germany, with net deferred tax assets of $41.7 million and $9.6 million, respectively. In 2010, and the first six months of 2011, we considered all available evidence and were able to conclude on a more likely than not basis that the effects of our commitment to specific tax planning actions provided a sufficient amount of positive evidence to support the continued benefit of the jurisdictions’ deferred tax assets.

During the quarter ending September 25, 2011, a valuation allowance in the amount of $48 million was established related to all components of the domestic net deferred tax assets based on the determination after the above considerations that it was more likely than not that the deferred tax assets would not be fully realized. The amount of valuation allowance recorded was greater than the net domestic deferred tax asset after consideration of deferred tax liabilities associated with non-amortizable assets such as goodwill and indefinite lived intangibles. This charge was primarily a result of the trend of significant domestic losses experienced in recent years, as well as the reduction of our global earnings experienced during the first nine months of 2011.

We have not recorded a valuation allowance on the net German deferred tax asset and continue to rely on a tax planning action that has been executed in the fourth quarter of 2011 and have provided evidence during 2012 to support the realization of the German deferred tax assets. The German tax planning action does not significantly rely on our global earnings to utilize German deferred tax assets.

In May 2011, we acquired a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels (collectively, the “Shore to Shore businesses”) through the acquisition of equity and/or assets. As of December 25, 2011, we have established a preliminary opening net deferred tax liability of $3.0 million. In addition, we have established $3.1 million of income tax liabilities related to uncertain tax positions in pre-acquisition tax years. The income tax adjustments related to purchase accounting for the Shore to Shore businesses were finalized in 2012. Our preliminary opening net deferred tax liability increased to $3.1 million and the income tax liabilities related to uncertain tax positions in pre-acquisition years was increased to $7.1 million.

During 2012, negative evidence arose in the form of cumulative losses in the Netherlands, with net deferred assets of $0.3 million. During the quarter ending June 24, 2012, a valuation allowance was established related to certain components of the Netherlands deferred tax asset based on the determination after the above considerations that it was more likely than not that the net deferred tax assets would not be fully utilized.

Undistributed earnings of certain foreign subsidiaries for which taxes have not been provided approximate $4.0 million as of December 30, 2012. Such undistributed earnings are considered to be indefinitely reinvested in foreign operations. A liability could arise if our intention to permanently reinvest such earnings were to change and amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed. It is not practicable to estimate the additional income taxes related to permanently reinvested earnings or the basis differences related to investments in subsidiaries.

In the fourth quarter of 2011, we changed our assertion on unremitted earnings for certain foreign subsidiaries, primarily due to pressure on our leverage ratio for debt covenants. This resulted in the repatriation of foreign earnings in order to reduce worldwide debt to the levels stipulated by our covenants and the projected future cash impact of our refined business strategy. Our assertion on unremitted earnings remains unchanged in 2012.

As of December 30, 2012, we provided a deferred tax liability of approximately $3.1 million primarily for withholding taxes associated with future repatriation of earnings for certain subsidiaries. We have not provided deferred tax liabilities for temporary differences related to basis differences in investments in subsidiaries, as such earnings are expected to be permanently reinvested, the investments are essentially permanent in duration, or we have concluded that no additional tax liability will arise as a result of the distribution of such earnings.

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A reconciliation of the tax provision at the statutory U.S. Federal income tax rate with the tax provision at the effective income tax rate follows:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Tax provision at the statutory federal income tax rate	$	(45,879	)	$	(2,061	)	$	8,091
Unremitted earnings	690			1,430			—
Non-deductible permanent items	1,566			1,748			1,467
Non-deductible goodwill impairment	32,503			—			—
State and local income taxes, net of federal benefit	314			625			3,917
Losses for which no tax benefit recognized and release of allowance on current year income	1,135			14,224			1,408
Effect of foreign operations	17,671			(3,668		)	(7,794		)
Tax settlements	—			—			(47		)
Potential tax contingencies	(547		)	(1,086		)	(3,488		)
Change in valuation allowance	283			47,684			—
Stock based compensation	994			366			441
Other	(1,366		)	311			(167		)
Tax provision at the effective tax rate	$	7,364		$	59,573		$	3,828

Included in the effect of foreign operations is the U.S. tax impact of certain foreign income inclusions. Due to the U.S. valuation allowance, there was no related impact on overall tax expense in 2012 and 2011.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

( amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Gross unrecognized tax benefits at beginning of year	$	15,850		$	12,846		$	14,884
Increases in tax positions for prior years	225			997			1,161
Decreases in tax positions for prior years	(1,068		)	(44		)	—
Increases in tax positions for current year	3,800			808			1,229
Settlements	(683		)	(443		)	(928		)
Acquisition reserves	1,167			4,640			240
Lapse in statute of limitations	(2,956		)	(2,954		)	(3,740		)
Gross unrecognized tax benefits at end of year	$	16,335		$	15,850		$	12,846

The total amount of gross unrecognized tax benefits that, if recognized, would affect the effective tax rate was $16.3 million and $15.9 million at December 30, 2012 and December 25, 2011, respectively. Penalties and tax-related interest expense are reported as a component of income tax expense. During fiscal years ended December 30, 2012, December 25, 2011 and December 26, 2010, we recognized interest and penalties of $(0.3) million, $1.0 million, and $(2.8) million, respectively in the statement of operations. At December 30, 2012 and December 25, 2011, we have accrued interest and penalties related to unrecognized tax benefits of $4.3 million and $4.6 million, respectively.

We file income tax returns in the U.S. and in various states, local and foreign jurisdictions. We are routinely examined by tax authorities in these jurisdictions. It is possible that these examinations may be resolved within the next twelve months. Due to the potential for resolution of Federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the gross unrecognized tax benefits balance may change within the next twelve months by a range of $5.0 million to $3.4 million.

We are currently under audit in the following major jurisdictions: Germany 2006 – 2009, Finland 2008 – 2009, and India 2008 - 2012.

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Note 13. EMPLOYEE BENEFIT PLANS

Under our defined contribution savings plans, eligible employees may make basic (up to 6% of an employee’s earnings) and supplemental contributions. We match in cash 50% of the participant’s basic contributions. Company contributions vest to participants in increasing percentages over one to five years of service. Our contributions under the plans approximated $1.4 million, $1.5 million, and $1.3 million, in 2012, 2011, and 2010, respectively.

Generally, all employees in the U.S. may participate in our U.S. Savings Plan. All full-time employees of the Puerto Rico subsidiary who have completed three months of service may participate in our Puerto Rico Savings Plan.

During fiscal 2005, we initiated a 423(b) Employee Stock Purchase Plan (ESPP), which was adopted by the shareholders at the Annual Shareholder Meeting on April 29, 2004. This plan replaces the non-qualified Employee Stock Purchase Plan. Under the provisions of the 423(b) plan, eligible employees may contribute from 1% to 25% of their base compensation to purchase shares of our common stock at 85% of the fair market value on the offering date or the exercise date of the offering period, whichever is lower.

On May 31, 2012, at the 2012 Annual Meeting of Shareholders of Checkpoint, our shareholders amended the ESPP in order to increase the number of shares of the Company’s common stock reserved for issuance under the ESPP by 400,000 shares to an aggregate of 1,050,000 shares. Our expense for this plan in fiscal 2012, 2011 and 2010 was $0.4 million, $0.6 million, and $0.6 million, respectively. As of December 30, 2012, there were 400,340 shares authorized and available to be issued. During fiscal year 2012, 139,135 shares were issued under this plan as compared to 100,475 shares in 2011 and 102,769 shares in 2010.

We maintain deferred compensation plans for executives and non-employee directors. The executive deferred compensation plan allows certain executives to defer portions of their salary and bonus (up to 50% and 100%, respectively) into a deferred stock account. All deferrals in this plan are matched 25% by the Company. The match vests in thirds at each calendar year end for three years following the match. For executives over the age of 55 years old, the matching contribution vests immediately. The settlement of this deferred stock account is required by the plan to be made only in Company common stock. The deferral shares held in the deferred compensation plan are considered outstanding for purposes of calculating basic and diluted earnings per share. The unvested match is considered in the calculation of diluted earnings per share. Our match into the deferred stock account under the executive plan for fiscal years 2012, 2011, and 2010 were approximately $0.2 million, $0.2 million, and $0.4 million, respectively. The match will be expensed ratably over a three year vesting period for executives under 55 years old and immediate for those older than 55 years.

The director deferred compensation plan allows non-employee directors to defer their compensation into a deferred stock account. All deferrals in this plan are matched 25% by the Company. The match vests immediately. The settlement of this deferred stock account is required by the plan to be made only in Company common stock. The deferral shares held in the deferred compensation plan are considered outstanding for purposes of calculating basic and diluted earnings per share. Our match into the deferred stock account under the director’s plan approximated $24 thousand, $40 thousand, and $46 thousand for fiscal years 2012, 2011, and 2010, respectively.

Pension Plans

We maintain several defined benefit pension plans, principally in Europe. The plans covered approximately 5% of the total workforce at December 30, 2012. The benefits accrue according to the length of service, age, and remuneration of the employee. We recognize the funded status of our defined benefit postretirement plans in the Company’s statement of financial position.

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The amounts recognized in accumulated other comprehensive income at December 30, 2012, and December 25, 2011 consist of:

(amounts in thousands)	December 30, 2012			December 25, 2011
Transition obligation	$	—		$	58
Prior service costs	10			12
Actuarial losses	26,588			10,638
Total	26,598			10,708
Deferred tax	(8,833		)	(4,311		)
Net	$	17,765		$	6,397

The amounts included in accumulated other comprehensive income at December 30, 2012 and expected to be recognized in net periodic pension cost during the year ended December 29, 2013 is as follows:

(amounts in thousands)	December 29, 2013
Prior service costs	$	2
Actuarial loss	1,559
Total	$	1,561

The Company expects to make contributions of $5.2 million during the year ended December 29, 2013.

The pension plans included the following net cost components:

(amounts in thousands)	December 30, 2012		December 25, 2011			December 26, 2010
Service cost	$	851	$	972		$	855
Interest cost	3,874		4,418			4,331
Expected return on plan assets	41		155			(60		)
Amortization of actuarial loss (gain)	224		50			(24		)
Amortization of transition obligation	57		129			124
Amortization of prior service costs	2		2			2
Net periodic pension cost	5,049		5,726			5,228
Settlement loss	—		46			—
Curtailment loss (gain)	72		(104		)	—
Total pension expense	$	5,121	$	5,668		$	5,228

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The table below sets forth the funded status of our plans and amounts recognized in the accompanying Consolidated Balance Sheets.

(amounts in thousands)	December 30, 2012			December 25, 2011
Change in benefit obligation
Net benefit obligation at beginning of year	$	84,674		$	81,226
Service cost	851			972
Interest cost	3,874			4,418
Actuarial loss	16,269			4,439
Gross benefits paid	(4,324		)	(4,537		)
Plan curtailments	(575		)	(618		)
Plan settlements	(295		)	(470		)
Foreign currency exchange rate changes	1,540			(756		)
Net benefit obligation at end of year	$	102,014		$	84,674
Change in plan assets
Fair value of plan assets at beginning of year	$	1,406		$	1,472
Actual return on assets	(5		)	145
Employer contributions	4,686			4,801
Gross benefits paid	(4,324		)	(4,537		)
Plan settlements	(295		)	(470		)
Foreign currency exchange rate changes	20			(5		)
Fair value of plan assets at end of year	$	1,488		$	1,406
Reconciliation of funded status
Funded status at end of year	$	(100,526	)	$	(83,268	)

(amounts in thousands)	December 30, 2012		December 25, 2011
Amounts recognized in accrued benefit consist of:
Accrued pensions — current	$	4,687	$	4,453
Accrued pensions	95,839		78,815
Net amount recognized at end of year	$	100,526	$	83,268
Accumulated benefit obligation at end of year	$	96,774	$	80,744

The following table sets forth additional fiscal year-ended information for pension plans for which the accumulated benefit is in excess of plan assets:

(amounts in thousands)	December 30, 2012		December 25, 2011
Projected benefit obligation	$	102,014	$	84,674
Accumulated benefit obligation	$	96,774	$	80,744
Fair value of plan assets	$	1,488	$	1,406

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The weighted average rate assumptions used in determining pension costs and the projected benefit obligation are as follows:

	December 30, 2012		December 25, 2011		December 26, 2010
Weighted average assumptions for year-end benefit obligations:
Discount rate(1)	3.53	%	4.77	%
Expected rate of increase in future compensation levels	2.52	%	2.52	%
Weighted average assumptions for net periodic benefit cost development:
Discount rate(1)	4.77	%	5.27	%	5.77	%
Expected rate of return on plan assets	5.25	%	5.75	%	4.00	%
Expected rate of increase in future compensation levels	2.52	%	2.52	%	2.52	%
Measurement Date:	December 31, 2012		December 31, 2011		December 31, 2010

⁽¹⁾  Represents the weighted average rate for all pension plans.

In developing the discount rate assumption for each country, we use a yield curve approach. The yield curve is based on the AA rated bonds underlying the Barclays Capital corporate bond index. The weighted average discount rate was 3.53% in 2012 and 4.77% in 2011. We calculate the weighted average duration of the plans in each country, then select the discount rate from the appropriate yield curve which best corresponds to the plans' liability profile.

The majority of our pension plans are unfunded plans. The expected rate of the return was developed using the historical rate of returns of the foreign government bonds currently held. This resulted in the selection of the 5.25% long-term rate of return on asset assumption. For funded plans, all assets are held in foreign government bonds.

The benefits expected to be paid over the next five years and the five aggregated years after:

(amounts in thousands)
2013	$	4,689
2014	$	4,753
2015	$	4,844
2016	$	4,864
2017	$	5,004
2018 through 2022	$	26,104

The following table provides a summary of the fair value of the Company's pension plan assets at December 30, 2012 utilizing the fair value hierarchy discussed in Note 14:

(amounts in thousands)	Total Fair Value Measurement December 30, 2012		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Global insurance assets	$	1,488	$	—	$	—	$	1,488

All investments consist of fixed-income global insurance. The investment objective of fixed-income funds is to maximize investment return while preserving investment principal.

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Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the year ended December 30, 2012 is presented below:

(amounts in thousands)	Balance as of December 25, 2011		Actual Return on Plan Assets, Relating to Assets Still Held at the Reporting Date		Actual Return on Plan Assets, Relating to Assets Sold During the Period			Purchases, Sales and Settlements			Transfer into / (out of) Level 3		Change due to Exchange Rate Changes		Balance as of December 30, 2012
Asset Category
Global insurance assets	$	1,406	$	791	$	(209	)	$	(520	)	$	—	$	20	$	1,488
Total Level 3 Assets	$	1,406	$	791	$	(209	)	$	(520	)	$	—	$	20	$	1,488

Note 14. FAIR VALUE MEASUREMENT, FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Fair Value Measurement

We utilize the market approach to measure fair value for our financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

Our financial assets and liabilities are measured using a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

Level 1	Inputs are quoted prices in active markets for identical assets or liabilities.
Level 2	Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.
Level 3	Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

Because the Company’s derivatives are not listed on an exchange, the Company values these instruments using a valuation model with pricing inputs that are observable in the market or that can be derived principally from or corroborated by observable market data. The Company’s methodology also incorporates the impact of both the Company’s and the counterparty’s credit standing.

102

The following tables represent our assets and liabilities measured at fair value on a recurring basis as of December 30, 2012 and December 25, 2011 and the basis for that measurement:

(amounts in thousands)	Total Fair Value Measurement December 30, 2012		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Foreign currency forward exchange contracts	$	179	$	—	$	179	$	—
Foreign currency revenue forecast contracts	14		—		14		—
Total assets	$	193	$	—	$	193	$	—
Foreign currency forward exchange contracts	$	208	$	—	$	208	$	—
Total liabilities	$	208	$	—	$	208	$	—

(amounts in thousands)	Total Fair Value Measurement December 25, 2011		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Foreign currency forward exchange contracts	$	463	$	—	$	463	$	—
Foreign currency revenue forecast contracts	1,120		—		1,120		—
Total assets	$	1,583	$	—	$	1,583	$	—
Foreign currency forward exchange contracts	$	415	$	—	$	415	$	—
Total liabilities	$	415	$	—	$	415	$	—

The following table provides a summary of the activity associated with all of our designated cash flow hedges (foreign currency) reflected in accumulated other comprehensive income for the years ended December 30, 2012 and December 25, 2011:

(amounts in thousands)	December 30, 2012			December 25, 2011
Beginning balance, net of tax	$	1,542		$	377
Changes in fair value gain, net of tax	481			(643		)
Reclass to earnings, net of tax	(2,002		)	1,808
Ending balance, net of tax	$	21		$	1,542

We believe that the fair values of our current assets and current liabilities (cash, restricted cash, accounts receivable, accounts payable, and other current liabilities) approximate their reported carrying amounts. The carrying values and the estimated fair values of non-current financial assets and liabilities that qualify as financial instruments and are not measured at fair value on a recurring basis at December 30, 2012 and December 25, 2011 are summarized in the following table:

	December 30, 2012				December 25, 2011
(amounts in thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt (including current maturities and excluding capital leases and factoring)(1)
Senior secured credit facility	$	42,021	$	42,021	$	52,248	$	52,248
Senior secured notes	$	66,114	$	66,549	$	75,000	$	75,686

⁽¹⁾  The carrying amounts are reported on the balance sheet under the indicated captions.

Long-term debt is carried at the original offering price, less any payments of principal. Rates currently available to us for long-term borrowings with similar terms and remaining maturities are used to estimate the fair value of existing borrowings as the present value of expected cash flows. The Senior Secured Credit Facility’s maturity date is in the year 2014 and the Senior Secured Notes mature in the years 2015 through 2017.

103

Nonrecurring Fair Value Measurements

In 2012, in connection with our annual impairment test, goodwill with a carrying amount of $61.5 million was written down to its implied fair value of $23.2 million. This resulted in a $38.3 million goodwill impairment charge that was recorded in goodwill impairment expense in the Retail Merchandising Solutions segment on the Consolidated Statement of Operations. The nonrecurring fair value measurement was developed using significant unobservable inputs (Level 3). The fair value was computed using a discounted cash flow valuation methodology. Refer to Note 5 of the Consolidated Financial Statements.

In 2011, as a result of our annual impairment test, our SIDEP indefinite-lived trade name with a carrying amount of $0.8 million was written down to its implied fair value of $0.2 million. This resulted in a $0.6 million impairment charge that was recorded in asset impairment in the Shrink Management Solutions segment on the Consolidated Statement of Operations. The nonrecurring fair value measurement was developed using significant unobservable inputs (Level 3). The fair value was computed using the relief from royalty income valuation approach. Refer to Note 5 of the Consolidated Financial Statements.

Severance costs included in our restructuring charges are calculated using internal estimates and are therefore classified as Level 3 in the fair value hierarchy. Refer to Note 15 of the Consolidated Financial Statements.

Accrued restructuring costs for lease termination liabilities were valued using a discounted cash flow model. Significant assumptions used in determining the amount of the estimated liability include the estimated liabilities for future rental payments on vacant facilities as of their respective cease-use dates and the discount rate utilized to determine the present value of the future expected cash flows. If our assumptions regarding early terminations and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses or gains in the Consolidated Financial Statements. Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy. Refer to Note 15 of the Consolidated Financial Statements.

In connection with our restructuring plans, we have recorded impairment losses in restructuring expense during the years ended December 30, 2012 and December 25, 2011 due to the impairment of certain long-lived assets for which the carrying value of those assets may not be recoverable based upon our estimated cash flows. Given that the impairment losses were determined using internal estimates of future cash flows or upon non-identical assets using significant unobservable inputs, we have classified the remaining fair value of long-lived assets as Level 3 in the fair value hierarchy. Refer to Note 15 of the Consolidated Financial Statements.

Financial Instruments and Risk Management

We manufacture products in the U.S., Europe, and the Asia Pacific region for both the local marketplace and for export to our foreign subsidiaries. The foreign subsidiaries, in turn, sell these products to customers in their respective geographic areas of operation, generally in local currencies. This method of sale and resale gives rise to the risk of gains or losses as a result of currency exchange rate fluctuations on inter-company receivables and payables. Additionally, the sourcing of product in one currency and the sales of product in a different currency can cause gross margin fluctuations due to changes in currency exchange rates.

Our major market risk exposures are movements in foreign currency and interest rates. We have historically not used financial instruments to minimize our exposure to currency fluctuations on our net investments in and cash flows derived from our foreign subsidiaries. We have used third-party borrowings in foreign currencies to hedge a portion of our net investments in and cash flows derived from our foreign subsidiaries. A reduction in our third party foreign currency borrowings will result in an increase of foreign currency fluctuations on our net investments in and cash flows derived from our foreign subsidiaries.

We enter into forward exchange contracts to reduce the risks of currency fluctuations on short-term inter-company receivables and payables. These contracts are entered into with major financial institutions, thereby minimizing the risk of credit loss. We will consider using interest rate derivatives to manage interest rate risks when there is a disproportionate ratio of floating and fixed-rate debt. We do not hold or issue derivative financial instruments for speculative or trading purposes. We are subject to other foreign exchange market risk exposure resulting from anticipated non-financial instrument foreign currency cash flows which are difficult to reasonably predict, and have therefore not been included in the table of fair values. All listed items described are non-trading.

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The following table presents the fair values of derivative instruments included within the Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011:

	December 30, 2012						December 25, 2011
	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
(amounts in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign currency revenue forecast contracts	Other current assets	$	14	Other current liabilities	$	—	Other current assets	$	1,120	Other current liabilities	$	—
Total derivatives designated as hedging instruments		14			—			1,120			—
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	Other current assets	179		Other current liabilities	208		Other current assets	463		Other current liabilities	415
Total derivatives not designated as hedging instruments		179			208			463			415
Total derivatives		$	193		$	208		$	1,583		$	415

The following tables present the amounts affecting the Consolidated Statement of Operations for the years ended December 30, 2012, December 25, 2011, and December 26, 2010:

	December 30, 2012
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	507	Cost of sales	$	(1,994	)	$	102
Total designated cash flow hedges	$	507		$	(1,994	)	$	102

	December 25, 2011
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	(658	)	Cost of sales	$	(1,792	)	$	(296	)
Total designated cash flow hedges	$	(658	)		$	(1,792	)	$	(296	)

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	December 26, 2010
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	1,940	Cost of sales	$	1,194		$	(124	)
Interest rate swap contracts	171		Interest expense	(159		)	—
Total designated cash flow hedges	$	2,111		$	1,035		$	(124	)

	December 30, 2012			December 25, 2011				December 26, 2010
(amounts in thousands)	Amount of Gain (Loss) Recognized in Income on Derivatives		Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives			Location of Gain(Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives		Location of Gain(Loss) Recognized in Income on Derivatives
Derivatives not designated as hedging instruments
Foreign exchange forwards and options	$	261	Other gain (loss), net	$	(155	)	Other gain (loss), net	$	77	Other gain (loss), net

We selectively purchase currency forward exchange contracts to reduce the risks of currency fluctuations on short-term inter-company receivables and payables. These contracts guarantee a predetermined exchange rate at the time the contract is purchased. This allows us to shift the effect of positive or negative currency fluctuations to a third party. Transaction gains or losses resulting from these contracts are recognized at the end of each reporting period. We use the fair value method of accounting, recording realized and unrealized gains and losses on these contracts. These gains and losses are included in other gain (loss), net on our Consolidated Statements of Operations. As of December 30, 2012, we had currency forward exchange contracts with notional amounts totaling approximately $17.1 million. The fair values of the forward exchange contracts were reflected as a $0.2 million asset and $0.2 million liability and are included in other current assets and other current liabilities in the accompanying Consolidated Balance Sheets. The contracts are in the various local currencies covering primarily our operations in the U.S., the Caribbean, and Western Europe. Historically, we have not purchased currency forward exchange contracts where it is not economically efficient, specifically for our operations in South America and Asia, with the exception of Japan.

Beginning in the second quarter of 2008, we entered into various foreign currency contracts to reduce our exposure to forecasted Euro-denominated inter-company revenues. These contracts were designated as cash flow hedges. The foreign currency contracts mature at various dates from January 2013 to March 2013. The purpose of these cash flow hedges is to reduce the currency risk associated with Euro-denominated forecasted inter-company revenues due to changes in exchange rates. These cash flow hedging instruments are marked to market and the changes are recorded in other comprehensive income. Amounts recorded in other comprehensive income are recognized in cost of goods sold as the inventory is sold to external parties. Any hedge ineffectiveness is charged to other gain (loss), net on our Consolidated Statements of Operations. As of December 30, 2012, the fair value of these cash flow hedges was reflected as a $14 thousand asset and is included in other current assets in the accompanying Consolidated Balance Sheets. The total notional amount of these hedges is $3.9 million (€2.9 million) and the unrealized gain recorded in other comprehensive income was $0.2 million (net of taxes of $6 thousand), of which $0.2 million is expected to be reclassified to earnings over the next twelve months. During the year ended December 30, 2012, a $2.0 million benefit related to these foreign currency hedges was recorded to cost of goods sold as the inventory was sold to external parties. The Company recognized a $0.1 million gain during the year ended December 30, 2012 for hedge ineffectiveness.

During the first quarter of 2008, we entered into an interest rate swap agreement with a notional amount of $40 million. The purpose of this interest rate swap agreement was to hedge potential changes to our cash flows due to the variable interest nature of our senior unsecured credit facility. The interest rate swap was designated as a cash flow hedge. This cash flow hedging instrument was marked to market and the changes were recorded in other comprehensive income. The interest rate swap matured on February 18, 2010.

106

Aggregate foreign currency transaction losses in 2012, 2011, and 2010, were $1.7 million, $2.1 million, and $2.7 million, respectively, and are included in other gain (loss), net on the Consolidated Statements of Operations.

Additionally, there were no deferrals of gains or losses on currency forward exchange contracts at December 30, 2012. 

Note 15. PROVISION FOR RESTRUCTURING

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan will impact over 2,400 existing employees. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are expected to approximate $70 million to $75 million by the end of 2013, with $52 million to $55 million in total anticipated costs for the Global Restructuring Plan and $18 million of costs incurred for the SG&A Restructuring Plan, which is substantially complete.

Restructuring expense for the periods ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	16,945		$	11,115		$	—
Asset impairments	6,506			7,761			—
Other exit costs	5,068			519			—
SG&A Restructuring Plan
Severance and other employee-related charges	(86		)	7,015			6,993
Asset impairments	—			72			—
Other exit costs	64			2,203			—
Manufacturing Restructuring Plan
Severance and other employee-related charges	—			(146		)	641
Other exit costs	(75		)	101			577
Total	$	28,422		$	28,640		$	8,211

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Restructuring accrual activity for the periods ended December 30, 2012, and December 25, 2011, were as follows:

(amounts in thousands)
Fiscal 2012	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 30, 2012
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges(3)	$	9,710	$	21,558	$	(4,613	)	$	(19,044	)	$	141		$	7,752
Other exit costs(1)	—		5,068		—			(4,600		)	(8		)	460
SG&A Restructuring Plan
Severance and other employee-related charges(3)	6,718		1,100		(1,186		)	(5,363		)	(63		)	1,206
Other exit costs(2)	1,109		64		—			(1,012		)	—			161
Manufacturing Restructuring Plan
Other exit costs	75		—		(75		)	—			—			—
Total	$	17,612	$	27,790	$	(5,874	)	$	(30,019	)	$	70		$	9,579

⁽¹⁾  During 2012, there was a net charge to earnings of $5.1 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, pension settlements, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2012, there was a net charge to earnings of $0.1 million primarily due to lease termination costs and outplacement costs in connection with the restructuring plan.

⁽³⁾  During 2012, there was a severance charge reversed to earnings of $5.8 million primarily due to eliminations of individuals from the plans, replacements of individuals in the plans with other individuals, resignations, and other final accrual adjustments. The eliminations and replacements were primarily the result of our change in management and strategic vision in 2012.

(amounts in thousands)
Fiscal 2011	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 25, 2011
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	—	$	11,382	$	(267	)	$	(1,268	)	$	(137	)	$	9,710
Other exit costs(1)	—		519		—			(519		)	—			—
SG&A Restructuring Plan
Severance and other employee-related charges	6,660		7,147		(132		)	(6,718		)	(239		)	6,718
Other exit costs(2)	—		2,214		(11		)	(1,095		)	1			1,109
Manufacturing Restructuring Plan
Severance and other employee-related charges	719		69		(215		)	(583		)	10			—
Other exit costs(3)	143		112		(11		)	(169		)	—			75
Total	$	7,522	$	21,443	$	(636	)	$	(10,352	)	$	(365	)	$	17,612

⁽¹⁾  During 2011, there was a net charge to earnings of $0.5 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2011, there was a net charge to earnings of $2.2 million primarily due to the closing of an operating facility and one-time payment related to a lease modification for an operating facility as well as lease payment accruals after exiting one of our facilities.

⁽³⁾  During 2010, costs were recorded due to the closing of a manufacturing facility. For the year ended 2011, there was a net charge to earnings of $0.1 million due to other exit costs associated with the manufacturing closings.

108

Global Restructuring Plan (including LEAN)

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

As of December 30, 2012, the net charge to earnings of $28.5 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. The anticipated total costs related to the plan are expected to approximate $52 million to $55 million, of which $47.9 million have been incurred. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,100, of which 1,484 have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

SG&A Restructuring Plan

During 2009, we initiated the SG&A Restructuring Plan focused on reducing our overall operating expenses by consolidating certain administrative functions to improve efficiencies. The first phase of this plan was implemented in the fourth quarter of 2009 with the remaining phases of the plan substantially completed by the end of the first quarter of 2012.

As of December 30, 2012, the net charge reversed to earnings of $22 thousand represents the current year activity related to the SG&A Restructuring Plan. The implementation of the SG&A Restructuring Plan is substantially complete, with total costs incurred of approximately $18 million. The total number of employees planned to be affected by the SG&A Restructuring Plan is approximately 369, of which substantially all have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

Manufacturing Restructuring Plan

In August 2008, we announced a manufacturing and supply chain restructuring program designed to accelerate profitable growth in our Apparel Labeling Solutions (ALS) business, formerly Check-Net^®, and to support incremental improvements in our EAS systems and labels businesses. For the year ended December 30, 2012, there was a $0.1 million charge reversed to earnings recorded in connection with the Manufacturing Restructuring Plan.

The total number of employees planned to be affected by the Manufacturing Restructuring Plan is 420, all of which have been terminated. As of December 30, 2012 the implementation of the Manufacturing Restructuring Plan is substantially complete, with total costs incurred of $4.1 million.

Note 16. COMMITMENTS AND CONTINGENCIES

We lease certain production facilities, offices, distribution centers, and equipment. Rental expense for all operating leases approximated $15.4 million, $17.3 million, and $16.9 million, in 2012, 2011, and 2010, respectively.

Future minimum payments for operating leases and capital leases having non-cancelable terms in excess of one year at December 30, 2012 are:

(amounts in thousands)	Capital Leases		Operating Leases		Total
2013	$	319	$	11,150	$	11,469
2014	146		7,781		7,927
2015	61		5,081		5,142
2016	16		3,862		3,878
2017	2		3,152		3,154
Thereafter	—		3,631		3,631
Total minimum lease payments	$	544	$	34,657	$	35,201
Less: amounts representing interest	62
Present value of minimum lease payments	$	482

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Contingencies

We are involved in certain legal and regulatory actions, all of which have arisen in the ordinary course of business. Management believes that the ultimate resolution of such matters is unlikely to have a material adverse effect on our Consolidated Results of Operations and/or Financial Condition, except as described below.

Matter related to All-Tag Security S.A., et al

We originally filed suit on May 1, 2001, alleging that the disposable, deactivatable radio frequency security tag manufactured by All-Tag Security S.A. and All-Tag Security Americas, Inc.’s (jointly “All-Tag”) and sold by Sensormatic Electronics Corporation (Sensormatic) infringed on a U.S. Patent No. 4,876,555 (Patent) owned by us. On April 22, 2004, the United States District Court for the Eastern District of Pennsylvania granted summary judgment to defendants All-Tag and Sensormatic on the ground that our Patent was invalid for incorrect inventorship. We appealed this decision. On June 20, 2005, we won an appeal when the Federal Circuit reversed the grant of summary judgment and remanded the case to the District Court for further proceedings. On January 29, 2007 the case went to trial, and on February 13, 2007, a jury found in favor of the defendants on infringement, the validity of the Patent and the enforceability of the Patent. On June 20, 2008, the Court entered judgment in favor of defendants based on the jury’s infringement and enforceability findings. On February 10, 2009, the Court granted defendants’ motions for attorneys’ fees designating the case as an exceptional case and awarding an unspecified portion of defendants’ attorneys’ fees under 35 U.S.C. § 285. Defendants are seeking approximately $5.7 million plus interest. We recognized this amount during the fourth fiscal quarter ended December 28, 2008 in litigation settlements on the Consolidated Statement of Operations. On March 6, 2009, we filed objections to the defendants’ bill of attorneys’ fees. On November 2, 2011, the Court finalized the decision to order the Company to pay the attorneys’ fees and costs of the defendants in the amount of $6.6 million. The additional amount of $0.9 million was recorded in the fourth quarter ended December 25, 2011 in the Consolidated Statement of Operations. On November 15, 2011, we filed objections to and appealed the Court's award of attorneys' fees to the defendants.

Note 17. CONCENTRATION OF CREDIT RISK

Our foreign subsidiaries, along with many foreign distributors, provide diversified international sales thus minimizing credit risk to one or a few distributors. Our sales are well diversified among numerous retailers in the apparel, drug, home entertainment, mass merchandise, music, shoe, supermarket, and video markets. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers.

Note 18. BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

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.

110

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

(A) Business Segments

(amounts in thousands)	December 30, 2012				December 25, 2011				December 26, 2010
Business segment net revenue:
Shrink Management Solutions	$	450,120			$	491,925			$	471,522
Apparel Labeling Solutions	184,967				198,158				172,937
Retail Merchandising Solutions	55,702				73,666				71,992
Total	$	690,789			$	763,749			$	716,451
Business segment gross profit:
Shrink Management Solutions	$	198,703			$	220,607			$	217,715
Apparel Labeling Solutions	46,661				56,860				61,805
Retail Merchandising Solutions	25,478				34,823				34,929
Total gross profit	270,842				312,290				314,449
Operating expenses	391,303			(1)	312,113			(2)	285,706			(3)
Interest expense	(8,890		)		(4,542		)		(3,389		)
Other gain (loss), net	(1,731		)		(1,523		)		(2,237		)
(Loss) earnings from continuing operations before income taxes	$	(131,082	)		$	(5,888	)		$	23,117
Business segment total assets:
Shrink Management Solutions	$	601,468			$	652,895
Apparel Labeling Solutions	172,064				284,301
Retail Merchandising Solutions	86,277				107,285
Total	$	859,809			$	1,044,481

⁽¹⁾  Includes a $102.7 million goodwill impairment charge, $28.4 million restructuring charge, a $2.9 million charge related to our CEO transition, a $0.3 million acquisition charge, a $0.3 million litigation settlement, $3.9 million of income resulting from compensation for the financial impact of the fraudulent Canadian activities received from our insurance provider, partially offset by charges for forensic and legal fees associated with the improper and fraudulent Canadian activities, and a $1.7 million gain on sale of our non-strategic Suzhou, China subsidiary.

⁽²⁾  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.

⁽³⁾  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.

(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.

111

The following table shows net revenues, and other financial information by geographic area for the years 2012, 2011, and 2010:

(amounts in thousands)	United States, Puerto Rico, & Dominican Republic			Europe			International Americas		Asia Pacific			Total
2012
Net revenues from unaffiliated customers	$	184,900	(1)	$	276,902	(2)	$	37,131	$	191,856		$	690,789
Long-lived assets	$	27,875	(3)	$	15,890		$	2,255	$	62,912	(4)	$	108,932
2011
Net revenues from unaffiliated customers	$	192,194	(5)	$	346,834		$	35,193	$	189,528		$	763,749
Long-lived assets	$	37,179	(6)	$	16,698		$	3,557	$	76,647	(7)	$	134,081
2010
Net revenues from unaffiliated customers	$	186,442	(8)	$	352,347	(9)	$	25,661	$	152,001		$	716,451

⁽¹⁾  Includes net revenue from the United States of $184.9 million.

⁽²⁾  Includes net revenue from Germany of $74.8 million.

⁽³⁾  Includes long-lived assets from the United States of $27.8 million.

⁽⁴⁾  Includes long-lived assets from China and Japan of $36.3 million and $12.8 million, respectively.

⁽⁵⁾  Includes net revenue from the United States of $192.2 million.

⁽⁶⁾  Includes long-lived assets from the United States of $29.9 million.

⁽⁷⁾  Includes long-lived assets from China and Japan of $40.3 million and $15.0 million, respectively.

⁽⁸⁾  Includes net revenue from the United States of $186.4 million.

⁽⁹⁾  Includes net revenue from Germany of $73.7 million.

Note 19. DISCONTINUED OPERATIONS

On October 1, 2012, the Company completed the sale of the Banking Security Systems Integration business unit for $3.5 million subject to closing adjustments related to a non-compete agreement and third-party consents. On October 1, 2012, the Company received cash proceeds of $1.2 million (net of selling costs) and a promissory note of $1.4 million from the purchaser. The note receivable is due in consecutive monthly installments beginning on November 1, 2012, with the last scheduled payment due on October 1, 2017. The promissory note bears interest at the 30 day LIBOR rate plus 5.5%. The selling price is also subject to a contingent consideration payment up to a maximum amount of $0.9 million. The contingent payment is based on the purchaser's revenues for the first year of its ownership of the Banking Security Systems Integration business unit. If these revenues exceed $10 million, the Company is entitled to a contingent payment amount of 10.0% of the revenues above $10.0 million, subject to certain adjustments, not to exceed a total contingent consideration payment of $0.9 million. The loss on sale of the Banking Security Systems Integration business unit of $15 thousand is recorded through discontinued operations on the Consolidated Statement of Operations for the year ended December 30, 2012.

Our discontinued operations reflect the operating results for the disposal group through the date of disposition. Impairments in 2011 and 2012 reflect write-downs to estimates of fair value less costs to sell the Banking Security Systems Integration business unit. These nonrecurring fair value measurements, which fall within Level 3 of the fair value hierarchy, were determined utilizing an expected selling price less costs to sell approach.

In December, 2011, we classified our Banking Security Systems Integration business unit as held for sale. At December 25, 2011, the Banking Security Systems Integration business unit had recorded goodwill of $3.8 million related to a series of three acquisitions completed during 2007 and 2008. As a result of the conclusion to report the business as held for sale, we tested the goodwill of the disposal group and determined that there was a $3.4 million impairment charge. We also recorded an impairment of definite-lived customer relationships of $2.8 million as a result of our decision to sell the Banking Security Systems Integration business unit. The impairment charges were recorded in discontinued operations on the Consolidated Statement of Operations.

During the second quarter of 2012, we performed an impairment test based on updated fair value information regarding the Banking Security Systems Integration business unit. As a result of this impairment test, we determined that there was a $0.4 million impairment charge in the goodwill reporting unit of our Shrink Management Solutions segment and a $0.7 million impairment of customer relationship intangible assets. During the third quarter of 2012, we performed an impairment test based on final negotiations of the selling price for the Banking Security Systems Integration business unit. As a result of this impairment test, we determined that there was an $0.8 million additional impairment of customer relationship intangible assets.

112

These impairment charges were included in discontinued operations on the Consolidated Statement of Operations during the second and third quarters ended June 24, 2012 and September 23, 2012, respectively.

The results for the years ended December 30, 2012, December 25, 2011 and December 26, 2010 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 30, 2012			December 25, 2011			December 26, 2010
Net revenue	$	10,751		$	13,565		$	12,820
Gross profit	1,335			2,541			2,874
Selling, general, & administrative expense	2,550			4,095			4,043
Restructuring expenses	—			113			—
Asset impairment	1,442			2,781			—
Goodwill impairment	370			3,411			—
Operating loss	(3,027		)	(7,859		)	(1,169		)
Loss on disposal	(15		)	—			—
Loss from discontinued operations before income taxes	(3,042		)	(7,859		)	(1,169		)
Loss from discontinued operations, net of tax	$	(3,042	)	$	(7,514	)	$	(773	)

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

In December of 2012, our U.S. and Canada based CheckView^® business included in our Shrink Management Solutions segment met the criteria for classification 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 $3.3 million impairment charge of goodwill in our Shrink Management Solutions segment and a $0.3 million impairment of property, plant and equipment. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations. After a full impairment of its long-lived assets, the remaining carrying value of our CheckView^® business at December 30, 2012 exceeded its fair value by approximately $0.8 million.

113

Our discontinued operations reflect the operating results for the disposal group. Impairments in 2012 reflect write-downs to estimates of fair value less costs to sell the U.S. and Canada based CheckView^® business. These nonrecurring fair value measurements, which fall within Level 3 of the fair value hierarchy, were determined utilizing an expected selling price less costs to sell approach. The results for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 have been reclassified to show the results of operations for the U.S. and Canada based CheckView^® business as discontinued operations, net of tax, on the Consolidated Statement of Operations. Below is a summary of these results:

(amounts in thousands)	December 30, 2012		December 25, 2011	December 26, 2010
Net revenue	76,519		101,594	105,227
Gross profit	11,585		20,560	29,325
Selling, general, & administrative expense	12,253		13,700	13,866
Research and development	410		544	831
Asset impairment	329		—	—
Goodwill impairment	3,263		—	—
Operating (loss) income	(4,670	)	6,316	14,628
(Loss) earnings from discontinued operations before income taxes	(4,670	)	6,316	14,628
(Loss) earnings from discontinued operations, net of tax	(4,917	)	6,349	9,098

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 30, 2012 the classification was as follows:

(amounts in thousands)	December 30, 2012
Accounts receivable, net	$	14,558
Inventories	9,721
Property, plant, and equipment, net	—
Other assets	5,347
Deferred income taxes	$	238
Assets of discontinued operations held for sale	$	29,864
Accounts payable	$	3,413
Accrued compensation and related taxes	94
Other accrued expenses	5,600
Unearned revenues	581
Liabilities of discontinued operations held for sale	$	9,688

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

Note 20. SUBSEQUENT EVENTS

In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the entity holding the non-controlling interest. 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.

