10-Q

FORM 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the quarterly period ended March 30, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE ACT OF 1934

For the transition period from ___________________ to

Commission File No. 1-11257

CHECKPOINT SYSTEMS, INC.

(Exact name of Registrant as specified in its charter)

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)

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 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

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of May 2, 2014, there were 41,675,364 shares of the Company’s Common Stock outstanding.

CHECKPOINT SYSTEMS, INC.

FORM 10-Q

Table of Contents

	Page
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (Unaudited)
Consolidated Balance Sheets	3
Consolidated Statements of Operations	4
Consolidated Statements of Comprehensive Income (Loss)	5
Consolidated Statements of Equity	6
Consolidated Statements of Cash Flows	7
Notes to Consolidated Financial Statements	8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	32
Item 3. Quantitative and Qualitative Disclosures About Market Risk	45
Item 4. Controls and Procedures	46
PART II. OTHER INFORMATION	47
Item 1. Legal Proceedings	47
Item 1A. Risk Factors	48
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	48
Item 3. Defaults Upon Senior Securities	48
Item 4. Mine Safety Disclosures	48
Item 5. Other Information	48
Item 6. Exhibits	49
SIGNATURES	50
INDEX TO EXHIBITS	51
Rule 13a-14(a)/15d-14(a) Certification of George Babich, Jr., President and Chief Executive Officer
Rule 13a-14(a)/15d-14(a) Certification of Jeffrey O. Richard, Executive Vice President and Chief Financial Officer
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
XBRL Instance Document
XBRL Taxonomy Extension Schema Document
XBRL Taxonomy Extension Calculation Linkbase Document
XBRL Taxonomy Extension Label Linkbase Document
XBRL Taxonomy Extension Presentation Linkbase Document
XBRL Taxonomy Extension Definition Document

2

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(amounts in thousands)	March 30, 2014			December 29, 2013
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	121,163		$	121,573
Accounts receivable, net of allowance of $12,933 and $12,404	142,059			167,864
Inventories	94,821			83,521
Other current assets	25,335			29,119
Deferred income taxes	9,084			9,108
Total Current Assets	392,462			411,185
REVENUE EQUIPMENT ON OPERATING LEASE, net	1,139			1,267
PROPERTY, PLANT, AND EQUIPMENT, net	74,463			75,067
GOODWILL	185,893			185,864
OTHER INTANGIBLES, net	75,292			78,166
DEFERRED INCOME TAXES	37,981			38,131
OTHER ASSETS	10,217			9,813
TOTAL ASSETS	$	777,447		$	799,493
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term debt	$	203		$	435
Accounts payable	53,861			67,203
Accrued compensation and related taxes	25,860			24,341
Other accrued expenses	41,935			41,580
Income taxes	—			2,439
Unearned revenues	9,608			9,011
Restructuring reserve	7,651			8,175
Accrued pensions — current	5,012			5,013
Other current liabilities	17,047			19,536
Total Current Liabilities	161,177			177,733
LONG-TERM DEBT, LESS CURRENT MATURITIES	85,168			91,187
FINANCING LIABILITY	35,621			35,068
ACCRUED PENSIONS	99,694			99,677
OTHER LONG-TERM LIABILITIES	35,211			36,436
DEFERRED INCOME TAXES	12,971			13,067
COMMITMENTS AND CONTINGENCIES
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 45,644,492 and 45,484,524 shares	4,564			4,548
Additional capital	435,046			434,336
Accumulated deficit	(23,413		)	(23,284		)
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	2,928			2,245
TOTAL STOCKHOLDERS' EQUITY	347,605			346,325
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	777,447		$	799,493

3

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Quarter
	(13 weeks) Ended
(amounts in thousands, except per share data)	March 30, 2014			March 31, 2013
				(As Restated)
Net revenues	$	147,406		$	148,173
Cost of revenues	85,120			94,907
Gross profit	62,286			53,266
Selling, general, and administrative expenses	54,346			55,525
Research and development	3,882			4,693
Restructuring expenses	1,892			2,016
Litigation settlement	—			(6,584		)
Acquisition costs	—			161
Other operating income	—			(330		)
Operating income (loss)	2,166			(2,215		)
Interest income	267			399
Interest expense	1,256			2,564
Other gain (loss), net	(86		)	(545		)
Earnings (loss) from continuing operations before income taxes	1,091			(4,925		)
Income taxes expense	1,220			—
Net loss from continuing operations	(129		)	(4,925		)
Loss from discontinued operations, net of tax expense of $0 and $134	—			(2,556		)
Net loss	(129		)	(7,481		)
Less: loss attributable to non-controlling interests	—			(58		)
Net loss attributable to Checkpoint Systems, Inc.	$	(129	)	$	(7,423	)
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)

See Notes to Consolidated Financial Statements.

4

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014			March 31, 2013
				(As Restated)
Net loss	$	(129	)	$	(7,481	)
Other comprehensive income (loss), net of tax:
Amortization of pension plan actuarial losses, net of tax benefit of $110 and $108	278			282
Change in realized and unrealized gains (losses) on derivative hedges, net of tax expense of $0 and $0	—			(157		)
Foreign currency translation adjustment	405			(2,599		)
Total other comprehensive income (loss), net of tax	683			(2,474		)
Comprehensive income (loss)	554			(9,955		)
Less: comprehensive loss attributable to non-controlling interests	—			(225		)
Comprehensive income (loss) attributable to Checkpoint Systems, Inc.	$	554		$	(9,730	)

See Notes to Consolidated Financial Statements.

5

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(amounts in thousands)	Checkpoint Systems, Inc. Stockholders
	Common Stock			Additional Capital			Accumulated Deficit			Treasury Stock				Accumulated Other Comprehensive Income (Loss)			Non-controlling Interests			Total Equity
	Shares	Amount								Shares	Amount
Balance, December 30, 2012 (As Restated)	44,763	$	4,476	$	424,715		$	(4,356	)	4,036	$	(71,520	)	$	306		$	688		$	354,309
Net (loss) earnings							(18,928		)								1			(18,927		)
Exercise of stock-based compensation and awards released	721	72		2,489																2,561
Tax benefit on stock-based compensation				82																82
Stock-based compensation expense				6,369																6,369
Deferred compensation plan				681																681
Sale of interest in subsidiary																	(516		)	(516		)
Amortization of pension plan actuarial losses, net of tax														1,120						1,120
Change in realized and unrealized losses on derivative hedges, net of tax														(21		)				(21		)
Recognized loss on pension, net of tax														1,403						1,403
Prior service cost arising during period, net of tax														(158		)				(158		)
Foreign currency translation adjustment														(405		)	(173		)	(578		)
Balance, December 29, 2013	45,484	$	4,548	$	434,336		$	(23,284	)	4,036	$	(71,520	)	$	2,245		$	—		$	346,325
Net loss							(129		)								—			(129		)
Exercise of stock-based compensation and awards released	160	16		(969		)														(953		)
Tax benefit on stock-based compensation				(6		)														(6		)
Stock-based compensation expense				1,501																1,501
Deferred compensation plan				184																184
Amortization of pension plan actuarial losses, net of tax														278						278
Foreign currency translation adjustment														405						405
Balance, March 30, 2014	45,644	$	4,564	$	435,046		$	(23,413	)	4,036	$	(71,520	)	$	2,928		$	—		$	347,605

See Notes to Consolidated Financial Statements.

