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.