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Note 21. QUARTERLY INFORMATION (UNAUDITED)

	QUARTERS (unaudited)
(amounts in thousands, except per share data)	First				Second				Third				Fourth				Year
2012
Net revenues	$	144,194			$	177,604			$	168,813			$	200,178			$	690,789
Gross profit	53,021				70,524				68,660				78,637				270,842
Net loss from continuing operations	(10,902		)	(1)	(91,829		)	(2)	(4,280		)	(4)	(31,435		)	(6)	(138,446		)
Net loss attributable to Checkpoint Systems, Inc.	(10,991		)	(1)	(94,161		)	(3)	(5,334		)	(5)	(35,390		)	(7)	(145,876		)
Net loss from continuing operations per share:
Basic	$	(0.26	)		$	(2.24	)		$	(0.10	)		$	(0.76	)		$	(3.36	)
Diluted	$	(0.26	)		$	(2.24	)		$	(0.10	)		$	(0.76	)		$	(3.36	)
Net loss attributable to Checkpoint Systems, Inc. per share:
Basic	$	(0.27	)		$	(2.30	)		$	(0.13	)		$	(0.86	)		$	(3.56	)
Diluted	$	(0.27	)		$	(2.30	)		$	(0.13	)		$	(0.86	)		$	(3.56	)
	First				Second				Third				Fourth				Year
2011
Net revenues	$	160,201			$	193,272			$	185,222			$	225,054			$	763,749
Gross profit	65,622				80,071				74,000				92,597				312,290
Net (loss) earnings from continuing operations	(8,790		)	(8)	9,219			(9)	(51,481		)	(10)	(14,409		)	(11)	(65,461		)
Net (loss) earnings attributable to Checkpoint Systems, Inc.	(8,695		)	(8)	9,842			(9)	(48,662		)	(10)	(19,054		)	(12)	(66,569		)
Net (loss) earnings from continuing operations per share:
Basic	$	(0.22	)		$	0.23			$	(1.27	)		$	(0.35	)		$	(1.61	)
Diluted	$	(0.22	)		$	0.23			$	(1.27	)		$	(0.35	)		$	(1.61	)
Net (loss) earnings attributable to Checkpoint Systems, Inc. per share:
Basic	$	(0.22	)		$	0.24			$	(1.20	)		$	(0.47	)		$	(1.64	)
Diluted	$	(0.22	)		$	0.24			$	(1.20	)		$	(0.47	)		$	(1.64	)

⁽¹⁾  Includes a $1.6 million restructuring charge (net of tax), $0.5 million expense related to improper and fraudulent Canadian activities (net of tax), and $14 thousand in acquisition costs (net of tax).

⁽²⁾  Includes a $64.4 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

⁽³⁾  Includes a $64.8 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.7 million intangible impairment charge (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

⁽⁴⁾  Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

⁽⁵⁾  Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), an $0.8 million intangible impairment charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

⁽⁶⁾  Includes a $38.3 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax), a $0.3 million valuation allowance release, $0.2 million in acquisition costs (net of tax), compensation of $3.4 million for the financial impact of the fraudulent Canadian activities (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

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⁽⁷⁾  Includes a $41.5 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax) a $0.3 million valuation allowance release, a $0.3 million asset impairment (net of tax), $0.2 million in acquisition costs (net of tax), $3.4 million related to improper and fraudulent Canadian activities including insurance proceeds (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

⁽⁸⁾  Includes a $1.1 million restructuring charge (net of tax) and a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax).

⁽⁹⁾  Includes $2.0 million in acquisition costs (net of tax), a $1.1 million restructuring charge (net of tax), and a $38 thousand expense related to improper and fraudulent Canadian activities (net of tax).

⁽¹⁰⁾  Includes a $48.0 million valuation allowance adjustment, a $16.6 million restructuring charge (net of tax), a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax), and $2 thousand in acquisition costs (net of tax).

⁽¹¹⁾  Includes a $7.0 million restructuring charge (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.4 million intangible impairment (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

⁽¹²⁾  Includes a $7.0 million restructuring charge (net of tax), a $3.2 million intangible impairment (net of tax), a $3.1 million goodwill impairment (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There are no changes or disagreements to report under this item.

Item 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management, with the participation of the Chief Executive Officer and Chief Financial Officer, conducted an evaluation (as required by Rule 13a-15 under the Exchange Act) of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended) as of December 30, 2012. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of December 30, 2012.

Management's Annual Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting can also be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements will not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process, and it is possible to design into the process safeguards to reduce, though not eliminate, the risk.

Management assessed the effectiveness of our internal control over financial reporting as of December 30, 2012, using the framework set forth in the report of the Treadway Commission's Committee of Sponsoring Organizations (COSO), “Internal Control - Integrated Framework.” Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 30, 2012.

The effectiveness of our internal control over financial reporting as of December 30, 2012 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears under "Item 8. Financial Statements and Supplementary Data."

116

Remediation of Material Weakness

In the previous year in connection with our assessment of the effectiveness of our internal control over financial reporting as of December 25, 2011, management identified a material weakness as described below. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial statements will not be prevented or detected on a timely basis.

As of December 25, 2011, we concluded that we did not maintain effective controls to prevent or detect management override of controls at certain foreign subsidiaries that were not integrated into our shared services environments in the United States and Europe. Specifically, the monitoring controls over certain locations, including internal audits, periodic reviews of segregation of duties and review of the effectiveness of key balance sheet reconciliations were not designed to prevent or detect management override of controls that could circumvent internal control over financial reporting.

As a result of this control deficiency, we failed to detect on a timely basis fraudulent misappropriation of company funds, which contributed to the revision of the annual financial statements for 2010 and 2009 and the interim financial information for 2011 and 2010. The impacted accounts were cash, accounts receivable and inventory as well as income taxes and non-income taxes payable and operating expenses.

Specific actions were taken by Management to remediate this material weakness. Management has continued to transition entities to our shared service center environment, in order to enhance visibility and improve segregation of duties. Management enhanced the annual risk assessment process which includes consideration of our strategic vision, enterprise risk management, global and regional initiatives impacting the current year and prior year financial results, internal control testing results, our outlook for the current year, and the individual financial statements of each entity as included in our consolidated financial statements. Management also increased the frequency and scope of our program of detailed reviews of financial transactions and reconciliations at our subsidiaries based on a formal, rotational review program conducted by qualified individuals including internal audit personnel. Entities that had not previously been subject to routine transaction based control evaluations by internal audit are now subject to detailed on-site internal audits a minimum of one time during a three year period. We also enhanced treasury controls for opening and closing bank accounts and the quarterly review of authorized signatories and limits for local bank accounts.

Changes in Internal Control over Financial Reporting

There have been no changes in internal control over financial reporting that occurred during our fourth fiscal quarter of 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. OTHER INFORMATION

None.

PART III

Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this Item (except for the information regarding executive officers called for by Item 401 (b) of Regulation S-K, which is included in Part I hereof in accordance with General Instruction G (3)) is hereby incorporated by reference to the Registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders presently scheduled to be held on May 30, 2013, which management expects to file with the SEC within 120 days of the end of the Registrant’s fiscal year.

We have posted the Code of Ethics, the Governance Guidelines and each of the Committee Charters on our website at www.checkpointsystems.com, and will post on our website any amendments to, or waivers from, the Code of Ethics applicable to any of its directors or executive officers. The foregoing information will also be available in print upon request.

117

Item 11. EXECUTIVE COMPENSATION

The information required by this Item is hereby incorporated by reference to the Registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders presently scheduled to be held on May 30, 2013, which management expects to file with the SEC within 120 days of the end of the Registrant’s fiscal year.

Note that the section of our Definitive Proxy Statement entitled “Compensation Committee Report” pursuant to Regulation S-K Item 407 (e)(5) is not deemed “soliciting material” or “filed” as part of this report. 

Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The information required by this Item is hereby incorporated by reference to the Registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders presently scheduled to be held on May 30, 2013, which management expects to file with the SEC within 120 days of the end of the Registrant’s fiscal year.

Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this Item is hereby incorporated by reference to the Registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders presently scheduled to be held on May 30, 2013, which management expects to file with the SEC within 120 days of the end of the Registrant’s fiscal year.

Item 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this Item is hereby incorporated by reference to the Registrant’s Definitive Proxy Statement for its Annual Meeting of Shareholders presently scheduled to be held on May 30, 2013, which management expects to file with the SEC within 120 days of the end of the Registrant’s fiscal year.

118

PART IV

Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

All other schedules are omitted either because they are not applicable, not required, or because the required information is included in the financial statements or notes thereto:

1.	The following Consolidated Financial Statements of Checkpoint Systems, Inc. were included in Item 8:
	Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011	65
	Consolidated Statements of Operations for each of the years in the three-year period ended December 30, 2012	66
	Consolidated Statements of Comprehensive (Loss) Income for each of the years in the three-year period ended December 30, 2012	67
	Consolidated Statements of Equity for each of the years in the three-year period ended December 30, 2012	68
	Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 30, 2012	69
	Notes to Consolidated Financial Statements	70
2.	The Exhibits required to be filed by Item 601 of Regulation S-K are set forth on the accompanying Exhibit Index and are incorporated herein by reference.	121
3.	The following Consolidated Financial Statements schedules of Checkpoint Systems, Inc. are included:
	Financial Statement Schedule, Schedule II — Valuation and Qualifying Accounts	123

119

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on March 5, 2013.

CHECKPOINT SYSTEMS, INC.

/s/ George Babich, Jr.

George Babich, Jr.

President and Chief Executive Officer

Pursuant to the requirements of the Securities and Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated.

SIGNATURE	TITLE	DATE
/s/ George Babich, Jr.	President, Chief Executive Officer, and Director	March 5, 2013
George Babich, Jr.	(Principal Executive Officer)
/s/ Raymond D. Andrews	Senior Vice President and Chief Financial Officer	March 5, 2013
Raymond D. Andrews	(Principal Financial Officer)
/s/ Joseph G. Driscoll	Chief Accounting Officer	March 5, 2013
Joseph G. Driscoll	(Principal Accounting Officer)
/s/ William S. Antle, III	Director	March 5, 2013
William S. Antle, III
/s/ Stephen N. David	Director	March 5, 2013
Stephen N. David
/s/ Harald Einsmann	Director	March 5, 2013
Harald Einsmann
/s/ R. Keith Elliott	Director	March 5, 2013
R. Keith Elliott
/s/ Julie S. England	Director	March 5, 2013
Julie S. England
	Director	March 5, 2013
Marc T. Giles
/s/ Jack W. Partridge	Director	March 5, 2013
Jack W. Partridge
/s/ Sally Pearson	Director	March 5, 2013
Sally Pearson

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3. Exhibits

Exhibit 3.1	Articles of Incorporation, as amended, are hereby incorporated by reference to Exhibit 3(i) of the Registrant's 1990 Form 10-K, filed with the SEC on March 14, 1991.
Exhibit 3.2	By-Laws, as Amended and Restated, are hereby incorporated by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed with the SEC on August 4, 2010.
Exhibit 3.3	Articles of Amendment to the Articles of Incorporation are hereby incorporated by reference to Exhibit 3.1 of the Registrant's Current Report on Form 8-K filed with the SEC on December 28, 2007.
Exhibit 4.1	Note Purchase and Private Shelf Agreement, dated as of July 22, 2010, between the Company and Prudential Investment Management, Inc., and Other Purchasers party thereto is hereby incorporated by reference to Exhibit 4.1 of the Registrant's Current Report on Form 8-K filed with the SEC on July 23, 2010.
Exhibit 10.1(1)	Amended and Restated Stock Option Plan (1992) is hereby incorporated by reference to Registrant's Form 10-K for 1997 filed with the SEC on March 23, 1998.
Exhibit 10.2	Consulting and Deferred Compensation Agreement with Albert E. Wolf, are incorporated by reference to Item(a), Exhibit 10(c) of the Registrant's 1994 Form 10-K.
Exhibit 10.3	Amended and Restated Credit Agreement, dated as of July 22, 2010, among the Company, Checkpoint Manufacturing Japan Co., Ltd., and CP International Systems C.V., as foreign borrowers, certain other domestic and foreign subsidiaries of the Company, as domestic guarantors and foreign guarantors, the various lenders party thereto from time to time, Wells Fargo Bank, National Association, as Administrative Agent, Citizens Bank of Pennsylvania as Syndication Agent, and Wells Fargo Securities, LLC and Citizens Bank of Pennsylvania, as Joint Lead Arrangers and Joint Bookrunners is hereby incorporated by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K filed with the SEC on July 23, 2010.
Exhibit 10.4(1)	Employment Agreement with Per Harold Levin is incorporated by reference to Item 6(a), Exhibit 10.4 of the Registrant's Form 10-Q filed on May 13, 2004.
Exhibit 10.5(1)	Amendment to Employment Agreement with Per Harold Levin is incorporated by reference to Item 6(a), Exhibit 10.5 of the Registrant's Form 10-Q filed on May 13, 2004.
Exhibit 10.6(1)	Employment Agreement by and between S. James Wrigley and Checkpoint Systems, Inc. dated March 11, 2011 is incorporated by reference to Registrant's Form 10-Q, filed with the SEC on May 4, 2010.
Exhibit 10.7(1)	Letter Agreement by and between Checkpoint Systems, Inc. and George Babich, Jr. dated May 2, 2012 is incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed on May 8, 2012.
Exhibit 10.8(1)	Employment Agreement by and between Checkpoint Systems, Inc. and George Babich, Jr. February 4, 2013 is incorporated by reference to Registrant's Form 8-K filed with the SEC on February 8, 2013.
Exhibit 10.9(1)	Checkpoint Systems, Inc. Amended and Restated 2004 Omnibus Incentive Compensation Plan is hereby incorporated by reference from Appendix A to Checkpoint Systems, Inc.'s definitive proxy statement for the 2010 Annual Meeting of Shareholders filed with the SEC on April 26, 2010.
Exhibit 10.10(1)	Amended and Restated Checkpoint Systems, Inc. 423 Employee Stock Purchase Plan, is hereby incorporated by reference from Appendix A to Checkpoint System, Inc.'s definitive proxy statement for the 2012 Annual Meeting of Shareholders filed with the SEC on April 23, 2012.
Exhibit 10.11	First Amendment to Credit Agreement dated February 17, 2012, among the Company, Checkpoint Manufacturing Japan Co., Ltd., and CP International Systems C.V., as foreign borrowers, certain other domestic and foreign subsidiaries of the Company, as domestic guarantors and foreign guarantors, the various lenders party thereto from time to time, Wells Fargo Bank, National Association, as Administrative Agent, Citizens Bank of Pennsylvania, as Syndication Agent, and Wells Fargo Securities, LLC and Citizens Bank of Pennsylvania, as Joint Lead Arrangers and Joint Bookrunners is hereby incorporated by reference to Exhibit 10.1 of the Registrant's Current Report on Form 8-K filed with the SEC on February 23, 2012.
Exhibit 10.12	First Amendment to Note Purchase and Private Shelf with Prudential Investment Management, Inc. (“Prudential”) and certain Prudential affiliates, dated as of February 17, 2012 is hereby incorporated by reference to Exhibit 10.2 of the Registrant's Current Report on Form 8-K filed with the SEC on February 23, 2012.

121

Exhibit 10.13	Second Amendment to Credit Agreement dated as of July 31, 2012 by and among the Company, Checkpoint Manufacturing Japan Co. Ltd., CP International Systems C.V. as foreign borrowers, certain other domestic and foreign subsidiaries of the Company, as domestic guarantors and foreign guarantors, and Wells Fargo, National Association, as Administrative Agent on behalf of the Lenders under the Credit Agreement, is hereby incorporated by reference to Exhibit 10.2 of the Registrant's Form 10-Q filed with the SEC on August 2, 2012.
Exhibit 10.14	Second Amendment to Note Purchase and Private Shelf Agreement dated July 31, 2012 among the Company and each subsidiary of the Company identified as subsidiary guarantors and each of the holders of Notes with Prudential Investment Management, Inc. (“Prudential”) and certain Prudential affiliates, is hereby incorporated by reference to Exhibit 10.3 of the Registrant's Form 10-Q filed with the SEC on August 2, 2012.
Exhibit 10.15	First Amendment to Collateral Agency and Intercreditor Agreement dated July 31, 2012 by and among Wells Fargo, National Association, in its capacity as Collateral Agent for and on behalf of the Noteholders and the Bank Secured Parties, Wells Fargo National Association, in its capacity as Administrative Agent; and Prudential Investment Management, Inc., as Noteholders, is hereby incorporated by reference to Exhibit 10.4 of the Registrant's Form 10-Q filed with the SEC on August 2, 2012.
Exhibit 21	Subsidiaries of Registrant.
Exhibit 23	Consent of Independent Registered Public Accounting Firm.
Exhibit 31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32	Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101.INS	XBRL Instance Document.(2)
Exhibit 101.SCH	XBRL Taxonomy Extension Schema Document.(2)
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.(2)
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document.(2)
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.(2)
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Document.(2)

⁽¹⁾  Management contract or compensatory plan or arrangement.

⁽²⁾  Pursuant to Rule 406T of Regulation S-T, the XBRL related information in Exhibit 101 to this Annual Report on Form 10-K shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be deemed part of a registration statement, prospectus or other document filed under the Securities Act or the Exchange Act, except as may be expressly set forth by specific reference in such filings.

122

SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS

Allowance for Doubtful Accounts

(amounts in thousands)
Year	Balance at Beginning of Year		Additions Through Acquisition		Charged to Costs and Expenses		Deductions (Write-Offs and Recoveries, net)			Adjustment for Discontinued Operations			Balance at End of Year
2012	$	12,627	$	—	$	3,024	$	(603	)	$	(1,806	)	$	13,242
2011	$	10,927	$	435	$	3,272	$	(2,007	)	$	—		$	12,627
2010	$	14,826	$	—	$	98	$	(3,997	)	$	—		$	10,927

Deferred Tax Valuation Allowance

(amounts in thousands)
Year	Balance at Beginning of Year		Additions Through Acquisition		Allowance Recorded on Current Year Losses		Change in Valuation Allowance		Balance at End of Year
2012	$	102,148	$	—	$	2,083	$	283	$	104,514
2011	$	37,808	$	193	$	16,463	$	47,684	$	102,148
2010	$	32,739	$	—	$	5,069	$	—	$	37,808

123

EX-21

EXHIBIT 21

CHECKPOINT SYSTEMS, INC. SUBSIDIARIES

Checkpoint Systems S.A.	Argentina
Checkpoint Systems (Aust/NZ) Pty Ltd	Australia
Meto Australia Pty Ltd	Australia
Checkpoint Systems Bangladesh Limited	Bangladesh
Actron Belgium and Luxemburg N.V.	Belgium
Checkpoint do Brasil Ltda.	Brazil
Checkpoint Systems Canada ULC	Canada
Checkpoint Caribbean Ltd	Cayman Islands
Brilliant Garment Accessories (Dong Guan) Ltd.	China
Brilliant Label (Dongguan) Manufacturing Limited	China
Checkpoint Commercial (Shanghai) Co. Ltd.	China
Checkpoint Systems (ZJG) Co. Ltd.	China
Guangdong Checkpoint Brilliant Label and Sign Ltd.	China
Shanghai Asialco Electronics Co. Ltd.	China
Sidep Electronics (Shanghai) Co. Ltd.	China
Checkpoint Systems Danmark A/S	Denmark
Cybsa Adapt SA de CV	El Salvador
Checkpoint Systems Finland Oy	Finland
Checkpoint Systems France S.A.S.	France
Checkpoint Solutions GmbH	Germany
Checkpoint Systems GmbH	Germany
Checkpoint Systems Holding GmbH	Germany
Checkpoint Systems International GmbH	Germany
Shore to Shore Lacar, Ltda.	Guatemala
Shore to Shore Centroamerica S.A.	Guatemala
ADAPT Identification (HK) Ltd.	Hong Kong
Asange Limited	Hong Kong
Ashanko Limited	Hong Kong
Checkpoint Apparel Labelling Solutions Asia Ltd.	Hong Kong
Brilliant Labels International Limited	Hong Kong
Checkpoint Labelling Services Hong Kong Limited	Hong Kong
Checkpoint Systems Hong Kong Limited	Hong Kong
Invizion Limited	Hong Kong
Shore to Shore (Far East) Limited	Hong Kong
Adapt Identification India Private Limited	India
Checkpoint Checknet India Private Limited	India
Checkpoint Systems India Private Limited	India
OATSystems Software India Private Limited	India
Shore to Shore Merchandise Identification Systems Private Limited	India
Checkpoint Systems Italia S.p.A.	Italy
Checkpoint Manufacturing Japan Co. Ltd.	Japan
Checkpoint Systems Japan Co. Ltd.	Japan
Adapt Seoul Co. Ltd.	Korea
Checkpoint Systems (M) Sdn Bhd	Malaysia
Checkpoint Systems Sales (M) Sdn Bhd	Malaysia
Checkpoint de México, S.A. de C.V.	Mexico

Checkpoint Holland Holding B.V.	Netherlands
Checkpoint Holland Treasury B.V.	Netherlands
Checkpoint Systems Benelux B.V.	Netherlands
Kimball Systems B.V.	Netherlands
CP International Systems C.V.	Netherlands
Checkpoint Limited	New Zealand
Checkpoint Systems Norge as	Norway
Checkpoint Systems Software Development and Maintenance (Philippines) Inc.	Philippines
Checkpoint Systems (CEE) Spóika z.o.o.	Poland
Checkpoint Portugal Sistemas Anti-Furto S.A.	Portugal
Checkpoint Systems Technology Singapore Pte. Ltd	Singapore
Checkpoint Systems Espana S.L.U.	Spain
Shore to Shore (PVT) Ltd.	Sri Lanka
Checkpoint Systems Sverige AB	Sweden
Turn-O-Matic International AB	Sweden
Checkpoint Systems AG	Switzerland
Checkpoint Checknet Etiket Limited Sirketi	Turkey
Actron UK Limited	United Kingdom
ADS (United Kingdom) Ltd.	United Kingdom
ADS Worldwide Ltd.	United Kingdom
Checkpoint Systems (UK) Limited	United Kingdom
Evagard Limited	United Kingdom
Meto UK Ltd	United Kingdom
W Print Europe Limited	United Kingdom
ADAPT Identification LLC	United States
Checkpoint International L.L.C.	United States
Checkpoint Systems Holding, Inc.	United States
J&F International USA, Inc.	United States
OAT Systems, Inc.	United States

EX-23

EXHIBIT 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (No. 333-35539, No. 333-83842, No. 333-126981, No. 333-160627, No. 333-167903 and No. 333-183464) of Checkpoint Systems, Inc. of our report dated March 5, 2013 relating to the financial statements, financial statement schedule, and the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

March 5, 2013

EX-31.1

EXHIBIT 31.1

Certification of Chief Executive Officer Pursuant to

Securities Exchange Act Rules 13a-14(a) and 15d-14(a)

as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, George Babich, Jr., certify that:

1. I have reviewed this Form 10-K of Checkpoint Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	March 5, 2013	By: /s/ George Babich, Jr.
		Name: George Babich, Jr.
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Certification of Chief Financial Officer Pursuant to

Securities Exchange Act Rules 13a-14(a) and 15d-14(a)

as Adopted Pursuant to

Section 302 of the Sarbanes-Oxley Act of 2002

I, Raymond D. Andrews, certify that:

1. I have reviewed this Form 10-K of Checkpoint Systems, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	March 5, 2013	By: /s/ RAYMOND D. ANDREWS
		Senior Vice President and Chief Financial Officer

EX-32

EXHIBIT 32

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to

18 U.S.C. Section 1350,

as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Annual Report on Form 10-K of Checkpoint Systems, Inc. (the “Company”) for the year ended December 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), George Babich Jr., as Chief Executive Officer of the Company and Raymond D. Andrews, as Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, respectively, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:	March 5, 2013	By: /s/ GEORGE BABICH, JR.
		Title: President and Chief Executive Officer
Dated:	March 5, 2013	By: /s/ RAYMOND D. ANDREWS
		Title: Senior Vice President and Chief Financial Officer

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

XML

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Activity Under The Principal Option Plans

Option activity under the principal option plans as of December 30, 2012 and changes during the year then ended were as follows:

	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 25, 2011	2,600,805		$	19.54	4.39	$	512
Granted	801,880		9.70
Exercised	(62,247	)	8.61
Forfeited or expired	(596,381	)	18.03
Outstanding at December 30, 2012	2,744,057		$	17.24	5.01	$	1,321
Vested and expected to vest at December 30, 2012	2,545,483		$	17.83	4.67	$	1,002
Exercisable at December 30, 2012	2,052,214		$	19.54	3.58	$	371

Nonvested Service Based Restricted Stock Units

Nonvested service-based restricted stock units as of December 30, 2012 and changes during the year ended December 30, 2012 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 25, 2011	617,672		0.79	$	21.29
Granted	223,795			$	10.58
Vested	(196,254	)		$	11.24
Forfeited	(82,107	)		$	17.15
Nonvested at December 30, 2012	563,106		0.79	$	21.14
Vested and expected to vest at December 30, 2012	511,026		0.65
Vested at December 30, 2012	61,250		—

XML

Valuation And Qualifying Accounts (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at End of Year	$ 13,242	$ 12,627
Balance at End of Year	104,514	102,148
Allowance For Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	12,627	10,927	14,826
Additions Through Acquisition	0	435	0
Charged to Costs and Expenses	3,024	3,272	98
Deductions (Write-Offs and Recoveries, net)	(603)	(2,007)	(3,997)
Adjustment for Discontinued Operations	(1,806)	0	0
Balance at End of Year	13,242	12,627	10,927
Deferred Tax Valuation Allowance [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	102,148	37,808	32,739
Additions Through Acquisition	0	193	0
Allowance Recorded on Current Year Losses	2,083	16,463	5,069
Change in Valuation Allowance	283	47,684	0
Balance at End of Year	$ 104,514	$ 102,148	$ 37,808

XML

Acquisitions (Details) (USD $)	0 Months Ended		12 Months Ended				6 Months Ended	12 Months Ended															6 Months Ended
	May 16, 2011	May 16, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Jun. 24, 2012	Jun. 24, 2012 Customer Lists [Member]	Dec. 30, 2012 Trade Name [Member]	Jun. 24, 2012 Trade Name [Member]	May 16, 2011 J&F International, Inc. (U.S.) [Member]	May 16, 2011 Shore To Shore PVT Ltd [Member]	May 16, 2011 Cybasa Adapt SA de CV (El Salvador) [Member]	May 16, 2011 Shore To Shore Far East (Hong Kong) [Member]	May 16, 2011 Shore To Shore MIS (India) [Member]	May 16, 2011 Shore To Shore Lacar SA (Guatemala) [Member]	May 16, 2011 Adapt Identification (HK) Ltd [Member]	May 16, 2011 W Print Europe Ltd. (UK) [Member]	Jan. 01, 2011 Napar Contracting And Allied Services, Inc. [Member]	Dec. 26, 2010 Napar Contracting And Allied Services, Inc. [Member]	Oct. 31, 2010 Napar Contracting And Allied Services, Inc. [Member]	May 16, 2011 Cash From Operation [Member]	May 16, 2011 Purchase Price Funded By Senior Secured Credit Facility [Member]	Jun. 24, 2012 Non-Compete Agreement [Member]	Jun. 24, 2012 2010 Performance [Member]
Business Acquisition [Line Items]
Business acquisition, purchase price	$ 78,700,000	$ 78,700,000																		$ 500,000	$ 66,700,000	$ 9,200,000
Cash acquired	1,900,000
Assumption of debt		4,200,000
Voting interest acquired										100.00%	51.00%	50.00%	100.00%	100.00%	100.00%	100.00%	100.00%
Purchase price allocation, Property, Plant and Equipment					33,000	17,100,000
Purchase price allocation, Accounts Receivable						7,100,000
Purchase price allocation, Inventories						2,200,000
Purchase price allocation, Goodwill						59,700,000													500,000
Purchase price allocation, tax deductible Goodwill						9,800,000
Intangible assets						10,500,000	9,800,000		400,000														300,000
Useful life of intangible assets							10 years	7 months 15 days															5 years
Post acquisition revenues			35,300,000
Post acquistion loss			(9,000)
Purchase price related to performance of acquired business						17,500,000
Additional purchase price																								6,300,000
Acquisition costs			332,000	2,319,000	523,000
Purchase price, cash											1,700,000
Percentage of purchase price due on signing the agreement																				60.00%
Label Percentage of purchase price due during period																		40.00%
Acquisition of goodwill						$ 59,700,000													$ 500,000

XML

Business Segments And Geographic Information (Tables)

12 Months Ended

Dec. 30, 2012

Segment Reporting [Abstract]

Business Segments

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

(A) Business Segments

(amounts in thousands)	December 30, 2012				December 25, 2011				December 26, 2010
Business segment net revenue:
Shrink Management Solutions	$	450,120			$	491,925			$	471,522
Apparel Labeling Solutions	184,967				198,158				172,937
Retail Merchandising Solutions	55,702				73,666				71,992
Total	$	690,789			$	763,749			$	716,451
Business segment gross profit:
Shrink Management Solutions	$	198,703			$	220,607			$	217,715
Apparel Labeling Solutions	46,661				56,860				61,805
Retail Merchandising Solutions	25,478				34,823				34,929
Total gross profit	270,842				312,290				314,449
Operating expenses	391,303			(1)	312,113			(2)	285,706			(3)
Interest expense	(8,890		)		(4,542		)		(3,389		)
Other gain (loss), net	(1,731		)		(1,523		)		(2,237		)
(Loss) earnings from continuing operations before income taxes	$	(131,082	)		$	(5,888	)		$	23,117
Business segment total assets:
Shrink Management Solutions	$	601,468			$	652,895
Apparel Labeling Solutions	172,064				284,301
Retail Merchandising Solutions	86,277				107,285
Total	$	859,809			$	1,044,481

⁽¹⁾  Includes a $102.7 million goodwill impairment charge, $28.4 million restructuring charge, a $2.9 million charge related to our CEO transition, a $0.3 million acquisition charge, a $0.3 million litigation settlement, $3.9 million of income resulting from compensation for the financial impact of the fraudulent Canadian activities received from our insurance provider, partially offset by charges for forensic and legal fees associated with the improper and fraudulent Canadian activities, and a $1.7 million gain on sale of our non-strategic Suzhou, China subsidiary.

⁽²⁾  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.

⁽³⁾  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.

Net Revenues And Other Financial Information By Geographic Area

The following table shows net revenues, and other financial information by geographic area for the years 2012, 2011, and 2010:

(amounts in thousands)	United States, Puerto Rico, & Dominican Republic			Europe			International Americas		Asia Pacific			Total
2012
Net revenues from unaffiliated customers	$	184,900	(1)	$	276,902	(2)	$	37,131	$	191,856		$	690,789
Long-lived assets	$	27,875	(3)	$	15,890		$	2,255	$	62,912	(4)	$	108,932
2011
Net revenues from unaffiliated customers	$	192,194	(5)	$	346,834		$	35,193	$	189,528		$	763,749
Long-lived assets	$	37,179	(6)	$	16,698		$	3,557	$	76,647	(7)	$	134,081
2010
Net revenues from unaffiliated customers	$	186,442	(8)	$	352,347	(9)	$	25,661	$	152,001		$	716,451

⁽¹⁾  Includes net revenue from the United States of $184.9 million.

⁽²⁾  Includes net revenue from Germany of $74.8 million.

⁽³⁾  Includes long-lived assets from the United States of $27.8 million.

⁽⁴⁾  Includes long-lived assets from China and Japan of $36.3 million and $12.8 million, respectively.

⁽⁵⁾  Includes net revenue from the United States of $192.2 million.

⁽⁶⁾  Includes long-lived assets from the United States of $29.9 million.

⁽⁷⁾  Includes long-lived assets from China and Japan of $40.3 million and $15.0 million, respectively.

⁽⁸⁾  Includes net revenue from the United States of $186.4 million.

⁽⁹⁾  Includes net revenue from Germany of $73.7 million.

XML

Stock-Based Compensation (Narrative) (Details) (USD $)	12 Months Ended										0 Months Ended			0 Months Ended					0 Months Ended		12 Months Ended	0 Months Ended	12 Months Ended	0 Months Ended				0 Months Ended	12 Months Ended		0 Months Ended	12 Months Ended	0 Months Ended	12 Months Ended	0 Months Ended			12 Months Ended	0 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 Stock Options And Awards [Member]	Dec. 25, 2011 Stock Options And Awards [Member]	Dec. 26, 2010 Stock Options And Awards [Member]	Dec. 30, 2012 Restricted Stock Units (RSUs) [Member]	Dec. 30, 2012 Time-Vested Cash Unit Awards [Member]	Dec. 25, 2011 Time-Vested Cash Unit Awards [Member]	Dec. 26, 2010 Time-Vested Cash Unit Awards [Member]	Jun. 02, 2010 1992 Stock Option Plan [Member]	Dec. 30, 2012 1992 Stock Option Plan [Member]	Apr. 29, 2004 1992 Stock Option Plan [Member]	Feb. 17, 2004 1992 Stock Option Plan [Member] Incentive Stock Options [Member]	Feb. 17, 2004 1992 Stock Option Plan [Member] Non-incentive Stock Options [Member]	Jun. 02, 2010 2004 Omnibus Incentive Compensation Plan [Member]	Dec. 30, 2012 2004 Omnibus Incentive Compensation Plan [Member]	Dec. 27, 2007 Stand Alone Inducement Stock Option Plan [Member]	Dec. 27, 2007 Omnibus Incentive Compensation Plan [Member]	Dec. 04, 2007 LTIP 2008 Plan [Member]	Dec. 26, 2010 LTIP 2008 Plan [Member]	Feb. 17, 2009 LTIP 2009 Plan [Member]	Dec. 25, 2011 LTIP 2009 Plan [Member]	Mar. 11, 2010 LTIP 2010 Plan [Member]	Feb. 22, 2010 LTIP 2010 Plan [Member]	Feb. 12, 2010 LTIP 2010 Plan [Member]	Dec. 30, 2012 LTIP 2010 Plan [Member]	Feb. 17, 2011 LTIP 2011 Plan [Member]	Dec. 25, 2011 LTIP 2011 Plan [Member]	Dec. 30, 2012 LTIP 2011 Plan [Member]	Feb. 22, 2012 LTIP 2012 Plan [Member]	Dec. 30, 2012 LTIP 2012 Plan [Member]	Feb. 22, 2012 LTIP Second Half 2012 Plan [Member]	Dec. 30, 2012 LTIP Second Half 2012 Plan [Member]	Dec. 27, 2007 Monte Carlo Simulation Lattice Model [Member]	Apr. 29, 2004 Monte Carlo Simulation Lattice Model [Member] 2004 Omnibus Incentive Compensation Plan [Member] Stock Options And Awards [Member]	Apr. 29, 2004 Minimum [Member] Monte Carlo Simulation Lattice Model [Member] 2004 Omnibus Incentive Compensation Plan [Member] Restricted Stock Units (RSUs) [Member]	Dec. 30, 2012 Maximum [Member] Restricted Stock Units (RSUs) [Member]	Apr. 29, 2004 Maximum [Member] Monte Carlo Simulation Lattice Model [Member] 2004 Omnibus Incentive Compensation Plan [Member] Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 4,700,000	$ 7,300,000	$ 8,500,000																		$ 0								$ 100,000			$ 100,000		$ 600,000
Share-based compensation expense net of tax	4,500,000	7,100,000	6,200,000
Share available under incentive plan												0	3,500,000				3,308,264
Vesting period, years																				3 years																3 years	3 years	5 years	5 years
Expected life (in years)	5 years 0 months 22 days	4 years 11 months 23 days	4 years 11 months 5 days											10 years																					10 years	10 years
Additional common stock reserved for issuance																3,250,000
Share reserved for future issuance																6,687,956
Percentage of fair market value of stock as purchase price											100.00%					100.00%
Share authorized to purchase												16,000,000						270,000
Additional expiration period for Non-Incentive Stock Options															6 months
Percentage of stock option vesting in year one																		60.00%
Percentage of stock option vesting in year two																		20.00%
Percentage of stock option vesting in year three																		20.00%
Threshold percentage for immediate vesting of tranche																		200.00%
Option strike price				$ 17.24	$ 19.54													$ 22.71
Share issued																			230,000
Risk-free interest rate	0.75%	2.138%	1.845%																																4.10%
Expected volatility	52.08%	49.91%	48.29%																																37.04%
Expected dividend yield	0.00%	0.00%	0.00%																																0.00%
Annual vesting percentage of RSU																				33.00%
Reversal of share-based compensation expense																					600,000		500,000						300,000
Weighted-average fair value of grants	$ 4.38	$ 9.74	$ 7.51																																$ 12.43
Weighted-Average Grant Date Fair Value, Granted							$ 10.58													$ 21.84		$ 8.12		$ 21.76	$ 17.06	$ 15.83		$ 22.54			$ 11.93		$ 7.59
Maximum RSU's outstanding achievable																											800,000.0			37,356		29,820		108,960
Unrecognized compensation cost	1,400,000			1,400,000																										200,000		200,000
Total intrinsic value of options exercised				100,000	1,100,000	4,300,000
Weighted-average period over which unrecognized compensation cost will be recognized (years)	1 year 6 months			2 years 1 month 6 days
Proceeds from exercise of stock option and purchase under employee stock				1,700,000
Tax benefit from option exercise				100,000	1,300,000
Total fair value of restricted stock awards	2,200,000	4,000,000
Deferred compensation arrangement liability, current and noncurrent								1,000,000
Deferred compensation arrangement with individual, share-based compensation expense								$ 1,200,000	$ 600,000	$ 200,000

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Inventories (Schedule Of Inventory) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Inventory Disclosure [Abstract]
Raw materials	$ 16,702	$ 28,128
Work-in-process	6,554	10,481
Finished goods	58,898	92,378
Total	$ 82,154	$ 130,987

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Income Taxes (Narrative) (Details) (USD $)	12 Months Ended						12 Months Ended								12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 27, 2009	Dec. 30, 2012 Foreign Country [Member]	Dec. 30, 2012 Federal [Member]	Dec. 30, 2012 State And Local Jurisdiction [Member]	Dec. 30, 2012 IRC 382 Limitations [Member]	Dec. 26, 2010 Jurisdiction One [Member]	Dec. 26, 2010 Jurisdiction Two [Member]	Sep. 25, 2011 Domestic [Member]	Dec. 30, 2012 Shore To Shore Businesses [Member]	Dec. 25, 2011 Shore To Shore Businesses [Member]	Dec. 30, 2012 NETHERLANDS	Dec. 30, 2012 Maximum [Member] Germany [Member]	Dec. 30, 2012 Maximum [Member] Finland [Member]	Dec. 30, 2012 Maximum [Member] INDIA	Dec. 30, 2012 Minimum [Member] Germany [Member]	Dec. 30, 2012 Minimum [Member] Finland [Member]	Dec. 30, 2012 Minimum [Member] INDIA
Income Taxes [Line Items]
Net operating loss carryforwards in non-U.S. jurisdictions					$ 35,900,000
Operating loss carryforwards, with no expiration					25,400,000
Operating loss carryforwards, with expiration					10,500,000
Operating loss carryforwards						5,700,000	6,700,000	5,300,000
Operating loss carryforwards, expiration date	2022						2032
(Gross) windfall benefit on stock based compensation	0	1,100,000	3,500,000
Foreign tax credit carryforward	16,600,000
Tax credit carryforward expiration date start range	2016
Tax credit carryforward expiration date end range	2022
Net deferred tax assets	17,930,000	11,696,000							41,700,000	9,600,000				300,000
Valuation allowance	104,514,000	102,148,000									48,000,000
Deferred tax liabilities	11,954,000	13,223,000										3,100,000	3,000,000
Liability related to uncertain tax position	16,335,000	15,850,000	12,846,000	14,884,000								7,100,000	3,100,000
Unremitted foreign earnings	4,000,000
Unremitted earnings	3,081,000	2,365,000
Unrecognized tax benefit, if recognized, would affect the effective tax rate	16,300,000	15,900,000
Interest and penalties expense	(300,000)	1,000,000	(2,800,000)
Accrued interest and penalties related to unrecognized tax benefits	4,300,000	4,600,000
Expected change of gross unrecognized tax benefits, minimum	5,000,000
Expected change of gross unrecognized tax benefits, maximum	$ 3,400,000
Open tax years currently under audit															2009	2009	2012	2006	2008	2008

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Commitments And Contingencies (Schedule Of Future Minimum Payments For Operating Leases And Capital Leases) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012
Commitments and Contingencies Disclosure [Abstract]
Capital Leases, 2013	$ 319
Capital Leases, 2014	146
Capital Leases, 2015	61
Capital Leases, 2016	16
Capital Leases, 2017	2
Capital Leases, Thereafter	0
Capital Leases, Total minimum lease payments	544
Less: amounts representing interest	62
Present value of minimum lease payments	482
Operating Leases, 2013	11,150
Operating Leases, 2014	7,781
Operating Leases, 2015	5,081
Operating Leases, 2016	3,862
Operating Leases, 2017	3,152
Operating Leases, Thereafter	3,631
Operating Leases, Total minimum lease payments	34,657
2013	11,469
2014	7,927
2015	5,142
2016	3,878
2017	3,154
Thereafter	3,631
Total minimum lease payments	$ 35,201

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Provision For Restructuring (Tables)

12 Months Ended

Dec. 30, 2012

Restructuring and Related Activities [Abstract]

Schedule Of Restructuring Expense

Restructuring expense for the periods ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	16,945		$	11,115		$	—
Asset impairments	6,506			7,761			—
Other exit costs	5,068			519			—
SG&A Restructuring Plan
Severance and other employee-related charges	(86		)	7,015			6,993
Asset impairments	—			72			—
Other exit costs	64			2,203			—
Manufacturing Restructuring Plan
Severance and other employee-related charges	—			(146		)	641
Other exit costs	(75		)	101			577
Total	$	28,422		$	28,640		$	8,211

Schedule Of Restructuring Accrual Activity

Restructuring accrual activity for the periods ended December 30, 2012, and December 25, 2011, were as follows:

(amounts in thousands)
Fiscal 2012	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 30, 2012
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges(3)	$	9,710	$	21,558	$	(4,613	)	$	(19,044	)	$	141		$	7,752
Other exit costs(1)	—		5,068		—			(4,600		)	(8		)	460
SG&A Restructuring Plan
Severance and other employee-related charges(3)	6,718		1,100		(1,186		)	(5,363		)	(63		)	1,206
Other exit costs(2)	1,109		64		—			(1,012		)	—			161
Manufacturing Restructuring Plan
Other exit costs	75		—		(75		)	—			—			—
Total	$	17,612	$	27,790	$	(5,874	)	$	(30,019	)	$	70		$	9,579

⁽¹⁾  During 2012, there was a net charge to earnings of $5.1 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, pension settlements, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2012, there was a net charge to earnings of $0.1 million primarily due to lease termination costs and outplacement costs in connection with the restructuring plan.