6

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(amounts in thousands)
Quarter (13 weeks) ended	March 30, 2014			March 31, 2013
				(As Restated)
Cash flows from operating activities:
Net loss	$	(129	)	$	(7,481	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	6,164			6,962
Amortization of debt issuance costs	108			347
Interest on financing liability	559			505
Deferred taxes	(93		)	(393		)
Stock-based compensation	1,501			1,972
Provision for losses on accounts receivable	676			(699		)
Excess tax benefit on stock compensation	(186		)	(23		)
Loss on disposal of fixed assets	29			170
Litigation settlement	—			(6,584		)
Restructuring related asset impairment	172			731
Decrease (increase) in operating assets, net of the effects of acquired companies:
Accounts receivable	24,279			34,851
Inventories	(11,111		)	(1,254		)
Other assets	3,995			6,764
(Decrease) increase in operating liabilities, net of the effects of acquired companies:
Accounts payable	(13,209		)	(2,031		)
Income taxes	(2,376		)	(2,462		)
Unearned revenues - current	594			(4,679		)
Restructuring reserve	(517		)	(3,063		)
Other liabilities	(1,893		)	(10,590		)
Net cash provided by operating activities	8,563			13,043
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(3,318		)	(1,363		)
Cash proceeds from the sale of discontinued operations	71			—
Other investing activities	36			440
Net cash used in investing activities	(3,211		)	(923		)
Cash flows from financing activities:
Proceeds from stock issuances	59			600
Excess tax benefit on stock compensation	186			23
Proceeds from short-term debt	—			2,272
Payment of short-term debt	—			(248		)
Net change in factoring and bank overdrafts	(55		)	(431		)
Proceeds from long-term debt	1,000			—
Payment of long-term debt	(7,179		)	(71		)
Net cash (used in) provided by financing activities	(5,989		)	2,145
Effect of foreign currency rate fluctuations on cash and cash equivalents	227			(2,015		)
Net (decrease) increase in cash and cash equivalents	(410		)	12,250
Cash and cash equivalents:
Beginning of period	121,573			118,829
End of period	$	121,163		$	131,079

See Notes to Consolidated Financial Statements.

7

CHECKPOINT SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES

Restatement of Previously Issued Consolidated Financial Statements

In our 2013 Annual Report on Form 10-K, we restated our previously issued consolidated financial statements and the related disclosures for the years ended December 30, 2012 and December 25, 2011 and unaudited interim financial information for each of the quarters in the year ended December 30, 2012 and for the first three quarters in the fiscal year ended December 29, 2013 (the "Restated Periods").

The restatement is the result of our corrections for the effect of financial statement errors attributable to the accounting for the future extension of a sales-type lease arrangement in Spain during the second quarter ended June 26, 2011 (“Spain transaction”). The sale of the underlying customer receivables to a financial institution qualified as a legal sale and we recognized the proceeds net of amounts deferred for future deliverables of $17.4 million in other operating income in the second quarter ended June 26, 2011. During of the fourth quarter of 2013, we discovered that the 2011 extension arrangement represented the execution of forward starting leases. The recognition of a lease receivable is not permitted until such time as the commencement of a lease or the sale of an unrecognized financial asset (i.e. a right to future income). Accordingly, we reversed the other operating income recognized in fiscal 2011 related to this transaction and recorded other necessary adjustments in the interim and annual periods from the second quarter ended June 26, 2011 through the third quarter ended September 29, 2013.

The aggregate impacts of correcting the errors relating to the Spain transaction as of and for the first quarter ended March 31, 2013 were as follows:

(amounts in millions)	Restatement Adjustments to Previously Reported Income Statement - Income/(Expense)
For the Quarter ended	March 31, 2013
Net revenues	$	(0.9	)
Operating income	(0.9		)
Interest expense	(0.5		)
Income taxes expense	(0.3		)
Net loss	(1.1		)

We assessed the impact of these errors, including the impact of the previously disclosed out-of-period adjustments on our prior interim and annual financial statements and concluded that the combined impact of these errors was material to our financial statements. Consequently, we have restated the prior period financial statements identified above. All amounts in our consolidated financial statements in this Quarterly Report on Form 10-Q affected by the restatement adjustments reflect such amounts as restated.

In addition to the Spain transaction resulting in the restatement of our previously issued consolidated financial statements, we also recorded certain other immaterial errors affecting the consolidated financial statements as of and for the quarter ended March 31, 2013 that are included in our restatement adjustments:

• Income tax adjustments - The correction of out of period income tax adjustments had no combined effect on net loss and total assets in the first quarter of 2013.

8

• Other out of period adjustments - We recorded certain other out of period errors which were not individually material to the financial statements which had the combined effect in the first quarter of 2013 of increasing net revenues by $0.3 million, increasing net loss by $37 thousand, increasing total assets by $1.6 million, increasing total current liabilities by $1.4 million and increasing long-term liabilities by $3.9 million. The cumulative impact of these adjustments in prior periods resulted in an adjustment to reduce the beginning retained earnings balance in fiscal 2013 by $3.7 million. The largest single contributor to these adjustments was a correction of our deferred maintenance balances in certain European countries which increased unearned revenues by $2.1 million and increased other long-term liabilities by $3.9 million as of March 31, 2013. The income statement impact of this adjustment was a decrease in net loss of $0.3 million in the quarter ended March 31, 2013.

This Quarterly Report on Form 10-Q for the quarter ended March 30, 2014 includes the impact of the restatement on the applicable unaudited quarterly financial information for the quarter ended March 31, 2013. In addition, our future Quarterly Reports on Form 10-Q for subsequent quarterly periods during 2014 will also include the impacts of the restatement on applicable 2013 comparable prior quarter and year to date periods. The effect of the restatement on previously issued quarterly financial information as of and for the three months ended March 31, 2013 is set forth in this footnote.

Previously filed Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q for quarterly and annual periods ended prior to December 29, 2013 have not been and will not be amended.

Comparison of restated financial statements to financial statements as previously reported

The following tables compare our previously reported Consolidated Statements of Operations, Comprehensive Income (Loss), and Cash Flows for the quarter ended March 31, 2013 to the corresponding financial statements for the quarterly period as restated.

9

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands, except per share data)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Net revenues	$	148,835		$	(662	)	$	148,173
Cost of revenues	94,894			13			94,907
Gross profit	53,941			(675		)	53,266
Selling, general, and administrative expenses	55,287			238			55,525
Research and development	4,693			—			4,693
Restructuring expenses	2,016			—			2,016
Litigation settlement	(6,584		)	—			(6,584		)
Acquisition costs	161			—			161
Other expense	—			—			—
Other operating income	(330		)	—			(330		)
Operating loss	(1,302		)	(913		)	(2,215		)
Interest income	399			—			399
Interest expense	2,059			505			2,564
Other gain (loss), net	(545		)	—			(545		)
Loss from continuing operations before income taxes	(3,507		)	(1,418		)	(4,925		)
Income taxes expense (benefit)	279			(279		)	—
Net loss from continuing operations	(3,786		)	(1,139		)	(4,925		)
Loss from discontinued operations, net of tax expense of $134	(2,556		)	—			(2,556		)
Net loss	(6,342		)	(1,139		)	(7,481		)
Less: loss attributable to non-controlling interests	(58		)	—			(58		)
Net loss attributable to Checkpoint Systems, Inc.	$	(6,284	)	$	(1,139	)	$	(7,423	)
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(0.09	)	$	(0.03	)	$	(0.12	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	—		$	(0.06	)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	(0.15	)	$	(0.03	)	$	(0.18	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(0.09	)	$	(0.03	)	$	(0.12	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	—		$	(0.06	)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	(0.15	)	$	(0.03	)	$	(0.18	)

10

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Net loss	$	(6,342	)	$	(1,139	)	$	(7,481	)
Other comprehensive income (loss), net of tax:
Amortization of pension plan actuarial losses, net of tax benefit of $108 and $0	282			—			282
Change in realized and unrealized losses on derivative hedges, net of tax benefit of $0 and $13	(157		)	—			(157		)
Foreign currency translation adjustment	(3,341		)	742			(2,599		)
Total other comprehensive income (loss), net of tax	(3,216		)	742			(2,474		)
Comprehensive loss	(9,558		)	(397		)	(9,955		)
Less: comprehensive loss attributable to non-controlling interests	(225		)	—			(225		)
Comprehensive loss attributable to Checkpoint Systems, Inc.	$	(9,333	)	$	(397	)	$	(9,730	)

