Business Segments And Geographic Information

12 Months Ended

Dec. 29, 2013

Segment Reporting [Abstract]

Business Segments And Geographic Information

BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

Historically, we have reported our results of operations in three segments: Shrink Management Solutions (SMS), Apparel Labeling Solutions (ALS), and Retail Merchandising Solutions (RMS). During the third quarter of 2013, we adjusted the product allocation between our SMS and ALS segments, renamed the SMS segment Merchandise Availability Solutions (MAS) and began reporting our segments as: Merchandise Availability Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. The years ended December 29, 2013, December 30, 2012 and December 25, 2011 have been conformed to reflect the segment change.

ALS now includes the results of our radio frequency identification (RFID) labels business (previously reported in SMS), coupled with our data management platform and network of service bureaus that manage the printing of variable information on apparel labels and tags. This change aligns us with our refined ALS strategy to be a leading supplier of apparel labeling solutions, with expertise in intelligent apparel labels for item-level tracking and loss prevention. Our MAS segment, which is focused on loss prevention and Merchandise Visibility™ (RFID), includes EAS systems, EAS consumables, Alpha® high-theft solutions, RFID systems and software and non-U.S. and Canada-based CheckView®. There were no changes to the RMS Segment.

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

(A) Business Segments

(amounts in thousands)	December 29, 2013				December 30, 2012				December 25, 2011
					(As Restated)				(As Restated)
Business segment net revenue:
Merchandise Availability Solutions	$	456,101		(1)	$	446,798		(2)	$	484,710		(3)
Apparel Labeling Solutions	182,259				187,419				200,024
Retail Merchandising Solutions	51,378				55,703				73,666
Total	$	689,738			$	689,920			$	758,400
Business segment gross profit:
Merchandise Availability Solutions	$	195,568			$	197,308			$	216,349
Apparel Labeling Solutions	54,672				47,050				56,720
Retail Merchandising Solutions	18,851				25,478				34,823
Total gross profit	269,091				269,836				307,892
Operating expenses	245,815			(4)	390,337			(5)	329,893			(6)
Interest expense, net	(17,440		)		(10,783		)		(5,519		)
Other gain (loss), net	(3,936		)		(1,731		)		(1,523		)
Earnings (loss) from continuing operations before income taxes	$	1,900			$	(133,015	)		$	(29,043	)
Business segment total assets:
Merchandise Availability Solutions	$	550,801			$	607,770
Apparel Labeling Solutions	174,797				174,480
Retail Merchandising Solutions	73,895				86,865
Total	$	799,493			$	869,115

⁽¹⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $192.9 million, $128.1 million and $102.3 million, respectively, representing more than 10% of total revenue.

⁽²⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $194.9 million, $121.4 million and $95.9 million, respectively, representing more than 10% of total revenue.

⁽³⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $202.1 million, $136.4 million and $113.7 million, respectively, representing more than 10% of total revenue.

⁽⁴⁾  Includes a $10.9 million restructuring charge, a $4.8 million asset impairment, a $1.2 million charge related to our CFO transition, a $1.0 million acquisition charge, a benefit of $6.6 million due to a litigation ruling reversal, and a $0.2 million gain on sale of our interest in the non-strategic Sri Lanka subsidiary.

⁽⁵⁾  Includes a $102.7 million goodwill impairment charge, a $28.4 million restructuring charge, a $2.9 million charge related to our CEO transition, $0.3 million in acquisition costs, 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.

⁽⁶⁾  Includes an $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 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 2013, 2012, and 2011:

(amounts in thousands)	United States, Puerto Rico, & Dominican Republic			Europe			International Americas		Asia Pacific			Total
2013
Net revenues from unaffiliated customers	$	203,171	(1)	$	255,610	(2)	$	32,523	$	198,434		$	689,738
Long-lived assets	$	8,430	(3)	$	13,524		$	1,432	$	52,948	(4)	$	76,334
2012 (As Restated)
Net revenues from unaffiliated customers	$	184,905	(5)	$	276,028	(6)	$	37,131	$	191,856		$	689,920
Long-lived assets	$	9,799	(7)	$	15,158		$	2,255	$	62,580	(8)	$	89,792
2011 (As Restated)
Net revenues from unaffiliated customers	$	192,384	(9)	$	341,295		$	35,193	$	189,528		$	758,400

⁽¹⁾  Includes net revenue from the United States of $203.2 million.

⁽²⁾  Includes net revenue from Germany of $81.7 million.

⁽³⁾  Includes long-lived assets from the United States of $8.4 million.

⁽⁴⁾  Includes long-lived assets from China and Japan of $33.8 million and $9.8 million, respectively.

⁽⁵⁾  Includes net revenue from the United States of $184.9 million.

⁽⁶⁾  Includes net revenue from Germany of $74.8 million.

⁽⁷⁾  Includes long-lived assets from the United States of $9.7 million.

⁽⁸⁾  Includes long-lived assets from China and Japan of $36.1 million and $12.8 million, respectively.

⁽⁹⁾  Includes net revenue from the United States of $192.2 million.