⁽³⁾  During 2012, there was a severance charge reversed to earnings of $5.8 million primarily due to eliminations of individuals from the plans, replacements of individuals in the plans with other individuals, resignations, and other final accrual adjustments. The eliminations and replacements were primarily the result of our change in management and strategic vision in 2012.

(amounts in thousands)
Fiscal 2011	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 25, 2011
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	—	$	11,382	$	(267	)	$	(1,268	)	$	(137	)	$	9,710
Other exit costs(1)	—		519		—			(519		)	—			—
SG&A Restructuring Plan
Severance and other employee-related charges	6,660		7,147		(132		)	(6,718		)	(239		)	6,718
Other exit costs(2)	—		2,214		(11		)	(1,095		)	1			1,109
Manufacturing Restructuring Plan
Severance and other employee-related charges	719		69		(215		)	(583		)	10			—
Other exit costs(3)	143		112		(11		)	(169		)	—			75
Total	$	7,522	$	21,443	$	(636	)	$	(10,352	)	$	(365	)	$	17,612

⁽¹⁾  During 2011, there was a net charge to earnings of $0.5 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2011, there was a net charge to earnings of $2.2 million primarily due to the closing of an operating facility and one-time payment related to a lease modification for an operating facility as well as lease payment accruals after exiting one of our facilities.

⁽³⁾  During 2010, costs were recorded due to the closing of a manufacturing facility. For the year ended 2011, there was a net charge to earnings of $0.1 million due to other exit costs associated with the manufacturing closings.

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Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 30, 2012

Accounting Policies [Abstract]

Schedule of Movement of Warranty Reserves

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

(amounts in thousands)	December 30, 2012			December 25, 2011
Balance at beginning of year	$	5,857		$	6,170
Accruals for warranties issued	5,205			5,882
Settlements made	(5,429		)	(6,194		)
Adjustment for discontinued operations	(1,668		)	—
Foreign currency translation adjustment	30			(1		)
Balance at end of period	$	3,995		$	5,857

Assumptions and Weighted Average Fair Values of Share-Based Payment Units Under Black-Scholes Option Pricing Model

The fair value of share-based payment units was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows:

Year Ended	December 30, 2012			December 25, 2011			December 26, 2010
Weighted-average fair value of grants	$	4.38		$	9.74		$	7.51
Valuation assumptions:
Expected dividend yield	0.00		%	0.00		%	0.00		%
Expected volatility	.5208			.4991			.4829
Expected life (in years)	5.06			4.98			4.93
Risk-free interest rate	0.750		%	2.138		%	1.845		%

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Income Taxes (Domestic And Foreign Components Of Earnings From Continuing Operations Before Income Taxes) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Income Tax Disclosure [Abstract]
Domestic	$ (54,230)	$ (41,664)	$ (32,985)
Foreign	(76,852)	35,776	56,102
(Loss) earnings from continuing operations before income taxes	(131,082)	(5,888)	23,117
Federal	2,544	365	(4,004)
State	88	99	(404)
Puerto Rico	354	23	(3,950)
Foreign	6,453	11,474	15,045
Total currently payable	9,439	11,961	6,687
Federal	(792)	49,395	(5,128)
State	226	526	4,321
Puerto Rico	765	(377)	(707)
Foreign	(2,274)	(1,932)	(1,345)
Total deferred	(2,075)	47,612	(2,859)
Total provision	$ 7,364	$ 59,573	$ 3,828

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Supplemental Cash Flow Information (Narrative) (Details) (USD $)	0 Months Ended	12 Months Ended
	May 16, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Supplemental Cash Flow Information [Line Items]
Payments for interest		$ 8,700,000	$ 6,700,000	$ 3,600,000
Income taxes		10,800,000	17,900,000	22,400,000
Business acquisition, purchase price	78,700,000
Cash acquired on acquisition	1,900,000
Capital lease assumed	4,200,000	0	20,270,000	0
Capital Expenditures Incurred but Not yet Paid		500,000	2,300,000	0
New capital lease obligation and related capitalized assets		27,000	100,000	400,000
Purchase Price Funded By Cash [Member]
Supplemental Cash Flow Information [Line Items]
Purchase price, cash	66,700,000
Purchase Price Funded By Senior Secured Credit Facility [Member]
Supplemental Cash Flow Information [Line Items]
Business acquisition, purchase price	$ 9,200,000

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Employee Benefit Plans (Pension Plans With Accumulated Benefit Obligations In Excess Of Fair Value Of Plan Assets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Projected benefit obligation	$ 102,014	$ 84,674
Accumulated benefit obligation	96,774	80,744
Fair value of plan assets	$ 1,488	$ 1,406

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Revenue Equipment On Operating Lease And Property, Plant, And Equipment (Property, Plant And Equipment) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Property, Plant and Equipment [Abstract]
Equipment rented to customers	$ 3,522	$ 3,732
Accumulated depreciation	(1,774)	(1,812)
Total revenue equipment on operating lease	1,748	1,920
Land	8,894	9,862
Buildings	56,577	74,402
Machinery and equipment	172,398	204,215
Leasehold improvements	15,218	15,003
Construction in progress	5,724	10,282
Property, plant and equipment, Gross	258,811	313,764
Accumulated depreciation	(151,627)	(181,603)
Total property, plant, and equipment	$ 107,184	$ 132,161

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Discontinued Operations (Selected Financial Information Included In Balance Sheet) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
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
Deferred income taxes	17,930	11,696
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
Checkview Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts receivable, net	14,558
Inventories	9,721
Property, plant, and equipment, net	0
Other assets	5,347
Deferred income taxes	238
Assets of discontinued operations held for sale	29,864
Accounts payable	3,413
Accrued compensation and related taxes	94
Other accrued expenses	5,600
Unearned revenues	581
Liabilities of discontinued operations held for sale	$ 9,688

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Earnings Per Share (Schedule Of Earnings Per Share) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 30, 2012	Sep. 23, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 25, 2011	Sep. 25, 2011	Jun. 26, 2011	Mar. 27, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Earnings Per Share [Abstract]
Basic (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders									$ (137,917)	$ (65,404)	$ 19,405
Basic (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134									(7,959)	(1,165)	8,325
Diluted (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders									(137,917)	(65,404)	19,405
Diluted (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134									(7,959)	(1,165)	8,325
Weighted average number of common shares outstanding									40,476	40,070	39,483
Shares issuable under deferred compensation agreements									524	462	452
Basic weighted average number of common shares outstanding									41,000	40,532	39,935
Common shares assumed upon exercise of stock options and awards									0	0	505
Shares issuable under deferred compensation arrangements									0	0	5
Dilutive weighted average number of common shares outstanding									41,000	40,532	40,445
(Loss) earnings from continuing operations (US$ per share)	$ (0.76)	$ (0.10)	$ (2.24)	$ (0.26)	$ (0.35)	$ (1.27)	$ 0.23	$ (0.22)	$ (3.36)	$ (1.61)	$ 0.48
(Loss) earnings from discontinued operations, net of tax									$ (0.20)	$ (0.03)	$ 0.21
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share (US$ per share)	$ (0.86)	$ (0.13)	$ (2.30)	$ (0.27)	$ (0.47)	$ (1.20)	$ 0.24	$ (0.22)	$ (3.56)	$ (1.64)	$ 0.69
(Loss) earnings from continuing operations (US$ per share)	$ (0.76)	$ (0.10)	$ (2.24)	$ (0.26)	$ (0.35)	$ (1.27)	$ 0.23	$ (0.22)	$ (3.36)	$ (1.61)	$ 0.48
(Loss) earnings from discontinued operations, net of tax									$ (0.20)	$ (0.03)	$ 0.21
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share (US$ per share)	$ (0.86)	$ (0.13)	$ (2.30)	$ (0.27)	$ (0.47)	$ (1.20)	$ 0.24	$ (0.22)	$ (3.56)	$ (1.64)	$ 0.69
Discontinued operations, tax expense (benefit) - basic									247	(378)	5,134
Discontinued operations, tax expense (benefit) - diluted									$ 247	$ (378)	$ 5,134

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Employee Benefit Plans (Components Of Net Periodic Benefit Cost) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Service cost	$ 851	$ 972	$ 855
Interest cost	3,874	4,418	4,331
Expected return on plan assets	41	155	(60)
Amortization of actuarial loss (gain)	224	50	(24)
Amortization of transition obligation	57	129	124
Amortization of prior service costs	2	2	2
Net periodic pension cost	5,049	5,726	5,228
Settlement loss	0	(46)	0
Curtailment loss (gain)	72	(104)	0
Total pension expense	$ 5,121	$ 5,668	$ 5,228

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Income Taxes (Reconciliation Of The Tax Provision At The Statutory U.S. Federal Income Tax Rate With) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Income Tax Disclosure [Abstract]
Tax provision at the statutory federal income tax rate	$ (45,879)	$ (2,061)	$ 8,091
Unremitted earnings	690	1,430	0
Non-deductible permanent items	1,566	1,748	1,467
Non-deductible goodwill impairment	32,503	0	0
State and local income taxes, net of federal benefit	314	625	3,917
Losses for which no tax benefit recognized and release of allowance on current year income	1,135	14,224	1,408
Effect of foreign operations	17,671	(3,668)	(7,794)
Tax settlements	0	0	(47)
Potential tax contingencies	(547)	(1,086)	(3,488)
Change in valuation allowance	283	47,684	0
Stock based compensation	994	366	441
Other	(1,366)	311	(167)
Tax provision at the effective tax rate	$ 7,364	$ 59,573	$ 3,828

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Employee Benefit Plans (Funded Status Of Plans And Amount Recognized In Balance Sheet) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Net benefit obligation at beginning of year	$ 84,674	$ 81,226
Service cost	851	972	855
Interest cost	3,874	4,418	4,331
Actuarial loss	16,269	4,439
Gross benefits paid	(4,324)	(4,537)
Plan curtailments	(575)	(618)
Plan settlements	(295)	(470)
Foreign currency exchange rate changes	1,540	(756)
Net benefit obligation at end of year	102,014	84,674	81,226
Fair value of plan assets at beginning of year	1,406	1,472
Actual return on assets	(5)	145
Employer contributions	4,686	4,801
Plan settlements	(295)	(470)
Foreign currency exchange rate changes	20	(5)
Fair value of plan assets at end of year	1,488	1,406	1,472
Funded status at end of year	$ 100,526	$ 83,268

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Earnings Per Share (Schedule Of Anti-dilutive Common Share Equivalents) (Details) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012		Dec. 25, 2011		Dec. 26, 2010
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	3,107	[1]	2,380	[1]	1,516	[1]
Stock Options And Awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	61		329
Deferred Compensation Arrangement [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	12		11

[1] Adjustments for stock options and awards of 61 shares and 329 shares and deferred compensation arrangements of 12 shares and 11 shares were anti-dilutive in fiscal 2012 and 2011, respectively. These shares were therefore excluded from the earnings per share calculation due to our net loss for the years.

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Stock-Based Compensation (Stock Option Activity Under The Principal Option Plans) (Details) (Stock Options And Awards [Member], USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011
Stock Options And Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at beginning of period	2,600,805
Number of Shares, Granted	801,880
Number of Shares, Exercised	(62,247)
Number of Shares, Forfeited or expired	(596,381)
Number of Shares, Outstanding at end of period	2,744,057	2,600,805
Number of Shares, Vested and expected to vest	2,545,483
Number of Shares, Exercisable	2,052,214
Weighted-Average Exercise Price, Outstanding at beginning of period	$ 19.54
Weighted-Average Exercise Price, Granted	$ 9.70
Weighted-Average Exercise Price, Exercised	$ 8.61
Weighted-Average Exercise Price, Forfeited or expired	$ 18.03
Weighted-Average Exercise Price, Outstanding at end of period	$ 17.24	$ 19.54
Weighted-Average Exercise Price, Vested and expected to vest	$ 17.83
Weighted-Average Exercise Price, Exercisable	$ 19.54
Weighted-Average Remaining Contractual Term, Outstanding at beginning of period in years	5 years 0 months 4 days	4 years 4 months 21 days
Weighted-Average Remaining Contractual Term, Outstanding at end of period in years	5 years 0 months 4 days	4 years 4 months 21 days
Weighted-Average Remaining Contractual Term, Vested and expected to vest in years	4 years 8 months 1 day
Weighted-Average Remaining Contractual Term, Exercisable in years	3 years 6 months 29 days
Aggregate Intrinsic Value, Outstanding at beginning of period	$ 512
Aggregate Intrinsic Value, Outstanding at end of period	1,321	512
Aggregate Intrinsic Value, Vested and expected to vest	1,002
Aggregate Intrinsic Value, Exercisable	$ 371

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Commitments And Contingencies

12 Months Ended

Dec. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

We lease certain production facilities, offices, distribution centers, and equipment. Rental expense for all operating leases approximated $15.4 million, $17.3 million, and $16.9 million, in 2012, 2011, and 2010, respectively.

Future minimum payments for operating leases and capital leases having non-cancelable terms in excess of one year at December 30, 2012 are:

(amounts in thousands)	Capital Leases		Operating Leases		Total
2013	$	319	$	11,150	$	11,469
2014	146		7,781		7,927
2015	61		5,081		5,142
2016	16		3,862		3,878
2017	2		3,152		3,154
Thereafter	—		3,631		3,631
Total minimum lease payments	$	544	$	34,657	$	35,201
Less: amounts representing interest	62
Present value of minimum lease payments	$	482

Contingencies

We are involved in certain legal and regulatory actions, all of which have arisen in the ordinary course of business. Management believes that the ultimate resolution of such matters is unlikely to have a material adverse effect on our Consolidated Results of Operations and/or Financial Condition, except as described below.

Matter related to All-Tag Security S.A., et al

We originally filed suit on May 1, 2001, alleging that the disposable, deactivatable radio frequency security tag manufactured by All-Tag Security S.A. and All-Tag Security Americas, Inc.’s (jointly “All-Tag”) and sold by Sensormatic Electronics Corporation (Sensormatic) infringed on a U.S. Patent No. 4,876,555 (Patent) owned by us. On April 22, 2004, the United States District Court for the Eastern District of Pennsylvania granted summary judgment to defendants All-Tag and Sensormatic on the ground that our Patent was invalid for incorrect inventorship. We appealed this decision. On June 20, 2005, we won an appeal when the Federal Circuit reversed the grant of summary judgment and remanded the case to the District Court for further proceedings. On January 29, 2007 the case went to trial, and on February 13, 2007, a jury found in favor of the defendants on infringement, the validity of the Patent and the enforceability of the Patent. On June 20, 2008, the Court entered judgment in favor of defendants based on the jury’s infringement and enforceability findings. On February 10, 2009, the Court granted defendants’ motions for attorneys’ fees designating the case as an exceptional case and awarding an unspecified portion of defendants’ attorneys’ fees under 35 U.S.C. § 285. Defendants are seeking approximately $5.7 million plus interest. We recognized this amount during the fourth fiscal quarter ended December 28, 2008 in litigation settlements on the Consolidated Statement of Operations. On March 6, 2009, we filed objections to the defendants’ bill of attorneys’ fees. On November 2, 2011, the Court finalized the decision to order the Company to pay the attorneys’ fees and costs of the defendants in the amount of $6.6 million. The additional amount of $0.9 million was recorded in the fourth quarter ended December 25, 2011 in the Consolidated Statement of Operations. On November 15, 2011, we filed objections to and appealed the Court's award of attorneys' fees to the defendants.

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Quarterly Information (Tables)

12 Months Ended

Dec. 30, 2012

Quarterly Financial Information Disclosure [Abstract]

Schedule Of Quarterly Information

	QUARTERS (unaudited)
(amounts in thousands, except per share data)	First				Second				Third				Fourth				Year
2012
Net revenues	$	144,194			$	177,604			$	168,813			$	200,178			$	690,789
Gross profit	53,021				70,524				68,660				78,637				270,842
Net loss from continuing operations	(10,902		)	(1)	(91,829		)	(2)	(4,280		)	(4)	(31,435		)	(6)	(138,446		)
Net loss attributable to Checkpoint Systems, Inc.	(10,991		)	(1)	(94,161		)	(3)	(5,334		)	(5)	(35,390		)	(7)	(145,876		)
Net loss from continuing operations per share:
Basic	$	(0.26	)		$	(2.24	)		$	(0.10	)		$	(0.76	)		$	(3.36	)
Diluted	$	(0.26	)		$	(2.24	)		$	(0.10	)		$	(0.76	)		$	(3.36	)
Net loss attributable to Checkpoint Systems, Inc. per share:
Basic	$	(0.27	)		$	(2.30	)		$	(0.13	)		$	(0.86	)		$	(3.56	)
Diluted	$	(0.27	)		$	(2.30	)		$	(0.13	)		$	(0.86	)		$	(3.56	)
	First				Second				Third				Fourth				Year
2011
Net revenues	$	160,201			$	193,272			$	185,222			$	225,054			$	763,749
Gross profit	65,622				80,071				74,000				92,597				312,290
Net (loss) earnings from continuing operations	(8,790		)	(8)	9,219			(9)	(51,481		)	(10)	(14,409		)	(11)	(65,461		)
Net (loss) earnings attributable to Checkpoint Systems, Inc.	(8,695		)	(8)	9,842			(9)	(48,662		)	(10)	(19,054		)	(12)	(66,569		)
Net (loss) earnings from continuing operations per share:
Basic	$	(0.22	)		$	0.23			$	(1.27	)		$	(0.35	)		$	(1.61	)
Diluted	$	(0.22	)		$	0.23			$	(1.27	)		$	(0.35	)		$	(1.61	)
Net (loss) earnings attributable to Checkpoint Systems, Inc. per share:
Basic	$	(0.22	)		$	0.24			$	(1.20	)		$	(0.47	)		$	(1.64	)
Diluted	$	(0.22	)		$	0.24			$	(1.20	)		$	(0.47	)		$	(1.64	)

⁽¹⁾  Includes a $1.6 million restructuring charge (net of tax), $0.5 million expense related to improper and fraudulent Canadian activities (net of tax), and $14 thousand in acquisition costs (net of tax).

⁽²⁾  Includes a $64.4 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

⁽³⁾  Includes a $64.8 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.7 million intangible impairment charge (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

⁽⁴⁾  Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

⁽⁵⁾  Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), an $0.8 million intangible impairment charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

⁽⁶⁾  Includes a $38.3 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax), a $0.3 million valuation allowance release, $0.2 million in acquisition costs (net of tax), compensation of $3.4 million for the financial impact of the fraudulent Canadian activities (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

⁽⁷⁾  Includes a $41.5 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax) a $0.3 million valuation allowance release, a $0.3 million asset impairment (net of tax), $0.2 million in acquisition costs (net of tax), $3.4 million related to improper and fraudulent Canadian activities including insurance proceeds (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

⁽⁸⁾  Includes a $1.1 million restructuring charge (net of tax) and a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax).

⁽⁹⁾  Includes $2.0 million in acquisition costs (net of tax), a $1.1 million restructuring charge (net of tax), and a $38 thousand expense related to improper and fraudulent Canadian activities (net of tax).

⁽¹⁰⁾  Includes a $48.0 million valuation allowance adjustment, a $16.6 million restructuring charge (net of tax), a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax), and $2 thousand in acquisition costs (net of tax).

⁽¹¹⁾  Includes a $7.0 million restructuring charge (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.4 million intangible impairment (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

⁽¹²⁾  Includes a $7.0 million restructuring charge (net of tax), a $3.2 million intangible impairment (net of tax), a $3.1 million goodwill impairment (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

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Earnings Per Share (Tables)

12 Months Ended

Dec. 30, 2012

Earnings Per Share [Abstract]

Schedule Of Earnings Per Share

The following data shows the amounts used in computing earnings per share and the effect on net earnings from continuing operations and the weighted average number of shares of dilutive potential common stock:

(amounts in thousands, except per share data)	December 30, 2012			December 25, 2011			December 26, 2010
Basic (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(137,917	)	$	(65,404	)	$	19,405
Basic (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	$	(7,959	)	$	(1,165	)	$	8,325
Diluted (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(137,917	)	$	(65,404	)	$	19,405
Diluted (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	$	(7,959	)	$	(1,165	)	$	8,325
Shares:
Weighted average number of common shares outstanding	40,476			40,070			39,483
Shares issuable under deferred compensation agreements	524			462			452
Basic weighted average number of common shares outstanding	41,000			40,532			39,935
Common shares assumed upon exercise of stock options and awards	—			—			505
Shares issuable under deferred compensation arrangements	—			—			5
Dilutive weighted average number of common shares outstanding	41,000			40,532			40,445
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	(0.20		)	(0.03		)	0.21
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	(0.20		)	(0.03		)	0.21
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69

Schedule Of Anti-Dilutive Common Share Equivalents

The number of anti-dilutive common share equivalents for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows: 

(amounts in thousands)	December 30, 2012	December 25, 2011	December 26, 2010
Weighted average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	3,107	2,380	1,516

⁽¹⁾  Adjustments for stock options and awards of 61 shares and 329 shares and deferred compensation arrangements of 12 shares and 11 shares were anti-dilutive in fiscal 2012 and 2011, respectively. These shares were therefore excluded from the earnings per share calculation due to our net loss for the years.

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Stockholders' Equity (Components Of Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Stockholders' Equity Note [Abstract]
Actuarial losses on pension plans, net of tax	$ (17,538)	$ (6,580)
Derivative hedge contracts, net of tax	21	1,542	377
Foreign currency translation adjustment	18,312	17,779
Total	$ 795	$ 12,741

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Fair Value Measurement, Financial Instruments And Risk Management (Carrying And Fair Values Of Non-Current Financial Assets And Liabilities Not Measured At Fair Value On A Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012		Dec. 25, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	$ 109,559	[1]	$ 129,594	[1]
Estimated Fair Value [Member] | Senior Secured Credit Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Line of Credit, Noncurrent	42,021		52,248
Estimated Fair Value [Member] | Senior Secured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	66,549		75,686
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Senior Secured Credit Facility [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Line of Credit, Noncurrent	42,021		52,248
Carrying (Reported) Amount, Fair Value Disclosure [Member] | Senior Secured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	$ 66,114		$ 75,000

[1] The weighted average interest rates for 2012 and 2011 were 5.9% and 4.0%, respectively

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Short-Term Borrowings And Current Portion Of Long-Term Debt (Tables)

12 Months Ended

Dec. 30, 2012

Short-term Debt, Debt Default [Abstract]

Short-Term Borrowings And Current Portion Of Long-Term Debt

Short-term borrowings and current portion of long-term debt at December 30, 2012 and at December 25, 2011 consisted of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Overdraft	$	568	$	405
Full-recourse factoring liabilities	—		8,809
Term loans	2,272		9,125
Other short-term borrowings	889		2,529
Current portion of long-term debt	638		910
Total short-term borrowings and current portion of long-term debt	$	4,367	$	21,778

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Summary Of Significant Accounting Policies (Schedule Of Movement Of Warranty Reserves) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011
Accounting Policies [Abstract]
Balance at beginning of year	$ 5,857	$ 6,170
Accruals for warranties issued	5,205	5,882
Settlements made	(5,429)	(6,194)
Adjustment for discontinued operations	(1,668)	0
Foreign currency translation adjustment	30	(1)
Balance at end of period	$ 3,995	$ 5,857

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Long-Term Debt (Senior Secured Notes) (Details) (USD $)	3 Months Ended	12 Months Ended						0 Months Ended	12 Months Ended												2 Months Ended	3 Months Ended						5 Months Ended				12 Months Ended
	Sep. 23, 2012	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 Shelf Notes [Member]	Dec. 30, 2012 Senior Secured Notes [Member]	Dec. 25, 2011 Senior Secured Notes [Member]	Sep. 22, 2012 Senior Secured Credit Facility [Member]	Dec. 30, 2012 Senior Secured Credit Facility [Member]	Dec. 30, 2012 High [Member] Shelf Notes [Member]	Dec. 30, 2012 Minimum [Member] Shelf Notes [Member]	Dec. 30, 2012 Minimum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 Maximum [Member] Shelf Notes [Member]	Dec. 30, 2012 Maximum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 $25 Million 4.00% Fixed Interest Rate Series A Senior Secured Notes Maturing In 2015 [Member]	Dec. 30, 2012 $25 Million 4.00% Fixed Interest Rate Series A Senior Secured Notes Maturing In 2015 [Member] Senior Secured Notes [Member]	Dec. 30, 2012 $25 Million 4.38% Fixed Interest Rate Series B Senior Secured Notes Maturing In 2016 [Member]	Dec. 30, 2012 $25 Million 4.38% Fixed Interest Rate Series B Senior Secured Notes Maturing In 2016 [Member] Senior Secured Notes [Member]	Dec. 30, 2012 $25 Million 4.75% Fixed Interest Rate Series C Senior Secured Notes Maturing In 2017 [Member]	Dec. 30, 2012 $25 Million 4.75% Fixed Interest Rate Series C Senior Secured Notes Maturing In 2017 [Member] Senior Secured Notes [Member]	Feb. 17, 2012 Debt Covenant Compliance February 2012 [Member]	Sep. 23, 2012 Debt Covenant Compliance February 2012 [Member]	Jun. 24, 2012 Debt Covenant Compliance February 2012 [Member]	Mar. 25, 2012 Debt Covenant Compliance February 2012 [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member]	Sep. 23, 2012 Debt Covenant Compliance July 2012 [Member]	Jun. 24, 2012 Debt Covenant Compliance July 2012 [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] Series A Senior Secured Notes [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] Series B Senior Secured Notes [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] Series C Senior Secured Notes [Member]	Dec. 30, 2012 Repayment of Senior Secured Notes [Member]
Debt Instrument [Line Items]
Leverage Ratio														2.75							2.75
Adjusted Leverage Ratio Q1 2012																								3.00
Adjusted Leverage Ratio Q2 2012																							3.35				5.25
Adjusted Leverage Ratio Q3 2012																						3.25				6.50
Adjusted leverage ratio Q4 2012																									5.50
Adjusted leverage ratio Q1 2013																												3.50
Adjusted leverage ratio Q2 2013																												2.75
Cash restructuring excluded from EBITDA calculation																										$ 25,000,000
Fixed charge covenant Q4 2012																									1.00
Fixed Charge Coverage Ratio												1.25
Debt Instrument, Interest Rate, Stated Percentage																4.00%		4.38%		4.75%									5.75%	6.13%	6.50%
Payments of Debt Issuance Costs		2,085,000	0	1,991,000		1,400,000	800,000		1,300,000
Debt Related Commitment Fees and Debt Issuance Costs		600,000
Repayments of Debt, Maturing in More than Three Months						8,900,000		6,100,000
Make-whole premium	1,100,000					1,100,000
Write off of Deferred Debt Issuance Cost																																100,000
Additional Fixed Rate Senior Secured Note										50,000,000
Debt Instrument, Face Amount											5,000,000				25,000,000	22,000,000	25,000,000	22,000,000	25,000,000	22,000,000
Debt Instrument Maturity Term From Maturity Date													10 years
Debt Instrument Maturity Term From Issue Date											7 years
Debt Instrument Principal Prepayment					1,000,000
Debt Instrument Incremental Principal Prepayment					100,000
Percentage of stock pledge of domestic subsidiaries						100.00%			100.00%
Percentage of stock pledge of all first-tier foreign subsidiaries						65.00%			65.00%
Book value of collateral of bank facility						$ 143,000,000

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Quarterly Information (Schedule Of Quarterly Information) (Details) (USD $)	3 Months Ended																12 Months Ended
	Dec. 30, 2012		Sep. 23, 2012		Jun. 24, 2012		Mar. 25, 2012		Dec. 25, 2011		Sep. 25, 2011		Jun. 26, 2011		Mar. 27, 2011		Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Quarterly Financial Information Disclosure [Abstract]
Net revenues	$ 200,178,000		$ 168,813,000		$ 177,604,000		$ 144,194,000		$ 225,054,000		$ 185,222,000		$ 193,272,000		$ 160,201,000		$ 690,789,000	$ 763,749,000	$ 716,451,000
Gross profit	78,637,000		68,660,000		70,524,000		53,021,000		92,597,000		74,000,000		80,071,000		65,622,000		270,842,000	312,290,000	314,449,000
Net (loss) earnings from continuing operations	(31,435,000)	[1]	(4,280,000)	[2]	(91,829,000)	[3]	(10,902,000)	[4]	(14,409,000)	[5]	(51,481,000)	[6]	9,219,000	[7]	(8,790,000)	[8]	(138,446,000)	(65,461,000)	19,289,000
Net (loss) earnings attributable to Checkpoint Systems, Inc.	(35,390,000)	[9]	(5,334,000)	[10]	(94,161,000)	[11]	(10,991,000)	[4]	(19,054,000)	[12]	(48,662,000)	[6]	9,842,000	[7]	(8,695,000)	[8]	(145,876,000)	(66,569,000)	27,730,000
Net (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. per share, Basic (US$ per share)	$ (0.76)		$ (0.10)		$ (2.24)		$ (0.26)		$ (0.35)		$ (1.27)		$ 0.23		$ (0.22)		$ (3.36)	$ (1.61)	$ 0.48
Net (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. per share, Diluted (US$ per share)	$ (0.76)		$ (0.10)		$ (2.24)		$ (0.26)		$ (0.35)		$ (1.27)		$ 0.23		$ (0.22)		$ (3.36)	$ (1.61)	$ 0.48
Basic (US$ per share)	$ (0.86)		$ (0.13)		$ (2.30)		$ (0.27)		$ (0.47)		$ (1.20)		$ 0.24		$ (0.22)		$ (3.56)	$ (1.64)	$ 0.69
Diluted (US$ per share)	$ (0.86)		$ (0.13)		$ (2.30)		$ (0.27)		$ (0.47)		$ (1.20)		$ 0.24		$ (0.22)		$ (3.56)	$ (1.64)	$ 0.69
Restructuring Cost and Reserve [Line Items]
Restructuring charge, net of tax			3,800,000		17,000,000				7,000,000
Make-whole premium			1,100,000
Charges related to improper and fraudulent Canadian activities									(600,000)
Goodwill impairment, net of tax	38,300,000				64,400,000
Indefinite reversal assertion									1,000,000
Litigation settlement, net of tax									900,000
Intangible asset impairment attributable to continuing operations, net of tax									400,000
Acquisition costs, net of tax			17,000		100,000				100,000
Valuation allowance adjustment			100,000		500,000				(300,000)
Income taxes (benefit) expense																	7,364,000	59,573,000	3,828,000
Selling, general and administrative charge																			800,000
CEO Transition [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charge, net of tax					2,900,000
Checkpoint Systems, Inc
Restructuring Cost and Reserve [Line Items]
Restructuring charge, net of tax	1,500,000		3,800,000		17,000,000				7,000,000		16,600,000		1,100,000		1,100,000
Make-whole premium			1,100,000
Charges related to improper and fraudulent Canadian activities									(600,000)		200,000		38,000		200,000
Goodwill impairment, net of tax	41,500,000				64,800,000				3,100,000
Indefinite reversal assertion									1,000,000
Litigation settlement, net of tax									900,000								300,000
Intangible impairment, net of tax	300,000		800,000		700,000				3,200,000
Acquisition costs, net of tax	200,000		17,000		100,000		14,000		100,000		2,000		2,000,000
Valuation allowance adjustment	(300,000)		100,000		500,000				(300,000)		48,000,000
Checkpoint Systems, Inc | Sale Of Suzhou, China [Member]
Restructuring Cost and Reserve [Line Items]
Gain (Loss) on Sale of Business	1,400,000
Checkpoint Systems, Inc | CEO Transition [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charge, net of tax					2,900,000
Checkpoint Systems, Inc | Improper And Fraudulent Canadian Activities [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charge, net of tax							1,600,000
Charges related to improper and fraudulent Canadian activities	$ 3,400,000						$ 500,000

[1] Includes a $38.3 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax), a $0.3 million valuation allowance release, $0.2 million in acquisition costs (net of tax), compensation of $3.4 million for the financial impact of the fraudulent Canadian activities (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

[2] Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

[3] Includes a $64.4 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

[4] Includes a $1.6 million restructuring charge (net of tax), $0.5 million expense related to improper and fraudulent Canadian activities (net of tax), and $14 thousand in acquisition costs (net of tax).

[5] Includes a $7.0 million restructuring charge (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.4 million intangible impairment (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

[6] Includes a $48.0 million valuation allowance adjustment, a $16.6 million restructuring charge (net of tax), a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax), and $2 thousand in acquisition costs (net of tax).

[7] Includes $2.0 million in acquisition costs (net of tax), a $1.1 million restructuring charge (net of tax), and a $38 thousand expense related to improper and fraudulent Canadian activities (net of tax).

[8] Includes a $1.1 million restructuring charge (net of tax) and a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax).

[9] Includes a $41.5 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax) a $0.3 million valuation allowance release, a $0.3 million asset impairment (net of tax), $0.2 million in acquisition costs (net of tax), $3.4 million related to improper and fraudulent Canadian activities including insurance proceeds (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

[10] Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), an $0.8 million intangible impairment charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

[11] Includes a $64.8 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.7 million intangible impairment charge (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

[12] Includes a $7.0 million restructuring charge (net of tax), a $3.2 million intangible impairment (net of tax), a $3.1 million goodwill impairment (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

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Goodwill And Other Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended					6 Months Ended	12 Months Ended		10 Months Ended	12 Months Ended
	Jun. 24, 2012	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 Shrink Management Solutions [Member]	Dec. 25, 2011 Shrink Management Solutions [Member]	Jun. 24, 2012 Apparel Labeling Solutions [Member]	Dec. 30, 2012 Apparel Labeling Solutions [Member]	Dec. 25, 2011 Apparel Labeling Solutions [Member]	Oct. 21, 2012 Retail Merchandising Solutions [Member]	Dec. 30, 2012 Retail Merchandising Solutions [Member]	Dec. 25, 2011 Retail Merchandising Solutions [Member]
Goodwill [Line Items]
Beginning Balance		$ 286,103	$ 231,325		$ 161,811	$ 165,324	$ 62,584	$ 62,584	$ 3,915	$ 61,708	$ 61,708	$ 62,086
Acquired during the year			58,008			0			58,008			0
Discontinued operations			(3,782)			(3,782)			0			0
Translation adjustments		992	552		483	269		229	661		280	(378)
Purchase accounting adjustment		1,624			0			1,624			0
Discontinued operations		(3,263)			(3,263)			0			0
Goodwill, Impairment Loss	(400)	(102,715)	0	0	0		(64,400)	(64,437)		(38,300)	(38,278)
Ending Balance		$ 182,741	$ 286,103	$ 231,325	$ 159,031	$ 161,811		$ 0	$ 62,584		$ 23,710	$ 61,708

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Commitments And Contingencies (Tables)

12 Months Ended

Dec. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Future Minimum Payments For Operating Leases And Capital Leases

Future minimum payments for operating leases and capital leases having non-cancelable terms in excess of one year at December 30, 2012 are:

(amounts in thousands)	Capital Leases		Operating Leases		Total
2013	$	319	$	11,150	$	11,469
2014	146		7,781		7,927
2015	61		5,081		5,142
2016	16		3,862		3,878
2017	2		3,152		3,154
Thereafter	—		3,631		3,631
Total minimum lease payments	$	544	$	34,657	$	35,201
Less: amounts representing interest	62
Present value of minimum lease payments	$	482

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Cash flows from operating activities:
Net (loss) earnings	$ (146,405)	$ (66,626)	$ 27,614
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	32,714	37,348	34,477
Deferred taxes	(2,075)	47,612	(2,859)
Stock-based compensation	4,753	7,408	8,751
Provision for losses on accounts receivable	3,024	3,765	123
Excess tax benefit on stock compensation	(98)	(634)	(1,662)
(Gain) loss on disposal of fixed assets	(1,326)	106	133
Asset impairment	1,771	3,373	0
Goodwill impairment	106,348	3,411	0
Gain on sale of subsidiary	(1,657)	0	0
Loss on sale of discontinued operations	15	0	0
Restructuring-related asset impairment	6,506	7,843	0
Decrease (increase) in current assets, net of the effects of acquired companies:
Accounts receivable	22,105	(25,567)	(8,753)
Inventories	37,748	(23,821)	(20,535)
Other current assets	5,357	(14,065)	162
Increase (decrease) in current liabilities, net of the effects of acquired companies:
Accounts payable	2,631	1,064	2,705
Income taxes	(1,502)	(506)	(5,653)
Unearned revenues	(4,393)	10,780	(9,750)
Restructuring reserve	(8,178)	10,544	3,044
Other current and accrued liabilities	4,875	8,350	(16,070)
Net cash provided by operating activities	62,213	10,385	11,727
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(12,401)	(22,981)	(23,712)
Acquisitions of businesses, net of cash acquired	0	(75,937)	(300)
Change in restricted cash	291	15	504
Proceeds from sale of real estate	4,560	0	0
Net cash proceeds from the sale of discontinued operations	1,180	0	0
Net cash proceeds from the sale of subsidiary	2,250	0	0
Other investing activities	1,671	623	323
Net cash used in investing activities	(2,449)	(98,280)	(23,185)
Cash flows from financing activities:
Proceeds from stock issuances	1,653	2,210	6,022
Excess tax benefit on stock compensation	98	634	1,662
Proceeds from short-term debt	3,467	8,565	7,621
Payment of short-term debt	(11,869)	(7,895)	(12,344)
Net change in factoring and bank overdrafts	(8,932)	(4,364)	1,413
Proceeds from long-term debt	3,000	74,117	141,747
Payment of long-term debt	(20,498)	(67,370)	(114,458)
Debt issuance costs	(2,085)	0	(1,991)
Repurchase of non-controlling interests	0	0	(781)
Net cash (used in) provided by financing activities	(35,166)	5,897	28,891
Effect of foreign currency rate fluctuations on cash and cash equivalents	750	3,006	(4,970)
Net increase (decrease) in cash and cash equivalents	25,348	(78,992)	12,463
Cash and cash equivalents:
Beginning of period	93,481	172,473	160,010
End of period	$ 118,829	$ 93,481	$ 172,473

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Goodwill And Other Intangible Assets (Schedule Of Components Of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Goodwill [Line Items]
Gross Amount	$ 426,601	$ 426,138
Accumulated Impairment Losses	243,860	140,035
Goodwill, Net	182,741	286,103	231,325
Shrink Management Solutions [Member]
Goodwill [Line Items]
Gross Amount	208,835	213,836
Accumulated Impairment Losses	49,804	52,025
Goodwill, Net	159,031	161,811	165,324
Apparel Labeling Solutions [Member]
Goodwill [Line Items]
Gross Amount	84,059	81,662
Accumulated Impairment Losses	84,059	19,078
Goodwill, Net	0	62,584	3,915
Retail Merchandising Solutions [Member]
Goodwill [Line Items]
Gross Amount	133,707	130,640
Accumulated Impairment Losses	109,997	68,932
Goodwill, Net	$ 23,710	$ 61,708	$ 62,086

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Income Taxes (Tables)

12 Months Ended

Dec. 30, 2012

Income Tax Disclosure [Abstract]

Domestic And Foreign Components Of Earnings From Continuing Operations Before Income Taxes

The domestic and foreign components of earnings from continuing operations before income taxes are:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Domestic	$	(54,230	)	$	(41,664	)	$	(32,985	)
Foreign	(76,852		)	35,776			56,102
Total	$	(131,082	)	$	(5,888	)	$	23,117

Domestic And Foreign Components Of Earnings From Continuing Operations Provision For Income Taxes

Provision for income taxes:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Currently payable
Federal	$	2,544		$	365		$	(4,004	)
State	88			99			(404		)
Puerto Rico	354			23			(3,950		)
Foreign	6,453			11,474			15,045
Total currently payable	9,439			11,961			6,687
Deferred
Federal	(792		)	49,395			(5,128		)
State	226			526			4,321
Puerto Rico	765			(377		)	(707		)
Foreign	(2,274		)	(1,932		)	(1,345		)
Total deferred	(2,075		)	47,612			(2,859		)
Total provision	$	7,364		$	59,573		$	3,828

Deferred Tax Assets And Liabilities

Deferred tax assets/liabilities at December 30, 2012 and December 25, 2011 consist of:

(amounts in thousands)	December 30, 2012			December 25, 2011
Inventory	$	5,390		$	4,930
Accounts receivable	2,733			2,513
Capitalized research and development costs	21,173			18,476
Net operating loss and foreign tax credit carryforwards	65,951			62,685
Restructuring	491			2,537
Pension	12,874			7,890
Warranty	1,138			1,507
Deferred compensation	3,630			4,980
Stock based compensation	7,506			8,148
Depreciation	1,753			1,052
Other	11,759			12,349
Valuation allowance	(104,514		)	(102,148		)
Deferred tax assets	29,884			24,919
Deferred revenue	546			1,316
Intangibles	8,327			9,542
Unremitted earnings	3,081			2,365
Deferred tax liabilities	11,954			13,223
Net deferred tax assets	$	17,930		$	11,696

Reconciliation Of The Tax Provision At The Statutory U.S. Federal Income Tax Rate With The Tax Provision At The Effective Income Tax Rate

A reconciliation of the tax provision at the statutory U.S. Federal income tax rate with the tax provision at the effective income tax rate follows:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Tax provision at the statutory federal income tax rate	$	(45,879	)	$	(2,061	)	$	8,091
Unremitted earnings	690			1,430			—
Non-deductible permanent items	1,566			1,748			1,467
Non-deductible goodwill impairment	32,503			—			—
State and local income taxes, net of federal benefit	314			625			3,917
Losses for which no tax benefit recognized and release of allowance on current year income	1,135			14,224			1,408
Effect of foreign operations	17,671			(3,668		)	(7,794		)
Tax settlements	—			—			(47		)
Potential tax contingencies	(547		)	(1,086		)	(3,488		)
Change in valuation allowance	283			47,684			—
Stock based compensation	994			366			441
Other	(1,366		)	311			(167		)
Tax provision at the effective tax rate	$	7,364		$	59,573		$	3,828

Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

( amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Gross unrecognized tax benefits at beginning of year	$	15,850		$	12,846		$	14,884
Increases in tax positions for prior years	225			997			1,161
Decreases in tax positions for prior years	(1,068		)	(44		)	—
Increases in tax positions for current year	3,800			808			1,229
Settlements	(683		)	(443		)	(928		)
Acquisition reserves	1,167			4,640			240
Lapse in statute of limitations	(2,956		)	(2,954		)	(3,740		)
Gross unrecognized tax benefits at end of year	$	16,335		$	15,850		$	12,846

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Subsequent Events (Notes)

12 Months Ended

Dec. 30, 2012

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the entity holding the non-controlling interest. 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.