11

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Cash flows from operating activities:
Net loss	$	(6,342	)	$	(1,139	)	$	(7,481	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,309			—			6,962
Amortization of debt issuance costs	—			—			347
Interest on financing liability	—			505			505
Deferred taxes	(114		)	(279		)	(393		)
Stock-based compensation	1,972			—			1,972
Provision for losses on accounts receivable	(699		)	—			(699		)
Excess tax benefit on stock compensation	(23		)	—			(23		)
Loss on disposal of fixed assets	170			—			170
Litigation settlement	(6,584		)	—			(6,584		)
Restructuring-related asset impairment	731			—			731
Decrease (increase) in operating assets, net of the effects of acquired companies:
Accounts receivable	39,180			(4,329		)	34,851
Inventories	(1,181		)	(73		)	(1,254		)
Other current assets	10,302			(3,538		)	6,764
(Decrease) increase in operating liabilities, net of the effects of acquired companies:
Accounts payable	(6,973		)	4,942			(2,031		)
Income taxes	(2,462		)	—			(2,462		)
Unearned revenues - current	(8,846		)	4,167			(4,679		)
Restructuring reserve	(3,063		)	—			(3,063		)
Other liabilities	(10,334		)	(256		)	(10,590		)
Net cash provided by operating activities	13,043			—			13,043
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(1,363		)	—			(1,363		)
Other investing activities	440			—			440
Net cash used in investing activities	(923		)	—			(923		)
Cash flows from financing activities:
Proceeds from stock issuances	600			—			600
Excess tax benefit on stock compensation	23			—			23
Proceeds from short-term debt	2,272			—			2,272
Payment of short-term debt	(248		)	—			(248		)
Net change in factoring and bank overdrafts	(431		)	—			(431		)
Payment of long-term debt	(71		)	—			(71		)
Net cash provided by financing activities	2,145			—			2,145
Effect of foreign currency rate fluctuations on cash and cash equivalents	(2,015		)	—			(2,015		)
Net increase in cash and cash equivalents	12,250			—			12,250
Cash and cash equivalents:
Beginning of period	118,829			—			118,829
End of period	$	131,079		$	—		$	131,079

12

The Consolidated Financial Statements include the accounts of Checkpoint Systems, Inc. and its majority-owned subsidiaries (collectively, the “Company”). All inter-company transactions are eliminated in consolidation. The Consolidated Financial Statements and related notes are unaudited and do not contain all disclosures required by generally accepted accounting principles in annual financial statements. The Consolidated Balance Sheet as of December 29, 2013 is derived from the Company's audited Consolidated Financial Statements at December 29, 2013. Refer to our Annual Report on Form 10-K for the fiscal year ended December 29, 2013 for the most recent disclosure of our accounting policies.

The Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position at March 30, 2014 and December 29, 2013 and our results of operations for the thirteen weeks ended March 30, 2014 and March 31, 2013 and changes in cash flows for the thirteen weeks ended March 30, 2014 and March 31, 2013. The results of operations for the interim period should not be considered indicative of results to be expected for the full year.

Reclassifications

Certain reclassifications and retrospective adjustments have been made to prior period information to conform to the current period presentation. In order to conform to the current period presentation, the As Restated amounts include a balance sheet reclassification of internal-use software from property, plant and equipment to other intangibles and also include a statement of cash flows reclassification of amortization of debt issuance costs from depreciation and amortization.

Internal-Use Software

Included in intangible 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 seven years. Costs incurred related to design or maintenance of internal-use software are expensed as incurred.

Customer Rebates

We record estimated reductions to revenue for customer incentive offerings, including volume-based incentives and rebates. The accrual for these incentives and rebates, which is included in the Other Accrued Expenses section of our Consolidated Balance Sheet, was $13.0 million and $11.1 million as of March 30, 2014 and December 29, 2013, 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.

Non-controlling Interests

On May 16, 2011, Checkpoint Holland Holding B.V., a wholly-owned subsidiary, acquired 51% of the outstanding voting shares of Shore to Shore PVT Ltd. (Sri Lanka) in exchange for $1.7 million in cash.

In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the unrelated third party holding the non-controlling interest. On June 24, 2013, we completed the sale of our 51% interest for which we received cash proceeds of $0.2 million (net of a stamp duty). The gain on sale of $0.2 million was recorded within other operating income on the Consolidated Statement of Operations.

We have presented net income attributable to non-controlling interests separately on our Consolidated Statements of Operations for the three months ended March 31, 2013.

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.

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

(amounts in thousands)
Three months ended	March 30, 2014			March 31, 2013
Balance at beginning of year	$	4,521		3,995
Accruals for warranties issued, net	810			888
Settlements made	(962		)	(679		)
Foreign currency translation adjustment	13			(107		)
Balance at end of period	$	4,382		$	4,097

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 30, 2014 were as follows:

(amounts in thousands)	Pension plan			Changes in realized and unrealized gains (losses) on derivative hedges		Foreign currency translation adjustment		Total accumulated other comprehensive income
Balance, December 29, 2013	$	(17,773	)	$	—	$	20,018	$	2,245
Other comprehensive (loss) income before reclassifications	50			—		355		405
Amounts reclassified from other comprehensive income (loss)	278			—		—		278
Net other comprehensive income (loss)	328			—		355		683
Balance, March 30, 2014	$	(17,445	)	$	—	$	20,373	$	2,928

The significant items reclassified from each component of other comprehensive income (loss) for the three months ended March 30, 2014 and March 31, 2013 were as follows:

(amounts in thousands)	March 30, 2014				March 31, 2013
Details about accumulated other comprehensive income (loss) components	Amount reclassified from accumulated other comprehensive income (loss)			Affected line item in the statement where net loss is presented	Amount reclassified from accumulated other comprehensive income (loss)			Affected line item in the statement where net loss is presented
Amortization of pension plan items
Actuarial loss (1)	$	(385	)		$	(389	)
Prior service cost (1)	(3		)		(1		)
	(388		)	Total before tax	(390		)	Total before tax
	110			Tax benefit	108			Tax benefit
	$	(278	)	Net of tax	$	(282	)	Net of tax
Gains and (losses) on cash flow hedges
Foreign currency revenue forecast contracts	$	—		Cost of revenues	$	158		Cost of revenues
	—			Total before tax	158			Total before tax
	—			Tax expense	—			Tax expense
	$	—		Net of tax	$	158		Net of tax
Total reclassifications for the period	$	(278	)		$	(124	)

⁽¹⁾  These accumulated other comprehensive income components are included in the computation of net periodic pension costs. Refer to Note 9 of the Consolidated Financial Statements.

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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, are reflected where appropriate in our financial statements.

Recently Adopted Accounting Standards

In December 2011, the FASB issued ASU 2011-11, "Balance Sheet – Disclosures about Offsetting Assets and Liabilities (Topic 210-20)," (ASU 2011-11). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for fiscal years beginning on or after January 1, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting From Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” (ASU 2013-04). The update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed as of the reporting date as the sum of the obligation the entity agreed to pay among its co-obligors and any additional amount the entity expects to pay on behalf of its co-obligors. This ASU is effective for annual and interim periods beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In March 2013, the FASB issued ASU 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” (ASU 2013-05). The update clarifies that complete or substantially complete liquidation of a foreign entity is required to release the cumulative translation adjustment (CTA) for transactions occurring within a foreign entity. However, transactions impacting investments in a foreign entity may result in a full or partial release of CTA even though complete or substantially complete liquidation of the foreign entity has not occurred. Furthermore, for transactions involving step acquisitions, the CTA associated with the previous equity-method investment will be fully released when control is obtained and consolidation occurs. This ASU is effective for fiscal years beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In April 2013, the FASB issued ASU 2013-07, “Liquidation Basis of Accounting,” (ASU 2013-07). The objective of ASU 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The ASU is effective prospectively for entities that determine liquidation is imminent during annual and interim reporting periods beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In July 2013, the FASB issued ASU 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes,” (ASU 2013-10). The update permits the use of the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under FASB ASC Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR). The update also removes the restriction on using different benchmark rates for similar hedges. This ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In March 2014, the FASB issued ASU 2014-06, "Technical Corrections and Improvements Related to Glossary Terms," (ASU 2014-06). This ASU provides technical corrections and improvements to Accounting Standards Codification glossary terms. Our adoption of this standard, effective March 14, 2014, has not had a material impact on our Consolidated Results of Operations and Financial Condition.

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New Accounting Pronouncements and Other Standards

In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," (ASU 2014-08). Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014. The impact of the adoption of this ASU on our Consolidated Results of Operations and Financial Condition will be based on our future disposal activity.

Note 2. INVENTORIES

Inventories consist of the following:

(amounts in thousands)	March 30, 2014		December 29, 2013
Raw materials	$	18,325	$	18,040
Work-in-process	3,828		2,901
Finished goods	72,668		62,580
Total	$	94,821	$	83,521

Note 3. GOODWILL AND OTHER INTANGIBLE ASSETS

We had intangible assets with a net book value of $75.3 million and $78.2 million as of March 30, 2014 and December 29, 2013, respectively.