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Discontinued Operations

12 Months Ended

Dec. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

On October 1, 2012, the Company completed the sale of the Banking Security Systems Integration business unit for $3.5 million subject to closing adjustments related to a non-compete agreement and third-party consents. On October 1, 2012, the Company received cash proceeds of $1.2 million (net of selling costs) and a promissory note of $1.4 million from the purchaser. The note receivable is due in consecutive monthly installments beginning on November 1, 2012, with the last scheduled payment due on October 1, 2017. The promissory note bears interest at the 30 day LIBOR rate plus 5.5%. The selling price is also subject to a contingent consideration payment up to a maximum amount of $0.9 million. The contingent payment is based on the purchaser's revenues for the first year of its ownership of the Banking Security Systems Integration business unit. If these revenues exceed $10 million, the Company is entitled to a contingent payment amount of 10.0% of the revenues above $10.0 million, subject to certain adjustments, not to exceed a total contingent consideration payment of $0.9 million. The loss on sale of the Banking Security Systems Integration business unit of $15 thousand is recorded through discontinued operations on the Consolidated Statement of Operations for the year ended December 30, 2012.

Our discontinued operations reflect the operating results for the disposal group through the date of disposition. Impairments in 2011 and 2012 reflect write-downs to estimates of fair value less costs to sell the Banking Security Systems Integration business unit. These nonrecurring fair value measurements, which fall within Level 3 of the fair value hierarchy, were determined utilizing an expected selling price less costs to sell approach.

In December, 2011, we classified our Banking Security Systems Integration business unit as held for sale. At December 25, 2011, the Banking Security Systems Integration business unit had recorded goodwill of $3.8 million related to a series of three acquisitions completed during 2007 and 2008. As a result of the conclusion to report the business as held for sale, we tested the goodwill of the disposal group and determined that there was a $3.4 million impairment charge. We also recorded an impairment of definite-lived customer relationships of $2.8 million as a result of our decision to sell the Banking Security Systems Integration business unit. The impairment charges were recorded in discontinued operations on the Consolidated Statement of Operations.

During the second quarter of 2012, we performed an impairment test based on updated fair value information regarding the Banking Security Systems Integration business unit. As a result of this impairment test, we determined that there was a $0.4 million impairment charge in the goodwill reporting unit of our Shrink Management Solutions segment and a $0.7 million impairment of customer relationship intangible assets. During the third quarter of 2012, we performed an impairment test based on final negotiations of the selling price for the Banking Security Systems Integration business unit. As a result of this impairment test, we determined that there was an $0.8 million additional impairment of customer relationship intangible assets. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations during the second and third quarters ended June 24, 2012 and September 23, 2012, respectively.

The results for the years ended December 30, 2012, December 25, 2011 and December 26, 2010 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 30, 2012			December 25, 2011			December 26, 2010
Net revenue	$	10,751		$	13,565		$	12,820
Gross profit	1,335			2,541			2,874
Selling, general, & administrative expense	2,550			4,095			4,043
Restructuring expenses	—			113			—
Asset impairment	1,442			2,781			—
Goodwill impairment	370			3,411			—
Operating loss	(3,027		)	(7,859		)	(1,169		)
Loss on disposal	(15		)	—			—
Loss from discontinued operations before income taxes	(3,042		)	(7,859		)	(1,169		)
Loss from discontinued operations, net of tax	$	(3,042	)	$	(7,514	)	$	(773	)

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

In December of 2012, our U.S. and Canada based CheckView^® business included in our Shrink Management Solutions segment met the criteria for classification 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 $3.3 million impairment charge of goodwill in our Shrink Management Solutions segment and a $0.3 million impairment of property, plant and equipment. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations. After a full impairment of its long-lived assets, the remaining carrying value of our CheckView^® business at December 30, 2012 exceeded its fair value by approximately $0.8 million.

Our discontinued operations reflect the operating results for the disposal group. Impairments in 2012 reflect write-downs to estimates of fair value less costs to sell the U.S. and Canada based CheckView^® business. These nonrecurring fair value measurements, which fall within Level 3 of the fair value hierarchy, were determined utilizing an expected selling price less costs to sell approach. The results for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 have been reclassified to show the results of operations for the U.S. and Canada based CheckView^® business as discontinued operations, net of tax, on the Consolidated Statement of Operations. Below is a summary of these results:

(amounts in thousands)	December 30, 2012		December 25, 2011	December 26, 2010
Net revenue	76,519		101,594	105,227
Gross profit	11,585		20,560	29,325
Selling, general, & administrative expense	12,253		13,700	13,866
Research and development	410		544	831
Asset impairment	329		—	—
Goodwill impairment	3,263		—	—
Operating (loss) income	(4,670	)	6,316	14,628
(Loss) earnings from discontinued operations before income taxes	(4,670	)	6,316	14,628
(Loss) earnings from discontinued operations, net of tax	(4,917	)	6,349	9,098

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 30, 2012 the classification was as follows:

(amounts in thousands)	December 30, 2012
Accounts receivable, net	$	14,558
Inventories	9,721
Property, plant, and equipment, net	—
Other assets	5,347
Deferred income taxes	$	238
Assets of discontinued operations held for sale	$	29,864
Accounts payable	$	3,413
Accrued compensation and related taxes	94
Other accrued expenses	5,600
Unearned revenues	581
Liabilities of discontinued operations held for sale	$	9,688

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

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Provision For Restructuring (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	$ 28,422,000	$ 28,640,000	$ 8,211,000
Cash payments	30,019,000	10,352,000
SG&A Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Anticipated total costs	18,000,000
Charged to Earnings	0
Costs incurred	18,000,000
Total number of employees affected by restructuring	369
Global Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	28,500,000
Costs incurred	47,900,000
Global Restructuring Plan Including Lean [Member]
Restructuring Cost and Reserve [Line Items]
Total number of employees affected by restructuring	2,100
Number of employees terminated	1,484
Manufacturing Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	(100,000)
Costs incurred	4,100,000
Total number of employees affected by restructuring	420
Minimum [Member]
Restructuring Cost and Reserve [Line Items]
Total number of employees impacted by restructuring	2,400
Anticipated total costs	70,000,000
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	1 month
Minimum [Member] | SG&A Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	1 month
Minimum [Member] | Global Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Anticipated total costs	52,000,000
Maximum [Member]
Restructuring Cost and Reserve [Line Items]
Anticipated total costs	75,000,000
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	24 months
Maximum [Member] | SG&A Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	24 months
Maximum [Member] | Global Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Anticipated total costs	$ 55,000,000

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Revenue Equipment On Operating Lease And Property, Plant, And Equipment (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Property, Plant and Equipment [Abstract]
Property, plant, and equipment under capital lease, gross	$ 2,000,000	$ 2,200,000
Property, plant, and equipment under capital lease, accumulated depreciation	1,500,000	1,500,000
Asset impairments	6,506,000	7,843,000	0
Depreciation expense	$ 20,300,000	$ 24,400,000	$ 21,000,000

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Employee Benefit Plans (Tables)

12 Months Ended

Dec. 30, 2012

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Accumulated Other Comprehensive Income

The amounts recognized in accumulated other comprehensive income at December 30, 2012, and December 25, 2011 consist of:

(amounts in thousands)	December 30, 2012			December 25, 2011
Transition obligation	$	—		$	58
Prior service costs	10			12
Actuarial losses	26,588			10,638
Total	26,598			10,708
Deferred tax	(8,833		)	(4,311		)
Net	$	17,765		$	6,397

Accumulated Other Comprehensive Income Over Next Fiscal Year

The amounts included in accumulated other comprehensive income at December 30, 2012 and expected to be recognized in net periodic pension cost during the year ended December 29, 2013 is as follows:

(amounts in thousands)	December 29, 2013
Prior service costs	$	2
Actuarial loss	1,559
Total	$	1,561

Components of Net Periodic Benefit Cost

The pension plans included the following net cost components:

(amounts in thousands)	December 30, 2012		December 25, 2011			December 26, 2010
Service cost	$	851	$	972		$	855
Interest cost	3,874		4,418			4,331
Expected return on plan assets	41		155			(60		)
Amortization of actuarial loss (gain)	224		50			(24		)
Amortization of transition obligation	57		129			124
Amortization of prior service costs	2		2			2
Net periodic pension cost	5,049		5,726			5,228
Settlement loss	—		46			—
Curtailment loss (gain)	72		(104		)	—
Total pension expense	$	5,121	$	5,668		$	5,228

Funded Status of Plans and Amount Recognized in Balance Sheet

The table below sets forth the funded status of our plans and amounts recognized in the accompanying Consolidated Balance Sheets.

(amounts in thousands)	December 30, 2012			December 25, 2011
Change in benefit obligation
Net benefit obligation at beginning of year	$	84,674		$	81,226
Service cost	851			972
Interest cost	3,874			4,418
Actuarial loss	16,269			4,439
Gross benefits paid	(4,324		)	(4,537		)
Plan curtailments	(575		)	(618		)
Plan settlements	(295		)	(470		)
Foreign currency exchange rate changes	1,540			(756		)
Net benefit obligation at end of year	$	102,014		$	84,674
Change in plan assets
Fair value of plan assets at beginning of year	$	1,406		$	1,472
Actual return on assets	(5		)	145
Employer contributions	4,686			4,801
Gross benefits paid	(4,324		)	(4,537		)
Plan settlements	(295		)	(470		)
Foreign currency exchange rate changes	20			(5		)
Fair value of plan assets at end of year	$	1,488		$	1,406
Reconciliation of funded status
Funded status at end of year	$	(100,526	)	$	(83,268	)

Schedule of Accrued Benefits

(amounts in thousands)	December 30, 2012		December 25, 2011
Amounts recognized in accrued benefit consist of:
Accrued pensions — current	$	4,687	$	4,453
Accrued pensions	95,839		78,815
Net amount recognized at end of year	$	100,526	$	83,268
Accumulated benefit obligation at end of year	$	96,774	$	80,744

Pension Plans with Accumulated Benefit Obligations in Excess Of Fair Value Of Plan Assets

The following table sets forth additional fiscal year-ended information for pension plans for which the accumulated benefit is in excess of plan assets:

(amounts in thousands)	December 30, 2012		December 25, 2011
Projected benefit obligation	$	102,014	$	84,674
Accumulated benefit obligation	$	96,774	$	80,744
Fair value of plan assets	$	1,488	$	1,406

Weighted Average Assumptions Used To Determine Benefit Obligations

The weighted average rate assumptions used in determining pension costs and the projected benefit obligation are as follows:

	December 30, 2012		December 25, 2011		December 26, 2010
Weighted average assumptions for year-end benefit obligations:
Discount rate(1)	3.53	%	4.77	%
Expected rate of increase in future compensation levels	2.52	%	2.52	%
Weighted average assumptions for net periodic benefit cost development:
Discount rate(1)	4.77	%	5.27	%	5.77	%
Expected rate of return on plan assets	5.25	%	5.75	%	4.00	%
Expected rate of increase in future compensation levels	2.52	%	2.52	%	2.52	%
Measurement Date:	December 31, 2012		December 31, 2011		December 31, 2010

⁽¹⁾  Represents the weighted average rate for all pension plans.

Expected Benefit Payments Associated With The Pension and Postretirement Benefit Plans

The benefits expected to be paid over the next five years and the five aggregated years after:

(amounts in thousands)
2013	$	4,689
2014	$	4,753
2015	$	4,844
2016	$	4,864
2017	$	5,004
2018 through 2022	$	26,104

Summary Of The Fair Value Of Pension Plan Assets

The following table provides a summary of the fair value of the Company's pension plan assets at December 30, 2012 utilizing the fair value hierarchy discussed in Note 14:

(amounts in thousands)	Total Fair Value Measurement December 30, 2012		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Global insurance assets	$	1,488	$	—	$	—	$	1,488

Schedule of Changes in Fair Value of Plan Assets

Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the year ended December 30, 2012 is presented below:

(amounts in thousands)	Balance as of December 25, 2011		Actual Return on Plan Assets, Relating to Assets Still Held at the Reporting Date		Actual Return on Plan Assets, Relating to Assets Sold During the Period			Purchases, Sales and Settlements			Transfer into / (out of) Level 3		Change due to Exchange Rate Changes		Balance as of December 30, 2012
Asset Category
Global insurance assets	$	1,406	$	791	$	(209	)	$	(520	)	$	—	$	20	$	1,488
Total Level 3 Assets	$	1,406	$	791	$	(209	)	$	(520	)	$	—	$	20	$	1,488

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Quarterly Information

12 Months Ended

Dec. 30, 2012

Quarterly Financial Information Disclosure [Abstract]

Quarterly Information

QUARTERLY INFORMATION (UNAUDITED)

	QUARTERS (unaudited)
(amounts in thousands, except per share data)	First				Second				Third				Fourth				Year
2012
Net revenues	$	144,194			$	177,604			$	168,813			$	200,178			$	690,789
Gross profit	53,021				70,524				68,660				78,637				270,842
Net loss from continuing operations	(10,902		)	(1)	(91,829		)	(2)	(4,280		)	(4)	(31,435		)	(6)	(138,446		)
Net loss attributable to Checkpoint Systems, Inc.	(10,991		)	(1)	(94,161		)	(3)	(5,334		)	(5)	(35,390		)	(7)	(145,876		)
Net loss from continuing operations per share:
Basic	$	(0.26	)		$	(2.24	)		$	(0.10	)		$	(0.76	)		$	(3.36	)
Diluted	$	(0.26	)		$	(2.24	)		$	(0.10	)		$	(0.76	)		$	(3.36	)
Net loss attributable to Checkpoint Systems, Inc. per share:
Basic	$	(0.27	)		$	(2.30	)		$	(0.13	)		$	(0.86	)		$	(3.56	)
Diluted	$	(0.27	)		$	(2.30	)		$	(0.13	)		$	(0.86	)		$	(3.56	)
	First				Second				Third				Fourth				Year
2011
Net revenues	$	160,201			$	193,272			$	185,222			$	225,054			$	763,749
Gross profit	65,622				80,071				74,000				92,597				312,290
Net (loss) earnings from continuing operations	(8,790		)	(8)	9,219			(9)	(51,481		)	(10)	(14,409		)	(11)	(65,461		)
Net (loss) earnings attributable to Checkpoint Systems, Inc.	(8,695		)	(8)	9,842			(9)	(48,662		)	(10)	(19,054		)	(12)	(66,569		)
Net (loss) earnings from continuing operations per share:
Basic	$	(0.22	)		$	0.23			$	(1.27	)		$	(0.35	)		$	(1.61	)
Diluted	$	(0.22	)		$	0.23			$	(1.27	)		$	(0.35	)		$	(1.61	)
Net (loss) earnings attributable to Checkpoint Systems, Inc. per share:
Basic	$	(0.22	)		$	0.24			$	(1.20	)		$	(0.47	)		$	(1.64	)
Diluted	$	(0.22	)		$	0.24			$	(1.20	)		$	(0.47	)		$	(1.64	)

⁽¹⁾  Includes a $1.6 million restructuring charge (net of tax), $0.5 million expense related to improper and fraudulent Canadian activities (net of tax), and $14 thousand in acquisition costs (net of tax).

⁽²⁾  Includes a $64.4 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

⁽³⁾  Includes a $64.8 million goodwill impairment charge (net of tax), a $17.0 million restructuring charge (net of tax), a $2.9 million charge related to our CEO transition (net of tax), a $0.7 million intangible impairment charge (net of tax), a $0.5 million valuation allowance adjustment, and $0.1 million in acquisition costs (net of tax).

⁽⁴⁾  Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

⁽⁵⁾  Includes a $3.8 million restructuring charge (net of tax), a $1.1 million make-whole premium on debt charge (net of tax), an $0.8 million intangible impairment charge (net of tax), a $0.1 million valuation allowance adjustment, and $17 thousand in acquisition costs (net of tax).

⁽⁶⁾  Includes a $38.3 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax), a $0.3 million valuation allowance release, $0.2 million in acquisition costs (net of tax), compensation of $3.4 million for the financial impact of the fraudulent Canadian activities (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

⁽⁷⁾  Includes a $41.5 million goodwill impairment (net of tax), a $1.5 million restructuring charge (net of tax), a $0.3 million litigation settlement (net of tax) a $0.3 million valuation allowance release, a $0.3 million asset impairment (net of tax), $0.2 million in acquisition costs (net of tax), $3.4 million related to improper and fraudulent Canadian activities including insurance proceeds (net of tax), and a $1.4 million gain on sale of our non-strategic Suzhou, China subsidiary (net of tax).

⁽⁸⁾  Includes a $1.1 million restructuring charge (net of tax) and a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax).

⁽⁹⁾  Includes $2.0 million in acquisition costs (net of tax), a $1.1 million restructuring charge (net of tax), and a $38 thousand expense related to improper and fraudulent Canadian activities (net of tax).

⁽¹⁰⁾  Includes a $48.0 million valuation allowance adjustment, a $16.6 million restructuring charge (net of tax), a $0.2 million expense related to improper and fraudulent Canadian activities (net of tax), and $2 thousand in acquisition costs (net of tax).

⁽¹¹⁾  Includes a $7.0 million restructuring charge (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.4 million intangible impairment (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

⁽¹²⁾  Includes a $7.0 million restructuring charge (net of tax), a $3.2 million intangible impairment (net of tax), a $3.1 million goodwill impairment (net of tax), a $1.0 million change in indefinite reversal assertion, a $0.9 million litigation settlement (net of tax), a $0.6 million income related to improper and fraudulent Canadian activities (net of tax), a $0.3 million reduction in valuation allowance, and $0.1 million in acquisition costs (net of tax).

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Valuation And Qualifying Accounts

12 Months Ended

Dec. 30, 2012

Valuation and Qualifying Accounts [Abstract]

Valuation And Qualifying Accounts

VALUATION AND QUALIFYING ACCOUNTS

Allowance for Doubtful Accounts

(amounts in thousands)
Year	Balance at Beginning of Year		Additions Through Acquisition		Charged to Costs and Expenses		Deductions (Write-Offs and Recoveries, net)			Adjustment for Discontinued Operations			Balance at End of Year
2012	$	12,627	$	—	$	3,024	$	(603	)	$	(1,806	)	$	13,242
2011	$	10,927	$	435	$	3,272	$	(2,007	)	$	—		$	12,627
2010	$	14,826	$	—	$	98	$	(3,997	)	$	—		$	10,927

Deferred Tax Valuation Allowance

(amounts in thousands)
Year	Balance at Beginning of Year		Additions Through Acquisition		Allowance Recorded on Current Year Losses		Change in Valuation Allowance		Balance at End of Year
2012	$	102,148	$	—	$	2,083	$	283	$	104,514
2011	$	37,808	$	193	$	16,463	$	47,684	$	102,148
2010	$	32,739	$	—	$	5,069	$	—	$	37,808

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Consolidated Statements Of Equity (USD $) In Thousands	Total	Common Stock [Member]	Additional Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income [Member]	Non-controlling Interests [Member]
Balance at Dec. 27, 2009
Net loss	$ 27,614			$ 27,730			$ (116)
Exercise of stock-based compensation and awards released	6,022	77	5,945
Exercise of stock-based compensation and awards released, shares		765
Tax benefit on stock-based compensation	133		133
Stock-based compensation expense	8,751		8,751
Deferred compensation plan	2,112		2,112
Repurchase of non-controlling interests	(692)		63				(755)
Amortization of pension plan actuarial losses, net of tax	103					103
Change in realized and unrealized losses on derivative hedges, net of tax	679					679
Recognized loss on pension, net of tax	(3,405)					(3,405)
Foreign currency translation adjustment	(15,321)					(15,358)	37
Balance at Dec. 26, 2010	581,554	4,384	407,383	230,837	(71,520)	10,470	0
Balance, shares at Dec. 26, 2010		43,843			4,036
Net loss	(66,626)			(66,569)			(57)
Exercise of stock-based compensation and awards released	2,210	40	2,170
Exercise of stock-based compensation and awards released, shares		398
Tax benefit on stock-based compensation	77		77
Stock-based compensation expense	7,408		7,408
Deferred compensation plan	1,173		1,173
Non-controlling interest of acquired entities	1,271						1,271
Amortization of pension plan actuarial losses, net of tax	137					137
Change in realized and unrealized losses on derivative hedges, net of tax	1,165					1,165
Recognized loss on pension, net of tax	(2,571)					(2,571)
Foreign currency translation adjustment	3,542					3,540	2
Balance at Dec. 25, 2011	529,340	4,424	418,211	164,268	(71,520)	12,741	1,216
Balance, shares at Dec. 25, 2011		44,241			4,036
Net loss	(146,405)			(145,876)			(529)
Exercise of stock-based compensation and awards released	1,160	52	1,108
Exercise of stock-based compensation and awards released, shares		522
Tax benefit on stock-based compensation	(306)		(306)
Stock-based compensation expense	4,837		4,837
Deferred compensation plan	865		865
Amortization of pension plan actuarial losses, net of tax	218					218
Change in realized and unrealized losses on derivative hedges, net of tax	(1,521)					(1,521)
Recognized loss on pension, net of tax	(11,176)					(11,176)
Foreign currency translation adjustment	534					533	1
Balance at Dec. 30, 2012	$ 377,546	$ 4,476	$ 424,715	$ 18,392	$ (71,520)	$ 795	$ 688
Balance, shares at Dec. 30, 2012		44,763			4,036

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Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 30, 2012

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Checkpoint Systems, Inc. and its majority-owned subsidiaries (Company). All inter-company transactions are eliminated in consolidation.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fiscal Year

Fiscal Year

Our fiscal year is the 52 or 53 week period ending the last Sunday of December. References to 2012 are for the 53 weeks ended December 30, 2012, while references to 2011 and 2010 are for the 52 weeks ended December 25, 2011 and December 26, 2010, respectively.

Reclassifications

Reclassifications

Certain reclassifications and retrospective adjustments have been made to prior period information to conform to current period presentation.

Discontinued Operations

Discontinued Operations

We evaluate our businesses and product lines periodically for their strategic fit within our operations. In December 2011, we began actively marketing our Banking Security Systems Integration business unit and we completed its sale in October 2012. In December 2012, our U.S. and Canada based CheckView^® business met held for sale reporting criteria. In connection with our decisions to sell these businesses, for all periods presented, the operating results associated with these businesses have been reclassified into earnings from discontinued operations, net of tax in the Consolidated Statements of Operations. The assets and liabilities associated with the U.S. and Canada based CheckView^® business have been adjusted to fair value, less costs to sell, and reclassified into assets of discontinued operations, net of taxand liabilities of discontinued operations, net of tax, as appropriate, in the Consolidated Balance Sheets. Refer to Note 19 of the Consolidated Financial Statements.

Assets Held For Sale

Sale of Subsidiary

On November 15, 2012, we sold our Suzhou, China subsidiary, resulting in a gain on sale of $1.7 million that was recognized in other operating income on the Consolidated Statement of Operations.

Sale of Subsidiary

Sale of Subsidiary

On November 15, 2012, we sold our Suzhou, China subsidiary, resulting in a gain on sale of $1.7 million that was recognized in other operating income on the Consolidated Statement of Operations.

Non-controlling Interests

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. In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the entity holding the non-controlling interest.

On July 1, 1997, Checkpoint Systems Japan Co. Ltd. (Checkpoint Japan), a wholly-owned subsidiary of the Company, issued newly authorized shares to Mitsubishi Materials Corporation (Mitsubishi) in exchange for cash. In February 2006, Checkpoint Japan repurchased 26% of these shares from Mitsubishi in exchange for $0.2 million in cash. In August 2010, Checkpoint Manufacturing Japan Co., LTD. repurchased the remaining 74% of these shares from Mitsubishi in exchange for $0.8 million in cash.

We have classified non-controlling interests as equity on our Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011 and presented net income attributable to non-controlling interests separately on our Consolidated Statements of Operations for the years ended December 30, 2012, December 25, 2011, and December 26, 2010.

Subsequent Events

Subsequent Events

We perform a review of subsequent events in connection with the preparation of our financial statements. The accounting for and disclosure of events that occur after the balance sheet date, but before our financial statements are issued or available to be issued are reflected where appropriate or required in our financial statements.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash in excess of operating requirements is invested in short-term, income-producing instruments or used to pay down debt. Cash equivalents include commercial paper and other securities with original maturities of 90 days or less at the time of purchase. Book value approximates fair value because of the short maturity of those instruments.

Restricted Cash

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 year ended December 30, 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

Accounts Receivable

Accounts receivables are recorded at net realizable values. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. These allowances are based on specific facts and circumstances surrounding individual customers as well as our historical experience. Provisions for the losses on receivables are charged to income to maintain the allowance at a level considered adequate to cover losses. Receivables are charged off against the reserve when they are deemed uncollectible. From time to time, we sell customer related receivables to third party financial institutions and evaluate these transactions to determine if they meet the criteria for sale accounting treatment. If it is determined that the criteria for sale treatment is met, the receivables are removed from the Consolidated Balance Sheet and earnings are reported on the Consolidated Statement of Operations. If it is determined that the criteria for sale accounting treatment is not met, the receivables remain on the Consolidated Balance Sheet and the transaction is treated as a secured financing.

During 2011, cash proceeds from the sale of accounts receivable related to sales-type lease extensions with customers to third party financial institutions totaled $38.0 million. Proceeds from the initial sale of the accounts receivables are used to fund operations. This transaction meets the criteria for sale accounting treatment. We have presented the earnings recognized on the sale of the receivables and other related matters separately in other operating income on the Consolidated Statements of Operations for the years ended December 25, 2011 and December 30, 2012.

Inventories

Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market. A provision is made to reduce excess or obsolete inventory to its net realizable value.

Revenue Equipment on Operating Lease

Revenue Equipment on Operating Lease

The cost of the equipment leased to customers under operating leases is depreciated on a straight-line basis over the lesser of the length of the contract or estimated useful life of the asset, which is usually between three and five years.

Property, Plant, and Equipment

Property, Plant, and Equipment

Property, plant, and equipment is carried at cost less accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Additions, improvements, and major renewals are capitalized. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Assets subject to capital leases are depreciated over the lesser of the estimated useful life of the asset or length of the contract. Buildings, equipment rented to customers, and leased equipment on capitalized leases use the following estimated useful lives of fifteen to thirty years, three to five years, and five years, respectively. Machinery and equipment estimated useful lives range from three to ten years. Leasehold improvement useful lives are the lesser of the minimum lease term or the useful life of the item. The cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is included in income.

We review our property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If it is determined that an impairment, based on expected future undiscounted cash flows, exists, then the loss is recognized on the Consolidated Statements of Operations. The amount of the impairment is the excess of the carrying amount of the impaired asset over its fair value.

Internal-Use Software

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 were 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 December 30, 2012 and December 25, 2011 were $22.8 million and $21.4 million respectively. As of December 30, 2012, $18.1 million was recorded in machinery and equipment related to portions of the ERP system that were placed in service. The remaining costs of $4.7 million and $6.0 million as of December 30, 2012 and December 25, 2011, respectively, are capitalized as construction-in-progress until such time as the these portions of the ERP system have been placed in service.

Goodwill

Goodwill

Goodwill is carried at cost and is not amortized. We test goodwill for impairment on an annual basis as of fiscal month end October of each fiscal year, relying on a number of factors including operating results, business plans and anticipated future cash flows. Company management uses its judgment in assessing whether goodwill has become impaired between annual impairment tests. Reporting units are primarily determined as the geographic areas comprising the Company’s business segments, except in situations when aggregation of the reporting units is appropriate. Recoverability of goodwill is evaluated using a two-step process when we conclude a qualitative analysis is not sufficient. The first step involves a comparison of the fair value of a reporting unit with its carrying value. If the carrying amount of the reporting unit exceeds its fair value, then the second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The nonrecurring fair value measurement of goodwill is developed using significant unobservable inputs (Level 3). We considered whether applying a purely qualitative assessment of goodwill would be sufficient (i.e. a qualitative assessment without quantitative support and bypassing Step 1). We reviewed the implied headroom for each reporting unit as of the most recent goodwill assessment, noting that three of our reporting units had headroom of less than 12% and would require a quantitative analysis. Therefore, we decided to proceed to Step 1 for all reporting units.

The fair value of our reporting units is dependent upon our estimate of future discounted cash flows and other factors. Our estimates of future cash flows include assumptions concerning future operating performance and economic conditions and may differ from actual future cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate and through our stock price that we use to determine our market capitalization. Therefore, changes in the stock price may also affect the amount of impairment recorded. Market capitalization is determined by multiplying the shares outstanding on the assessment date by the average market price of our common stock over a 30-day period before each assessment date. We use this 30-day duration to consider inherent market fluctuations that may affect any individual closing price. We believe that our market capitalization alone does not fully capture the fair value of our business as a whole, or the substantial value that an acquirer would obtain from its ability to obtain control of our business. As such, in determining fair value, we add a control premium to our market capitalization. To estimate the control premium, we considered our unique competitive advantages that would likely provide synergies to a market participant. In addition, we considered external market factors which we believe contributed to the decline and volatility in our stock price that did not reflect our underlying fair value. Refer to Note 5 of the Consolidated Financial Statements.

Other Intangibles

Other Intangibles

Indefinite-lived intangible assets are carried at cost and are not amortized, but are subject to tests for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Definite-lived intangibles are amortized on a straight-line basis over their useful lives (or legal lives if shorter). We review our other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

If it is determined that an impairment, based on expected future cash flows, exists, then the loss is recognized on the Consolidated Statements of Operations. The amount of the impairment is the excess of the carrying amount of the impaired asset over the fair value of the asset. The fair value represents expected future cash flows from the use of the assets, discounted at the rate used to evaluate potential investments. Refer to Note 5 of the Consolidated Financial Statements.

Other Assets

Other Assets

Included in other assets are $6.0 million and $11.2 million of net long-term customer-based receivables at December 30, 2012 and December 25, 2011, respectively.

Deferred Financing Costs

Deferred Financing Costs

Financing costs are capitalized and amortized to interest expense over the life of the debt. The net deferred financing costs at December 30, 2012 and December 25, 2011 were $2.6 million and $2.8 million, respectively. The financing cost amortization expense was $2.3 million, $1.1 million, and $1.2 million, for 2012, 2011, and 2010, respectively.

Revenue Recognition

Revenue Recognition

We recognize revenue when revenue is realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectability is reasonably assured.

We enter into contracts to sell our products and services, and, while the majority of our sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, significant contract interpretation is sometimes required to determine the appropriate accounting, including whether the deliverables specified in a multiple element arrangement should be treated as separate units of accounting for revenue recognition purposes, and, if so, how the selling price should be allocated among the elements and when to recognize revenue for each element.

For arrangements with multiple elements, we allocate total arrangement consideration to all deliverables based on their relative selling price using a specific hierarchy and recognize revenue when each element’s revenue recognition criteria are met. The hierarchy is as follows: vendor-specific objective evidence (“VSOE”), third-party evidence of selling price (“TPE”) or best estimate of selling price (“BESP”). VSOE of fair value for each element is established based on the price charged when the same element is sold separately. We recognize revenue when installation is complete or other post-shipment obligations have been satisfied. Unearned revenue is recorded when payments are received in advance of performing our service obligations and is recognized over the service period.

Products leased to customers under sales-type leases are accounted for as the equivalent of a sale. The present value of such lease revenues is recorded as net revenues, and the related cost of the products is charged to cost of revenues. The deferred finance charges applicable to these leases are recognized over the terms of the leases. Rental revenue from products under operating leases is recognized over the term of the lease. Installation revenue from SMS EAS products is recognized when the systems are installed. Service revenue is recognized, for service contracts, on a straight-line basis over the contractual period, and, for non-contract work, as services are performed.

Revenues from software license agreements are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, no significant vendor obligations are remaining to be fulfilled, the fee is fixed or determinable, and collection is probable. Revenue from software contracts for both licenses and professional services that require significant production, modification, customization, or implementation are recognized together using the percentage of completion method based upon the ratio of labor incurred to total estimated labor to complete each contract. In instances where there is a term license combined with services, revenue is recognized ratably over the term.

We record estimated reductions to revenue for customer incentive offerings, including volume-based incentives and rebates. The accrual for these incentives and rebates, which are included in the Other Accrued Expenses section of our Consolidated Balance Sheet, was $15.2 million and $11.7 million as of December 30, 2012 and December 25, 2011, respectively. We record revenues net of an allowance for estimated return activities. Return activity was immaterial to revenue and results of operations for all periods presented.

Shipping and Handling Fees and Costs

Shipping and Handling Fees and Costs

Shipping and handling fees are accounted for in net revenues and shipping and handling costs in cost of revenues.

Cost of Revenues

Cost of Revenues

The principal elements of cost of revenues are product cost, field service and installation cost, freight, and product royalties paid to third parties.

Warranty Reserves

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 Sheet:

(amounts in thousands)	December 30, 2012			December 25, 2011
Balance at beginning of year	$	5,857		$	6,170
Accruals for warranties issued	5,205			5,882
Settlements made	(5,429		)	(6,194		)
Adjustment for discontinued operations	(1,668		)	—
Foreign currency translation adjustment	30			(1		)
Balance at end of period	$	3,995		$	5,857

Royalty Expense

Royalty Expense

Royalty expenses related to security products approximated $0.2 million, $0.2 million, and $0.1 million, in 2012, 2011, and 2010, respectively. These expenses are included as part of cost of revenues.

Research and Development Costs

Research and Development Costs

Research and development costs are expensed as incurred and consist of development work associated with our existing and potential products and processes. Our research and development expenses relate primarily to payroll costs for engineering personnel, costs associated with various projects, including testing, developing prototypes and related expenses.

Stock Options

Stock Options

We recognize stock-based compensation expense for all share-based payments net of an estimated forfeiture rate and only recognize compensation cost for those shares expected to vest. Stock compensation expense is recognized for all share-based payments on a straight-line basis over the requisite service period of the award.

We use the Black-Scholes option pricing model to value all stock options. The table below presents the weighted average expected life in years. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.

The fair value of share-based payment units was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows:

Year Ended	December 30, 2012			December 25, 2011			December 26, 2010
Weighted-average fair value of grants	$	4.38		$	9.74		$	7.51
Valuation assumptions:
Expected dividend yield	0.00		%	0.00		%	0.00		%
Expected volatility	.5208			.4991			.4829
Expected life (in years)	5.06			4.98			4.93
Risk-free interest rate	0.750		%	2.138		%	1.845		%

Refer to Note 8 of the Consolidated Financial Statements.

Income Taxes

Income Taxes

Deferred tax liabilities and assets are determined based on the difference between the financial statement basis and the tax basis of assets and liabilities, using enacted statutory tax rates in effect at the balance sheet date. Changes in enacted tax rates are reflected in the tax provision as they occur. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted.

We utilize a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.  We include interest and penalties related to our tax contingencies in income tax expense.

Taxes and Value Added Collected from Customers

Added Taxes Collected from Customers

Sales and value added taxes collected from customers are excluded from revenues. The obligation is included in other current liabilities until the taxes are remitted to the appropriate taxing authorities.

Foreign Currency Translation and Transactions

Foreign Currency Translation and Transactions

Our balance sheet accounts of foreign subsidiaries are translated into U.S. dollars at the rate of exchange in effect at the balance sheet dates. Revenues, costs, and expenses of our foreign subsidiaries are translated into U.S. dollars at the year-to-date average rate of exchange. The resulting translation adjustments are recorded as a separate component of shareholders’ equity. Gains or losses on certain long-term inter-company transactions are excluded from the net earnings (loss) and accumulated in the cumulative translation adjustment as a separate component of Consolidated Stockholders’ Equity. All other foreign currency transaction gains and losses are included in net earnings (loss) on our Consolidated Statement of Operations.

Accounting for Hedging Activities

Accounting for Hedging Activities

We enter into certain foreign exchange forward contracts in order to hedge anticipated rate fluctuations in Western Europe, Canada, Japan and Australia. Transaction gains or losses resulting from these contracts are recognized at the end of each reporting period. We use the fair value method of accounting, recording realized and unrealized gains and losses on these contracts. These gains and losses are included in other gain (loss), net on our Consolidated Statements of Operations.

We enter into various foreign currency contracts to reduce our exposure to forecasted Euro-denominated inter-company revenues. These cash flow hedging instruments are marked to market and the changes are recorded in other comprehensive income. Amounts recorded in other comprehensive income are recognized in cost of goods sold as the inventory is sold to external parties. Any hedge ineffectiveness is charged to other gain (loss), net on our Consolidated Statements of Operations.

We enter, on occasion, into interest rate swaps to reduce the risk of significant interest rate increases in connection with floating rate debt. This cash flow hedging instrument is marked to market and the changes are recorded in other comprehensive income. Any hedge ineffectiveness is charged to interest expense. Refer to Note 14 of the Consolidated Financial Statements.

Recently Adopted Accounting Standards

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. In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities," which clarifies the scope of the offsetting disclosures of ASU 2011-11. Both ASUs are 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.

In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The Company is currently evaluating the impact of adopting this guidance.

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Employee Benefit Plans (Narrative) (Details) (USD $)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	May 31, 2012
Defined Benefit Plan Disclosure [Line Items]
Percentage of contributions by plan participants	6.00%
Percentage of employer cash contribution	50.00%
Employee service period, minimum	1 year
Employee service Period, maximum	5 years
Employer contribution under the plans	$ 1,400,000	$ 1,500,000	$ 1,300,000
Percentage of fair value market Price	85.00%
Employee benefit plan expense	5,121,000	5,668,000	5,228,000
Minimum age of executives for matching contributions to vest immediately	55 years
Maximum age for executives to receive three year vesting period	55 years
Pension plan participation rate	5.00%
Expected contributions under pension plan	5,200,000
Discount rate in benefit obligations	3.53%	4.77%
Expected rate of return on plan assets	5.25%	5.75%	4.00%
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of contribution by employee stock purchase plan	1.00%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of contribution by employee stock purchase plan	25.00%
Employee Stock Purchase Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Additional shares reserved for future issuance				400,000
Share reserved for future issuance				1,050,000
Employee benefit plan expense	400,000	600,000	600,000
Shares authorized under the plan	400,340
Shares issued under the plan	139,135	100,475	102,769
Deferred Compensation Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Vesting period, years	3 years
Executive Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution to deferred compensation plan	25.00%
Matching contribution to deferred stock account	200,000	200,000	400,000
Executive Plan [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of salary contribution by employer	50.00%
Percentage of bonus contribution by employer	100.00%
Director's Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution to deferred compensation plan	25.00%
Matching contribution to deferred stock account	$ 24,000	$ 40,000	$ 46,000

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Supplemental Cash Flow Information (Tables)

12 Months Ended

Dec. 30, 2012

Supplemental Cash Flow Information [Abstract]

Business Acquisitions

Business Acquisitions

(amounts in thousands)	December 30, 2012		December 25, 2011			December 26, 2010
Fair value of tangible assets acquired, less cash acquired	$	—	$	28,535		$	33
Goodwill and identified intangible assets	—		68,458			467
Liabilities assumed	—		(20,270		)	—
Payment obligation	—		(786		)	(200		)
Cash paid for acquisitions	$	—	$	75,937		$	300

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Summary Of Significant Accounting Policies (Assumptions And Weighted Average Fair Values Of Share-Based Payment Units Under Black-Scholes Option Pricing Model) (Details) (USD $)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Accounting Policies [Abstract]
Weighted-average fair value of grants	$ 4.38	$ 9.74	$ 7.51
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility	52.08%	49.91%	48.29%
Expected life (in years)	5 years 0 months 22 days	4 years 11 months 23 days	4 years 11 months 5 days
Risk-free interest rate	0.75%	2.138%	1.845%

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Stock-Based Compensation (Nonvested Service-Based Restricted Stock Units) (Details) (Restricted Stock Units (RSUs) [Member], USD $)	12 Months Ended
	Dec. 30, 2012
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Nonvested at beginning of period	617,672
Number of Shares, Granted	223,795
Number of Shares, Vested	(196,254)
Number of Shares, Forfeited	(82,107)
Number of Shares, Nonvested at end of period	563,106
Number of Shares, Vested and expected to vest	511,026
Number of Shares, Vested at end of period	61,250
Weighted-Average Vest Date, Nonvested at beginning in years	9 months 15 days
Weighted-Average Vest Date, Nonvested at end in years	9 months 15 days
Weighted-Average Vest Date, Vested and expected to vest in years	7 months 24 days
Weighted-Average Grant Date Fair Value, Nonvested at beginning of period	$ 21.29
Weighted-Average Grant Date Fair Value, Granted	$ 10.58
Weighted-Average Grant Date Fair Value, Vested	$ 11.24
Weighted-Average Grant Date Fair Value, Forfeited	$ 17.15
Weighted-Average Grant Date Fair Value, Nonvested at end of period	$ 21.14

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
CURRENT ASSETS:
Cash and cash equivalents	$ 118,829	$ 93,481
Restricted cash	0	291
Accounts receivable, net of allowance of $13,242 and $12,627	177,173	208,889
Inventories	82,154	130,987
Other current assets	36,147	44,548
Deferred income taxes	8,930	7,720
Assets of discontinued operations held for sale	29,864	6,320
Total Current Assets	453,097	492,236
REVENUE EQUIPMENT ON OPERATING LEASE, net	1,748	1,920
PROPERTY, PLANT, AND EQUIPMENT, net	107,184	132,161
GOODWILL	182,741	286,103
OTHER INTANGIBLES, net	74,950	84,557
DEFERRED INCOME TAXES	26,843	27,241
OTHER ASSETS	13,246	20,263
TOTAL ASSETS	859,809	1,044,481
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term debt	4,367	21,778
Accounts payable	68,929	68,886
Accrued compensation and related taxes	28,258	27,620
Other accrued expenses	54,425	58,242
Income taxes	2,560	4,080
Unearned revenues	17,035	22,142
Restructuring reserve	9,579	17,612
Accrued pensions — current	4,687	4,453
Other current liabilities	25,855	32,867
Liabilities of discontinued operations held for sale	9,688	1,440
Total Current Liabilities	225,383	259,120
LONG-TERM DEBT, LESS CURRENT MATURITIES	108,921	128,684
ACCRUED PENSIONS	95,839	78,815
OTHER LONG-TERM LIABILITIES	36,540	29,894
DEFERRED INCOME TAXES	15,580	18,628
COMMITMENTS AND CONTINGENCIES	0	0
CHECKPOINT SYSTEMS, INC. STOCKHOLDERS' EQUITY:
Preferred stock, no par value, 500,000 shares authorized, none issued	0	0
Common stock, par value $.10 per share, 100,000,000 shares authorized, issued 44,763,404 and 44,241,105 shares	4,476	4,424
Additional capital	424,715	418,211
Retained earnings	18,392	164,268
Common stock in treasury, at cost, 4,035,912 and 4,035,912 shares	(71,520)	(71,520)
Accumulated other comprehensive income, net of tax	795	12,741
TOTAL CHECKPOINT SYSTEMS, INC. STOCKHOLDERS' EQUITY	376,858	528,124
NON-CONTROLLING INTERESTS	688	1,216
TOTAL EQUITY	377,546	529,340
TOTAL LIABILITIES AND EQUITY	$ 859,809	$ 1,044,481

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Fair Value Measurement, Financial Instruments And Risk Management (Tables)

12 Months Ended

Dec. 30, 2012

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value On A Recurring Basis

The following tables represent our assets and liabilities measured at fair value on a recurring basis as of December 30, 2012 and December 25, 2011 and the basis for that measurement:

(amounts in thousands)	Total Fair Value Measurement December 30, 2012		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Foreign currency forward exchange contracts	$	179	$	—	$	179	$	—
Foreign currency revenue forecast contracts	14		—		14		—
Total assets	$	193	$	—	$	193	$	—
Foreign currency forward exchange contracts	$	208	$	—	$	208	$	—
Total liabilities	$	208	$	—	$	208	$	—

(amounts in thousands)	Total Fair Value Measurement December 25, 2011		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Foreign currency forward exchange contracts	$	463	$	—	$	463	$	—
Foreign currency revenue forecast contracts	1,120		—		1,120		—
Total assets	$	1,583	$	—	$	1,583	$	—
Foreign currency forward exchange contracts	$	415	$	—	$	415	$	—
Total liabilities	$	415	$	—	$	415	$	—

Summary of Activity Associated With All Designated Cash Flow Hedges Reflected in AOCI

The following table provides a summary of the activity associated with all of our designated cash flow hedges (foreign currency) reflected in accumulated other comprehensive income for the years ended December 30, 2012 and December 25, 2011:

(amounts in thousands)	December 30, 2012			December 25, 2011
Beginning balance, net of tax	$	1,542		$	377
Changes in fair value gain, net of tax	481			(643		)
Reclass to earnings, net of tax	(2,002		)	1,808
Ending balance, net of tax	$	21		$	1,542

Carrying Amount And Fair Value Of Non-Current Financial Assets And Liabilities Not Measured At Fair Value on a Recurring Basis

The carrying values and the estimated fair values of non-current financial assets and liabilities that qualify as financial instruments and are not measured at fair value on a recurring basis at December 30, 2012 and December 25, 2011 are summarized in the following table:

	December 30, 2012				December 25, 2011
(amounts in thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt (including current maturities and excluding capital leases and factoring)(1)
Senior secured credit facility	$	42,021	$	42,021	$	52,248	$	52,248
Senior secured notes	$	66,114	$	66,549	$	75,000	$	75,686

⁽¹⁾  The carrying amounts are reported on the balance sheet under the indicated captions.

Fair Values of Derivative Instruments Included Within The Consolidated Balance Sheets

The following table presents the fair values of derivative instruments included within the Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011:

	December 30, 2012						December 25, 2011
	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
(amounts in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign currency revenue forecast contracts	Other current assets	$	14	Other current liabilities	$	—	Other current assets	$	1,120	Other current liabilities	$	—
Total derivatives designated as hedging instruments		14			—			1,120			—
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	Other current assets	179		Other current liabilities	208		Other current assets	463		Other current liabilities	415
Total derivatives not designated as hedging instruments		179			208			463			415
Total derivatives		$	193		$	208		$	1,583		$	415

Amounts Affecting The Consolidated Statement of Operations

The following tables present the amounts affecting the Consolidated Statement of Operations for the years ended December 30, 2012, December 25, 2011, and December 26, 2010:

	December 30, 2012
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	507	Cost of sales	$	(1,994	)	$	102
Total designated cash flow hedges	$	507		$	(1,994	)	$	102

	December 25, 2011
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	(658	)	Cost of sales	$	(1,792	)	$	(296	)
Total designated cash flow hedges	$	(658	)		$	(1,792	)	$	(296	)

	December 26, 2010
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	1,940	Cost of sales	$	1,194		$	(124	)
Interest rate swap contracts	171		Interest expense	(159		)	—
Total designated cash flow hedges	$	2,111		$	1,035		$	(124	)

Effect of Non-Designated Hedging Instruments on Financial Performance

	December 30, 2012			December 25, 2011				December 26, 2010
(amounts in thousands)	Amount of Gain (Loss) Recognized in Income on Derivatives		Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives			Location of Gain(Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives		Location of Gain(Loss) Recognized in Income on Derivatives
Derivatives not designated as hedging instruments
Foreign exchange forwards and options	$	261	Other gain (loss), net	$	(155	)	Other gain (loss), net	$	77	Other gain (loss), net

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Fair Value Measurement, Financial Instruments And Risk Management (Summary Of Activity Associated With Cash Flow Hedges Reflected In AOCI) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011
Fair Value Disclosures [Abstract]
Beginning balance, net of tax	$ 1,542	$ 377
Changes in fair value gain, net of tax	481	(643)
Reclass to earnings, net of tax	(2,002)	1,808
Ending balance, net of tax	$ 21	$ 1,542

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Consolidated Statements Of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Statement of Other Comprehensive Income [Abstract]
Net (loss) earnings	$ (146,405)	$ (66,626)	$ 27,614
Amortization of pension plan actuarial losses, net of tax expense of $65, $63, and $29	218	137	103
Change in realized and unrealized (losses) gains on derivative hedges, net of tax (benefit) expense of ($71), $31, and $247	(1,521)	1,165	679
Recognized loss on pension, net of tax benefit of $4,410, $1,029, and $1,344	(11,176)	(2,571)	(3,405)
Foreign currency translation adjustment	534	3,542	(15,321)
Comprehensive (loss) income	(158,350)	(64,353)	9,670
Less: comprehensive loss attributable to non-controlling interests	(528)	(55)	(834)
Comprehensive (loss) income attributable to Checkpoint Systems, Inc.	$ (157,822)	$ (64,298)	$ 10,504

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Fair Value Measurement, Financial Instruments And Risk Management (Narrative) (Details)	3 Months Ended	12 Months Ended					12 Months Ended				12 Months Ended
	Jun. 24, 2012 USD ($)	Dec. 30, 2012 USD ($)	Dec. 25, 2011 USD ($)	Dec. 26, 2010 USD ($)	Dec. 30, 2012 Foreign Currency Forward Exchange Contracts [Member] USD ($)	Dec. 25, 2011 Foreign Currency Forward Exchange Contracts [Member] USD ($)	Dec. 30, 2012 Foreign Currency Revenue Forecast Contracts [Member] USD ($)	Dec. 30, 2012 Foreign Currency Revenue Forecast Contracts [Member] EUR (€)	Dec. 25, 2011 Foreign Currency Revenue Forecast Contracts [Member] USD ($)	Jun. 27, 2010 Interest Rate Swap [Member] USD ($)	Dec. 30, 2012 Senior Secured Credit Facility [Member]	Dec. 30, 2012 Senior Secured Notes [Member]	Dec. 30, 2012 Goodwill Retail Merchandising Solutions [Member] USD ($)	Dec. 25, 2011 Trade Names [Member] USD ($)
Fair Value Disclosures [Line Items]
Line of credit facility, maturity date											2014
Debt instrument, maturity date start												Jan. 01, 2015
Debt instrument, maturity date end												Jan. 01, 2017
Goodwill		$ 182,741,000	$ 286,103,000	$ 231,325,000									$ 61,500,000	$ 800,000
Fair value of goodwill													23,200,000	200,000
Goodwill impairment	400,000	102,715,000	0	0									38,300,000	600,000
Notional amount of derivatives not designated as hedging instruments					17,100,000
Assets		193,000	1,583,000		179,000	463,000	14,000		1,120,000
Liabilities		208,000	415,000		208,000	415,000
Notional amount of derivatives							3,900,000	2,900,000		40,000,000
Unrealized gain recorded in other comprehensive income, net of tax		(1,521,000)	1,165,000	679,000			200,000
Tax of unrealized gain recorded in other comprehensive income		(71,000)	31,000	247,000			6,000
Unrealized gain from cash flow hedge reclassified to earnings		200,000
Expense related to foreign currency hedges recorded in cost of goods sold		2,000,000
Hedge ineffectiveness							100,000
Aggregate foreign currency transaction losses		$ 1,700,000	$ 2,100,000	$ 2,700,000

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Goodwill And Other Intangible Assets (Components Of Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified											12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 30, 2012 Customer Lists [Member]	Dec. 25, 2011 Customer Lists [Member]	Dec. 30, 2012 Trade Name [Member]	Dec. 25, 2011 Trade Name [Member]	Dec. 30, 2012 Patents, License Agreements [Member]	Dec. 25, 2011 Patents, License Agreements [Member]	Dec. 30, 2012 Other Intangibles [Member]	Dec. 25, 2011 Other Intangibles [Member]	Dec. 30, 2012 Minimum [Member] Customer Lists [Member]	Dec. 30, 2012 Minimum [Member] Trade Name [Member]	Dec. 30, 2012 Minimum [Member] Patents, License Agreements [Member]	Dec. 30, 2012 Minimum [Member] Other Intangibles [Member]	Dec. 30, 2012 Maximum [Member] Customer Lists [Member]	Dec. 30, 2012 Maximum [Member] Trade Name [Member]	Dec. 30, 2012 Maximum [Member] Patents, License Agreements [Member]	Dec. 30, 2012 Maximum [Member] Other Intangibles [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, amortizable life minimum (years)											6 years	1 year	3 years	2 years	20 years	30 years	14 years	6 years
Customer lists	$ 81,895	$ 81,348
Trade name	30,414	30,007
Patents, license agreements	60,682	60,249
Other	7,178	7,160
Total amortized finite-lived intangible assets, gross amount	180,169	178,764
Total amortized finite-lived intangible assets, gross accumulated amortization	126,730	115,716	50,215	43,945	19,143	18,237	50,826	47,704	6,546	5,830
Trade name	21,511	21,509
Total identifiable intangible assets, gross amount	201,680	200,273
Total identifiable intangible assets, gross accumulated amortization	$ 126,730	$ 115,716

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Fair Value Measurement, Financial Instruments And Risk Management (Amounts Affecting Consolidated Statement Of Operations) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Cash Flow Hedges [Member]
Fair Value Disclosures [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	$ 507	$ (658)	$ 2,111
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	(1,994)	(1,792)	1,035
Amount of Forward Points Recognized in Other Gain (Loss), net	102	(296)	(124)
Cash Flow Hedges [Member] | Cost Of Sales [Member] | Foreign Currency Revenue Forecast Contracts [Member]
Fair Value Disclosures [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	507	(658)	1,940
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	(1,994)	(1,792)	1,194
Amount of Forward Points Recognized in Other Gain (Loss), net	102	(296)	(124)
Cash Flow Hedges [Member] | Interest Expense [Member] | Interest Rate Swap Contracts [Member]
Fair Value Disclosures [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives			171
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			(159)
Amount of Forward Points Recognized in Other Gain (Loss), net			0
Derivatives Not Designated As Hedging Instruments [Member] | Other Gain (Loss), Net [Member] | Foreign Exchange Forwards And Options [Member]
Fair Value Disclosures [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ 261	$ (155)	$ 77

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Revenue Equipment On Operating Lease And Property, Plant, And Equipment (Tables)

12 Months Ended

Dec. 30, 2012

Property, Plant and Equipment [Abstract]

Property, Plant And Equipment

The major classes are:

(amounts in thousands)	December 30, 2012			December 25, 2011
Revenue equipment on operating lease
Equipment rented to customers	$	3,522		$	3,732
Accumulated depreciation	(1,774		)	(1,812		)
Total revenue equipment on operating lease	$	1,748		$	1,920
Property, plant, and equipment
Land	$	8,894		$	9,862
Buildings	56,577			74,402
Machinery and equipment	172,398			204,215
Leasehold improvements	15,218			15,003
Construction in progress	5,724			10,282
	258,811			313,764
Accumulated depreciation	(151,627		)	(181,603		)
Total property, plant, and equipment	$	107,184		$	132,161

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Long-Term Debt (Long-Term Debt) (Details)						12 Months Ended				12 Months Ended			12 Months Ended			12 Months Ended
	Dec. 30, 2012 USD ($)		Dec. 30, 2012 EUR (€)	Dec. 25, 2011 USD ($)		Dec. 30, 2012 $125 Million Variable Interest Rate Revolving Credit Facility Maturing In 2014 [Member]	Jul. 22, 2010 $125 Million Variable Interest Rate Revolving Credit Facility Maturing In 2014 [Member] USD ($)	Dec. 30, 2012 $125 Million Variable Interest Rate Revolving Credit Facility Maturing In 2014 [Member] Senior Secured Credit Facility [Member] USD ($)	Dec. 25, 2011 $125 Million Variable Interest Rate Revolving Credit Facility Maturing In 2014 [Member] Senior Secured Credit Facility [Member] USD ($)	Dec. 30, 2012 $25 Million 4.00% Fixed Interest Rate Series A Senior Secured Notes Maturing In 2015 [Member] USD ($)	Dec. 30, 2012 $25 Million 4.00% Fixed Interest Rate Series A Senior Secured Notes Maturing In 2015 [Member] Senior Secured Notes [Member] USD ($)	Dec. 25, 2011 $25 Million 4.00% Fixed Interest Rate Series A Senior Secured Notes Maturing In 2015 [Member] Senior Secured Notes [Member] USD ($)	Dec. 30, 2012 $25 Million 4.38% Fixed Interest Rate Series B Senior Secured Notes Maturing In 2016 [Member] USD ($)	Dec. 30, 2012 $25 Million 4.38% Fixed Interest Rate Series B Senior Secured Notes Maturing In 2016 [Member] Senior Secured Notes [Member] USD ($)	Dec. 25, 2011 $25 Million 4.38% Fixed Interest Rate Series B Senior Secured Notes Maturing In 2016 [Member] Senior Secured Notes [Member] USD ($)	Dec. 30, 2012 $25 Million 4.75% Fixed Interest Rate Series C Senior Secured Notes Maturing In 2017 [Member] USD ($)	Dec. 30, 2012 $25 Million 4.75% Fixed Interest Rate Series C Senior Secured Notes Maturing In 2017 [Member] Senior Secured Notes [Member] USD ($)	Dec. 25, 2011 $25 Million 4.75% Fixed Interest Rate Series C Senior Secured Notes Maturing In 2017 [Member] Senior Secured Notes [Member] USD ($)
Debt Instrument [Line Items]
Long-term revolving credit facility								$ 42,021,000	$ 52,248,000
Full-recourse factoring liabilities	942,000		700,000	1,333,000
Other capital leases with maturities through 2016	482,000			1,013,000
Long-term debt	109,559,000	[1]		129,594,000	[1]						22,038,000	25,000,000		22,038,000	25,000,000		22,038,000	25,000,000
Less current portion	638,000			910,000
Total long-term portion	108,921,000			128,684,000
Interest rate											4.00%			4.38%			4.75%
Weighted average interest rate	5.90%		5.90%	4.00%
Face value							$ 125,000,000			$ 25,000,000	$ 22,000,000		$ 25,000,000	$ 22,000,000		$ 25,000,000	$ 22,000,000
Senior secured credit facility, maturity year						2014				2015			2016			2017

[1] The weighted average interest rates for 2012 and 2011 were 5.9% and 4.0%, respectively

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Employee Benefit Plans

12 Months Ended

Dec. 30, 2012

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

Under our defined contribution savings plans, eligible employees may make basic (up to 6% of an employee’s earnings) and supplemental contributions. We match in cash 50% of the participant’s basic contributions. Company contributions vest to participants in increasing percentages over one to five years of service. Our contributions under the plans approximated $1.4 million, $1.5 million, and $1.3 million, in 2012, 2011, and 2010, respectively.

Generally, all employees in the U.S. may participate in our U.S. Savings Plan. All full-time employees of the Puerto Rico subsidiary who have completed three months of service may participate in our Puerto Rico Savings Plan.

During fiscal 2005, we initiated a 423(b) Employee Stock Purchase Plan (ESPP), which was adopted by the shareholders at the Annual Shareholder Meeting on April 29, 2004. This plan replaces the non-qualified Employee Stock Purchase Plan. Under the provisions of the 423(b) plan, eligible employees may contribute from 1% to 25% of their base compensation to purchase shares of our common stock at 85% of the fair market value on the offering date or the exercise date of the offering period, whichever is lower.

On May 31, 2012, at the 2012 Annual Meeting of Shareholders of Checkpoint, our shareholders amended the ESPP in order to increase the number of shares of the Company’s common stock reserved for issuance under the ESPP by 400,000 shares to an aggregate of 1,050,000 shares. Our expense for this plan in fiscal 2012, 2011 and 2010 was $0.4 million, $0.6 million, and $0.6 million, respectively. As of December 30, 2012, there were 400,340 shares authorized and available to be issued. During fiscal year 2012, 139,135 shares were issued under this plan as compared to 100,475 shares in 2011 and 102,769 shares in 2010.

We maintain deferred compensation plans for executives and non-employee directors. The executive deferred compensation plan allows certain executives to defer portions of their salary and bonus (up to 50% and 100%, respectively) into a deferred stock account. All deferrals in this plan are matched 25% by the Company. The match vests in thirds at each calendar year end for three years following the match. For executives over the age of 55 years old, the matching contribution vests immediately. The settlement of this deferred stock account is required by the plan to be made only in Company common stock. The deferral shares held in the deferred compensation plan are considered outstanding for purposes of calculating basic and diluted earnings per share. The unvested match is considered in the calculation of diluted earnings per share. Our match into the deferred stock account under the executive plan for fiscal years 2012, 2011, and 2010 were approximately $0.2 million, $0.2 million, and $0.4 million, respectively. The match will be expensed ratably over a three year vesting period for executives under 55 years old and immediate for those older than 55 years.

The director deferred compensation plan allows non-employee directors to defer their compensation into a deferred stock account. All deferrals in this plan are matched 25% by the Company. The match vests immediately. The settlement of this deferred stock account is required by the plan to be made only in Company common stock. The deferral shares held in the deferred compensation plan are considered outstanding for purposes of calculating basic and diluted earnings per share. Our match into the deferred stock account under the director’s plan approximated $24 thousand, $40 thousand, and $46 thousand for fiscal years 2012, 2011, and 2010, respectively.

Pension Plans

We maintain several defined benefit pension plans, principally in Europe. The plans covered approximately 5% of the total workforce at December 30, 2012. The benefits accrue according to the length of service, age, and remuneration of the employee. We recognize the funded status of our defined benefit postretirement plans in the Company’s statement of financial position.

The amounts recognized in accumulated other comprehensive income at December 30, 2012, and December 25, 2011 consist of:

(amounts in thousands)	December 30, 2012			December 25, 2011
Transition obligation	$	—		$	58
Prior service costs	10			12
Actuarial losses	26,588			10,638
Total	26,598			10,708
Deferred tax	(8,833		)	(4,311		)
Net	$	17,765		$	6,397

The amounts included in accumulated other comprehensive income at December 30, 2012 and expected to be recognized in net periodic pension cost during the year ended December 29, 2013 is as follows:

(amounts in thousands)	December 29, 2013
Prior service costs	$	2
Actuarial loss	1,559
Total	$	1,561

The Company expects to make contributions of $5.2 million during the year ended December 29, 2013.

The pension plans included the following net cost components:

(amounts in thousands)	December 30, 2012		December 25, 2011			December 26, 2010
Service cost	$	851	$	972		$	855
Interest cost	3,874		4,418			4,331
Expected return on plan assets	41		155			(60		)
Amortization of actuarial loss (gain)	224		50			(24		)
Amortization of transition obligation	57		129			124
Amortization of prior service costs	2		2			2
Net periodic pension cost	5,049		5,726			5,228
Settlement loss	—		46			—
Curtailment loss (gain)	72		(104		)	—
Total pension expense	$	5,121	$	5,668		$	5,228

The table below sets forth the funded status of our plans and amounts recognized in the accompanying Consolidated Balance Sheets.

(amounts in thousands)	December 30, 2012			December 25, 2011
Change in benefit obligation
Net benefit obligation at beginning of year	$	84,674		$	81,226
Service cost	851			972
Interest cost	3,874			4,418
Actuarial loss	16,269			4,439
Gross benefits paid	(4,324		)	(4,537		)
Plan curtailments	(575		)	(618		)
Plan settlements	(295		)	(470		)
Foreign currency exchange rate changes	1,540			(756		)
Net benefit obligation at end of year	$	102,014		$	84,674
Change in plan assets
Fair value of plan assets at beginning of year	$	1,406		$	1,472
Actual return on assets	(5		)	145
Employer contributions	4,686			4,801
Gross benefits paid	(4,324		)	(4,537		)
Plan settlements	(295		)	(470		)
Foreign currency exchange rate changes	20			(5		)
Fair value of plan assets at end of year	$	1,488		$	1,406
Reconciliation of funded status
Funded status at end of year	$	(100,526	)	$	(83,268	)

(amounts in thousands)	December 30, 2012		December 25, 2011
Amounts recognized in accrued benefit consist of:
Accrued pensions — current	$	4,687	$	4,453
Accrued pensions	95,839		78,815
Net amount recognized at end of year	$	100,526	$	83,268
Accumulated benefit obligation at end of year	$	96,774	$	80,744

The following table sets forth additional fiscal year-ended information for pension plans for which the accumulated benefit is in excess of plan assets:

(amounts in thousands)	December 30, 2012		December 25, 2011
Projected benefit obligation	$	102,014	$	84,674
Accumulated benefit obligation	$	96,774	$	80,744
Fair value of plan assets	$	1,488	$	1,406

The weighted average rate assumptions used in determining pension costs and the projected benefit obligation are as follows:

	December 30, 2012		December 25, 2011		December 26, 2010
Weighted average assumptions for year-end benefit obligations:
Discount rate(1)	3.53	%	4.77	%
Expected rate of increase in future compensation levels	2.52	%	2.52	%
Weighted average assumptions for net periodic benefit cost development:
Discount rate(1)	4.77	%	5.27	%	5.77	%
Expected rate of return on plan assets	5.25	%	5.75	%	4.00	%
Expected rate of increase in future compensation levels	2.52	%	2.52	%	2.52	%
Measurement Date:	December 31, 2012		December 31, 2011		December 31, 2010

⁽¹⁾  Represents the weighted average rate for all pension plans.

In developing the discount rate assumption for each country, we use a yield curve approach. The yield curve is based on the AA rated bonds underlying the Barclays Capital corporate bond index. The weighted average discount rate was 3.53% in 2012 and 4.77% in 2011. We calculate the weighted average duration of the plans in each country, then select the discount rate from the appropriate yield curve which best corresponds to the plans' liability profile.

The majority of our pension plans are unfunded plans. The expected rate of the return was developed using the historical rate of returns of the foreign government bonds currently held. This resulted in the selection of the 5.25% long-term rate of return on asset assumption. For funded plans, all assets are held in foreign government bonds.

The benefits expected to be paid over the next five years and the five aggregated years after:

(amounts in thousands)
2013	$	4,689
2014	$	4,753
2015	$	4,844
2016	$	4,864
2017	$	5,004
2018 through 2022	$	26,104

The following table provides a summary of the fair value of the Company's pension plan assets at December 30, 2012 utilizing the fair value hierarchy discussed in Note 14:

(amounts in thousands)	Total Fair Value Measurement December 30, 2012		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Global insurance assets	$	1,488	$	—	$	—	$	1,488

All investments consist of fixed-income global insurance. The investment objective of fixed-income funds is to maximize investment return while preserving investment principal.

Additional information pertaining to the changes in the fair value of the pension plan assets classified as Level 3 for the year ended December 30, 2012 is presented below:

(amounts in thousands)	Balance as of December 25, 2011		Actual Return on Plan Assets, Relating to Assets Still Held at the Reporting Date		Actual Return on Plan Assets, Relating to Assets Sold During the Period			Purchases, Sales and Settlements			Transfer into / (out of) Level 3		Change due to Exchange Rate Changes		Balance as of December 30, 2012
Asset Category
Global insurance assets	$	1,406	$	791	$	(209	)	$	(520	)	$	—	$	20	$	1,488
Total Level 3 Assets	$	1,406	$	791	$	(209	)	$	(520	)	$	—	$	20	$	1,488

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Goodwill And Other Intangible Assets (Tables)

12 Months Ended

Dec. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Components Of Intangible Assets

The following table reflects the components of intangible assets as of December 30, 2012 and December 25, 2011:

		December 30, 2012				December 25, 2011
(amounts in thousands)	Amortizable Life (years)	Gross Amount		Gross Accumulated Amortization		Gross Amount		Gross Accumulated Amortization
Finite-lived intangible assets:
Customer lists	6 to 20	$	81,895	$	50,215	$	81,348	$	43,945
Trade name	1 to 30	30,414		19,143		30,007		18,237
Patents, license agreements	3 to 14	60,682		50,826		60,249		47,704
Other	2 to 6	7,178		6,546		7,160		5,830
Total amortized finite-lived intangible assets		180,169		126,730		178,764		115,716
Indefinite-lived intangible assets:
Trade name		21,511		—		21,509		—
Total identifiable intangible assets		$	201,680	$	126,730	$	200,273	$	115,716

Estimated Future Amortization Expense

Estimated amortization expense for each of the five succeeding years is anticipated to be:

(amounts in thousands)
2013	$	8,764
2014	$	8,276
2015	$	8,120
2016	$	7,857
2017	$	6,821

Changes In Carrying Amount Of Goodwill

The changes in the carrying amount of goodwill are as follows:

(amounts in thousands)	Shrink Management Solutions			Apparel Labeling Solutions			Retail Merchandising Solutions			Total
Balance as of December 26, 2010	$	165,324		$	3,915		$	62,086		$	231,325
Acquired during the year	$	—		58,008			$	—		58,008
Discontinued operations	(3,782		)	$	—		$	—		(3,782		)
Translation adjustments	269			661			(378		)	552
Balance as of December 25, 2011	$	161,811		$	62,584		$	61,708		$	286,103
Purchase accounting adjustment	$	—		1,624			$	—		1,624
Discontinued operations	$	(3,263	)	$	—		$	—		(3,263		)
Impairment losses	$	—		(64,437		)	$	(38,278	)	(102,715		)
Translation adjustments	483			229			280			992
Balance as of December 30, 2012	$	159,031		$	—		$	23,710		$	182,741

Schedule Of Components Of Goodwill

The following table reflects the components of goodwill as of December 30, 2012 and December 25, 2011:

	December 30, 2012						December 25, 2011
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, net
Shrink Management Solutions	$	208,835	$	49,804	$	159,031	$	213,836	$	52,025	$	161,811
Apparel Labeling Solutions	84,059		84,059		—		81,662		19,078		62,584
Retail Merchandising Solutions	133,707		109,997		23,710		130,640		68,932		61,708
Total goodwill	$	426,601	$	243,860	$	182,741	$	426,138	$	140,035	$	286,103

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Fair Value Measurement, Financial Instruments And Risk Management (Fair Values Of Derivative Instruments Included Within The Consolidated Balance Sheets) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	$ 193	$ 1,583
Derivative Liabilities, Fair Value	208	415
Foreign Currency Revenue Forecast Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	14	1,120
Foreign Currency Forward Exchange Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	179	463
Derivative Liabilities, Fair Value	208	415
Derivatives Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	14	1,120
Derivative Liabilities, Fair Value	0	0
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Revenue Forecast Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	14	1,120
Derivatives Designated As Hedging Instruments [Member] | Foreign Currency Revenue Forecast Contracts [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities, Fair Value	0	0
Derivatives Not Designated As Hedging Instruments [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	179	463
Derivative Liabilities, Fair Value	208	415
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Assets, Fair Value	179	463
Derivatives Not Designated As Hedging Instruments [Member] | Foreign Currency Forward Exchange Contracts [Member] | Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Liabilities, Fair Value	$ 208	$ 415

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Provision For Restructuring

12 Months Ended

Dec. 30, 2012

Restructuring and Related Activities [Abstract]

Provision For Restructuring

PROVISION FOR RESTRUCTURING

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan will impact over 2,400 existing employees. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are expected to approximate $70 million to $75 million by the end of 2013, with $52 million to $55 million in total anticipated costs for the Global Restructuring Plan and $18 million of costs incurred for the SG&A Restructuring Plan, which is substantially complete.

Restructuring expense for the periods ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	16,945		$	11,115		$	—
Asset impairments	6,506			7,761			—
Other exit costs	5,068			519			—
SG&A Restructuring Plan
Severance and other employee-related charges	(86		)	7,015			6,993
Asset impairments	—			72			—
Other exit costs	64			2,203			—
Manufacturing Restructuring Plan
Severance and other employee-related charges	—			(146		)	641
Other exit costs	(75		)	101			577
Total	$	28,422		$	28,640		$	8,211

Restructuring accrual activity for the periods ended December 30, 2012, and December 25, 2011, were as follows:

(amounts in thousands)
Fiscal 2012	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 30, 2012
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges(3)	$	9,710	$	21,558	$	(4,613	)	$	(19,044	)	$	141		$	7,752
Other exit costs(1)	—		5,068		—			(4,600		)	(8		)	460
SG&A Restructuring Plan
Severance and other employee-related charges(3)	6,718		1,100		(1,186		)	(5,363		)	(63		)	1,206
Other exit costs(2)	1,109		64		—			(1,012		)	—			161
Manufacturing Restructuring Plan
Other exit costs	75		—		(75		)	—			—			—
Total	$	17,612	$	27,790	$	(5,874	)	$	(30,019	)	$	70		$	9,579

⁽¹⁾  During 2012, there was a net charge to earnings of $5.1 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, pension settlements, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2012, there was a net charge to earnings of $0.1 million primarily due to lease termination costs and outplacement costs in connection with the restructuring plan.

⁽³⁾  During 2012, there was a severance charge reversed to earnings of $5.8 million primarily due to eliminations of individuals from the plans, replacements of individuals in the plans with other individuals, resignations, and other final accrual adjustments. The eliminations and replacements were primarily the result of our change in management and strategic vision in 2012.

(amounts in thousands)
Fiscal 2011	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at December 25, 2011
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	—	$	11,382	$	(267	)	$	(1,268	)	$	(137	)	$	9,710
Other exit costs(1)	—		519		—			(519		)	—			—
SG&A Restructuring Plan
Severance and other employee-related charges	6,660		7,147		(132		)	(6,718		)	(239		)	6,718
Other exit costs(2)	—		2,214		(11		)	(1,095		)	1			1,109
Manufacturing Restructuring Plan
Severance and other employee-related charges	719		69		(215		)	(583		)	10			—
Other exit costs(3)	143		112		(11		)	(169		)	—			75
Total	$	7,522	$	21,443	$	(636	)	$	(10,352	)	$	(365	)	$	17,612

⁽¹⁾  During 2011, there was a net charge to earnings of $0.5 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, and gains/losses on sale of assets in connection with the restructuring plan.

⁽²⁾  During 2011, there was a net charge to earnings of $2.2 million primarily due to the closing of an operating facility and one-time payment related to a lease modification for an operating facility as well as lease payment accruals after exiting one of our facilities.

⁽³⁾  During 2010, costs were recorded due to the closing of a manufacturing facility. For the year ended 2011, there was a net charge to earnings of $0.1 million due to other exit costs associated with the manufacturing closings.

Global Restructuring Plan (including LEAN)

During September 2011, we initiated the Global Restructuring Plan focused on further reducing our overall operating expenses by including manufacturing and other cost reduction initiatives, such as consolidating certain manufacturing facilities and administrative functions to improve efficiencies. This plan was further expanded in the first quarter of 2012 and again during the second quarter of 2012 to include Project LEAN. The first phase of this plan was implemented in the third quarter of 2011 with the remaining phases of the plan expected to be substantially complete by the end of 2013.

As of December 30, 2012, the net charge to earnings of $28.5 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. The anticipated total costs related to the plan are expected to approximate $52 million to $55 million, of which $47.9 million have been incurred. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,100, of which 1,484 have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

SG&A Restructuring Plan

During 2009, we initiated the SG&A Restructuring Plan focused on reducing our overall operating expenses by consolidating certain administrative functions to improve efficiencies. The first phase of this plan was implemented in the fourth quarter of 2009 with the remaining phases of the plan substantially completed by the end of the first quarter of 2012.

As of December 30, 2012, the net charge reversed to earnings of $22 thousand represents the current year activity related to the SG&A Restructuring Plan. The implementation of the SG&A Restructuring Plan is substantially complete, with total costs incurred of approximately $18 million. The total number of employees planned to be affected by the SG&A Restructuring Plan is approximately 369, of which substantially all have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

Manufacturing Restructuring Plan

In August 2008, we announced a manufacturing and supply chain restructuring program designed to accelerate profitable growth in our Apparel Labeling Solutions (ALS) business, formerly Check-Net^®, and to support incremental improvements in our EAS systems and labels businesses. For the year ended December 30, 2012, there was a $0.1 million charge reversed to earnings recorded in connection with the Manufacturing Restructuring Plan.

The total number of employees planned to be affected by the Manufacturing Restructuring Plan is 420, all of which have been terminated. As of December 30, 2012 the implementation of the Manufacturing Restructuring Plan is substantially complete, with total costs incurred of $4.1 million.

XML

Long-Term Debt (Full-Recourse Factoring Agreements) (Details)	Dec. 30, 2012 USD ($)	Dec. 30, 2012 EUR (€)	Dec. 25, 2011 USD ($)	Dec. 31, 2009
Long-term Debt, Excluding Current Maturities [Abstract]
Weighted average percentage of the face amount of receivables				92.40%
Full-recourse factoring arrangements	$ 942,000	€ 700,000	$ 1,333,000
Current portion of full-recourse factoring agreements	300,000	300,000
Long-term portion of full-recourse factoring agreements	$ 600,000	€ 400,000

XML

Discontinued Operations (Selected Financial Information Included In Earnings) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Sep. 23, 2012	Jun. 24, 2012	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Asset impairment	$ 800	$ 700	$ 0	$ 592	$ 0
(Loss) earnings from discontinued operations, net of tax			(15)	0	0
Checkview Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue			76,519	101,594	105,227
Gross profit			11,585	20,560	29,325
Selling, general, & administrative expense			12,253	13,700	13,866
Research and development			410	544	831
Asset impairment			329	0	0
Goodwill impairment			3,263	0	0
Operating (loss) income			(4,670)	6,316	14,628
(Loss) earnings from discontinued operations before income taxes			(4,670)	6,316	14,628
(Loss) earnings from discontinued operations, net of tax			(4,917)	6,349	9,098
Banking Security Systems Integration Business Unit [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue			10,751	13,565	12,820
Gross profit			1,335	2,541	2,874
Selling, general, & administrative expense			2,550	4,095	4,043
Restructuring expenses			0	113	0
Asset impairment			1,442	2,781	0
Goodwill impairment			370	3,411	0
Operating (loss) income			(3,027)	(7,859)	(1,169)
Loss on disposal			(15)	0	0
(Loss) earnings from discontinued operations before income taxes			(3,042)	(7,859)	(1,169)
(Loss) earnings from discontinued operations, net of tax			$ (3,042)	$ (7,514)	$ (773)

XML

Consolidated Statements Of Comprehensive Income Parentheticals (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Statement of Other Comprehensive Income [Abstract]
Amortization of pension plan actuarial losses, tax	$ 65	$ 63	$ 29
Change in realized and unrealized (losses) gains on derivative hedges, tax	(71)	31	247
Recognized loss on pension, tax	$ 4,410	$ 1,029	$ 1,344

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 13,242	$ 12,627
Preferred stock, no par value	$ 0	$ 0
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.1	$ 0.1
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	44,763,404	44,241,105
Treasury stock, shares	4,035,912	4,035,912

XML

Stock-Based Compensation

12 Months Ended

Dec. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

At December 30, 2012, we had stock-based employee compensation plans as described below. For the years ended December 30, 2012, December 25, 2011, and December 26, 2010, the total compensation expense (included in selling, general, and administrative expense) related to these plans was $4.7 million, $7.3 million, and $8.5 million ($4.5 million, $7.1 million, and $6.2 million, net of tax), respectively.

Stock Plans

On April 29, 2004, the shareholders approved the Checkpoint Systems, Inc. 2004 Omnibus Incentive Compensation Plan (2004 Plan). The initial shares available under the 2004 Plan were approximately 3,500,000, which represent the shares that were available at that time under the 1992 Stock Option Plan (1992 Plan). All cancellations and forfeitures related to share units outstanding under the 1992 Plan will be added back to the shares available for grant under the 2004 Plan. No further awards will be issued under the 1992 Plan. The 2004 Plan is designed to provide incentives to employees, non-employee directors, and independent contractors through the award of stock options, stock appreciation rights, stock units, phantom shares, dividend equivalent rights and cash awards. The Compensation Committee (Committee) of our Board of Directors administers the 2004 Plan and determines the terms and conditions of each award. Stock options issued under the 2004 Plan primarily vest over a three-year period and expire not more than 10 years from date of grant. Restricted stock units vest over three to five year periods from date of grant. On June 3, 2009, at the 2009 Annual Meeting of Shareholders of Checkpoint Systems, Inc., the shareholders of the Company approved the Checkpoint Systems, Inc. Amended and Restated 2004 Omnibus Incentive Compensation Plan, Effective Date: February 17, 2009 (the “Omnibus Incentive Plan”), which was amended and restated to extend the term of the Omnibus Incentive Plan by an additional five years and to re-approve the performance goals set forth under the Omnibus Incentive Plan. The 2004 Plan was further amended on June 2, 2010, at the 2010 Annual Meeting of Shareholders of Checkpoint Systems, Inc., when our shareholders approved the Checkpoint Systems, Inc. Amended and Restated 2004 Omnibus Incentive Compensation Plan (the “Plan”), which was amended and restated to:

• increase the number of shares of the Company’s common stock reserved for issuance under the Plan by 3,250,000 shares to an aggregate of 6,687,956 shares;

• revise the “repricing” provision such that the new provision will provide that, except in respect of certain corporate transactions, the terms of outstanding awards may not be amended to (i) reduce the exercise price of outstanding stock options or stock appreciation rights (“SARs”), or (ii) cancel, exchange, substitute, buy out or surrender outstanding options or SARs in exchange for cash, other awards, stock options or SARs with an exercise price that is less than the exercise price of the original stock options or SARs (as applicable) without shareholder approval;

• impose a limitation on certain shares of the Company’s common stock from again being made available for issuance under the Plan such that the following shares of the Company’s common stock may not again be made available for issuance: (i) shares of common stock not issued or delivered as a result of the net settlement of an outstanding SAR or stock option, (ii) shares of common stock used to pay the exercise price or withholding taxes related to an outstanding award, or (iii) shares of common stock repurchased on the open market with the proceeds of the stock option exercise price;

• establish a minimum exercise price with respect to stock options or SARs to be granted under the Plan such that no stock option or SAR may be granted under the Plan with a per share exercise price that is less than 100% of the fair market value of one share of the Company’s common stock on the date of grant; and

• establish a limitation against the payment of any cash dividend or dividend equivalent right (“DER”) with respect to awards that vest based upon the attainment of one or more performance measures such that no awards granted under the Plan based upon the attainment of one or more performance measures will be entitled to receive payment of any cash dividends or DERs with respect to such awards unless and until such awards vest.

As of December 30, 2012, there were 3,308,264 shares available for grant under the 2004 Plan.

Our 1992 Stock Option Plan (1992 Plan) allowed us to grant either Incentive Stock Options (ISOs) or Non-Incentive Stock Options (NSOs) to purchase up to 16,000,000 shares of common stock. Only employees were eligible to receive ISOs and both employees and non-employee directors of the Company were eligible to receive NSOs. On February 17, 2004, the Plan was amended to allow an independent consultant to receive NSOs. All ISOs under the 1992 Plan expire not more than ten years (plus six months in the case of NSOs) from the date of grant. Both ISOs and NSOs require a purchase price of not less than 100% of the fair market value of the stock at the date of grant. As of December 30, 2012, there were no shares available for grant under the 1992 Plan.

On December 27, 2007, we adopted a stand alone inducement stock option plan authorizing the issuance of options to purchase up to 270,000 shares of our common stock, which were granted to the newly elected President and CEO of the Company in connection with his hire. The non-qualified stock options provide for three vesting instances: 60% on December 31, 2010; 20% on December 31, 2011; and 20% on December 31, 2012. The options also have a market condition. The market condition specifies that any unvested tranche will vest immediately as soon as the Company’s stock price exceeds 200% of the December 27, 2007, strike price of $22.71. In addition, there were 230,000 shares issued out of our Omnibus Incentive Compensation Plan with similar vesting and market based criteria as described above.

To determine the fair value of stock options with market conditions we used the Monte Carlo simulation lattice model using the following assumptions: (i) expected volatility of 37.04%, (ii) risk-free rate of 4.1%, (iii) expected term of 10 years, and (iv) an expected dividend yield of zero. The weighted average fair value of the stock options with market conditions was $12.43 per share.

During fiscal 2005, we initiated a Long-Term Incentive Plan (LTIP). Under this plan, restricted stock units (RSUs) were awarded to eligible executives. During fiscal 2006, we expanded the scope of the LTIP. Under the expanded plan, RSUs were awarded to eligible key employees.

On December 4, 2007, RSUs were awarded to certain key employees of the Company’s Alpha Security Products Division as part of the LTIP plan. The number of shares for these units varies based on the Company’s Alpha^® product revenues. These units had the potential to vest 33% per year, over a three-year period ending at the end of fiscal 2010. The weighted average price for these RSUs was $21.84 per share. At December 26, 2010, we reversed $0.6 million of previously recognized compensation cost since it was determined that the Company did not achieve the revenue targets set forth in the plan. Accordingly, no remaining RSUs were earned under this plan.

On February 17, 2009, RSUs were awarded to certain key employees of the Company as part of the LTIP 2009 plan. The number of shares for these units varies based on the Company achieving specific relative performance goals versus a pool of peer companies during the January 2009 to December 2011 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $8.12 per share. At December 25, 2011, we reversed $0.5 million of previously recognized compensation cost since it was determined that the Company did not achieve the specific relative performance goals set forth in the plan. Accordingly, no RSUs were earned under this plan.