The following table reflects the components of intangible assets as of March 30, 2014 and December 29, 2013:

		March 30, 2014				December 29, 2013
(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	$	83,042	$	58,178	$	83,063	$	56,798
Trade name	1 to 30	30,243		19,508		30,256		19,346
Patents, license agreements	3 to 14	61,828		54,728		61,820		54,225
Internal-use software	3 to 7	24,039		13,100		24,039		12,358
Other	2 to 6	7,151		6,873		7,132		6,793
Total amortized finite-lived intangible assets		206,303		152,387		206,310		149,520
Indefinite-lived intangible assets:
Trade name		21,376		—		21,376		—
Total identifiable intangible assets		$	227,679	$	152,387	$	227,686	$	149,520

Amortization expense for the three months ended March 30, 2014 and March 31, 2013 was $2.9 million and $3.0 million, respectively.

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

(amounts in thousands)
2014	(1)	$	11,283
2015		$	10,919
2016		$	10,505
2017		$	9,433
2018		$	3,659

⁽¹⁾  The estimated amortization expense for the remainder of 2014 is anticipated to be $8.4 million.

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 changes in the carrying amount of goodwill are as follows:

(amounts in thousands)	Merchandise Availability Solutions			Apparel Labeling Solutions		Retail Merchandising Solutions			Total
Balance as of December 30, 2012	$	159,031		$	—	$	23,710		$	182,741
Segment reallocation	(2,116		)	2,116		—			—
Translation adjustments	2,242			—		881			3,123
Balance as of December 29, 2013	$	159,157		$	2,116	$	24,591		$	185,864
Translation adjustments	47			—		(18		)	29
Balance as of March 30, 2014	$	159,204		$	2,116	$	24,573		$	185,893

The following table reflects the components of goodwill as of March 30, 2014 and December 29, 2013:

	March 30, 2014						December 29, 2013
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	206,489	$	47,285	$	159,204	$	207,589	$	48,432	$	159,157
Apparel Labeling Solutions	86,566		84,450		2,116		86,764		84,648		2,116
Retail Merchandising Solutions	138,457		113,884		24,573		138,098		113,507		24,591
Total goodwill	$	431,512	$	245,619	$	185,893	$	432,451	$	246,587	$	185,864

On January 28, 2011, we entered into a Master Purchase Agreement to acquire the equity and/or assets of 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 included 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 recognized through earnings.

Acquisition costs incurred in connection with the transaction including legal and other arbitration-related costs, are recognized within acquisition costs in the Consolidated Statement of Operations and approximate $0.2 million for the three months ended March 31, 2013 without a comparable expense for the three months ended March 30, 2014.

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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.

Note 4. DEBT

Long-term debt as of March 30, 2014 and December 29, 2013 consisted of the following:

(amounts in thousands)	March 30, 2014		December 29, 2013
Senior Secured Credit Facility:
$200 million variable interest rate revolving credit facility maturing in 2018	$	85,000	$	90,000
Full-recourse factoring liabilities	201		257
Other capital leases with maturities through 2018	170		1,365
Total	85,371		91,622
Less current portion	203		435
Total long-term portion	$	85,168	$	91,187

Senior Secured Credit Facility

On December 11, 2013, we entered into a new $200.0 million five-year senior secured multi-currency revolving credit facility("2013 Senior Secured Credit Facility") agreement ("2013 Credit Agreement") with a syndicate of lenders. The 2013 Senior Secured Credit Facility was used to repay $32.0 million outstanding under the 2010 Senior Secured Credit Facility as well as the $55.6 million outstanding under the Senior Secured Notes. We may borrow, prepay and re-borrow under the 2013 Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The 2013 Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the 2013 Senior Secured Credit Facility of up to an aggregate of $100.0 million, for a potential total commitment of $300.0 million.

All obligations under the 2013 Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by certain domestic subsidiaries. Collateral under the 2013 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 subsidiary. All domestic tangible and intangible personal property, excluding any real property with a value of less than $5 million, are also pledged as collateral.

Borrowings under the 2013 Senior Secured Credit Facility, other than swingline loans, bear interest at our option of either (i) a spread ranging from 0.25% to 1.25% over the Base Rate (as described below), or (ii) a spread ranging from 1.25% to 2.25% over the LIBOR rate, and in each case fluctuating in accordance with changes in our leverage ratio, as defined in the 2013 Credit Agreement.  The “Base Rate” is the highest of (a) the Federal Funds Rate, plus 0.50%, (b) the Administrative Agent’s prime rate, 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 0.25% to 1.25% over the Base Rate.  We pay an unused line fee ranging from 0.20% to 0.40% per annum on the unused portion of the 2013 Senior Secured Credit Facility.

Pursuant to the terms of the 2013 Senior Secured Credit Facility, we are subject to various requirements, including covenants requiring the maintenance of (i) a maximum total leverage ratio of 3.00 and (ii) a minimum interest coverage ratio of 3.00. We are in compliance with the maximum total leverage ratio and minimum interest coverage ratio as of March 30, 2014. The 2013 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 2013 Senior Secured Credit Facility, including the non-payment of principal or interest, our obligations under the 2013 Credit Agreement may be accelerated and the assets securing such obligations may be sold.

During the year ended December 29, 2013, we incurred $1.8 million in fees and expenses in connection with the 2013 Senior Secured Credit Facility, which are amortized over the term of the 2013 Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations. The remaining unamortized debt issuance costs recognized in connection with the 2010 Secured Credit Facility of $0.4 million are amortized over the term of the 2013 Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations.

As of March 30, 2014, $1.8 million, issued in letters of credit, were outstanding under the 2013 Senior Secured Credit Facility.

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Other Long-Term Debt

In December 2013, we entered into a sale-lease-back transaction in Spain. As of December 29, 2013, the lease had a balance of $1.2 million (€0.9 million), of which $0.2 million (€0.2 million) was included in the current portion of long-term debt and $1.0 million (€0.7 million) was included in long-term borrowings in the accompanying Consolidated Balance Sheets. On February 7, 2014, the outstanding balance of $1.2 million (€0.9 million) was repaid and the liability was released.

We have full-recourse factoring arrangements in Europe. The arrangements are secured by trade receivables. We received a weighted average of 92.4% of the face amount of receivables that we desired to sell and the bank agreed, at its discretion, to buy. As of March 30, 2014 the factoring arrangements had a balance of $0.2 million (€0.1 million), of which $0.1 million (€0.1 million) was included in the current portion of long-term debt and $0.1 million (€40 thousand) was included in long-term borrowings in the accompanying Consolidated Balance Sheets since the receivables are collectible through 2016.

Financing Liability

In June 2011, we sold, to a financial institution in Spain, rights to future customer receivables resulting from the negotiated extension of previously executed sales-type lease arrangements, whose receivables were previously sold. The 2011 transaction qualified as a legal sale without recourse. However, until the receivables are recognized, the proceeds from the fiscal 2011 legal sale are accounted for as a financing arrangement and reflected as a financing liability in our consolidated balance sheet. The balance of the financing liability is $35.6 million and $35.1 million as of March 30, 2014 and December 29, 2013, respectively.We impute a non-cash interest charge on the financing liability using a rate of 6.365%, which we recognize as interest expense, until our right to recognize the legal sales permits us to de-recognize the liability and record operating income on the sale. We recognized interest expense related to the financing liability of $0.6 million and $0.5 million for the three months ended March 30, 2014 and March 31, 2013, respectively.

During fiscal 2016 through 2018, when we are permitted to recognize the lease receivables upon the commencement of the lease extensions, we expect to de-recognize both the associated receivables and the related financing liability and record other operating income on the sale. At this point, our obligation under the financing liability will have been extinguished.  

Note 5. STOCK-BASED COMPENSATION

Stock-based compensation cost recognized in operating results (included in selling, general, and administrative expenses) for the three months ended March 30, 2014 and March 31, 2013 was $1.5 million and $2.0 million ($1.4 million and $2.0 million, net of tax), respectively. The associated actual tax benefit realized for the tax deduction from option exercises of share-based payment units and awards released equaled $0.1 million and $0.1 million for the quarter ended March 30, 2014 and March 31, 2013, respectively.