On February 12, 2010, RSUs were awarded to certain key employees of the Company as part of the LTIP 2010 plan. The number of shares for these units varies based on the Company achieving specific relative performance goals versus a pool of peer companies during the January 2010 to December 2012 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $15.83 per share. Additional RSUs related to the LTIP 2010 plan were awarded on February 22, 2010, and March 11, 2010, with a weighted average price of $17.06 and $21.76 per share, respectively. At June 24, 2012, we reversed $0.8 million of previously recognized compensation cost since it was determined that the Company would not achieve the specific relative performance goals set forth in the plan. Accordingly, no RSUs were earned under this plan.

On February 17, 2011, RSUs were awarded to certain key employees of the Company as part of the LTIP 2011 plan. The number of shares for these units varies based on the Company achieving specific relative performance goals versus the Russell 2000 index during the January 2011 to December 2013 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $22.54 per share. At September 23, 2012, we assessed our performance versus the Russell 2000 index and determined that a portion of the goals identified in the plan would not be achieved. As a result, at September 23, 2012, we reversed $0.3 million of previously recognized compensation cost attributable to these goals. For fiscal year 2012, $0.1 million of income was charged against compensation expense. As of December 30, 2012, total unamortized compensation expense for this grant was $0.2 million. As of December 30, 2012, the maximum achievable RSUs outstanding under this plan are 37,356 units. These RSUs reduce the shares available to grant under the 2004 Plan.

On February 22, 2012, RSUs were awarded to certain key employees of the Company as part of the LTIP 2012 plan. The number of shares for these units varies based on the Company achieving certain levels of earnings before interest, taxes, depreciation, and amortization (EBITDA) during the January 2012 to December 2014 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $11.93 per share. For fiscal year 2012, $0.1 million was charged to compensation expense. As of December 30, 2012, total unamortized compensation expense for this grant was $0.2 million. As of December 30, 2012, the maximum achievable RSUs outstanding under this plan are 29,820 units. These RSUs reduce the shares available to grant under the 2004 Plan.

On July 24, 2012, RSUs were awarded to certain key employees of the Company as part of the LTIP Second Half 2012 plan. The number of shares for these units varies based on individual performance versus second half 2012 goals. These goals were developed for employees who can influence key metrics set forth in the new business strategy during the July 2012 to December 2012 performance period. The final value of these units will be determined by the number of shares earned. The value of these units is charged to compensation expense on a straight-line basis over the vesting period with periodic adjustments to account for changes in anticipated award amounts and estimated forfeitures rates. The weighted average price for these RSUs was $7.59 per share. For fiscal year 2012, $0.6 million was charged to compensation expense. Final assessment of these goals, including any compensation expense true-up will be completed in the first half of 2013. As of December 30, 2012, the maximum achievable RSUs outstanding under this plan are 108,960 units. These RSUs reduce the shares available to grant under the 2004 Plan.

Stock Options

Option activity under the principal option plans as of December 30, 2012 and changes during the year then ended were as follows:

	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at December 25, 2011	2,600,805		$	19.54	4.39	$	512
Granted	801,880		9.70
Exercised	(62,247	)	8.61
Forfeited or expired	(596,381	)	18.03
Outstanding at December 30, 2012	2,744,057		$	17.24	5.01	$	1,321
Vested and expected to vest at December 30, 2012	2,545,483		$	17.83	4.67	$	1,002
Exercisable at December 30, 2012	2,052,214		$	19.54	3.58	$	371

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of fiscal 2012 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 30, 2012. This amount changes based on the fair market value of the Company’s stock. The total intrinsic value of options exercised for the years ended December 30, 2012, December 25, 2011, and December 26, 2010, was $0.1 million, $1.1 million, and $4.3 million, respectively.

As of December 30, 2012, $1.4 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.1 years.

Tax benefits resulting from tax deductions in excess of the compensation cost recognized for those options are classified as financing cash flows. Cash received from option exercises and purchases under the ESPP for the year ended December 30, 2012 was $1.7 million. The actual tax benefit realized for the tax deduction from option exercises of the share-based payment units totaled $0.1 million and $1.3 million for the fiscal years ended December 30, 2012 and December 25, 2011. We have applied the “Short-cut” method in calculating the historical windfall tax benefits. All tax short falls will be applied against this windfall before being charged to earnings.

Restricted Stock Units

We issue service-based restricted stock units with vesting periods up to five years. These awards are valued using their intrinsic value on the date of grant. The compensation expense is recognized straight-line over the vesting term.

Nonvested service-based restricted stock units as of December 30, 2012 and changes during the year ended December 30, 2012 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 25, 2011	617,672		0.79	$	21.29
Granted	223,795			$	10.58
Vested	(196,254	)		$	11.24
Forfeited	(82,107	)		$	17.15
Nonvested at December 30, 2012	563,106		0.79	$	21.14
Vested and expected to vest at December 30, 2012	511,026		0.65
Vested at December 30, 2012	61,250		—

The total fair value of restricted stock awards vested during 2012 was $2.2 million as compared to $4.0 million during 2011. As of December 30, 2012, there was $1.4 million unrecognized stock-based compensation expense related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 1.5 years.

Other Compensation Arrangements

During fiscal 2010, we initiated a plan in which time-vested cash unit awards were granted to eligible employees. The time-vested cash unit awards under this plan vest evenly over two or three years from the date of grant. The total amount accrued related to the plan equaled $1.0 million at December 30, 2012, of which $1.2 million, $0.6 million, and $0.2 million was expensed for the years ended December 30, 2012, December 25, 2011, and December 26, 2010, respectively. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.

XML

Commitments And Contingencies (Narrative) (Details) (USD $)	3 Months Ended	12 Months Ended
	Dec. 30, 2012	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Nov. 02, 2011	Dec. 28, 2008
Commitments and Contingencies Disclosure [Abstract]
Rental expense		$ 15,400,000	$ 17,300,000	$ 16,900,000
Damages sought by defendants						5,700,000
Litigation settlement	(900,000)	(295,000)	(943,000)	0
Attorneys' fees and costs of the defendants					$ 6,600,000

XML

Employee Benefit Plans (Changes In Level 3 Pension Assets And Liabilities Measured At Fair Value ) (Details) (USD $)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	$ 1,406,000	$ 1,472,000
Actual Return on Plan Assets, Relating to Assets Still Held at the Reporting Date	791,000
Actual Return on Plan Assets, Relating to Assets Sold During the Period	(209,000)
Purchases, Sales and Settlements	(520,000)
Transfer into / (out of) Level 3	0
Change due to Exchange Rate Changes	20,000	(5,000)
Fair value of plan assets at end of year	1,488,000	1,406,000
Global Insurance Assets [Member]
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward]
Fair value of plan assets at beginning of year	1,406,000
Actual Return on Plan Assets, Relating to Assets Still Held at the Reporting Date	791,000
Actual Return on Plan Assets, Relating to Assets Sold During the Period	(209,000)
Purchases, Sales and Settlements	(520,000)
Transfer into / (out of) Level 3	0
Change due to Exchange Rate Changes	20,000
Fair value of plan assets at end of year	$ 1,488,000

XML

Employee Benefit Plans (Expected Benefit Payments Associated With The Pension And Postretirement Benefit Plans) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
2013	$ 4,689
2014	4,753
2015	4,844
2016	4,864
2017	5,004
2018 through 2022	$ 26,104

XML

Document And Entity Information (USD $)	12 Months Ended
	Dec. 30, 2012	Feb. 28, 2013	Jun. 24, 2012
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 30, 2012
Entity Registrant Name	CHECKPOINT SYSTEMS INC
Entity Central Index Key	0000215419
Current Fiscal Year End Date	--12-30
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 328,793,687
Entity Well-known Seasoned Issuer	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		40,778,455
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

XML

Supplemental Cash Flow Information

12 Months Ended

Dec. 30, 2012

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments in 2012, 2011, and 2010 includes payments for interest of $8.7 million, $6.7 million, and $3.6 million, respectively and also includes payments for income taxes of $10.8 million, $17.9 million, and $22.4 million, respectively.

In January 2011, the Company entered into an agreement to acquire the business of Shore to Shore, through the acquisition of equity and/or assets, which together is a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels. The acquisition was settled on May 16, 2011 for approximately $78.7 million, net of cash acquired of $1.9 million and the assumption of debt of $4.2 million. The purchase price was funded by $66.7 million of cash from operations and $9.2 million of borrowings under our Senior Secured Credit Facility. The acquisition payment, net of cash acquired, is reflected in the acquisition of businesses line within investing activities on the Consolidated Statement of Cash Flows.

At December 30, 2012 and December 25, 2011, the Company accrued $0.5 million and $2.3 million, respectively of capital expenditures, with no comparable accrual at December 26, 2010. These amounts were excluded from the Consolidated Statements of Cash Flows at December 30, 2012, December 25, 2011, and December 26, 2010 since they represent non-cash investing activities. Accrued capital expenditures at December 30, 2012, December 25, 2011, and December 26, 2010 are included in accounts payable and other accrued expenses on the Consolidated Balance Sheets.

Also excluded from the Consolidated Statement of Cash Flows for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 are $27 thousand, $0.1 million, and $0.4 million, respectively, of new capital lease obligations and related capitalized assets.

Business Acquisitions

(amounts in thousands)	December 30, 2012		December 25, 2011			December 26, 2010
Fair value of tangible assets acquired, less cash acquired	$	—	$	28,535		$	33
Goodwill and identified intangible assets	—		68,458			467
Liabilities assumed	—		(20,270		)	—
Payment obligation	—		(786		)	(200		)
Cash paid for acquisitions	$	—	$	75,937		$	300

XML

Income Taxes (Deferred Tax Assets And Liabilities) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Income Tax Disclosure [Abstract]
Inventory	$ 5,390	$ 4,930
Accounts receivable	2,733	2,513
Capitalized research and development costs	21,173	18,476
Net operating loss and foreign tax credit carryforwards	65,951	62,685
Restructuring	491	2,537
Pension	12,874	7,890
Warranty	1,138	1,507
Deferred compensation	3,630	4,980
Stock based compensation	7,506	8,148
Depreciation	1,753	1,052
Other	11,759	12,349
Valuation allowance	(104,514)	(102,148)
Deferred tax assets	29,884	24,919
Deferred Revenue	546	1,316
Intangibles	8,327	9,542
Unremitted earnings	3,081	2,365
Deferred tax liabilities	11,954	13,223
Net deferred tax assets	$ 17,930	$ 11,696

XML

Employee Benefit Plans (Weighted Average Assumptions Used To Determine Benefit Obligations) (Details)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Discount rate in benefit obligations	3.53%	4.77%
Expected rate of increase in future compensation levels	2.52%	2.52%
Discount rate	4.77%	5.27%	5.77%
Expected rate of return on plan assets	5.25%	5.75%	4.00%
Expected rate of increase in future compensation levels	2.52%	2.52%	2.52%
Measurement Date	December 31, 2012	December 31, 2011	December 31, 2010

XML

Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Income Statement [Abstract]
Net revenues	$ 690,789	$ 763,749	$ 716,451
Cost of revenues	419,947	451,459	402,002
Gross profit	270,842	312,290	314,449
Selling, general, and administrative expenses	249,089	279,791	255,759
Research and development	16,400	19,269	19,676
Restructuring expenses	28,422	28,640	8,211
Asset impairment	0	592	0
Goodwill impairment	102,715	0	0
Litigation settlement	295	943	0
Acquisition costs	332	2,319	523
Other (income) expense	(3,907)	(179)	1,537
Other operating income	2,043	19,262	0
Operating (loss) income	(120,461)	177	28,743
Interest income	1,757	3,381	3,118
Interest expense	10,647	7,923	6,507
Other gain (loss), net	(1,731)	(1,523)	(2,237)
(Loss) earnings from continuing operations before income taxes	(131,082)	(5,888)	23,117
Income taxes expense	7,364	59,573	3,828
Net (loss) earnings from continuing operations	(138,446)	(65,461)	19,289
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	(7,959)	(1,165)	8,325
Net (loss) earnings	(146,405)	(66,626)	27,614
Less: loss attributable to non-controlling interests	(529)	(57)	(116)
Net (loss) earnings attributable to Checkpoint Systems, Inc.	$ (145,876)	$ (66,569)	$ 27,730
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations (US$ per share)	$ (3.36)	$ (1.61)	$ 0.48
(Loss) earnings from discontinued operations, net of tax (US$ per share)	$ (0.20)	$ (0.03)	$ 0.21
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share (US$ per share)	$ (3.56)	$ (1.64)	$ 0.69
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations (US$ per share)	$ (3.36)	$ (1.61)	$ 0.48
(Loss) earnings from discontinued operations, net of tax (US$ per share)	$ (0.20)	$ (0.03)	$ 0.21
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share (US$ per share)	$ (3.56)	$ (1.64)	$ 0.69

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Inventories

12 Months Ended

Dec. 30, 2012

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consist of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Raw materials	$	16,702	$	28,128
Work-in-process	6,554		10,481
Finished goods	58,898		92,378
Total	$	82,154	$	130,987

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Acquisitions

12 Months Ended

Dec. 30, 2012

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

Acquisitions in Fiscal 2011

On January 28, 2011, Checkpoint Systems, Inc. and certain of its direct subsidiaries (collectively, the “Company”) entered into a Master Purchase Agreement. The Master Purchase Agreement outlines the general terms and conditions pursuant to which the Company agreed to acquire, through the acquisition of equity and/or assets, a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels (collectively, the “Shore to Shore businesses”). The acquisition was settled on May 16, 2011 for approximately $78.7 million, net of cash acquired of $1.9 million and the assumption of debt of $4.2 million. The purchase price was funded by $66.7 million of cash from operations and $9.2 million of borrowings under our Senior Secured Credit Facility, and includes the acquisition of the following:

• 100% of the voting equity interests of J&F International, Inc. (U.S.), Shore to Shore Far East (Hong Kong), Shore to Shore MIS (India), Shore to Shore Lacar SA (Guatemala), Adapt Identification (HK) Ltd., and W Print Europe Ltd. (UK);

• Assets of Shore to Shore, Inc. (U.S.), Shanghai WH Printing Co. Ltd., Wing Hung (Dongguan) Printing Co., Ltd., and Wing Hung Printing Co., Ltd. (U.S.);

• 51% of the voting equity interests of Shore to Shore PVT Ltd. (Sri Lanka);

• 50% of the voting equity interests of the Cybsa Adapt SA de CV (El Salvador) joint venture. In accordance with ASC 323 “Investments—Equity Method and Joint Ventures”, we have applied the Equity Method in recording this joint venture.

During the second quarter of 2012, we finalized the purchase accounting of the acquisition of the Shore to Shore businesses. At June 24, 2012, the financial statements reflected the final allocation of the purchase price based on estimated fair values at the date of acquisition, including $17.1 million in Property, Plant, and Equipment, $7.1 million in Accounts Receivable, and $2.2 million in Inventories. This final allocation resulted in acquired goodwill of $59.7 million, of which $9.8 million is tax deductible, and intangible assets of $10.5 million. The intangible assets were composed of a non-compete agreement ($0.3 million), customer lists ($9.8 million), and trade names ($0.4 million). The useful lives were 5 years for the non-compete agreement, 10 years for the customer lists, and 7.5 months for the trade names. The results from the acquisition date through December 25, 2011 are included in the Apparel Labeling Solutions segment (revenues of $35.3 million and a net loss of $9 thousand).

The purchase price includes a payment to escrow of $17.5 million related to the 2010 performance of the acquired business. This amount is subject to adjustment pending final determination of the 2010 performance and could result in an additional purchase price payment of up to $6.3 million. We are currently involved in an arbitration process in order to require the seller to provide audited financial information related to the 2010 performance. When this information is received, the final adjustment to the purchase price will be reflected through earnings. Acquisition costs incurred in connection with the transaction are recognized within acquisition costs in the Consolidated Statement of Operations and approximate $0.3 million and $2.3 million for the years ended December 30, 2012 and December 25, 2011, respectively.

As 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, we have classified the non-controlling interests as equity on our Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011, and presented net income attributable to non-controlling interests separately on our Consolidated Statement of Operations for the years ended December 30, 2012 and December 25, 2011. 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.

Pro forma results of operations have not been presented individually or in the aggregate for this acquisition because the effects of the acquisition were not material to our Consolidated Financial Statements.

Acquisitions in Fiscal 2010

In October, 2010 the Company entered into a Services and Purchase Agreement with Napar Contracting and Allied Services, Inc. (“Napar”) a Philippines based job contracting & outsourcing company with expertise in web development, software development, software quality assurance and such other similar services for $0.5 million. The transaction was paid in cash. Based on the terms of the transaction, 60% of the purchase price was due upon signing the agreement and the remaining 40% was paid on January 1, 2011.

At December 26, 2010, the financial statements reflected the final allocation of the Napar purchase price. This allocation resulted in acquired goodwill of $0.5 million, which is not tax deductible. Equipment included in this acquisition totaled $33 thousand, and is included in property, plant, & equipment, net in the accompanying Consolidated Balance Sheets.  The results from the acquisition are included in the Apparel Labeling Solutions segment and were not material to the Consolidated Financial Statements.

Pro forma results of operations have not been presented individually or in the aggregate for this acquisition because the effects of the acquisition were not material to our Consolidated Financial Statements.

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Fair Value Measurement, Financial Instruments And Risk Management

12 Months Ended

Dec. 30, 2012

Fair Value Disclosures [Abstract]

Fair Value Measurement, Financial Instruments and Risk Management

FAIR VALUE MEASUREMENT, FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Fair Value Measurement

We utilize the market approach to measure fair value for our financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities.

Our financial assets and liabilities are measured using a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels:

Level 1	Inputs are quoted prices in active markets for identical assets or liabilities.
Level 2	Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.
Level 3	Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable.

Because the Company’s derivatives are not listed on an exchange, the Company values these instruments using a valuation model with pricing inputs that are observable in the market or that can be derived principally from or corroborated by observable market data. The Company’s methodology also incorporates the impact of both the Company’s and the counterparty’s credit standing.

The following tables represent our assets and liabilities measured at fair value on a recurring basis as of December 30, 2012 and December 25, 2011 and the basis for that measurement:

(amounts in thousands)	Total Fair Value Measurement December 30, 2012		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Foreign currency forward exchange contracts	$	179	$	—	$	179	$	—
Foreign currency revenue forecast contracts	14		—		14		—
Total assets	$	193	$	—	$	193	$	—
Foreign currency forward exchange contracts	$	208	$	—	$	208	$	—
Total liabilities	$	208	$	—	$	208	$	—

(amounts in thousands)	Total Fair Value Measurement December 25, 2011		Quoted Prices In Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Foreign currency forward exchange contracts	$	463	$	—	$	463	$	—
Foreign currency revenue forecast contracts	1,120		—		1,120		—
Total assets	$	1,583	$	—	$	1,583	$	—
Foreign currency forward exchange contracts	$	415	$	—	$	415	$	—
Total liabilities	$	415	$	—	$	415	$	—

The following table provides a summary of the activity associated with all of our designated cash flow hedges (foreign currency) reflected in accumulated other comprehensive income for the years ended December 30, 2012 and December 25, 2011:

(amounts in thousands)	December 30, 2012			December 25, 2011
Beginning balance, net of tax	$	1,542		$	377
Changes in fair value gain, net of tax	481			(643		)
Reclass to earnings, net of tax	(2,002		)	1,808
Ending balance, net of tax	$	21		$	1,542

We believe that the fair values of our current assets and current liabilities (cash, restricted cash, accounts receivable, accounts payable, and other current liabilities) approximate their reported carrying amounts. The carrying values and the estimated fair values of non-current financial assets and liabilities that qualify as financial instruments and are not measured at fair value on a recurring basis at December 30, 2012 and December 25, 2011 are summarized in the following table:

	December 30, 2012				December 25, 2011
(amounts in thousands)	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Long-term debt (including current maturities and excluding capital leases and factoring)(1)
Senior secured credit facility	$	42,021	$	42,021	$	52,248	$	52,248
Senior secured notes	$	66,114	$	66,549	$	75,000	$	75,686

⁽¹⁾  The carrying amounts are reported on the balance sheet under the indicated captions.

Long-term debt is carried at the original offering price, less any payments of principal. Rates currently available to us for long-term borrowings with similar terms and remaining maturities are used to estimate the fair value of existing borrowings as the present value of expected cash flows. The Senior Secured Credit Facility’s maturity date is in the year 2014 and the Senior Secured Notes mature in the years 2015 through 2017.

Nonrecurring Fair Value Measurements

In 2012, in connection with our annual impairment test, goodwill with a carrying amount of $61.5 million was written down to its implied fair value of $23.2 million. This resulted in a $38.3 million goodwill impairment charge that was recorded in goodwill impairment expense in the Retail Merchandising Solutions segment on the Consolidated Statement of Operations. The nonrecurring fair value measurement was developed using significant unobservable inputs (Level 3). The fair value was computed using a discounted cash flow valuation methodology. Refer to Note 5 of the Consolidated Financial Statements.

In 2011, as a result of our annual impairment test, our SIDEP indefinite-lived trade name with a carrying amount of $0.8 million was written down to its implied fair value of $0.2 million. This resulted in a $0.6 million impairment charge that was recorded in asset impairment in the Shrink Management Solutions segment on the Consolidated Statement of Operations. The nonrecurring fair value measurement was developed using significant unobservable inputs (Level 3). The fair value was computed using the relief from royalty income valuation approach. Refer to Note 5 of the Consolidated Financial Statements.

Severance costs included in our restructuring charges are calculated using internal estimates and are therefore classified as Level 3 in the fair value hierarchy. Refer to Note 15 of the Consolidated Financial Statements.

Accrued restructuring costs for lease termination liabilities were valued using a discounted cash flow model. Significant assumptions used in determining the amount of the estimated liability include the estimated liabilities for future rental payments on vacant facilities as of their respective cease-use dates and the discount rate utilized to determine the present value of the future expected cash flows. If our assumptions regarding early terminations and the timing and amounts of sublease payments prove to be inaccurate, we may be required to record additional losses or gains in the Consolidated Financial Statements. Given that the restructuring charges were valued using our internal estimates using a discounted cash flow model, we have classified the accrued restructuring costs as Level 3 in the fair value hierarchy. Refer to Note 15 of the Consolidated Financial Statements.

In connection with our restructuring plans, we have recorded impairment losses in restructuring expense during the years ended December 30, 2012 and December 25, 2011 due to the impairment of certain long-lived assets for which the carrying value of those assets may not be recoverable based upon our estimated cash flows. Given that the impairment losses were determined using internal estimates of future cash flows or upon non-identical assets using significant unobservable inputs, we have classified the remaining fair value of long-lived assets as Level 3 in the fair value hierarchy. Refer to Note 15 of the Consolidated Financial Statements.

Financial Instruments and Risk Management

We manufacture products in the U.S., Europe, and the Asia Pacific region for both the local marketplace and for export to our foreign subsidiaries. The foreign subsidiaries, in turn, sell these products to customers in their respective geographic areas of operation, generally in local currencies. This method of sale and resale gives rise to the risk of gains or losses as a result of currency exchange rate fluctuations on inter-company receivables and payables. Additionally, the sourcing of product in one currency and the sales of product in a different currency can cause gross margin fluctuations due to changes in currency exchange rates.

Our major market risk exposures are movements in foreign currency and interest rates. We have historically not used financial instruments to minimize our exposure to currency fluctuations on our net investments in and cash flows derived from our foreign subsidiaries. We have used third-party borrowings in foreign currencies to hedge a portion of our net investments in and cash flows derived from our foreign subsidiaries. A reduction in our third party foreign currency borrowings will result in an increase of foreign currency fluctuations on our net investments in and cash flows derived from our foreign subsidiaries.

We enter into forward exchange contracts to reduce the risks of currency fluctuations on short-term inter-company receivables and payables. These contracts are entered into with major financial institutions, thereby minimizing the risk of credit loss. We will consider using interest rate derivatives to manage interest rate risks when there is a disproportionate ratio of floating and fixed-rate debt. We do not hold or issue derivative financial instruments for speculative or trading purposes. We are subject to other foreign exchange market risk exposure resulting from anticipated non-financial instrument foreign currency cash flows which are difficult to reasonably predict, and have therefore not been included in the table of fair values. All listed items described are non-trading.

The following table presents the fair values of derivative instruments included within the Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011:

	December 30, 2012						December 25, 2011
	Asset Derivatives			Liability Derivatives			Asset Derivatives			Liability Derivatives
(amounts in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments
Foreign currency revenue forecast contracts	Other current assets	$	14	Other current liabilities	$	—	Other current assets	$	1,120	Other current liabilities	$	—
Total derivatives designated as hedging instruments		14			—			1,120			—
Derivatives not designated as hedging instruments
Foreign currency forward exchange contracts	Other current assets	179		Other current liabilities	208		Other current assets	463		Other current liabilities	415
Total derivatives not designated as hedging instruments		179			208			463			415
Total derivatives		$	193		$	208		$	1,583		$	415

The following tables present the amounts affecting the Consolidated Statement of Operations for the years ended December 30, 2012, December 25, 2011, and December 26, 2010:

	December 30, 2012
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	507	Cost of sales	$	(1,994	)	$	102
Total designated cash flow hedges	$	507		$	(1,994	)	$	102

	December 25, 2011
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives			Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	(658	)	Cost of sales	$	(1,792	)	$	(296	)
Total designated cash flow hedges	$	(658	)		$	(1,792	)	$	(296	)

	December 26, 2010
(amounts in thousands)	Amount of  Gain (Loss) Recognized in Other Comprehensive Income on Derivatives		Location of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income	Amount of  Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income			Amount of Forward Points Recognized in Other Gain (Loss), net
Derivatives designated as cash flow hedges
Foreign currency revenue forecast contracts	$	1,940	Cost of sales	$	1,194		$	(124	)
Interest rate swap contracts	171		Interest expense	(159		)	—
Total designated cash flow hedges	$	2,111		$	1,035		$	(124	)

	December 30, 2012			December 25, 2011				December 26, 2010
(amounts in thousands)	Amount of Gain (Loss) Recognized in Income on Derivatives		Location of Gain (Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives			Location of Gain(Loss) Recognized in Income on Derivatives	Amount of Gain (Loss) Recognized in Income on Derivatives		Location of Gain(Loss) Recognized in Income on Derivatives
Derivatives not designated as hedging instruments
Foreign exchange forwards and options	$	261	Other gain (loss), net	$	(155	)	Other gain (loss), net	$	77	Other gain (loss), net

We selectively purchase currency forward exchange contracts to reduce the risks of currency fluctuations on short-term inter-company receivables and payables. These contracts guarantee a predetermined exchange rate at the time the contract is purchased. This allows us to shift the effect of positive or negative currency fluctuations to a third party. Transaction gains or losses resulting from these contracts are recognized at the end of each reporting period. We use the fair value method of accounting, recording realized and unrealized gains and losses on these contracts. These gains and losses are included in other gain (loss), net on our Consolidated Statements of Operations. As of December 30, 2012, we had currency forward exchange contracts with notional amounts totaling approximately $17.1 million. The fair values of the forward exchange contracts were reflected as a $0.2 million asset and $0.2 million liability and are included in other current assets and other current liabilities in the accompanying Consolidated Balance Sheets. The contracts are in the various local currencies covering primarily our operations in the U.S., the Caribbean, and Western Europe. Historically, we have not purchased currency forward exchange contracts where it is not economically efficient, specifically for our operations in South America and Asia, with the exception of Japan.

Beginning in the second quarter of 2008, we entered into various foreign currency contracts to reduce our exposure to forecasted Euro-denominated inter-company revenues. These contracts were designated as cash flow hedges. The foreign currency contracts mature at various dates from January 2013 to March 2013. The purpose of these cash flow hedges is to reduce the currency risk associated with Euro-denominated forecasted inter-company revenues due to changes in exchange rates. These cash flow hedging instruments are marked to market and the changes are recorded in other comprehensive income. Amounts recorded in other comprehensive income are recognized in cost of goods sold as the inventory is sold to external parties. Any hedge ineffectiveness is charged to other gain (loss), net on our Consolidated Statements of Operations. As of December 30, 2012, the fair value of these cash flow hedges was reflected as a $14 thousand asset and is included in other current assets in the accompanying Consolidated Balance Sheets. The total notional amount of these hedges is $3.9 million (€2.9 million) and the unrealized gain recorded in other comprehensive income was $0.2 million (net of taxes of $6 thousand), of which $0.2 million is expected to be reclassified to earnings over the next twelve months. During the year ended December 30, 2012, a $2.0 million benefit related to these foreign currency hedges was recorded to cost of goods sold as the inventory was sold to external parties. The Company recognized a $0.1 million gain during the year ended December 30, 2012 for hedge ineffectiveness.

During the first quarter of 2008, we entered into an interest rate swap agreement with a notional amount of $40 million. The purpose of this interest rate swap agreement was to hedge potential changes to our cash flows due to the variable interest nature of our senior unsecured credit facility. The interest rate swap was designated as a cash flow hedge. This cash flow hedging instrument was marked to market and the changes were recorded in other comprehensive income. The interest rate swap matured on February 18, 2010.

Aggregate foreign currency transaction losses in 2012, 2011, and 2010, were $1.7 million, $2.1 million, and $2.7 million, respectively, and are included in other gain (loss), net on the Consolidated Statements of Operations.

Additionally, there were no deferrals of gains or losses on currency forward exchange contracts at December 30, 2012.

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Stockholders' Equity

12 Months Ended

Dec. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

The components of accumulated other comprehensive income at December 30, 2012 and at December 25, 2011 are as follows:

(amounts in thousands)	December 30, 2012			December 25, 2011
Actuarial losses on pension plans, net of tax	$	(17,538	)	$	(6,580	)
Derivative hedge contracts, net of tax	21			1,542
Foreign currency translation adjustment	18,312			17,779
Total	$	795		$	12,741

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Employee Benefit Plans (Accumulated Other Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Transition obligation	$ 0	$ 58
Prior service costs	10	12
Actuarial losses	26,588	10,638
Total	26,598	10,708
Deferred tax	(8,833)	(4,311)
Net	$ 17,765	$ 6,397

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Short-Term Borrowings And Current Portion Of Long-Term Debt

12 Months Ended

Dec. 30, 2012

Short-term Debt, Debt Default [Abstract]

Short-Term Borrowings And Current Portion Of Long-Term Debt

SHORT-TERM BORROWINGS AND CURRENT PORTION OF LONG-TERM DEBT

Short-term borrowings and current portion of long-term debt at December 30, 2012 and at December 25, 2011 consisted of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Overdraft	$	568	$	405
Full-recourse factoring liabilities	—		8,809
Term loans	2,272		9,125
Other short-term borrowings	889		2,529
Current portion of long-term debt	638		910
Total short-term borrowings and current portion of long-term debt	$	4,367	$	21,778

In December 2011, $4.2 million (HKD 32.5 million) was paid in order to extinguish our existing Hong Kong banking facility and other outstanding Hong Kong debt. In December 2011, we entered into a new five-year Hong Kong banking facility. As of December 25, 2011, $8.4 million (HKD 65.0 million) was outstanding on the term loan. In June 2012, $8.0 million (HKD 61.8 million) was paid in order to extinguish our existing Hong Kong term loan. The term loan was included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In connection with the acquisition of the Shore to Shore businesses, the Company assumed debt of $4.2 million. In June 2012, $0.7 million (INR 37.2 million) was paid in order to extinguish an overdraft facility and other short-term borrowings in the accompanying Consolidated Balance Sheets. As of December 30, 2012 and December 25, 2011, $3.9 million and $3.8 million related to the assumed debt remained outstanding, respectively. The debt assumed includes capital leases, accounts receivable factoring arrangements, term loans, an overdraft facility, and other short-term loans. With the exception of the capital leases, the banking facilities are subject to the banks’ rights to call the liabilities at any time, and are therefore included in short-term borrowings in the accompanying Consolidated Balance Sheets.

In February 2012, the Company entered into a $3.2 million Sri Lanka banking facility, which includes a $2.7 million term loan, and a combined $0.5 million sublimit for an overdraft/import line. As of December 30, 2012, $2.3 million and $0.5 million were outstanding on the term loan and overdraft/import line, respectively.

In November 2010, we entered into a Japanese local line of credit for $1.8 million (¥150 million). During the fourth quarter of 2011, our Japanese local line of credit of $1.9 million (¥150 million) was paid down.

In October 2009, the Company entered into a $12.0 million (€8.0 million) full-recourse factoring arrangement. As of December 25, 2011, our short-term full-recourse factoring arrangement equaled $8.8 million (€6.8 million) and was included in short-term borrowings in the accompanying Consolidated Balance Sheets. In September 2012, $7.4 million (€5.7 million) was paid in order to extinguish our existing short-term full-recourse factoring agreement in Germany. The arrangement was included in short-term borrowings in the accompanying Consolidated Balance Sheets.

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Goodwill And Other Intangible Assets (Estimated Future Amortization Expense) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
2013	$ 8,764
2014	8,276
2015	8,120
2016	7,857
2017	$ 6,821

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Subsequent Events (Details) (USD $) In Millions, unless otherwise specified		1 Months Ended
	May 16, 2011 Shore To Shore Pvt Ltd Sri Lanka [Member]	Jan. 31, 2013 Subsequent Event [Member]
Subsequent Event [Line Items]
Voting interest acquired	51.00%
Purchase price, cash	$ 1.7
Percentage interest held prior to sale		51.00%

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Revenue Equipment On Operating Lease And Property, Plant, And Equipment

12 Months Ended

Dec. 30, 2012

Property, Plant and Equipment [Abstract]

Revenue Equipment On Operating Lease And Property, Plant, And Equipment

REVENUE EQUIPMENT ON OPERATING LEASE AND PROPERTY, PLANT, AND EQUIPMENT

The major classes are:

(amounts in thousands)	December 30, 2012			December 25, 2011
Revenue equipment on operating lease
Equipment rented to customers	$	3,522		$	3,732
Accumulated depreciation	(1,774		)	(1,812		)
Total revenue equipment on operating lease	$	1,748		$	1,920
Property, plant, and equipment
Land	$	8,894		$	9,862
Buildings	56,577			74,402
Machinery and equipment	172,398			204,215
Leasehold improvements	15,218			15,003
Construction in progress	5,724			10,282
	258,811			313,764
Accumulated depreciation	(151,627		)	(181,603		)
Total property, plant, and equipment	$	107,184		$	132,161

Property, plant, and equipment under capital lease had gross values of $2.0 million and $2.2 million and accumulated depreciation of $1.5 million and $1.5 million, as of December 30, 2012 and December 25, 2011, respectively.

Included in property, plant, and equipment as of December 30, 2012 and December 25, 2011, is the impact of asset impairment adjustments of $6.5 million and $7.8 million, respectively, related to our restructuring activities.

Depreciation expense on our revenue equipment on operating lease and property, plant, and equipment was $20.3 million, $24.4 million, and $21.0 million, for 2012, 2011, and 2010, respectively.

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Goodwill And Other Intangible Assets

12 Months Ended

Dec. 30, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS

We had intangible assets with a net book value of $75.0 million, and $84.6 million as of December 30, 2012 and December 25, 2011, respectively.

The following table reflects the components of intangible assets as of December 30, 2012 and December 25, 2011:

		December 30, 2012				December 25, 2011
(amounts in thousands)	Amortizable Life (years)	Gross Amount		Gross Accumulated Amortization		Gross Amount		Gross Accumulated Amortization
Finite-lived intangible assets:
Customer lists	6 to 20	$	81,895	$	50,215	$	81,348	$	43,945
Trade name	1 to 30	30,414		19,143		30,007		18,237
Patents, license agreements	3 to 14	60,682		50,826		60,249		47,704
Other	2 to 6	7,178		6,546		7,160		5,830
Total amortized finite-lived intangible assets		180,169		126,730		178,764		115,716
Indefinite-lived intangible assets:
Trade name		21,511		—		21,509		—
Total identifiable intangible assets		$	201,680	$	126,730	$	200,273	$	115,716

We recorded $11.3 million, $10.8 million, and $11.2 million of amortization expense for 2012, 2011, and 2010, respectively.

During the second quarter of 2012, we experienced deterioration in revenues, gross margins and operating results in each of our segments as compared to the forecasted amounts in the most recent impairment test. Due to the declines in operating results in our segments, a change in management, and a revised strategic focus, we determined that impairment triggering events had occurred and that an assessment of goodwill was warranted. As a result of interim impairment indicators in the second quarter of 2012, we performed a recoverability test by comparing the sum of the estimated undiscounted future cash flows attributable to the long-lived assets in our Apparel Labeling Solutions reporting unit to their carrying amounts. The undiscounted cash flow analysis resulted in no impairment charge in the quarter ended June 24, 2012. Also, as part of the annual impairment testing, the undiscounted cash flow analysis attributable to the long-lived assets in our European Retail Merchandising Solutions reporting unit resulted in no impairment charge in the quarter ended December 30, 2012. While we currently believe that our projected results will not result in future impairment, a continued deterioration in results could trigger a future impairment.

In December 2011, as a result of our annual impairment test of our indefinite-lived trade names, we recorded a $0.6 million impairment charge to the SIDEP trade name. The impairment charge was recorded in asset impairment expense in the Shrink Management Solutions segment on the Consolidated Statement of Operations.

Estimated amortization expense for each of the five succeeding years is anticipated to be:

(amounts in thousands)
2013	$	8,764
2014	$	8,276
2015	$	8,120
2016	$	7,857
2017	$	6,821

The changes in the carrying amount of goodwill are as follows:

(amounts in thousands)	Shrink Management Solutions			Apparel Labeling Solutions			Retail Merchandising Solutions			Total
Balance as of December 26, 2010	$	165,324		$	3,915		$	62,086		$	231,325
Acquired during the year	$	—		58,008			$	—		58,008
Discontinued operations	(3,782		)	$	—		$	—		(3,782		)
Translation adjustments	269			661			(378		)	552
Balance as of December 25, 2011	$	161,811		$	62,584		$	61,708		$	286,103
Purchase accounting adjustment	$	—		1,624			$	—		1,624
Discontinued operations	$	(3,263	)	$	—		$	—		(3,263		)
Impairment losses	$	—		(64,437		)	$	(38,278	)	(102,715		)
Translation adjustments	483			229			280			992
Balance as of December 30, 2012	$	159,031		$	—		$	23,710		$	182,741

The following table reflects the components of goodwill as of December 30, 2012 and December 25, 2011:

	December 30, 2012						December 25, 2011
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, net
Shrink Management Solutions	$	208,835	$	49,804	$	159,031	$	213,836	$	52,025	$	161,811
Apparel Labeling Solutions	84,059		84,059		—		81,662		19,078		62,584
Retail Merchandising Solutions	133,707		109,997		23,710		130,640		68,932		61,708
Total goodwill	$	426,601	$	243,860	$	182,741	$	426,138	$	140,035	$	286,103

During fiscal 2011 and 2010 we completed acquisitions which impacted goodwill and intangible assets. Refer to Note 2 of the Consolidated Financial Statements for more information on these acquisitions, including any impact of purchase accounting adjustments.

We perform an assessment of goodwill by comparing each individual reporting unit’s carrying amount of net assets, including goodwill, to their fair value at least annually during the October month-end close and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The 2011 and 2010, annual assessments did not result in an impairment charge.

During the second quarter of 2012, we experienced deterioration in revenues, gross margins and operating results in each of our segments as compared to the forecasted amounts in the most recent annual impairment test. Due to the declines in operating results in our segments, a change in management, and a revised strategic focus, we determined that impairment triggering events had occurred and that an assessment of goodwill was warranted. This resulted in the Company's assessment that the carrying value of the Apparel Labeling Solutions reporting unit exceeded its fair value. The basis of the fair value was determined by projecting future cash flows using assumptions concerning future operating performance and economic conditions that may differ from actual cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of the evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate and through our stock price that we use to determine our market capitalization. As a result of our interim impairment test, a $64.4 million non-cash impairment charge was recorded as of June 24, 2012 in our Apparel Labeling Solutions segment. The goodwill impairment expense was due to the decline in estimated future Apparel Labeling Solutions cash flow impacted by our plan to refocus the business, coupled with recent declines in revenue and profitability. The impairment charge of the entire goodwill balance in our Apparel Labeling Solutions segment was recorded in goodwill impairment on the Consolidated Statement of Operations.

There were no additional impairment indicators during the third quarter ended September 23, 2012. Our 2012 annual impairment test resulted in our assessment that the carrying value of the European Retail Merchandising Solutions reporting unit exceeded its fair value. As a result of our annual impairment test, a $38.3 million non-cash goodwill impairment charge was assessed as of October 21, 2012, and recorded in goodwill impairment expense on the Consolidated Statement of Operations in the fourth quarter of 2012 in our Retail Merchandising Solutions segment. The goodwill impairment was due to the decline in estimated future European Retail Merchandising Solutions cash flows impacted by current economic conditions in Europe resulting in decreased customer investments in new stores and refurbishments. Additionally, increased competition and pricing pressures are factors that have negatively impacted this business.

Determining the fair value of a reporting unit is a matter of judgment and involves the use of significant estimates and assumptions. The use of different assumptions would increase or decrease estimated discounted future cash flows and could increase or decrease an impairment charge. If the use of these assets or the projections of future cash flows change in the future, we may be required to record additional impairment charges. An erosion of future business results in any of the business units could create impairment in goodwill or other long-lived assets and require a significant charge in future periods.

As of the date of our fiscal 2012 annual impairment test, the total fair values for the remaining reporting units in all of our segments exceeded their total carrying values by more than 45%. Based on our most recent goodwill impairment assessment of the reporting units of our segments and our understanding of currently projected trends of the business and the economy, we do not believe that there is a significant risk of impairment for these reporting units for a reasonable period of time. Although our analysis regarding the fair values of the goodwill and indefinite lived intangible assets indicates that they exceed their respective carrying values, materially different assumptions regarding the future performance of our businesses or significant declines in our stock price could result in additional goodwill impairment losses. Specifically, an unanticipated deterioration in revenues and gross margins generated by our Shrink Management Solutions and Retail Merchandising Solutions segments could trigger future impairment in those segments.