On February 27, 2014, RSUs were awarded to certain key employees as part of the LTIP 2014 plan. The number of shares for these units varies based on the growth of our earnings before interest, taxes, depreciation, and amortization (EBITDA) during the January 2014 to December 2016 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 $14.90 per share. Compensation expense of $32 thousand was recognized in connection with these RSUs for the three months ended March 30, 2014. As of March 30, 2014, total unamortized compensation expense for this grant was $1.1 million. As of March 30, 2014, the maximum achievable RSUs outstanding under this plan are 76,910 units. These RSUs reduce the shares available to grant under the 2004 Plan.

On February 27, 2013, RSUs were awarded to certain key employees as part of the LTIP 2013 plan. These awards have a market condition. The number of shares for these units varies based on the relative ranking of our total shareholder return (TSR) against the TSRs of the constituents of the Russell 2000 Index during the January 2013 to December 2015 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 grant date fair value for these RSUs was $11.91 per share. Additional RSUs related to the LTIP 2013 plan were awarded on May 28, 2013, with a grant date fair value of $11.56 per share. Compensation expense of $29 thousand and $4 thousand was recognized in connection with these RSUs for the three months ended March 30, 2014 and March 31, 2013, respectively. As of March 30, 2014, total unamortized compensation expense for these grants was $0.1 million. As of March 30, 2014, the maximum achievable RSUs outstanding under this plan are 26,400 units. These RSUs reduce the shares available to grant under the 2004 Plan.

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To determine the fair value of RSUs with market conditions that were awarded on February 27, 2013, we used a Monte Carlo simulation using the following assumptions: (i) expected volatility of 47.01%, (ii) risk-free rate of 0.35%, and (iii) an expected dividend yield of zero.

To determine the fair value of RSUs with market conditions that were awarded on May 28, 2013, we used a Monte Carlo simulation using the following assumptions: (i) expected volatility of 45.23%, (ii) risk-free rate of 0.41%, and (iii) an expected dividend yield of zero.

On May 2, 2013 a cash-based performance award was awarded to our CEO under the terms of our 2013 LTIP plan. Our relative TSR performance determines the payout as a percentage of an established target cash amount of $0.4 million. Because the final payout of the award is made in cash, the award is classified as a liability and the fair value is marked-to-market each reporting period. As of March 30, 2014, the fair value of the award is $0.45 per dollar of the target cash amount awarded. The value of this award is charged to compensation expense on a straight-line basis over the vesting period. For the first quarter of 2014, less than $1 thousand was charged to compensation expense. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.

To determine the fair value of the cash-based performance award as of March 30, 2014, we used a Monte Carlo simulation using the following assumptions: (i) expected volatility of 45.32%, (ii) risk-free rate of 0.37%, and (iii) an expected dividend yield of zero.

Stock Options

Option activity under the principal option plans as of March 30, 2014 and changes during the quarter ended March 30, 2014 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 29, 2013	2,450,660		$	17.70	4.35	$	4,285
Granted	206,280		14.84
Exercised	(5,430	)	10.80
Forfeited or expired	(100,857	)	16.85
Outstanding at March 30, 2014	2,550,653		$	17.51	4.66	$	2,593
Vested and expected to vest at March 30, 2014	2,449,476		$	17.77	4.49	$	2,336
Exercisable at March 30, 2014	2,017,125		$	19.06	3.52	$	1,431

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between our closing stock price on the last trading day of the first quarter of fiscal 2014 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 March 30, 2014. This amount changes based on the fair market value of our stock. The total intrinsic value of options exercised for the quarter ended March 30, 2014 and March 31, 2013 was $18 thousand and $0.1 million, respectively.

As of March 30, 2014, $1.8 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.1 years.

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

Three months ended	March 30, 2014		March 31, 2013
Weighted-average fair value of grants	6.44		5.42
Valuation assumptions:
Expected dividend yield	0.00	%	0.00	%
Expected volatility	48.16	%	50.85	%
Expected life (in years)	5.11		5.07
Risk-free interest rate	1.461	%	0.792	%

Restricted Stock Units

Nonvested restricted stock units as of March 30, 2014 and changes during the quarter ended March 30, 2014 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 29, 2013	852,508		0.64	$	17.36
Granted	266,715			$	14.87
Vested	(188,333	)		$	14.81
Forfeited	(39,796	)		$	12.87
Nonvested at March 30, 2014	891,094		1.18	$	17.36
Vested and expected to vest at March 30, 2014	822,424		1.13
Vested at March 30, 2014	—		—

The total fair value of restricted stock awards vested during the first quarter of 2014 was $2.8 million as compared to $1.3 million in the first quarter of 2013. As of March 30, 2014, there was $5.0 million of unrecognized stock-based compensation expense related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.2 years.

Other Compensation Arrangements

On March 15, 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 $0.3 million as of March 30, 2014, of which $0.3 million was expensed for the three months ended March 30, 2014. The total amount accrued related to the plan equaled $0.4 million as of March 31, 2013, of which $0.3 million was expensed for the three months ended March 31, 2013. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.

Note 6. SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest and income taxes for the quarter ended March 30, 2014 and March 31, 2013 were as follows:

(amounts in thousands)
Three months ended	March 30, 2014		March 31, 2013
Interest	$	541	$	2,782
Income tax payments	$	2,287	$	2,504

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As of March 30, 2014 and March 31, 2013, we accrued $0.6 million and $0.6 million of capital expenditures, respectively. These amounts were excluded from the Consolidated Statements of Cash Flows at March 30, 2014 and March 31, 2013 since they represent non-cash investing activities. Accrued capital expenditures at March 30, 2014 and March 31, 2013 are included in accounts payable and other accrued expenses on the Consolidated Balance Sheets.

Note 7. EARNINGS PER SHARE

The following data shows the amounts used in computing earnings per share and the effect on net earnings from continuing operations attributable to Checkpoint Systems, Inc. and the weighted-average number of shares of dilutive potential common stock:

	Quarter
	(13 weeks) Ended
(amounts in thousands, except per share data)	March 30, 2014			March 31, 2013
				(As Restated)
Basic loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(129	)	$	(4,867	)
Basic loss from discontinued operations, net of tax expense of $0 and $134	—			(2,556		)
Diluted loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	(129		)	(4,867		)
Diluted loss from discontinued operations, net of tax expense of $0 and $134	$	—		$	(2,556	)
Shares:
Weighted-average number of common shares outstanding	41,541			40,784
Vested shares issuable under deferred compensation agreements	345			404
Basic weighted-average number of common shares outstanding	41,886			41,188
Common shares assumed upon exercise of stock options and awards	—			—
Unvested shares issuable under deferred compensation arrangements	—			—
Dilutive weighted-average number of common shares outstanding	41,886			41,188
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)

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.

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The number of anti-dilutive common share equivalents for the three months ended March 30, 2014 and March 31, 2013 were as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014	March 31, 2013
Weighted-average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	2,260	2,471

⁽¹⁾  Stock options and awards of 345 shares and deferred compensation arrangements of 17 shares were anti-dilutive in the first three months of 2014 and were therefore excluded from the earnings per share calculation due to our loss from continuing operations for the period. Stock options and awards of 196 shares and deferred compensation arrangements of 49 shares were anti-dilutive in the first three months of 2013 and were therefore excluded from the earnings per share calculation due to our loss from continuing operations for the period.

Note 8. INCOME TAXES

The effective tax rate for the quarter ended March 30, 2014 was 111.8% as compared to 0.0% for the quarter ended March 31, 2013. The change in the effective tax rate for the quarter ended March 30, 2014 was due to the mix of income between subsidiaries. The 2014 effective tax rate was higher due to the mix of income among subsidiaries. The 2014 rate was also impacted by losses in countries with valuation allowances that do not result in a tax benefit, causing the overall tax expense as a percentage of income to increase.

Historically, we determined our interim tax provision using an estimated annual effective tax rate methodology. For the quarter ended March 31, 2013, we accounted for the U.S. operations by applying the discrete method based on the determination that if the U.S. operations were included in the estimated annual effective tax rate, small changes in estimated pretax earnings could result in significant fluctuations in the tax rate. In the quarter ended March 30, 2014, we accounted for the U.S. operations by applying an estimated annual effective rate methodology. We determined that if the U.S. operations are included in the estimated annual effective tax rate, small changes in estimated pretax earnings would no longer result in significant fluctuations in the tax rate.

We evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. We are required to 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 across multiple jurisdictions. As the geographic footprint of the business changes, 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. As of March 30, 2014 and December 29, 2013, we had net deferred tax assets of $31.5 million and $31.5 million, respectively.

Included in other current assets as of March 30, 2014, is a current income tax receivable of $3.2 million. This amount represents a net receivable of $2.8 million as of December 29, 2013, year to date estimated tax payments made in excess of refunds received in the amount of $1.6 million, and tax expense recorded on our year to date pretax income of $1.2 million. Included in other current liabilities is our current deferred tax liability of $2.6 million.

The total amount of gross unrecognized tax benefits that, if recognized, would affect the effective tax rate was $18.2 million and $18.1 million at March 30, 2014 and December 29, 2013, respectively. Penalties and tax-related interest expense are reported as a component of income tax expense. During the quarter ended March 30, 2014 we recognized an interest and penalties benefit of $0.2 million compared to interest and penalties expense of $0.2 million during the quarter ended March 31, 2013. As of March 30, 2014 and December 29, 2013, we had accrued interest and penalties related to unrecognized tax benefits of $4.6 million and $4.4 million, respectively.

As of March 30, 2014 and December 29, 2013, $19.6 million and $19.6 million, respectively, of our unrecognized tax benefits, penalties, and interest were recorded as a component of other long term liabilities on the consolidated balance sheet.

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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 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 decrease within the next twelve months by a range of

$3.1 million to $12.1 million.

We are currently under audit in the following major jurisdictions: United States 2011, Germany 2006 – 2009, Finland 2005 – 2009, and India 2010. The following major jurisdictions have tax years that remain subject to examination: Germany - 2006 to 2013, United States - 2010 to 2013, China - 2010 to 2013 and Hong Kong - 2007 to 2013. Our tax returns for open years in all jurisdictions are subject to changes upon examination.

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

Note 9. PENSION BENEFITS

The components of net periodic benefit cost for the three months ended March 30, 2014 and March 31, 2013 were as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Service cost	$	282	$	268
Interest cost	916		879
Expected return on plan assets	—		26
Amortization of actuarial loss	385		389
Amortization of prior service costs	3		1
Net periodic pension cost	$	1,586	$	1,563

We expect the cash requirements for funding the pension benefits to be approximately $5.4 million during fiscal 2014, including $1.2 million which was funded during the quarter ended March 30, 2014.

Note 10. 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.

The fair value hierarchy 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 our derivatives are not listed on an exchange, we value 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. Our methodology also incorporates the impact of both ours and the counterparty’s credit standing.

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The following tables represent our assets and liabilities measured at fair value on a recurring basis as of March 30, 2014 and December 29, 2013 and the basis for that measurement:

(amounts in thousands)	Total Fair Value Measurement March 30, 2014		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	$	4	$	—	$	4	$	—
Total assets	$	4	$	—	$	4	$	—
Foreign currency forward exchange contracts	$	25	$	—	$	25	$	—
Total liabilities	$	25	$	—	$	25	$	—

(amounts in thousands)	Total Fair Value Measurement December 29, 2013		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	$	—	$	—	$	—	$	—
Total assets	$	—	$	—	$	—	$	—
Foreign currency forward exchange contracts	$	18	$	—	$	18	$	—
Total liabilities	$	18	$	—	$	18	$	—

We believe that the fair values of our current assets and current liabilities (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 March 30, 2014 and December 29, 2013 are summarized in the following table:

	March 30, 2014				December 29, 2013
(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	$	85,000	$	85,000	$	90,000	$	90,000

⁽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 related fair value measurement has generally been classified as Level 2.

Nonrecurring Fair Value Measurements

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 11 of the Consolidated Financial Statements.

Accrued restructuring costs for lease termination liabilities of $12 thousand were valued using a discounted cash flow model during the quarter ended March 30, 2014. 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. We recorded a $5 thousand release related to fair value adjustments to existing lease termination liabilities of $64 thousand during the quarter ended March 30, 2014. 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 11 of the Consolidated Financial Statements.

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In connection with our restructuring plans, we have recorded impairment losses in restructuring expense during the quarter ended March 30, 2014 of $0.2 million 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. Assets with carrying amounts of $0.2 million were written down to their fair values of $21 thousand. 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 11 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 March 30, 2014 and December 29, 2013:

	March 30, 2014						December 29, 2013
	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 not designated as hedging instruments
Foreign currency forward exchange contracts	Other current assets	$	4	Other current liabilities	$	25	Other current assets	$	—	Other current liabilities	$	18
Total derivatives not designated as hedging instruments		4			25			—			18
Total derivatives		$	4		$	25		$	—		$	18

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The following tables represent the amounts affecting the Consolidated Statement of Operations for the quarter ended March 30, 2014 and March 31, 2013:

	March 30, 2014						March 31, 2013
(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		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	$	—	Cost of sales		$	—	$	1	Cost of sales	$	(158	)	$	11

	Quarter
	(13 weeks) Ended
	March 30, 2014				March 31, 2013
(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
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	(30	)	Other gain (loss), net	$	213	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 March 30, 2014, we had currency forward exchange contracts with notional amounts totaling approximately $8.1 million. The fair values of the forward exchange contracts were reflected as a $4 thousand asset and $25 thousand liability 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. 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.

Note 11. 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. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed, with final headcount terminations expected to be finalized by the third quarter of 2014.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan has impacted over 2,600 existing employees since inception. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are $79 million through the end of the first quarter of 2014, with $61 million in total costs for the Global Restructuring Plan and $18 million of costs incurred 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.

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Restructuring expense for the three months ended March 30, 2014 and March 31, 2013 was as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	1,572	$	339
Asset impairments	172		731
Other exit costs	143		885
SG&A Restructuring Plan
Severance and other employee-related charges	5		(16		)
Other exit costs	—		77
Total	$	1,892	$	2,016

Restructuring accrual activity for the three months ended March 30, 2014 was as follows:

(amounts in thousands)	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at March 30, 2014
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	7,757	$	2,093	$	(521	)	$	(1,850	)	$	(6	)	$	7,473
Other exit costs(1)	66		143		—			(173		)	(1		)	35
SG&A Restructuring Plan
Severance and other employee-related charges	352		5		—			(214		)	—			143
Total	$	8,175	$	2,241	$	(521	)	$	(2,237	)	$	(7	)	$	7,651

⁽¹⁾  During the first quarter of 2014, there was a net charge to earnings of $0.1 million primarily due to restructuring agent costs and legal costs in connection with the restructuring plan.

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, including final headcount terminations, expected to be substantially completed by the third quarter of 2014.

For the quarter ended March 30, 2014, the net charge to earnings of $1.9 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60.8 million have been incurred through March 30, 2014. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,273, of which 2,181 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.

For the quarter ended March 30, 2014, the net charge to earnings of $5 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 affected by the SG&A Restructuring Plan was approximately 369, all of which have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.

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Note 12. CONTINGENT LIABILITIES AND SETTLEMENTS

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 (the “ Pennsylvania Court”) 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 United States Court of Appeals for the Federal Circuit (the “Appellate Court”) reversed the grant of summary judgment and remanded the case to the Pennsylvania 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 Pennsylvania Court entered judgment in favor of defendants based on the jury's infringement and enforceability findings. On February 10, 2009, the Pennsylvania 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 sought 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 Pennsylvania 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 Pennsylvania Court's award of attorneys' fees to the defendants. Following the filing of briefs and the completion of oral arguments, the Appellate Court reversed the decision of the Pennsylvania Court on March 25, 2013. As a result of the final decision, we reversed the All-Tag reserve of $6.6 million in the first quarter ended March 31, 2013.

Matter related to Universal Surveillance Corporation EAS RF Anti-trust Litigation

Universal Surveillance Corporation (“USS”) filed a complaint against us in the United States Federal District Court of the Northern District of Ohio (the “Ohio Court”) on August 19, 2011. USS claims that, in connection with our competition in the electronic article surveillance market, we violated the federal antitrust laws (Sherman Act and Clayton Act) and state antitrust laws (Ohio Valentine Act). USS also claims that we violated the federal Lanham Act, the Ohio Deceptive Trade Practices Act, and the Ohio Trade Secrets Act, and engaged in conduct that allegedly disparaged USS and tortiously interfered with USS's business relationships and contracts. USS is seeking injunctive relief as well as approximately $65 million in claimed damages for alleged lost profits, plus treble damages and attorney's fees under the Sherman Act. As of March 30, 2014, we have neither recorded a reserve for this matter nor do we believe that there is a reasonable possibility that a loss has been incurred.