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Long-Term Debt

12 Months Ended

Dec. 30, 2012

Long-term Debt, Excluding Current Maturities [Abstract]

Long-Term Debt

LONG-TERM DEBT

Long-term debt at December 30, 2012 and December 25, 2011 consisted of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Senior Secured Credit Facility:
$69 million variable interest rate revolving credit facility maturing in 2014	$	42,021	$	52,248
Senior Secured Notes:
$22 million 4.00% fixed interest rate Series A senior secured notes maturing in 2015	22,038		25,000
$22 million 4.38% fixed interest rate Series B senior secured notes maturing in 2016	22,038		25,000
$22 million 4.75% fixed interest rate Series C senior secured notes maturing in 2017	22,038		25,000
Full-recourse factoring liabilities	942		1,333
Other capital leases with maturities through 2016	482		1,013
Total(1)	109,559		129,594
Less current portion	638		910
Total long-term portion	$	108,921	$	128,684

⁽¹⁾  The weighted average interest rates for 2012 and 2011 were 5.9% and 4.0%, respectively.

Senior Secured Credit Facility

On July 22, 2010, we entered into an Amended and Restated Senior Secured Credit Facility (the “Senior Secured Credit Facility”) with a syndicate of lenders. The Senior Secured Credit Facility provides us with a $125.0 million four-year senior secured multi-currency revolving credit facility.

The Senior Secured Credit Facility amended and restated the terms of our existing $125.0 million senior secured multi-currency revolving credit agreement (“Secured Credit Facility”). The amendments primarily reflect an extension of the terms of the Secured Credit Facility, reductions in the interest rates charged on the outstanding balances, and favorable changes with regard to the collateral provided under the Senior Secured Credit Facility. Prior to entering into the Senior Secured Credit Facility, $102.2 million of the Secured Credit Facility was paid down during the third quarter of 2010.

On February 17, 2012, we received an amendment to our Senior Secured Credit Facility which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35 and 3.25 for the periods ended March 25, 2012, June 24, 2012, and September 23, 2012, respectively. Had we not received the amendment, we would have been in violation of the leverage ratio covenant as of March 25, 2012.  

On July 31, 2012, we received an additional amendment to our Senior Secured Credit Facility ("July 2012 Amendment"), which contained several modifications. The July 2012 Amendment reduced the total commitment of the Senior Secured Credit Facility from $125.0 million to $75.0 million. The July 2012 Amendment reduced the sublimit for the issuance of letters of credit from $25.0 million to $5.0 million. The July 2012 Amendment reduced the sublimit for swingline loans from $25.0 million to $5.0 million. The July 2012 Amendment increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, and June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Amendment waived the fixed charge covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Amendment permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions. The July 2012 Amendment also contained a provision whereby if our cash balance exceeds $65.0 million as of weekly measurement dates, we must prepay any additional borrowings made subsequent to the July 2012 Amendments. This provision is effective until we are in compliance with our original covenant requirements for two consecutive quarters. There were no required prepayments during 2012.

Absent the waiver and additional July 2012 Amendment, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the amended leverage ratio covenant and the fixed charge covenant as of December 30, 2012.

During the Waiver Period, the interest rate spread on the Senior Secured Credit Facility increases to a maximum of 4.25% over the Base Rate or 5.25% over the LIBOR rate. The “Base Rate” is the highest of (a) our lender's prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. The unused line fee will increase to a maximum of 1.00% per annum. The maximum is based in accordance with changes in our leverage ratio.

During the year ended December 30, 2012, the Company incurred $1.3 million in fees and expenses in connection with the July 2012 Amendment to the Senior Secured Credit Facility, which were capitalized and will be amortized over the term of the Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations. In connection with the reduction in borrowing capacity of the Senior Secured Credit Facility, the Company recognized $0.8 million of unamortized debt issuance costs. The cost was recognized in interest expense on the Consolidated Statement of Operations in 2012.

On September 21, 2012, the Company repaid $6.1 million on the Senior Secured Credit Facility. Pursuant to the terms of the July 2012 Amendment, the repayment permanently reduced the outstanding borrowing capacity from $75.0 million to $68.9 million. In connection with the reduction in borrowing capacity of the Senior Secured Credit Facility, the Company recognized $0.2 million of unamortized debt issuance costs. The cost was recognized in interest expense on the Consolidated Statement of Operations in the third quarter of 2012.

The Senior Secured Credit Facility provides for a revolving commitment of up to $75.0 million with a term of four years from the effective date of July 22, 2010. We may borrow, prepay and re-borrow under the Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the Senior Secured Credit Facility of up to an aggregate of $50.0 million, for a potential total commitment of $118.9 million. As of December 30, 2012, we were not eligible to request the $50.0 million expansion option due to financial covenant restrictions.

As of December 30, 2012, $1.8 million, issued in letters of credit were outstanding under the Senior Secured Credit Facility.

Borrowings under the Senior Secured Credit Facility, other than swingline loans, bear interest at our option of either a spread ranging from 1.25% to 2.50% over the Base Rate (as described below), or a spread ranging from 2.25% to 3.50% over the LIBOR rate, and in each case fluctuating in accordance with changes in our leverage ratio, as defined in the Senior Secured Credit Facility. The “Base Rate” is the highest of (a) our lender’s prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.00%. Swingline loans bear interest of (i) a spread ranging from 1.25% to 2.50% over the Base Rate with respect to swingline loans denominated in U.S. dollars, or (ii) a spread ranging from 2.25% to 3.50% over the LIBOR rate for one month U.S. dollar deposits, as of 11:00 a.m., London time. We pay an unused line fee ranging from 0.30% to 0.75% per annum based on the unused portion of the commitment under the Senior Secured Credit Facility.

All obligations of domestic borrowers under the Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by our domestic subsidiaries. The obligations of foreign borrowers under the Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by certain of our foreign subsidiaries as well as the domestic guarantors. Collateral under the Senior Secured Credit Facility includes a 100% stock pledge of domestic subsidiaries and a 65% stock pledge of all first-tier foreign subsidiaries, excluding our Japanese sales subsidiary. As a condition of the July 2012 Amendment, all domestic assets are also pledged as collateral. The approximate net book value of the collateral as of December 30, 2012 was $143 million.

Pursuant to the original terms of the Senior Secured Credit Facility, we are subject to various requirements, including covenants requiring the maintenance of a maximum total leverage ratio of 2.75 and a minimum fixed charge coverage ratio of 1.25. The Senior Secured Credit Facility also contains customary representations and warranties, affirmative and negative covenants, notice provisions and events of default, including change of control, cross-defaults to other debt, and judgment defaults. Upon a default under the Senior Secured Credit Facility, including the non-payment of principal or interest, our obligations under the Senior Secured Credit Facility may be accelerated and the assets securing such obligations may be sold. Certain wholly-owned subsidiaries with respect to the Company are guarantors of our obligations under the Senior Secured Credit Facility.

Senior Secured Notes

Also on July 22, 2010, we entered into a Note Purchase and Private Shelf Agreement (the “Senior Secured Notes Agreement”) with a lender, and certain other purchasers party thereto (together with the lender, the “Purchasers”).

On February 17, 2012, we received an amendment to our Senior Secured Notes which increased the required leverage ratio covenant of adjusted EBITDA to total debt from 2.75 to 3.00, 3.35 and 3.25 for the periods ended March 25, 2012, June 24, 2012, and September 23, 2012. Had we not received the amendment, we would have been in violation of the leverage ratio covenant as of March 25, 2012.  

On July 31, 2012, we received an additional amendment to our Senior Secured Notes ("July 2012 Note Amendment"), which contained several modifications. The July 2012 Note Amendment increased the required leverage ratio covenant of adjusted EBITDA to total debt to 5.25, 6.50, 5.50, 3.50, and 2.75 for the periods ended June 24, 2012, September 23, 2012, December 30, 2012, March 31, 2013, June 30, 2013 and thereafter. Cash restructuring of up to $25.0 million is excluded from the calculation of EBITDA beginning in the fiscal quarter ending June 24, 2012. The July 2012 Amendment waived the fixed charge covenant from June 24, 2012 through September 23, 2012 (the "Waiver Period"), decreased it to 1.00 for the period ended December 30, 2012, and returned it to 1.25 for periods thereafter. In addition, the July 2012 Amendment permitted divestitures, acquisitions and transfers of assets to non-credit parties, under certain conditions.

Absent the waiver and additional July 2012 Note Amendment, we would have been in violation of the June 24, 2012 leverage ratio and fixed charge coverage covenants. We were in compliance with the amended leverage ratio covenant as of September 23, 2012. Absent the waiver, we would have been in violation of the fixed charge coverage ratio covenant as of September 23, 2012. We are in compliance with the amended leverage ratio covenant and the fixed charge covenant as of December 30, 2012.

During the Waiver Period, and until such time as the financial covenants return to the original covenants for two consecutive quarters, the coupon rate on the Senior Secured Notes will increase to 5.75%, 6.13%, and 6.50% for the Series A Senior Secured Notes, Series B Senior Secured Notes, and Series C Senior Secured Notes, respectively.

During the year ended December 30, 2012, the Company incurred $1.4 million in fees and expenses in connection with the July 2012 Amendment to the Senior Secured Notes, of which $0.6 million were recognized in selling, general, and administrative expenses on the Consolidated Statement of Operations in 2012 and $0.8 million, which were capitalized and will be amortized over the term of the Senior Secured Notes to interest expense on the Consolidated Statement of Operations.

On September 21, 2012, the Company repaid $8.9 million in principal as well as a make-whole premium of $1.1 million related to the Senior Secured Notes. In connection with the repayment on the Senior Secured Notes, the Company recognized $0.1 million of unamortized debt issuance costs. The unamortized debt issuance costs and make whole premium fees were recognized in interest expense on the Consolidated Statement of Operations in 2012.

Under the Senior Secured Notes Agreement, we issued to the Purchasers its Series A Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series A Notes”), its Series B Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series B Notes”), and its Series C Senior Secured Notes in an aggregate principal amount of $22.0 million (the “Series C Notes”); together with the Series A Notes and the Series B Notes, (the “2010 Notes”). The Series A Notes bear interest at a rate of 4.00% per annum and mature on July 22, 2015. The Series B Notes bear interest at a rate of 4.38% per annum and mature on July 22, 2016. The Series C Notes bear interest at a rate of 4.75% per annum and mature on July 22, 2017. The 2010 Notes are not subject to any scheduled prepayments. The entire outstanding principal amount of each of the 2010 Notes shall become due on their respective maturity date.

The Senior Secured Notes Agreement also provides that for a three-year period ending on July 22, 2013, we may issue, and our lender may, in its sole discretion, purchase, additional fixed-rate senior secured notes (the “Shelf Notes”); together with the 2010 Notes, (the “Notes”), up to an aggregate amount of $50.0 million. The aggregate principal amount of the Shelf Notes issued at any time shall be no less than $5.0 million. The Shelf Notes will have a maturity date of no more than 10 years from the respective maturity date and an average life of no more than 7 years after the date of issue. The Shelf Notes will have such other terms, including principal amount, interest rate and repayment schedule, as agreed with our lender at the time of issuance. As of December 30, 2012, we were not eligible to elect to request the $50.0 million expansion option due to financial covenant restrictions.

We may prepay the Notes in a minimum principal amount of $1.0 million and in $0.1 million increments thereafter, at 100% of the principal amount so prepaid, plus an amount equal to the excess, if any, of the present value of the remaining scheduled payments of principal and interest on the amount repaid, over the principal amount repaid.  Either we or our lender may terminate the private shelf facility with respect to undrawn amounts upon 30 days’ written notice, and our lender may terminate the private shelf facility with respect to undrawn amounts upon the occurrence and/or continuation of an event of default or acceleration of any Note.

All obligations under the Senior Secured Notes are irrevocably and unconditionally guaranteed on a joint and several basis by our domestic subsidiaries. Collateral under the Senior Secured Notes includes a 100% stock pledge of domestic subsidiaries and a 65% stock pledge of all first-tier foreign subsidiaries, excluding our Japanese sales subsidiary. As a condition of the July 2012 Amendment, all domestic assets are also pledged as collateral. The approximate net book value of the collateral as of December 30, 2012 was $143.0 million.

The original Senior Secured Notes Agreement is subject to covenants that are substantially similar to the covenants in the Senior Secured Credit Facility Agreement, including covenants requiring the maintenance of a maximum total leverage ratio of 2.75 and a minimum fixed charge coverage ratio of 1.25. The Senior Secured Notes Agreement also contains representations and warranties, affirmative and negative covenants, notice provisions and events of default, including change of control, cross-defaults to other debt, and judgment defaults that are substantially similar to those contained in the Senior Secured Credit Facility, and those that are customary for similar private placement transactions. Upon a default under the Senior Secured Notes Agreement, including the non-payment of principal or interest, our obligations under the Senior Secured Notes Agreement may be accelerated and the assets securing such obligations may be sold. Additionally, the Senior Secured Notes have a make-whole provision that requires the discounted value of the remaining payments on the Senior Secured Notes expected through the end term of each of the Senior Secured Notes to be paid in full upon early termination, acceleration, or prepayment. Certain of our wholly-owned subsidiaries are also guarantors of our obligations under the Senior Secured Notes.

Full-recourse Factoring Arrangements

In December 2009, we entered into a full-recourse factoring arrangements. The arrangements are secured by trade receivables. The Company received a weighted average of 92.4% of the face amount of receivables that it desired to sell and the bank agreed, at its discretion, to buy. As of December 30, 2012 the factoring arrangements had a balance of $0.9 million (€0.7 million), of which $0.3 million (€0.3 million) was included in the current portion of long-term debt and $0.6 million (€0.4 million) was included in long-term borrowings in the accompanying Consolidated Balance Sheets since the receivables are collectible through 2016.

The aggregate maturities on all long-term debt (including current portion) are:

(amounts in thousands)	Debt		Capital Leases		Total Debt
2013	$	351	$	287	$	638
2014	42,342		122		42,464
2015	22,262		56		22,318
2016	22,084		15		22,099
2017	22,038		2		22,040
Thereafter	—		—		—
Total	$	109,077	$	482	$	109,559

XML

Short-Term Borrowings And Current Portion Of Long-Term Debt (Short-Term Borrowings And Current Portion Of Long-Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Short-term Debt, Debt Default [Abstract]
Overdraft	$ 568	$ 405
Full-recourse factoring liabilities	0	8,809
Term loans	2,272	9,125
Other short-term borrowings	889	2,529
Current portion of long-term debt	638	910
Total short-term borrowings and current portion of long-term debt	$ 4,367	$ 21,778

XML

Employee Benefit Plans (Accumulated Other Comprehensive Income Over Next Fiscal Year) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Prior service costs	$ 2
Actuarial loss	1,559
Total	$ 1,561

XML

Long-Term Debt (Senior Secured Credit Facility) (Details)	1 Months Ended		3 Months Ended	12 Months Ended			0 Months Ended	12 Months Ended						12 Months Ended		2 Months Ended	3 Months Ended						5 Months Ended	12 Months Ended				12 Months Ended								12 Months Ended
	Sep. 23, 2012 USD ($)	Sep. 23, 2012 EUR (€)	Sep. 26, 2010 USD ($)	Dec. 30, 2012 USD ($)	Dec. 25, 2011 USD ($)	Dec. 26, 2010 USD ($)	Sep. 22, 2012 Senior Secured Credit Facility [Member] USD ($)	Dec. 30, 2012 Senior Secured Credit Facility [Member] USD ($)	Jul. 31, 2012 Senior Secured Credit Facility [Member] USD ($)	Jul. 22, 2010 Senior Secured Credit Facility [Member] USD ($)	Jul. 31, 2012 Swingline Loan [Member] USD ($)	Jul. 22, 2010 Swingline Loan [Member] USD ($)	Dec. 30, 2012 Letter of Credit [Member] USD ($)	Dec. 30, 2012 Minimum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 Maximum [Member] Senior Secured Credit Facility [Member]	Feb. 17, 2012 Debt Covenant Compliance February 2012 [Member]	Sep. 23, 2012 Debt Covenant Compliance February 2012 [Member]	Jun. 24, 2012 Debt Covenant Compliance February 2012 [Member]	Mar. 25, 2012 Debt Covenant Compliance February 2012 [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] USD ($)	Sep. 23, 2012 Debt Covenant Compliance July 2012 [Member] USD ($)	Jun. 24, 2012 Debt Covenant Compliance July 2012 [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] USD ($)	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] USD ($)	Jul. 31, 2012 Debt Covenant Compliance July 2012 [Member] USD ($)	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] Senior Secured Credit Facility [Member]	Jul. 31, 2012 Debt Covenant Compliance July 2012 [Member] Senior Secured Credit Facility [Member] USD ($)	Dec. 30, 2012 Debt Covenant Compliance July 2012 [Member] Maximum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012, Base Rate [Member] Maximum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 Debt Covenant Compliance July 2012, LIBOR Rate [Member] Maximum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 Base Rate [Member] Minimum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 Base Rate [Member] Maximum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 LIBOR [Member] Minimum [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 LIBOR [Member] Maximum [Member] Senior Secured Credit Facility [Member]	Jul. 22, 2010 $125 Million Variable Interest Rate Revolving Credit Facility Maturing In 2014 [Member] USD ($)	Dec. 30, 2012 July 2012 Amendment to the Senior Secured Credit Facility [Member] USD ($)	Dec. 30, 2012 Repayment of Senior Secured Credit Facility [Member] USD ($)	Dec. 30, 2012 Option 1 [Member] Senior Secured Credit Facility [Member]	Dec. 30, 2012 Option 2 [Member] Senior Secured Credit Facility [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount																																			$ 125,000,000
Secured credit facility paid down	7,400,000	5,700,000	102,200,000
Leverage ratio															2.75	2.75
Adjusted Leverage Ratio Q1 2012																			3.00
Adjusted Leverage Ratio Q2 2012																		3.35				5.25
Adjusted Leverage Ratio Q3 2012																	3.25				6.50
Adjusted leverage ratio Q4 2012																				5.50
Adjusted leverage ratio Q1 2013																							3.50
Adjusted leverage ratio Q2 2013																							2.75
Amended total commitment																											75,000,000
Original letters of credit sublimit										25,000,000
Letters of credit sublimit									5,000,000
Original swingline loans sublimit												25,000,000
Swingline loans sublimit											5,000,000
Cash restructuring excluded from EBITDA calculation																					25,000,000
Fixed charge covenant Q4 2012																				1.00
Fixed charge coverage ratio														1.25
Cash balance threshold for repayment				65,000,000
Spread over interest rate																										0.50%			4.25%	5.25%	1.25%	2.50%	2.25%	3.50%				0.50%	1.00%
Debt Instrument, Description of Variable Rate Basis																								a daily rate equal to the one-month LIBOR rate, plus 1.00%
Unused line fees														0.30%	0.75%													1.00%
Fees and expenses				2,085,000	0	1,991,000		1,300,000
Unamortized fees and expenses																																				800,000	200,000
Repayments of Debt, Maturing in More than Three Months							6,100,000
Line of Credit Facility, Current Borrowing Capacity																				68,900,000			68,900,000	68,900,000	75,000,000
Expansion option under credit facility								50,000,000
Potential total commitment with expansion option								118,900,000
Letters of credit outstanding													1,800,000
Base rate								The “Base Rate” is the highest of (a) our lender’s prime rate, (b) the Federal Funds rate, plus 0.50%, and (c) a daily rate equal to the one-month LIBOR rate, plus 1.0%. Swingline loans bear interest of (i) a spread ranging from 1.25% to 2.50% over the Base Rate with respect to swingline loans denominated in U.S. dollars, or (ii) a spread ranging from 2.25% to 3.50% over the LIBOR rate for one month U.S. dollar deposits, as of 11:00 a.m., London time.
Percentage of stock pledge of domestic subsidiaries								100.00%
Percentage of stock pledge of all first-tier foreign subsidiaries								65.00%
Line Of Credit Facility, Carrying Value Of Collateral								$ 143,000,000

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Provision For Restructuring (Schedule Of Restructuring Accrual Activity) (Details) (USD $)	12 Months Ended
	Dec. 30, 2012		Dec. 25, 2011		Dec. 26, 2010
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	$ 28,422,000		$ 28,640,000		$ 8,211,000
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year	17,612,000		7,522,000
Charged to Earnings	27,790,000		21,443,000
Charge Reversed to Earnings	(5,874,000)		(636,000)
Cash Payments	(30,019,000)		(10,352,000)
Exchange Rate Changes	70,000		(365,000)
Accrual at End of Year	9,579,000		17,612,000		7,522,000
Global Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	28,500,000
Restructuring Reserve [Roll Forward]
Restructing plan lease accrual and other costs and other related transactions			500,000
Restructing reserve, severance costs reversed to earnings	16,945,000		11,115,000		0
Global Restructuring Plan [Member] | Severance And Other Employee-Related Charges [Member]
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year	9,710,000	[1]	0
Charged to Earnings	21,558,000	[1]	11,382,000
Charge Reversed to Earnings	(4,613,000)	[1]	(267,000)
Cash Payments	(19,044,000)	[1]	(1,268,000)
Exchange Rate Changes	141,000	[1]	(137,000)
Accrual at End of Year	7,752,000	[1]	9,710,000	[1]
Global Restructuring Plan [Member] | Other Exit Costs [Member]
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year	0	[2],[3]	0	[2]
Charged to Earnings	5,068,000	[3]	519,000	[2]
Charge Reversed to Earnings	0	[3]	0	[2]
Cash Payments	(4,600,000)	[3]	(519,000)	[2]
Exchange Rate Changes	(8,000)	[3]	0	[2]
Accrual at End of Year	460,000	[3]	0	[2],[3]
SG&A Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	0
Restructuring Reserve [Roll Forward]
Operating facility closing and lease modification charge			2,200,000
Restructing reserve, severance costs reversed to earnings	(86,000)		7,015,000		6,993,000
SG&A Restructuring Plan [Member] | Severance And Other Employee-Related Charges [Member]
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year	6,718,000	[1]	6,660,000
Charged to Earnings	1,100,000	[1]	7,147,000
Charge Reversed to Earnings	(1,186,000)	[1]	(132,000)
Cash Payments	(5,363,000)	[1]	(6,718,000)
Exchange Rate Changes	(63,000)	[1]	(239,000)
Accrual at End of Year	1,206,000	[1]	6,718,000	[1]
SG&A Restructuring Plan [Member] | Other Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	100,000
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year	1,109,000	[4],[5]	0	[4]
Charged to Earnings	64,000	[5]	2,214,000	[4]
Charge Reversed to Earnings	0	[5]	(11,000)	[4]
Cash Payments	(1,012,000)	[5]	(1,095,000)	[4]
Exchange Rate Changes	0	[5]	1,000	[4]
Accrual at End of Year	161,000	[5]	1,109,000	[4],[5]
Restructing reserve, severance costs reversed to earnings	(5,800,000)
Global Restructuring Plan Including Lean [Member] | Other Exit Costs [Member]
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	5,100,000
Manufacturing Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Charged to Earnings	(100,000)
Restructuring Reserve [Roll Forward]
Lease termination costs			100,000
Restructing reserve, severance costs reversed to earnings	0		(146,000)		641,000
Manufacturing Restructuring Plan [Member] | Severance And Other Employee-Related Charges [Member]
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year			719,000
Charged to Earnings			69,000
Charge Reversed to Earnings			(215,000)
Cash Payments			(583,000)
Exchange Rate Changes			10,000
Accrual at End of Year			0
Manufacturing Restructuring Plan [Member] | Other Exit Costs [Member]
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year	75,000	[6]	143,000	[6]
Charged to Earnings	0		112,000	[6]
Charge Reversed to Earnings	(75,000)		(11,000)	[6]
Cash Payments	0		(169,000)	[6]
Exchange Rate Changes	0		0	[6]
Accrual at End of Year	$ 0		$ 75,000	[6]

[1] During 2012, there was a severance charge reversed to earnings of $5.8 million primarily due to eliminations of individuals from the plans, replacements of individuals in the plans with other individuals, resignations, and other final accrual adjustments. The eliminations and replacements were primarily the result of our change in management and strategic vision in 2012.

[2] During 2011, there was a net charge to earnings of $0.5 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, and gains/losses on sale of assets in connection with the restructuring plan.

[3] During 2012, there was a net charge to earnings of $5.1 million primarily due to lease termination costs, inventory and equipment moving costs, restructuring agent costs, legal costs, pension settlements, and gains/losses on sale of assets in connection with the restructuring plan.(2) During 2012, there was a net charge to earnings of $0.1 million primarily due to lease termination costs and outplacement costs in connection with the restructuring plan.

[4] During 2011, there was a net charge to earnings of $2.2 million primarily due to the closing of an operating facility and one-time payment related to a lease modification for an operating facility as well as lease payment accruals after exiting one of our facilities.

[5] During 2012, there was a net charge to earnings of $0.1 million primarily due to lease termination costs and outplacement costs in connection with the restructuring plan.

[6] During 2010, costs were recorded due to the closing of a manufacturing facility. For the year ended 2011, there was a net charge to earnings of $0.1 million due to other exit costs associated with the manufacturing closings.

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Short-Term Borrowings And Current Portion Of Long-Term Debt (Narrative) (Details)	1 Months Ended		3 Months Ended					1 Months Ended			1 Months Ended						1 Months Ended
	Sep. 23, 2012 USD ($)	Sep. 23, 2012 EUR (€)	Sep. 26, 2010 USD ($)	Dec. 30, 2012 USD ($)	Dec. 25, 2011 USD ($)	May 16, 2011 USD ($)	Dec. 26, 2010 USD ($)	Dec. 25, 2011 Hong Kong Banking Facility [Member] USD ($)	Dec. 25, 2011 Hong Kong Banking Facility [Member] HKD	Feb. 29, 2012 Sri Lanka [Member] USD ($)	Jun. 24, 2012 Term Loan [Member] Hong Kong Banking Facility [Member] USD ($)	Jun. 24, 2012 Term Loan [Member] Hong Kong Banking Facility [Member] HKD	Dec. 25, 2011 Term Loan [Member] Hong Kong Banking Facility [Member] USD ($)	Dec. 25, 2011 Term Loan [Member] Hong Kong Banking Facility [Member] HKD	Dec. 30, 2012 Term Loan [Member] Sri Lanka Banking Facility [Member] USD ($)	Feb. 29, 2012 Term Loan [Member] Sri Lanka Banking Facility [Member] USD ($)	Jun. 24, 2012 Overdraft Facility and Other Short-Term Loans [Member] Shore To Shore Businesses [Member] USD ($)	Jun. 24, 2012 Overdraft Facility and Other Short-Term Loans [Member] Shore To Shore Businesses [Member] INR	Dec. 30, 2012 Overdraft, Import Line and Import Cash Line Facility [Member] Sri Lanka Banking Facility [Member] USD ($)	Feb. 29, 2012 Overdraft, Import Line and Import Cash Line Facility [Member] Sri Lanka Banking Facility [Member] USD ($)	Dec. 25, 2011 Line of Credit [Member] Japanese Local Line Of Credit [Member] USD ($)	Dec. 25, 2011 Line of Credit [Member] Japanese Local Line Of Credit [Member] CNY	Nov. 30, 2010 Line of Credit [Member] Japanese Local Line Of Credit [Member] USD ($)	Nov. 30, 2010 Line of Credit [Member] Japanese Local Line Of Credit [Member] CNY	Dec. 25, 2011 Full-Recourse Factoring Agreement [Member] USD ($)	Dec. 25, 2011 Full-Recourse Factoring Agreement [Member] EUR (€)	Oct. 31, 2009 Full-Recourse Factoring Agreement [Member] USD ($)	Oct. 31, 2009 Full-Recourse Factoring Agreement [Member] EUR (€)	Dec. 30, 2012 Shore To Shore [Member] USD ($)	Dec. 25, 2011 Shore To Shore [Member] USD ($)	May 16, 2011 Shore To Shore [Member] USD ($)
Short-term Debt [Line Items]
Payment of notes payable								$ 4,200,000	32,500,000
Amount outstanding under term loan				2,272,000	9,125,000								8,400,000	65,000,000
Extinguishment of Debt, Amount											8,000,000	61,800,000					700,000	37,200,000
Capital lease assumed				0	20,270,000	4,200,000	0																								4,200,000
Business acquisition, debt outstanding				4,367,000	21,778,000																								3,900,000	3,800,000
Maximum borrowing availability under credit facility										3,200,000						2,700,000				500,000			1,800,000	150,000,000
Amount outstanding under credit facility															2,300,000				500,000		1,900,000	150,000,000			8,800,000	6,800,000	12,000,000	8,000,000
Secured credit facility paid down	$ 7,400,000	€ 5,700,000	$ 102,200,000

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Employee Benefit Plans (Summary Of The Fair Value Of Pension Plan Assets) (Details) (USD $)	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Defined Benefit Plan Disclosure [Line Items]
Global insurance assets	$ 1,488,000	$ 1,406,000	$ 1,472,000
Global Insurance Assets [Member] | Estimated Fair Value [Member]
Defined Benefit Plan Disclosure [Line Items]
Global insurance assets	1,488,000
Global Insurance Assets [Member] | Significant Other Observable Inputs (Level 2) [Member]
Defined Benefit Plan Disclosure [Line Items]
Global insurance assets	0
Global Insurance Assets [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Defined Benefit Plan Disclosure [Line Items]
Global insurance assets	0
Global Insurance Assets [Member] | Significant Other Unobservable Inputs (Level 3) [Member]
Defined Benefit Plan Disclosure [Line Items]
Global insurance assets	$ 1,488,000

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Inventories (Tables)

12 Months Ended

Dec. 30, 2012

Inventory Disclosure [Abstract]

Schedule Of Inventories

Inventories consist of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Raw materials	$	16,702	$	28,128
Work-in-process	6,554		10,481
Finished goods	58,898		92,378
Total	$	82,154	$	130,987

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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended	10 Months Ended	12 Months Ended			84 Months Ended			12 Months Ended										12 Months Ended						1 Months Ended
	Oct. 10, 2012	Dec. 25, 2011	Oct. 21, 2012	Dec. 30, 2012 country	Dec. 25, 2011	Dec. 26, 2010	Dec. 25, 2011	Sep. 23, 2012	Jun. 24, 2012	Dec. 30, 2012 Minimum [Member]	Dec. 30, 2012 Maximum [Member]	Dec. 30, 2012 Buildings [Member] Minimum [Member]	Dec. 30, 2012 Buildings [Member] Maximum [Member]	Dec. 30, 2012 Equipment Rented To Customers [Member] Minimum [Member]	Dec. 30, 2012 Equipment Rented To Customers [Member] Maximum [Member]	Dec. 30, 2012 Equipment Leased On Capital Lease [Member]	Dec. 30, 2012 Internal-Use Software [Member] Minimum [Member]	Dec. 30, 2012 Internal-Use Software [Member] Maximum [Member]	Dec. 30, 2012 Machinery And Equipment [Member]	Dec. 30, 2012 Machinery And Equipment [Member] Minimum [Member]	Dec. 30, 2012 Machinery And Equipment [Member] Maximum [Member]	Dec. 30, 2012 Construction-In-Progress [Member]	Dec. 25, 2011 Construction-In-Progress [Member]	May 16, 2011 Shore To Shore PVT Ltd [Member]	Feb. 28, 2006 Checkpoint Systems Japan Co Ltd [Member]	Aug. 31, 2010 Checkpoint Systems Japan Co Ltd [Member] Mitsubishi Materials Corporation [Member]	Feb. 28, 2006 Checkpoint Systems Japan Co Ltd [Member] Mitsubishi Materials Corporation [Member]	Jan. 31, 2013 Subsequent Event [Member]
Summary of Significant Accounting Policies [Line Items]
Number of countries in which entity operates				29
Total amount of expense for all years of fraud activities				$ 700,000	$ 900,000		$ 5,200,000
Amounts recovered related to fraud activities	4,700,000	1,100,000
Net cumulative financial statement impact of recoveries from fraudulent activities				(3,907,000)	(179,000)	1,537,000	4,100,000
Other Assets Held-for-sale, Current									3,700,000
Long Lived Assets Held-for-sale, Gain (Loss) on Sale								800,000
Gain on sale of subsidiary				1,657,000	0	0
Voting interest acquired																								51.00%
Purchase price of cash from operations																								1,700,000
Percentage interest held prior to sale																												51.00%
Repurchase of non-controlling interests						692,000																				800,000	200,000
Repurchase of shares																									26.00%	74.00%
Cash equivalent maturity term, days				90 days
Proceeds from sale-type lease receivable					38,000,000
Minimum estimated useful life, years										3 years	5 years	15 years	30 years	3 years	5 years	5 years	3 years	5 years		3 years	10 years
Maximum estimated useful life, years										3 years	5 years	15 years	30 years	3 years	5 years	5 years	3 years	5 years		3 years	10 years
Total amount of internal-use software costs capitalized		21,400,000		22,800,000	21,400,000		21,400,000
Value of supporting software packages capitalized																			18,100,000
Remaining costs capitalized as construction-in-progress																						4,700,000	6,000,000
Reporting units' percentagie of fair value in excess of carrying amount			45.00%								12.00%
Net long-term customer-based receivables		11,200,000		6,000,000	11,200,000		11,200,000
Net deferred financing costs		2,800,000		2,600,000	2,800,000		2,800,000
Financing cost amortization expense				2,300,000	1,100,000	1,200,000
Other accrued expenses		11,700,000		15,200,000	11,700,000		11,700,000
Royalty expenses related to security products				$ 200,000	$ 200,000	$ 100,000
Minimum percentage measurement for tax benefit realized upon any settlement				50.00%

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Income Taxes

12 Months Ended

Dec. 30, 2012

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The domestic and foreign components of earnings from continuing operations before income taxes are:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Domestic	$	(54,230	)	$	(41,664	)	$	(32,985	)
Foreign	(76,852		)	35,776			56,102
Total	$	(131,082	)	$	(5,888	)	$	23,117

Provision for income taxes:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Currently payable
Federal	$	2,544		$	365		$	(4,004	)
State	88			99			(404		)
Puerto Rico	354			23			(3,950		)
Foreign	6,453			11,474			15,045
Total currently payable	9,439			11,961			6,687
Deferred
Federal	(792		)	49,395			(5,128		)
State	226			526			4,321
Puerto Rico	765			(377		)	(707		)
Foreign	(2,274		)	(1,932		)	(1,345		)
Total deferred	(2,075		)	47,612			(2,859		)
Total provision	$	7,364		$	59,573		$	3,828

Adjustments have been made to prior year figures in the table above to be more presentable with the current year.

Deferred tax assets/liabilities at December 30, 2012 and December 25, 2011 consist of:

(amounts in thousands)	December 30, 2012			December 25, 2011
Inventory	$	5,390		$	4,930
Accounts receivable	2,733			2,513
Capitalized research and development costs	21,173			18,476
Net operating loss and foreign tax credit carryforwards	65,951			62,685
Restructuring	491			2,537
Pension	12,874			7,890
Warranty	1,138			1,507
Deferred compensation	3,630			4,980
Stock based compensation	7,506			8,148
Depreciation	1,753			1,052
Other	11,759			12,349
Valuation allowance	(104,514		)	(102,148		)
Deferred tax assets	29,884			24,919
Deferred revenue	546			1,316
Intangibles	8,327			9,542
Unremitted earnings	3,081			2,365
Deferred tax liabilities	11,954			13,223
Net deferred tax assets	$	17,930		$	11,696

At December 30, 2012, we had $35.9 million of net operating loss carryforwards (tax effected) in certain non-U.S. jurisdictions. Of these, $25.4 million have no expiration, and the remaining $10.5 million will expire in future years through 2022. In the U.S., there were approximately $5.7 million of federal and $6.7 million of state net operating loss carryforwards, which will expire in future years through 2032. Of the $5.7 million of federal net operating loss carryforwards, $5.3 million is subject to IRC § 382 limitations.

In the U.S., a $1.1 million and $3.5 million windfall benefit on stock compensation occurred in 2011 and 2010, respectively.  We have not recorded these amounts to additional capital or increased its related net operating loss carryforward due to the fact that the windfall benefits have not reduced income taxes payable. There was no windfall benefit on stock compensation in 2012. We have adopted a “with and without” approach with regards to utilization of windfall benefits.

At December 30, 2012, we had U.S. foreign tax credit carryforwards of $16.6 million with expiration dates ranging from 2016 to 2022.

We operate under tax holidays in other countries, which are effective through dates ranging from 2015 through 2017, and may be extended if certain additional requirements are satisfied. The tax holidays are conditional upon our meeting certain employment and investment thresholds.

In accordance with ASC 740, “Accounting for Income Taxes”, we evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. ASC 740 requires that companies assess whether valuation allowances should be established against their deferred tax assets based on all available evidence, both positive and negative, using a “more likely than not” standard. In the assessment for a valuation allowance, appropriate consideration is given to all positive and negative evidence related to the realization of the deferred tax assets. This assessment considers, among other matters, the nature, frequency and severity of current and cumulative losses, forecasts of future profitability, the duration of statutory carryforward periods, our experience with loss carryforwards not expiring and tax planning alternatives. We operate and derive income from multiple lines of business across multiple jurisdictions. As each of the respective lines of business experiences changes in operating results across their geographic footprint, we may encounter losses in jurisdictions that have been historically profitable, and as a result might require additional valuation allowances to be recorded against certain deferred tax asset balances.  We are committed to implementing tax planning actions, when deemed appropriate, in jurisdictions that experience losses in order to realize deferred tax assets prior to their expiration.  At December 30, 2012 and December 25, 2011, we had net deferred tax assets of $17.9 million and $11.7 million, respectively.

During 2010, negative evidence arose in the form of cumulative losses in the U.S. and Germany, with net deferred tax assets of $41.7 million and $9.6 million, respectively. In 2010, and the first six months of 2011, we considered all available evidence and were able to conclude on a more likely than not basis that the effects of our commitment to specific tax planning actions provided a sufficient amount of positive evidence to support the continued benefit of the jurisdictions’ deferred tax assets.

During the quarter ending September 25, 2011, a valuation allowance in the amount of $48 million was established related to all components of the domestic net deferred tax assets based on the determination after the above considerations that it was more likely than not that the deferred tax assets would not be fully realized. The amount of valuation allowance recorded was greater than the net domestic deferred tax asset after consideration of deferred tax liabilities associated with non-amortizable assets such as goodwill and indefinite lived intangibles. This charge was primarily a result of the trend of significant domestic losses experienced in recent years, as well as the reduction of our global earnings experienced during the first nine months of 2011.

We have not recorded a valuation allowance on the net German deferred tax asset and continue to rely on a tax planning action that has been executed in the fourth quarter of 2011 and have provided evidence during 2012 to support the realization of the German deferred tax assets. The German tax planning action does not significantly rely on our global earnings to utilize German deferred tax assets.

In May 2011, we acquired a retail apparel and footwear product identification business which designs, manufactures and sells tags and labels, brand protection, and EAS solutions/labels (collectively, the “Shore to Shore businesses”) through the acquisition of equity and/or assets. As of December 25, 2011, we have established a preliminary opening net deferred tax liability of $3.0 million. In addition, we have established $3.1 million of income tax liabilities related to uncertain tax positions in pre-acquisition tax years. The income tax adjustments related to purchase accounting for the Shore to Shore businesses were finalized in 2012. Our preliminary opening net deferred tax liability increased to $3.1 million and the income tax liabilities related to uncertain tax positions in pre-acquisition years was increased to $7.1 million.

During 2012, negative evidence arose in the form of cumulative losses in the Netherlands, with net deferred assets of $0.3 million. During the quarter ending June 24, 2012, a valuation allowance was established related to certain components of the Netherlands deferred tax asset based on the determination after the above considerations that it was more likely than not that the net deferred tax assets would not be fully utilized.

Undistributed earnings of certain foreign subsidiaries for which taxes have not been provided approximate $4.0 million as of December 30, 2012. Such undistributed earnings are considered to be indefinitely reinvested in foreign operations. A liability could arise if our intention to permanently reinvest such earnings were to change and amounts are distributed by such subsidiaries or if such subsidiaries are ultimately disposed. It is not practicable to estimate the additional income taxes related to permanently reinvested earnings or the basis differences related to investments in subsidiaries.

In the fourth quarter of 2011, we changed our assertion on unremitted earnings for certain foreign subsidiaries, primarily due to pressure on our leverage ratio for debt covenants. This resulted in the repatriation of foreign earnings in order to reduce worldwide debt to the levels stipulated by our covenants and the projected future cash impact of our refined business strategy. Our assertion on unremitted earnings remains unchanged in 2012.

As of December 30, 2012, we provided a deferred tax liability of approximately $3.1 million primarily for withholding taxes associated with future repatriation of earnings for certain subsidiaries. We have not provided deferred tax liabilities for temporary differences related to basis differences in investments in subsidiaries, as such earnings are expected to be permanently reinvested, the investments are essentially permanent in duration, or we have concluded that no additional tax liability will arise as a result of the distribution of such earnings.

A reconciliation of the tax provision at the statutory U.S. Federal income tax rate with the tax provision at the effective income tax rate follows:

(amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Tax provision at the statutory federal income tax rate	$	(45,879	)	$	(2,061	)	$	8,091
Unremitted earnings	690			1,430			—
Non-deductible permanent items	1,566			1,748			1,467
Non-deductible goodwill impairment	32,503			—			—
State and local income taxes, net of federal benefit	314			625			3,917
Losses for which no tax benefit recognized and release of allowance on current year income	1,135			14,224			1,408
Effect of foreign operations	17,671			(3,668		)	(7,794		)
Tax settlements	—			—			(47		)
Potential tax contingencies	(547		)	(1,086		)	(3,488		)
Change in valuation allowance	283			47,684			—
Stock based compensation	994			366			441
Other	(1,366		)	311			(167		)
Tax provision at the effective tax rate	$	7,364		$	59,573		$	3,828

Included in the effect of foreign operations is the U.S. tax impact of certain foreign income inclusions. Due to the U.S. valuation allowance, there was no related impact on overall tax expense in 2012 and 2011.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

( amounts in thousands)	December 30, 2012			December 25, 2011			December 26, 2010
Gross unrecognized tax benefits at beginning of year	$	15,850		$	12,846		$	14,884
Increases in tax positions for prior years	225			997			1,161
Decreases in tax positions for prior years	(1,068		)	(44		)	—
Increases in tax positions for current year	3,800			808			1,229
Settlements	(683		)	(443		)	(928		)
Acquisition reserves	1,167			4,640			240
Lapse in statute of limitations	(2,956		)	(2,954		)	(3,740		)
Gross unrecognized tax benefits at end of year	$	16,335		$	15,850		$	12,846

The total amount of gross unrecognized tax benefits that, if recognized, would affect the effective tax rate was $16.3 million and $15.9 million at December 30, 2012 and December 25, 2011, respectively. Penalties and tax-related interest expense are reported as a component of income tax expense. During fiscal years ended December 30, 2012, December 25, 2011 and December 26, 2010, we recognized interest and penalties of $(0.3) million, $1.0 million, and $(2.8) million, respectively in the statement of operations. At December 30, 2012 and December 25, 2011, we have accrued interest and penalties related to unrecognized tax benefits of $4.3 million and $4.6 million, respectively.