Note 13. BUSINESS SEGMENTS

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 three months ended March 31, 2013 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.

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	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014				March 31, 2013
					(As Restated)
Business segment net revenue:
Merchandise Availability Solutions	$	93,464			$	94,250
Apparel Labeling Solutions	42,081				40,833
Retail Merchandising Solutions	11,861				13,090
Total revenues	$	147,406			$	148,173
Business segment gross profit:
Merchandise Availability Solutions	$	43,942			$	37,328
Apparel Labeling Solutions	14,085				10,996
Retail Merchandising Solutions	4,259				4,942
Total gross profit	62,286				53,266
Operating expenses	60,120			(1)	55,481			(2)
Interest (expense) income, net	(989		)		(2,165		)
Other gain (loss), net	(86		)		(545		)
Earnings (loss) from continuing operations before income taxes	$	1,091			$	(4,925	)

⁽¹⁾  Includes a $1.9 million restructuring charge.

⁽²⁾  Includes a benefit of $6.6 million due to a litigation accrual reversal, a $2.0 million restructuring charge and a $0.2 million acquisition charge.

Note 14. DISCONTINUED OPERATIONS

Banking Security Systems Integration

On October 1, 2012, we 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, we 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%. We received $0.1 million of principal on the note receivable for the three months ended March 30, 2014. The proceeds are included in cash proceeds from the sale of discontinued operations on the Consolidated Statement of Cash Flows.

U.S and Canada CheckView^®

In December of 2012, our U.S. and Canada based CheckView^® business included in our Merchandise Availability Solutions segment met the criteria for classification as discontinued operations. On March 19, 2013, we entered into an asset purchase agreement for the sale of our U.S. and Canada based CheckView^® business for $5.4 million in cash, subject to a working capital adjustment to the extent that the net working capital of the business deviates from targeted working capital of $17.9 million.

On April 28, 2013, we completed the sale of our U.S. and Canada based CheckView^® business unit for $5.4 million less a working capital adjustment of $4.1 million to arrive at cash proceeds of $1.3 million received on April 29, 2013. We initially recorded a receivable from the buyer of $0.2 million as a working capital adjustment based on the closing balance sheet. In the fourth quarter of 2013, the buyer disputed some amounts on the closing balance sheet. As a result, we recorded a payable to the buyer of $0.9 million as a working capital adjustment based on the buyer's preliminary review of the final closing balance sheet. This amount was paid to the buyer during the three months ended March 30, 2014. We incurred selling costs of $1.1 million in connection with the transaction. We also issued a guarantee to the lessor of the related facilities and executed a transition services agreement with the buyer to provide services including but not limited to standalone information technology environment setup access, systems modifications, human resources and payroll processing support. The transition services have various contract periods, ranging from 60 days to one year. The leases on the facilities for which we issued a guarantee terminate in 2018. Our maximum potential future payments under the guarantee are $4.1 million as of March 30, 2014. We

30

have a total lease guarantee liability of $0.1 million recorded in both other current liabilities and other long term liabilities on the Consolidated Balance Sheet as of March 30, 2014. Direct costs incurred by us in connection with this agreement will be billed to the buyer on a monthly basis. Transition services income, net of transition services expense, was $29 thousand for the three months ended March 30, 2014. This amount is included within other gain (loss), net on the Consolidated Statement of Operations for the three months ended March 30, 2014. Costs incurred to carve-out the CheckView^® business from our enterprise resource planning system for the buyer totaled $0.4 million and were recorded through discontinued operations on the Consolidated Statement of Operations for the year ended December 29, 2013. The loss on our sale of the U.S. and Canada based CheckView^® business of $13.6 million was recorded through discontinued operations on the Consolidated Statement of Operations for the year ended December 29, 2013.

The results for the three months ended March 30, 2014 and March 31, 2013 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:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Net revenue	$	—	$	12,543
Gross profit	—		(25		)
Selling, general, and administrative expenses	—		2,318
Research and development	—		79
Operating loss	—		(2,422		)
Loss from discontinued operations before income taxes	—		(2,422		)
Loss from discontinued operations, net of tax	$	—	$	(2,556	)

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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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTSOF OPERATIONS

Information Relating to Forward-Looking Statements

This report includes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Statements in this Management’s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this quarterly report on Form 10-Q which express that we "believe," "anticipate," "expect" or "plan to" as well as other statements which are not historical fact, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the safe harbors created under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These forward-looking statements reflect our current views with respect to future events and financial performance, and are subject to certain risks and uncertainties which could cause actual results to differ materially from historical results or those anticipated. 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: the impact upon operations of accounting policies review and improvement; the impact of our financial results and stock price as a result of our restatement of our previously-issued financial statements; the impact upon operations of legal and 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 . 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.Additional information about potential factors that could affect our business and financial results is included in our Annual Report on Form 10-K for the year ended December 29, 2013, and our other Securities and Exchange Commission filings that are subsequently filed.

Restatement of Previously Issued Consolidated Financial Statements

As discussed further in Note 1, Summary of Significant Accounting Policies - Restatement of Previously Issued Consolidated Financial Statements, in the Notes to Consolidated Financial Statements included in Part I, Item 1, Consolidated Financial Statements of this Quarterly Report on Form 10-Q, in our 2013 Annual Report on Form 10-K, we restated our previously issued consolidated financial statements and the related disclosures for the years ended December 30, 2012 and December 25, 2011 and unaudited interim financial information for each of the quarters in the year ended December 30, 2012 and for the first three quarters in the fiscal year ended December 29, 2013 (the "Restated Periods").

The restatement is the result of our corrections for the effect of financial statement errors attributable to the accounting for the future extension of a sales-type lease arrangement in Spain during the second quarter ended June 26, 2011 (“Spain transaction”). In addition to the Spain transaction resulting in the restatement of our previously issued consolidated financial statements, we also recorded certain other immaterial errors affecting the consolidated financial statements of the Restated Periods.

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All amounts in this Quarterly Report on Form 10-Q affected by the restatement reflect such amounts as restated. The impact of the correction of these errors in the restatement on the applicable line items in the consolidated financial statements for the quarter ended March 31, 2013 resulting from the restatement is set forth in Note 1 to the Notes to Consolidated Financial Statements. Our Quarterly Reports on Form 10-Q for subsequent periods during 2014 will also include the impacts of the restatement on applicable 2013 comparable prior quarter and year to date periods. See Note 1 of the Notes to Consolidated Financial Statements for further detail.

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 Merchandise Availability Solutions, Apparel Labeling Solutions, and Retail Merchandising Solutions. Merchandise Availability Solutions consists of electronic article surveillance (EAS) systems, EAS consumables, Alpha^® solutions, and radio frequency identification (RFID) systems, software and services. 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, graphic tags and labels, adhesive labels, fabric and woven tags and labels, apparel branding tags, fully integrated tags and labels and RFID tags and labels. 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 28 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.

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. Prior periods 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 revenues and gross profit for each of the segments are included in Note 13 of the Consolidated Financial Statements.

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 have divested and will continue to consider divesting certain businesses and product lines that are 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.

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Our Apparel Labeling business 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. We have made changes to right-size 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 reduced our Apparel Labeling product offerings 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 continue to sustain us through this challenging period.

Our expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan has impacted over 2,600 existing employees since inception. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are $79 million through the end of the first quarter of 2014, with $61 million in total costs for the Global Restructuring Plan including Project LEAN and $18 million of costs incurred for the SG&A Restructuring Plan. Total savings of the two plans since their inception are expected to approximate $108 million by the end of the third quarter of 2015, with $88 million in total anticipated savings for the Global Restructuring Plan including Project LEAN and $20 million in total anticipated savings for the SG&A Restructuring Plan. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed, with final headcount terminations expected to be finalized by the third quarter of 2014. Our Global Restructuring Plan including Project LEAN included initiatives 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 was fundamentally restructured, including the consolidation of certain manufacturing operations in order to provide quality merchandising products profitably and on time. We also rationalized our customer base and reviewed our product capabilities to be aligned with our on-shelf availability strategy.

In the third quarter of 2013, we announced that we will continue to develop additional cost savings and margin enhancement initiatives over and above those in the current global restructuring initiatives. The value of these opportunities is expected to approximate between $10 million and $15 million by the end of 2014, with an annualized benefit of $15 million to $20 million.