We file income tax returns in the U.S. and in various states, local and foreign jurisdictions. We are routinely examined by tax authorities in these jurisdictions. It is possible that these examinations may be resolved within the next twelve months. Due to the potential for resolution of Federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the gross unrecognized tax benefits balance may change within the next twelve months by a range of $5.0 million to $3.4 million.

We are currently under audit in the following major jurisdictions: Germany 2006 – 2009, Finland 2008 – 2009, and India 2008 - 2012.

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Concentration Of Credit Risk

12 Months Ended

Dec. 30, 2012

Risks and Uncertainties [Abstract]

Concentration Of Credit Risk

CONCENTRATION OF CREDIT RISK

Our foreign subsidiaries, along with many foreign distributors, provide diversified international sales thus minimizing credit risk to one or a few distributors. Our sales are well diversified among numerous retailers in the apparel, drug, home entertainment, mass merchandise, music, shoe, supermarket, and video markets. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from our customers.

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Fair Value Measurement, Financial Instruments And Risk Management (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 193	$ 1,583
Liabilities	208	415
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	193	1,583
Liabilities	208	415
Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Foreign Currency Revenue Forecast Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	14	1,120
Foreign Currency Revenue Forecast Contracts [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Foreign Currency Revenue Forecast Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	14	1,120
Foreign Currency Revenue Forecast Contracts [Member] | Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Foreign Currency Forward Exchange Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	179	463
Liabilities	208	415
Foreign Currency Forward Exchange Contracts [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	0	0
Foreign Currency Forward Exchange Contracts [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	179	463
Liabilities	208	415
Foreign Currency Forward Exchange Contracts [Member] | Significant Other Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	0	0
Liabilities	$ 0	$ 0

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Discontinued Operations (Tables)

12 Months Ended

Dec. 30, 2012

Discontinued Operations and Disposal Groups [Abstract]

Selected Financial Information Included In Earnings And Balance Sheet

The results for the years ended December 30, 2012, December 25, 2011 and December 26, 2010 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 30, 2012			December 25, 2011			December 26, 2010
Net revenue	$	10,751		$	13,565		$	12,820
Gross profit	1,335			2,541			2,874
Selling, general, & administrative expense	2,550			4,095			4,043
Restructuring expenses	—			113			—
Asset impairment	1,442			2,781			—
Goodwill impairment	370			3,411			—
Operating loss	(3,027		)	(7,859		)	(1,169		)
Loss on disposal	(15		)	—			—
Loss from discontinued operations before income taxes	(3,042		)	(7,859		)	(1,169		)
Loss from discontinued operations, net of tax	$	(3,042	)	$	(7,514	)	$	(773	)

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

In December of 2012, our U.S. and Canada based CheckView^® business included in our Shrink Management Solutions segment met the criteria for classification 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 $3.3 million impairment charge of goodwill in our Shrink Management Solutions segment and a $0.3 million impairment of property, plant and equipment. These impairment charges were included in discontinued operations on the Consolidated Statement of Operations. After a full impairment of its long-lived assets, the remaining carrying value of our CheckView^® business at December 30, 2012 exceeded its fair value by approximately $0.8 million.

Our discontinued operations reflect the operating results for the disposal group. Impairments in 2012 reflect write-downs to estimates of fair value less costs to sell the U.S. and Canada based CheckView^® business. These nonrecurring fair value measurements, which fall within Level 3 of the fair value hierarchy, were determined utilizing an expected selling price less costs to sell approach. The results for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 have been reclassified to show the results of operations for the U.S. and Canada based CheckView^® business as discontinued operations, net of tax, on the Consolidated Statement of Operations. Below is a summary of these results:

(amounts in thousands)	December 30, 2012		December 25, 2011	December 26, 2010
Net revenue	76,519		101,594	105,227
Gross profit	11,585		20,560	29,325
Selling, general, & administrative expense	12,253		13,700	13,866
Research and development	410		544	831
Asset impairment	329		—	—
Goodwill impairment	3,263		—	—
Operating (loss) income	(4,670	)	6,316	14,628
(Loss) earnings from discontinued operations before income taxes	(4,670	)	6,316	14,628
(Loss) earnings from discontinued operations, net of tax	(4,917	)	6,349	9,098

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 30, 2012 the classification was as follows:

(amounts in thousands)	December 30, 2012
Accounts receivable, net	$	14,558
Inventories	9,721
Property, plant, and equipment, net	—
Other assets	5,347
Deferred income taxes	$	238
Assets of discontinued operations held for sale	$	29,864
Accounts payable	$	3,413
Accrued compensation and related taxes	94
Other accrued expenses	5,600
Unearned revenues	581
Liabilities of discontinued operations held for sale	$	9,688

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Business Segments And Geographic Information (Business Segments) (Details) (USD $)	1 Months Ended	3 Months Ended								12 Months Ended						84 Months Ended
	Dec. 25, 2011	Dec. 30, 2012	Sep. 23, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 25, 2011	Sep. 25, 2011	Jun. 26, 2011	Mar. 27, 2011	Dec. 30, 2012		Dec. 25, 2011		Dec. 26, 2010		Dec. 25, 2011
Segment Reporting Information [Line Items]
Net revenues		$ 200,178,000	$ 168,813,000	$ 177,604,000	$ 144,194,000	$ 225,054,000	$ 185,222,000	$ 193,272,000	$ 160,201,000	$ 690,789,000		$ 763,749,000		$ 716,451,000
Gross profit		78,637,000	68,660,000	70,524,000	53,021,000	92,597,000	74,000,000	80,071,000	65,622,000	270,842,000		312,290,000		314,449,000
Operating expenses										391,303,000	[1]	312,113,000	[2]	285,706,000	[3]
Interest expense										(8,890,000)		(4,542,000)		(3,389,000)
Other gain (loss), net										(1,731,000)		(1,523,000)		(2,237,000)
(Loss) earnings from continuing operations before income taxes										(131,082,000)		(5,888,000)		23,117,000
Total Assets	1,044,481,000	859,809,000				1,044,481,000				859,809,000		1,044,481,000				1,044,481,000
Goodwill, Impairment Loss				400,000						102,715,000		0		0
Restructuring expenses										28,422,000		28,640,000		8,211,000
CEO transition charge										2,900,000
Charges related to improper and fraudulent Canadian activities										(3,907,000)		(179,000)		1,537,000		4,100,000
Gain on sale of subsidiary										1,657,000		0		0
Acquisition costs										332,000		2,319,000		523,000
Litigation settlement		(900,000)								(295,000)		(943,000)		0
Asset impairment			800,000	700,000						0		592,000		0
Asset impairment	600,000
Selling, general and administrative charge														800,000
Segment, Shrink Management Solutions [Member]
Segment Reporting Information [Line Items]
Net revenues										450,120,000		491,925,000		471,522,000
Gross profit										198,703,000		220,607,000		217,715,000
Total Assets	652,895,000	601,468,000				652,895,000				601,468,000		652,895,000				652,895,000
Segment, Apparel Labeling Solutions [Member]
Segment Reporting Information [Line Items]
Net revenues										184,967,000		198,158,000		172,937,000
Gross profit										46,661,000		56,860,000		61,805,000
Total Assets	284,301,000	172,064,000				284,301,000				172,064,000		284,301,000				284,301,000
Segment, Retail Merchandising Solutions [Member]
Segment Reporting Information [Line Items]
Net revenues										55,702,000		73,666,000		71,992,000
Gross profit										25,478,000		34,823,000		34,929,000
Total Assets	$ 107,285,000	$ 86,277,000				$ 107,285,000				$ 86,277,000		$ 107,285,000				$ 107,285,000

[1] Includes a $102.7 million goodwill impairment charge, $28.4 million restructuring charge, a $2.9 million charge related to our CEO transition, a $0.3 million acquisition charge, a $0.3 million litigation settlement, $3.9 million of income resulting from compensation for the financial impact of the fraudulent Canadian activities received from our insurance provider, partially offset by charges for forensic and legal fees associated with the improper and fraudulent Canadian activities, and a $1.7 million gain on sale of our non-strategic Suzhou, China subsidiary.

[2] 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.

[3] 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.

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Stockholders' Equity (Tables)

12 Months Ended

Dec. 30, 2012

Stockholders' Equity Note [Abstract]

Components Of Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income at December 30, 2012 and at December 25, 2011 are as follows:

(amounts in thousands)	December 30, 2012			December 25, 2011
Actuarial losses on pension plans, net of tax	$	(17,538	)	$	(6,580	)
Derivative hedge contracts, net of tax	21			1,542
Foreign currency translation adjustment	18,312			17,779
Total	$	795		$	12,741

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Discontinued Operations (Narrative) (Details) (USD $)	3 Months Ended		12 Months Ended			0 Months Ended	12 Months Ended					1 Months Ended	12 Months Ended
	Sep. 23, 2012	Jun. 24, 2012	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Oct. 01, 2012 Banking Security Systems Integration Business Unit [Member]	Dec. 30, 2012 Banking Security Systems Integration Business Unit [Member]	Dec. 25, 2011 Banking Security Systems Integration Business Unit [Member] acquisition	Dec. 26, 2010 Banking Security Systems Integration Business Unit [Member]	Oct. 01, 2012 Banking Security Systems Integration Business Unit [Member] Maximum [Member]	Oct. 01, 2012 Banking Security Systems Integration Business Unit [Member] Minimum [Member]	Dec. 31, 2012 Checkview Business [Member]	Dec. 30, 2012 Checkview Business [Member]	Dec. 25, 2011 Checkview Business [Member]	Dec. 26, 2010 Checkview Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Sale of business unit, sale price						$ 3,500,000
Net cash proceeds from sale of business unit			1,180,000	0	0	1,200,000
Proceeds from sale of business unit, promissory note						1,400,000
Promissory note variable interest rate basis						30 day LIBOR
Promissory note variable rate basis spread						5.50%
Maximum contingent consideration payment										900,000
Basis amount of revenues for contingent payment											10,000,000
Percentage of revenues to be paid as contingent consideration						10.00%
Discontinued operations				(3,782,000)				3,800,000
Number of Businesses Acquired								3
Goodwill, Impairment Loss		400,000	102,715,000	0	0			3,400,000				3,300,000
Asset impairment	800,000	700,000	0	592,000	0		1,442,000	2,781,000	0				329,000	0	0
Loss on disposal							(15,000)	0	0
Long Lived Assets Held-for-sale, Impairment Charge													300,000
Reporting Unit, Amount of Carrying Amount In Excess Of Fair Value													$ 800,000

XML

Consolidated Statements Of Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Income Statement [Abstract]
Discontinued operations, tax expense (benefit)	$ 247	$ (378)	$ 5,134

XML

Employee Benefit Plans (Schedule Of Accrued Benefits) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Accrued pensions — current	$ 4,687	$ 4,453
Accrued pensions	95,839	78,815
Net amount recognized at end of year	100,526	83,268
Accumulated benefit obligation at end of year	$ 96,774	$ 80,744

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Summary Of Significant Accounting Policies

12 Months Ended

Dec. 30, 2012

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

We are a leading global manufacturer and provider of technology-driven, loss prevention, inventory management and labeling solutions to the retail and apparel industry. We provide integrated inventory management solutions to brand, track, and secure goods for retailers and consumer product manufacturers worldwide. We are a leading provider of, and earn revenues primarily from the sale of Shrink Management, Apparel Labeling and Retail Merchandising Solutions. Shrink Management Solutions consists of electronic article surveillance (EAS) systems, EAS consumables, Alpha^® solutions, store security system installations and monitoring solutions (CheckView^®), and radio frequency identification (RFID) systems, software, tags and labels. Apparel Labeling Solutions includes our web-based data management service 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. Retail Merchandising Solutions consists of hand-held labeling systems (HLS) and retail display systems (RDS). Applications of these products include primarily retail security, asset and merchandise visibility, automatic identification, and pricing and promotional labels and signage. Operating directly in 29 countries, we have a global network of subsidiaries and distributors, and provide customer service and technical support around the world.

Revision of Previously Issued Consolidated Financial Statements

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 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. The fiscal year 2010 financial statement impact was $1.5 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 was recorded in the fourth quarter of 2012 in other (income) expense in the Consolidated Statement of Operations.

We revised our historical annual and quarterly filings for the effects of these revision adjustments in our 2011 Annual Report on Form 10-K and our 2012 Quarterly Reports on Form 10-Q. All historical amounts presented in this 2012 Annual Report on Form 10-K reflect these historical revision adjustments. 

Principles of Consolidation

The Consolidated Financial Statements include the accounts of Checkpoint Systems, Inc. and its majority-owned subsidiaries (Company). All inter-company transactions are eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fiscal Year

Our fiscal year is the 52 or 53 week period ending the last Sunday of December. References to 2012 are for the 53 weeks ended December 30, 2012, while references to 2011 and 2010 are for the 52 weeks ended December 25, 2011 and December 26, 2010, respectively.

Reclassifications

Certain reclassifications and retrospective adjustments have been made to prior period information to conform to current period presentation.

Discontinued Operations

We evaluate our businesses and product lines periodically for their strategic fit within our operations. In December 2011, we began actively marketing our Banking Security Systems Integration business unit and we completed its sale in October 2012. In December 2012, our U.S. and Canada based CheckView^® business met held for sale reporting criteria. In connection with our decisions to sell these businesses, for all periods presented, the operating results associated with these businesses have been reclassified into earnings from discontinued operations, net of tax in the Consolidated Statements of Operations. The assets and liabilities associated with the U.S. and Canada based CheckView^® business have been adjusted to fair value, less costs to sell, and reclassified into assets of discontinued operations, net of taxand liabilities of discontinued operations, net of tax, as appropriate, in the Consolidated Balance Sheets. Refer to Note 19 of the Consolidated Financial Statements.

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.

Sale of Subsidiary

On November 15, 2012, we sold our Suzhou, China subsidiary, resulting in a gain on sale of $1.7 million that was recognized in other operating income 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. In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the entity holding the non-controlling interest.

On July 1, 1997, Checkpoint Systems Japan Co. Ltd. (Checkpoint Japan), a wholly-owned subsidiary of the Company, issued newly authorized shares to Mitsubishi Materials Corporation (Mitsubishi) in exchange for cash. In February 2006, Checkpoint Japan repurchased 26% of these shares from Mitsubishi in exchange for $0.2 million in cash. In August 2010, Checkpoint Manufacturing Japan Co., LTD. repurchased the remaining 74% of these shares from Mitsubishi in exchange for $0.8 million in cash.

We have classified non-controlling interests as equity on our Consolidated Balance Sheets as of December 30, 2012 and December 25, 2011 and presented net income attributable to non-controlling interests separately on our Consolidated Statements of Operations for the years ended December 30, 2012, December 25, 2011, and December 26, 2010.

Subsequent Events

We perform a review of subsequent events in connection with the preparation of our financial statements. The accounting for and disclosure of events that occur after the balance sheet date, but before our financial statements are issued or available to be issued are reflected where appropriate or required in our financial statements. Refer to Note 20 of the Consolidated Financial Statements.

Cash and Cash Equivalents

Cash in excess of operating requirements is invested in short-term, income-producing instruments or used to pay down debt. Cash equivalents include commercial paper and other securities with original maturities of 90 days or less at the time of purchase. Book value approximates fair value because of the short maturity of those instruments.

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 year ended December 30, 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

Accounts receivables are recorded at net realizable values. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. These allowances are based on specific facts and circumstances surrounding individual customers as well as our historical experience. Provisions for the losses on receivables are charged to income to maintain the allowance at a level considered adequate to cover losses. Receivables are charged off against the reserve when they are deemed uncollectible. From time to time, we sell customer related receivables to third party financial institutions and evaluate these transactions to determine if they meet the criteria for sale accounting treatment. If it is determined that the criteria for sale treatment is met, the receivables are removed from the Consolidated Balance Sheet and earnings are reported on the Consolidated Statement of Operations. If it is determined that the criteria for sale accounting treatment is not met, the receivables remain on the Consolidated Balance Sheet and the transaction is treated as a secured financing.

During 2011, cash proceeds from the sale of accounts receivable related to sales-type lease extensions with customers to third party financial institutions totaled $38.0 million. Proceeds from the initial sale of the accounts receivables are used to fund operations. This transaction meets the criteria for sale accounting treatment. We have presented the earnings recognized on the sale of the receivables and other related matters separately in other operating income on the Consolidated Statements of Operations for the years ended December 25, 2011 and December 30, 2012.

Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market. A provision is made to reduce excess or obsolete inventory to its net realizable value.

Revenue Equipment on Operating Lease

The cost of the equipment leased to customers under operating leases is depreciated on a straight-line basis over the lesser of the length of the contract or estimated useful life of the asset, which is usually between three and five years.

Property, Plant, and Equipment

Property, plant, and equipment is carried at cost less accumulated depreciation. Maintenance, repairs, and minor renewals are expensed as incurred. Additions, improvements, and major renewals are capitalized. Depreciation is provided on a straight-line basis over the estimated useful lives of the assets. Assets subject to capital leases are depreciated over the lesser of the estimated useful life of the asset or length of the contract. Buildings, equipment rented to customers, and leased equipment on capitalized leases use the following estimated useful lives of fifteen to thirty years, three to five years, and five years, respectively. Machinery and equipment estimated useful lives range from three to ten years. Leasehold improvement useful lives are the lesser of the minimum lease term or the useful life of the item. The cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is included in income.

We review our property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If it is determined that an impairment, based on expected future undiscounted cash flows, exists, then the loss is recognized on the Consolidated Statements of Operations. The amount of the impairment is the excess of the carrying amount of the impaired asset over its fair value.

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 were 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 December 30, 2012 and December 25, 2011 were $22.8 million and $21.4 million respectively. As of December 30, 2012, $18.1 million was recorded in machinery and equipment related to portions of the ERP system that were placed in service. The remaining costs of $4.7 million and $6.0 million as of December 30, 2012 and December 25, 2011, respectively, are capitalized as construction-in-progress until such time as the these portions of the ERP system have been placed in service.

Goodwill

Goodwill is carried at cost and is not amortized. We test goodwill for impairment on an annual basis as of fiscal month end October of each fiscal year, relying on a number of factors including operating results, business plans and anticipated future cash flows. Company management uses its judgment in assessing whether goodwill has become impaired between annual impairment tests. Reporting units are primarily determined as the geographic areas comprising the Company’s business segments, except in situations when aggregation of the reporting units is appropriate. Recoverability of goodwill is evaluated using a two-step process when we conclude a qualitative analysis is not sufficient. The first step involves a comparison of the fair value of a reporting unit with its carrying value. If the carrying amount of the reporting unit exceeds its fair value, then the second step of the process involves a comparison of the implied fair value and carrying value of the goodwill of that reporting unit. If the carrying value of the goodwill of a reporting unit exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to the excess. The nonrecurring fair value measurement of goodwill is developed using significant unobservable inputs (Level 3). We considered whether applying a purely qualitative assessment of goodwill would be sufficient (i.e. a qualitative assessment without quantitative support and bypassing Step 1). We reviewed the implied headroom for each reporting unit as of the most recent goodwill assessment, noting that three of our reporting units had headroom of less than 12% and would require a quantitative analysis. Therefore, we decided to proceed to Step 1 for all reporting units.

The fair value of our reporting units is dependent upon our estimate of future discounted cash flows and other factors. Our estimates of future cash flows include assumptions concerning future operating performance and economic conditions and may differ from actual future cash flows. Estimated future cash flows are adjusted by an appropriate discount rate derived from our market capitalization plus a suitable control premium at the date of evaluation. The financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate and through our stock price that we use to determine our market capitalization. Therefore, changes in the stock price may also affect the amount of impairment recorded. Market capitalization is determined by multiplying the shares outstanding on the assessment date by the average market price of our common stock over a 30-day period before each assessment date. We use this 30-day duration to consider inherent market fluctuations that may affect any individual closing price. We believe that our market capitalization alone does not fully capture the fair value of our business as a whole, or the substantial value that an acquirer would obtain from its ability to obtain control of our business. As such, in determining fair value, we add a control premium to our market capitalization. To estimate the control premium, we considered our unique competitive advantages that would likely provide synergies to a market participant. In addition, we considered external market factors which we believe contributed to the decline and volatility in our stock price that did not reflect our underlying fair value. Refer to Note 5 of the Consolidated Financial Statements.

Other Intangibles

Indefinite-lived intangible assets are carried at cost and are not amortized, but are subject to tests for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

Definite-lived intangibles are amortized on a straight-line basis over their useful lives (or legal lives if shorter). We review our other intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.

If it is determined that an impairment, based on expected future cash flows, exists, then the loss is recognized on the Consolidated Statements of Operations. The amount of the impairment is the excess of the carrying amount of the impaired asset over the fair value of the asset. The fair value represents expected future cash flows from the use of the assets, discounted at the rate used to evaluate potential investments. Refer to Note 5 of the Consolidated Financial Statements.

Other Assets

Included in other assets are $6.0 million and $11.2 million of net long-term customer-based receivables at December 30, 2012 and December 25, 2011, respectively.

Deferred Financing Costs

Financing costs are capitalized and amortized to interest expense over the life of the debt. The net deferred financing costs at December 30, 2012 and December 25, 2011 were $2.6 million and $2.8 million, respectively. The financing cost amortization expense was $2.3 million, $1.1 million, and $1.2 million, for 2012, 2011, and 2010, respectively.

Revenue Recognition

We recognize revenue when revenue is realized or realizable and earned. Revenue is realized or realizable and earned when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the price to the buyer is fixed or determinable; and collectability is reasonably assured.

We enter into contracts to sell our products and services, and, while the majority of our sales agreements contain standard terms and conditions, there are agreements that contain multiple elements or non-standard terms and conditions. As a result, significant contract interpretation is sometimes required to determine the appropriate accounting, including whether the deliverables specified in a multiple element arrangement should be treated as separate units of accounting for revenue recognition purposes, and, if so, how the selling price should be allocated among the elements and when to recognize revenue for each element.

For arrangements with multiple elements, we allocate total arrangement consideration to all deliverables based on their relative selling price using a specific hierarchy and recognize revenue when each element’s revenue recognition criteria are met. The hierarchy is as follows: vendor-specific objective evidence (“VSOE”), third-party evidence of selling price (“TPE”) or best estimate of selling price (“BESP”). VSOE of fair value for each element is established based on the price charged when the same element is sold separately. We recognize revenue when installation is complete or other post-shipment obligations have been satisfied. Unearned revenue is recorded when payments are received in advance of performing our service obligations and is recognized over the service period.

Products leased to customers under sales-type leases are accounted for as the equivalent of a sale. The present value of such lease revenues is recorded as net revenues, and the related cost of the products is charged to cost of revenues. The deferred finance charges applicable to these leases are recognized over the terms of the leases. Rental revenue from products under operating leases is recognized over the term of the lease. Installation revenue from SMS EAS products is recognized when the systems are installed. Service revenue is recognized, for service contracts, on a straight-line basis over the contractual period, and, for non-contract work, as services are performed.

Revenues from software license agreements are recognized when persuasive evidence of an agreement exists, delivery of the product has occurred, no significant vendor obligations are remaining to be fulfilled, the fee is fixed or determinable, and collection is probable. Revenue from software contracts for both licenses and professional services that require significant production, modification, customization, or implementation are recognized together using the percentage of completion method based upon the ratio of labor incurred to total estimated labor to complete each contract. In instances where there is a term license combined with services, revenue is recognized ratably over the term.

We record estimated reductions to revenue for customer incentive offerings, including volume-based incentives and rebates. The accrual for these incentives and rebates, which are included in the Other Accrued Expenses section of our Consolidated Balance Sheet, was $15.2 million and $11.7 million as of December 30, 2012 and December 25, 2011, respectively. We record revenues net of an allowance for estimated return activities. Return activity was immaterial to revenue and results of operations for all periods presented.

Shipping and Handling Fees and Costs

Shipping and handling fees are accounted for in net revenues and shipping and handling costs in cost of revenues.

Cost of Revenues

The principal elements of cost of revenues are product cost, field service and installation cost, freight, and product royalties paid to third parties.

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 Sheet:

(amounts in thousands)	December 30, 2012			December 25, 2011
Balance at beginning of year	$	5,857		$	6,170
Accruals for warranties issued	5,205			5,882
Settlements made	(5,429		)	(6,194		)
Adjustment for discontinued operations	(1,668		)	—
Foreign currency translation adjustment	30			(1		)
Balance at end of period	$	3,995		$	5,857

Royalty Expense

Royalty expenses related to security products approximated $0.2 million, $0.2 million, and $0.1 million, in 2012, 2011, and 2010, respectively. These expenses are included as part of cost of revenues.

Research and Development Costs

Research and development costs are expensed as incurred and consist of development work associated with our existing and potential products and processes. Our research and development expenses relate primarily to payroll costs for engineering personnel, costs associated with various projects, including testing, developing prototypes and related expenses.

Stock Options

We recognize stock-based compensation expense for all share-based payments net of an estimated forfeiture rate and only recognize compensation cost for those shares expected to vest. Stock compensation expense is recognized for all share-based payments on a straight-line basis over the requisite service period of the award.

We use the Black-Scholes option pricing model to value all stock options. The table below presents the weighted average expected life in years. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. Volatility is determined using changes in historical stock prices. The interest rate for periods within the expected life of the award is based on the U.S. Treasury yield curve in effect at the time of grant.

The fair value of share-based payment units was estimated using the Black-Scholes option pricing model with the following assumptions and weighted average fair values as follows:

Year Ended	December 30, 2012			December 25, 2011			December 26, 2010
Weighted-average fair value of grants	$	4.38		$	9.74		$	7.51
Valuation assumptions:
Expected dividend yield	0.00		%	0.00		%	0.00		%
Expected volatility	.5208			.4991			.4829
Expected life (in years)	5.06			4.98			4.93
Risk-free interest rate	0.750		%	2.138		%	1.845		%

Refer to Note 8 of the Consolidated Financial Statements.

Income Taxes

Deferred tax liabilities and assets are determined based on the difference between the financial statement basis and the tax basis of assets and liabilities, using enacted statutory tax rates in effect at the balance sheet date. Changes in enacted tax rates are reflected in the tax provision as they occur. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted.

We utilize a two-step approach to recognizing and measuring uncertain tax positions (tax contingencies). The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement.  We include interest and penalties related to our tax contingencies in income tax expense.

Sales and Value Added Taxes Collected from Customers

Sales and value added taxes collected from customers are excluded from revenues. The obligation is included in other current liabilities until the taxes are remitted to the appropriate taxing authorities.

Foreign Currency Translation and Transactions

Our balance sheet accounts of foreign subsidiaries are translated into U.S. dollars at the rate of exchange in effect at the balance sheet dates. Revenues, costs, and expenses of our foreign subsidiaries are translated into U.S. dollars at the year-to-date average rate of exchange. The resulting translation adjustments are recorded as a separate component of shareholders’ equity. Gains or losses on certain long-term inter-company transactions are excluded from the net earnings (loss) and accumulated in the cumulative translation adjustment as a separate component of Consolidated Stockholders’ Equity. All other foreign currency transaction gains and losses are included in net earnings (loss) on our Consolidated Statement of Operations.

Accounting for Hedging Activities

We enter into certain foreign exchange forward contracts in order to hedge anticipated rate fluctuations in Western Europe, Canada, Japan and Australia. Transaction gains or losses resulting from these contracts are recognized at the end of each reporting period. We use the fair value method of accounting, recording realized and unrealized gains and losses on these contracts. These gains and losses are included in other gain (loss), net on our Consolidated Statements of Operations.

We enter into various foreign currency contracts to reduce our exposure to forecasted Euro-denominated inter-company revenues. These cash flow hedging instruments are marked to market and the changes are recorded in other comprehensive income. Amounts recorded in other comprehensive income are recognized in cost of goods sold as the inventory is sold to external parties. Any hedge ineffectiveness is charged to other gain (loss), net on our Consolidated Statements of Operations.

We enter, on occasion, into interest rate swaps to reduce the risk of significant interest rate increases in connection with floating rate debt. This cash flow hedging instrument is marked to market and the changes are recorded in other comprehensive income. Any hedge ineffectiveness is charged to interest expense. Refer to Note 14 of the Consolidated Financial Statements.

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. In January 2013, the FASB issued ASU 2013-01, "Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Asset and Liabilities," which clarifies the scope of the offsetting disclosures of ASU 2011-11. Both ASUs are 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.

In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The Company is currently evaluating the impact of adopting this guidance.

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Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)	1 Months Ended	3 Months Ended		10 Months Ended	12 Months Ended					10 Months Ended	12 Months Ended		6 Months Ended	12 Months Ended
	Dec. 25, 2011	Sep. 23, 2012	Jun. 24, 2012	Oct. 21, 2012	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 Goodwill Shrink Management Solutions [Member]	Dec. 25, 2011 Goodwill Shrink Management Solutions [Member]	Oct. 21, 2012 Goodwill Retail Merchandising Solutions [Member]	Dec. 30, 2012 Goodwill Retail Merchandising Solutions [Member]	Dec. 25, 2011 Goodwill Retail Merchandising Solutions [Member]	Jun. 24, 2012 Goodwill Apparel Labeling Solutions [Member]	Dec. 30, 2012 Goodwill Apparel Labeling Solutions [Member]	Dec. 25, 2011 Goodwill Apparel Labeling Solutions [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 84,557,000				$ 74,950,000	$ 84,557,000
Amortization expense					11,300,000	10,800,000	11,200,000
Asset impairment	600,000
Goodwill impairment			400,000		102,715,000	0	0	0		38,300,000	38,278,000		64,400,000	64,437,000
Discontinued operations						(3,782,000)			(3,782,000)			0			0
Asset impairment		$ 800,000	$ 700,000		$ 0	$ 592,000	$ 0
Reporting units' percentagie of fair value in excess of carrying amount				45.00%

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Income Taxes (Reconciliation Of The Beginning And Ending Amount Of Unrecognized Tax Benefits) (Details) (USD $)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	$ 16,300,000	$ 15,900,000
Gross unrecognized tax benefits at beginning of year	15,850,000	12,846,000	14,884,000
Increases in tax positions for prior years	225,000	997,000	1,161,000
Decreases in tax positions for prior years	(1,068,000)	(44,000)	0
Increases in tax positions for current year	3,800,000	808,000	1,229,000
Settlements	(683,000)	(443,000)	(928,000)
Acquisition reserves	1,167,000	4,640,000	240,000
Lapse in statute of limitations	(2,956,000)	(2,954,000)	(3,740,000)
Gross unrecognized tax benefits at end of year	$ 16,335,000	$ 15,850,000	$ 12,846,000

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Business Segments And Geographic Information (Net Revenues And Other Financial Information By Geographic Area) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended										12 Months Ended
	Dec. 30, 2012		Sep. 23, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 25, 2011		Sep. 25, 2011	Jun. 26, 2011	Mar. 27, 2011	Dec. 30, 2012		Dec. 25, 2011		Dec. 26, 2010
Segment Reporting Information [Line Items]
Net revenues	$ 200,178		$ 168,813	$ 177,604	$ 144,194	$ 225,054		$ 185,222	$ 193,272	$ 160,201	$ 690,789		$ 763,749		$ 716,451
Long-lived assets	108,932					134,081					108,932		134,081
United States, Puerto Rico, & Dominican Republic [Member]
Segment Reporting Information [Line Items]
Net revenues											184,900	[1]	192,194	[2]	186,442	[3]
Long-lived assets	27,875	[4]				37,179	[5]				27,875	[4]	37,179	[5]
Europe [Member]
Segment Reporting Information [Line Items]
Net revenues											276,902	[6]	346,834		352,347	[7]
Long-lived assets	15,890					16,698					15,890		16,698
International Americas [Member]
Segment Reporting Information [Line Items]
Net revenues											37,131		35,193		25,661
Long-lived assets	2,255					3,557					2,255		3,557
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Net revenues											191,856		189,528		152,001
Long-lived assets	62,912	[8]				76,647	[9]				62,912	[8]	76,647	[9]
United States [Member]
Segment Reporting Information [Line Items]
Net revenues											184,900		192,200		186,400
Long-lived assets	27,800					29,900					27,800		29,900
China [Member]
Segment Reporting Information [Line Items]
Long-lived assets	36,300					40,300					36,300		40,300
Japan [Member]
Segment Reporting Information [Line Items]
Long-lived assets	12,800					15,000					12,800		15,000
Germany [Member]
Segment Reporting Information [Line Items]
Net revenues											$ 74,800				$ 73,700

[1] (1) Includes net revenue from the United States of $184.9 million.

[2] Includes net revenue from the United States of $192.2 million.

[3] Includes net revenue from the United States of $186.4 million.

[4] Includes long-lived assets from the United States of $27.8 million.

[5] Includes long-lived assets from the United States of $29.9 million.

[6] Includes net revenue from Germany of $74.8 million.

[7] Includes net revenue from Germany of $73.7 million

[8] Includes long-lived assets from China and Japan of $36.3 million and $12.8 million, respectively.

[9] Includes long-lived assets from China and Japan of $40.3 million and $15.0 million, respectively.

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Long-Term Debt (Aggregate Maturities On All Long-Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012		Dec. 25, 2011
Long-term Debt, Excluding Current Maturities [Abstract]
Aggregate maturities debt, 2013	$ 351
Aggregate maturities capital leases, 2013	287
Aggregate maturities, 2013	638
Aggregate maturities debt, 2014	42,342
Aggregate maturities capital leases, 2014	122
Aggregate maturities, 2014	42,464
Aggregate maturities debt, 2015	22,262
Capital Leases, Net Future Minimum Principal Payment Due In Year Three	56
Aggregate maturities, 2015	22,318
Aggregate maturities debt, 2016	22,084
Aggregate maturities capital leases, 2016	15
Aggregate maturities, 2016	22,099
Aggregate maturities debt, 2017	22,038
Aggregate maturities capital leases, 2017	2
Aggregate maturities, 2017	22,040
Aggregate maturities debt, Thereafter	0
Aggregate maturities capital leases, Thereafter	0
Aggregate maturities, Thereafter	0
Aggregate maturities debt, Total	109,077
Aggregate maturities capital leases, Total	482
Total	$ 109,559	[1]	$ 129,594	[1]

[1] The weighted average interest rates for 2012 and 2011 were 5.9% and 4.0%, respectively

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Business Segments And Geographic Information

12 Months Ended

Dec. 30, 2012

Segment Reporting [Abstract]

Business Segments And Geographic Information

BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

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 30, 2012				December 25, 2011				December 26, 2010
Business segment net revenue:
Shrink Management Solutions	$	450,120			$	491,925			$	471,522
Apparel Labeling Solutions	184,967				198,158				172,937
Retail Merchandising Solutions	55,702				73,666				71,992
Total	$	690,789			$	763,749			$	716,451
Business segment gross profit:
Shrink Management Solutions	$	198,703			$	220,607			$	217,715
Apparel Labeling Solutions	46,661				56,860				61,805
Retail Merchandising Solutions	25,478				34,823				34,929
Total gross profit	270,842				312,290				314,449
Operating expenses	391,303			(1)	312,113			(2)	285,706			(3)
Interest expense	(8,890		)		(4,542		)		(3,389		)
Other gain (loss), net	(1,731		)		(1,523		)		(2,237		)
(Loss) earnings from continuing operations before income taxes	$	(131,082	)		$	(5,888	)		$	23,117
Business segment total assets:
Shrink Management Solutions	$	601,468			$	652,895
Apparel Labeling Solutions	172,064				284,301
Retail Merchandising Solutions	86,277				107,285
Total	$	859,809			$	1,044,481

⁽¹⁾  Includes a $102.7 million goodwill impairment charge, $28.4 million restructuring charge, a $2.9 million charge related to our CEO transition, a $0.3 million acquisition charge, a $0.3 million litigation settlement, $3.9 million of income resulting from compensation for the financial impact of the fraudulent Canadian activities received from our insurance provider, partially offset by charges for forensic and legal fees associated with the improper and fraudulent Canadian activities, and a $1.7 million gain on sale of our non-strategic Suzhou, China subsidiary.

⁽²⁾  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.

⁽³⁾  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.

(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 2012, 2011, and 2010:

(amounts in thousands)	United States, Puerto Rico, & Dominican Republic			Europe			International Americas		Asia Pacific			Total
2012
Net revenues from unaffiliated customers	$	184,900	(1)	$	276,902	(2)	$	37,131	$	191,856		$	690,789
Long-lived assets	$	27,875	(3)	$	15,890		$	2,255	$	62,912	(4)	$	108,932
2011
Net revenues from unaffiliated customers	$	192,194	(5)	$	346,834		$	35,193	$	189,528		$	763,749
Long-lived assets	$	37,179	(6)	$	16,698		$	3,557	$	76,647	(7)	$	134,081
2010
Net revenues from unaffiliated customers	$	186,442	(8)	$	352,347	(9)	$	25,661	$	152,001		$	716,451

⁽¹⁾  Includes net revenue from the United States of $184.9 million.

⁽²⁾  Includes net revenue from Germany of $74.8 million.

⁽³⁾  Includes long-lived assets from the United States of $27.8 million.

⁽⁴⁾  Includes long-lived assets from China and Japan of $36.3 million and $12.8 million, respectively.

⁽⁵⁾  Includes net revenue from the United States of $192.2 million.

⁽⁶⁾  Includes long-lived assets from the United States of $29.9 million.

⁽⁷⁾  Includes long-lived assets from China and Japan of $40.3 million and $15.0 million, respectively.

⁽⁸⁾  Includes net revenue from the United States of $186.4 million.

⁽⁹⁾  Includes net revenue from Germany of $73.7 million.

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Supplemental Cash Flow Information (Business Acquisitions) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	May 16, 2011
Supplemental Cash Flow Information [Abstract]
Fair value of tangible assets acquired, less cash acquired	$ 0	$ 28,535	$ 33
Goodwill and identified intangible assets	0	68,458	467
Liabilities assumed	0	(20,270)	0	(4,200)
Payment obligation	0	(786)	(200)
Cash paid for acquisitions	$ 0	$ 75,937	$ 300

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Long-Term Debt (Tables)

12 Months Ended

Dec. 30, 2012

Long-term Debt, Excluding Current Maturities [Abstract]

Schedule Of Long-Term Debt

Long-term debt at December 30, 2012 and December 25, 2011 consisted of the following:

(amounts in thousands)	December 30, 2012		December 25, 2011
Senior Secured Credit Facility:
$69 million variable interest rate revolving credit facility maturing in 2014	$	42,021	$	52,248
Senior Secured Notes:
$22 million 4.00% fixed interest rate Series A senior secured notes maturing in 2015	22,038		25,000
$22 million 4.38% fixed interest rate Series B senior secured notes maturing in 2016	22,038		25,000
$22 million 4.75% fixed interest rate Series C senior secured notes maturing in 2017	22,038		25,000
Full-recourse factoring liabilities	942		1,333
Other capital leases with maturities through 2016	482		1,013
Total(1)	109,559		129,594
Less current portion	638		910
Total long-term portion	$	108,921	$	128,684

⁽¹⁾  The weighted average interest rates for 2012 and 2011 were 5.9% and 4.0%, respectively

Aggregate Maturities On All Long-Term Debt

The aggregate maturities on all long-term debt (including current portion) are:

(amounts in thousands)	Debt		Capital Leases		Total Debt
2013	$	351	$	287	$	638
2014	42,342		122		42,464
2015	22,262		56		22,318
2016	22,084		15		22,099
2017	22,038		2		22,040
Thereafter	—		—		—
Total	$	109,077	$	482	$	109,559

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Earnings Per Share

12 Months Ended

Dec. 30, 2012

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

For fiscal years 2012, 2011, and 2010, basic earnings per share are based on net earnings divided by the weighted average number of shares outstanding during the period. The following data shows the amounts used in computing earnings per share and the effect on net earnings from continuing operations and the weighted average number of shares of dilutive potential common stock:

(amounts in thousands, except per share data)	December 30, 2012			December 25, 2011			December 26, 2010
Basic (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(137,917	)	$	(65,404	)	$	19,405
Basic (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	$	(7,959	)	$	(1,165	)	$	8,325
Diluted (loss) earnings from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(137,917	)	$	(65,404	)	$	19,405
Diluted (loss) earnings from discontinued operations, net of tax expense (benefit) of $247, ($378), and $5,134	$	(7,959	)	$	(1,165	)	$	8,325
Shares:
Weighted average number of common shares outstanding	40,476			40,070			39,483
Shares issuable under deferred compensation agreements	524			462			452
Basic weighted average number of common shares outstanding	41,000			40,532			39,935
Common shares assumed upon exercise of stock options and awards	—			—			505
Shares issuable under deferred compensation arrangements	—			—			5
Dilutive weighted average number of common shares outstanding	41,000			40,532			40,445
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	(0.20		)	(0.03		)	0.21
Basic (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share:
(Loss) earnings from continuing operations	$	(3.36	)	$	(1.61	)	$	0.48
(Loss) earnings from discontinued operations, net of tax	(0.20		)	(0.03		)	0.21
Diluted (loss) earnings attributable to Checkpoint Systems, Inc. per share	$	(3.56	)	$	(1.64	)	$	0.69

Anti-dilutive potential common shares are not included in our earnings per share calculation. The Long-term Incentive Plan restricted stock units were excluded from our calculation due to the performance of vesting criteria not being met.

The number of anti-dilutive common share equivalents for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 were as follows: 

(amounts in thousands)	December 30, 2012	December 25, 2011	December 26, 2010
Weighted average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	3,107	2,380	1,516

⁽¹⁾  Adjustments for stock options and awards of 61 shares and 329 shares and deferred compensation arrangements of 12 shares and 11 shares were anti-dilutive in fiscal 2012 and 2011, respectively. These shares were therefore excluded from the earnings per share calculation due to our net loss for the years.

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Provision For Restructuring (Schedule Of Restructuring Expense) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Restructuring Cost and Reserve [Line Items]
Asset impairments	$ 6,506	$ 7,843	$ 0
Total	28,422	28,640	8,211
Global Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	16,945	11,115	0
Asset impairments	6,506	7,761	0
Other exit costs	5,068	519	0
Total	28,500
SG&A Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	(86)	7,015	6,993
Asset impairments	0	72	0
Other exit costs	64	2,203	0
Total	0
Manufacturing Restructuring Plan [Member]
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	0	(146)	641
Other exit costs	(75)	101	577
Total	$ (100)