On December 11, 2013, we entered into a new $200.0 million five-year senior secured multi-currency revolving credit facility("2013 Senior Secured Credit Facility") agreement ("2013 Credit Agreement") with a syndicate of lenders. The 2013 Senior Secured Credit Facility was used to repay $32.0 million outstanding under the 2010 Senior Secured Credit Facility as well as the $55.6 million outstanding under the Senior Secured Notes. We may borrow, prepay and re-borrow under the 2013 Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The 2013 Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the 2013 Senior Secured Credit Facility of up to an aggregate of $100.0 million, for a potential total commitment of $300.0 million.

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. In April 2013, we completed the sale 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, hand-held labeling tools and services from 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 strategic plan.

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Critical Accounting Policies and Estimates

We have presented our Critical Accounting Policies and Estimates in Part II - Item 7 - “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 29, 2013. There have been no material changes to our Critical Accounting Policies and Estimates set forth in our Annual Report on Form 10-K for the fiscal year ended December 29, 2013.

Thirteen Weeks Ended March 30, 2014 Compared to Thirteen Weeks Ended March 31, 2013

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 Revenue				Percentage Change In Dollar Amount
Quarter ended	March 30, 2014 (Fiscal 2014)		March 31, 2013 (Fiscal 2013)		Fiscal 2014 vs. Fiscal 2013
			(As Restated)
Net revenues
Merchandise Availability Solutions	63.4	%	63.6	%	(0.8	)%
Apparel Labeling Solutions	28.6		27.6		3.1
Retail Merchandising Solutions	8.0		8.8		(9.4	)
Net revenues	100.0		100.0		(0.5	)
Cost of revenues	57.7		64.1		(10.3	)
Gross profit	42.3		35.9		16.9
Selling, general, and administrative expenses	36.9		37.5		(2.1	)
Research and development	2.6		3.1		(17.3	)
Restructuring expenses	1.3		1.3		(6.2	)
Litigation settlement	—		(4.4	)	(100.0	)
Acquisition costs	—		0.1		(100.0	)
Other operating income	—		(0.2	)	(100.0	)
Operating income (loss)	1.5		(1.5	)	(197.8	)
Interest income	0.2		0.3		(33.1	)
Interest expense	0.9		1.7		(51.0	)
Other gain (loss), net	(0.1	)	(0.4	)	(84.2	)
Earnings (loss) from continuing operations before income taxes	0.7		(3.3	)	(122.2	)
Income taxes expense	0.8		—		N/A
Net loss from continuing operations	(0.1	)	(3.3	)	(97.4	)
Loss from discontinued operations, net of tax	—		(1.7	)	(100.0	)
Net loss	(0.1	)	(5.0	)	(98.3	)
Less: loss attributable to non-controlling interests	—		—		(100.0	)
Net loss attributable to Checkpoint Systems, Inc.	(0.1	)%	(5.0	)%	(98.3	)%

N/A – Comparative percentages are not meaningful.

Net Revenues

Revenues for the first quarter of 2014 compared to the first quarter of 2013 decreased $0.8 million, or 0.5%, from $148.2 million to $147.4 million. Foreign currency translation had a negative impact on revenues of approximately $0.9 million, or 0.6%, in the first quarter of 2014 as compared to the first quarter of 2013.

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(amounts in millions)					Dollar Amount Change			Percentage Change
Quarter	March 30, 2014 (Fiscal 2014)		March 31, 2013 (Fiscal 2013)		Fiscal 2014 vs. Fiscal 2013			Fiscal 2014 vs. Fiscal 2013
			(As Restated)
Net revenues:
Merchandise Availability Solutions	$	93.4	$	94.3	$	(0.9	)	(0.8	)%
Apparel Labeling Solutions	42.1		40.8		1.3			3.1
Retail Merchandising Solutions	11.9		13.1		(1.2		)	(9.4	)
Net revenues	$	147.4	$	148.2	$	(0.8	)	(0.5	)%

Merchandise Availability Solutions

Merchandise Availability Solutions (MAS) revenues decreased $0.9 million, or 0.8%, during the first quarter of 2014 compared to the first quarter of 2013. Foreign currency translation had a negative impact of approximately $0.7 million. The adjusted decrease of $0.2 million in MAS was due primarily to decreases in EAS systems, CheckView^® and our business that supports shrink management in libraries (Library). These decreases were partially offset by increases in EAS consumables, Merchandise Visibility (RFID), and Alpha^®.

EAS systems revenues decreased in the first quarter of 2014 as compared to the first quarter of 2013, primarily due to a decline in Europe resulting from the lower volume of new product installations with existing customers. The decrease was offset by an increase in the U.S. due to a large roll-out that began in the fourth quarter of 2013.

We sold our U.S. and Canada CheckView^® business in 2013. The results of this business are included in discontinued operations. We will continue to provide CheckView^® CCTV services in Asia in connection with EAS systems when our customers require a combined security solution. Due to our decreased focus on this business, our CheckView^® Asia revenues decreased in the first quarter of 2014 as compared to the first quarter of 2013.

Library revenues decreased in the first quarter of 2014 as compared to the first quarter of 2013, primarily due to the expiration of a licensing agreement in the U.S. We do not consider our Library business to be strategically important to our operations.

EAS consumables revenues increased in the first quarter of 2014 as compared to the first quarter of 2013, primarily due to increased EAS label revenues in the U.S. and Europe as a result of new protection programs with new and existing customers including the impact of recent market share wins in EAS systems. We expect our EAS consumables business to be favorably impacted in 2014 by our recent market share wins in our EAS systems business. Hard Tag @ Source^™ revenues in the U.S. also contributed to the increase, resulting from increased volumes from both new and existing customers.

The Merchandise Visibility (RFID) revenues increased in the first quarter of 2014 as compared to the first quarter of 2013, as the business continues to gain traction with installations at several major retailers, primarily in the U.S. and Europe. We expect RFID revenues to increase and continue on their forecasted path for strong growth in 2014 as a result of asset tracking business delayed from 2013 to 2014, the conversion of certain pilots into installation contracts and the expansion of certain installation contracts to additional stores.

Alpha^® revenues increased in the first quarter of 2014 as compared to the first quarter of 2013 due to strong sales in the U.S. and Asia Pacific with key customers in 2014 without comparable levels of demand in 2013. The increase was offset by declines in International Americas and Europe primarily due to large orders in the first quarter of 2013 without comparable demand in 2014. Growth in 2014 is expected to be hindered due to lack of certain new customer build-ups which occurred in 2013 and increased competitive pressure.

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Apparel Labeling Solutions

Apparel Labeling Solutions (ALS) revenues increased $1.3 million, or 3.1%, in the first quarter of 2014 as compared to the first quarter of 2013. After considering the foreign currency translation negative impact of $0.4 million, the $1.7 million increase in revenues is driven by increased RFID labels revenue in Asia, Europe and the U.S. resulting from higher demand for RFID labels due to substantial roll-outs with RFID enabled technology. The increase was partially offset by declines in ALS sales volumes in the U.S., Asia and Europe due to the effects of our ALS business rationalization, including the deliberate strategic loss of certain customers and the downsizing of our woven business. We expect modest growth in our Apparel Labeling Solutions business as we complete our business rationalization process and switch our focus to building on recent new business development in both our core and RFID labels businesses.

Retail Merchandising Solutions

Retail Merchandising Solutions revenues decreased $1.2 million, or 9.4%, in the first quarter of 2014 as compared to the first quarter of 2013. After considering the foreign currency translation positive impact of $0.2 million, the $1.4 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 soft economic conditions in Europe resulting in fewer new store openings and remodels of existing stores at our European customers.

Gross Profit

During the first quarter of 2014, gross profit increased $9.0 million, or 16.9%, from $53.3 million to $62.3 million in the first quarter of 2014. The negative impact of foreign currency translation on gross profit was approximately $0.7 million. Gross profit, as a percentage of net revenues, increased from 35.9% to 42.3%.

Merchandise Availability Solutions

Merchandise Availability Solutions gross profit as a percentage of Merchandise Availability Solutions revenues increased from 39.6% in the first quarter of 2013 to 47.0% in the first quarter of 2014. The increase in the gross profit percentage of Merchandise Availability Solutions was due primarily to higher margins in EAS consumables, EAS systems, Alpha^® and RFID. EAS consumables and EAS systems margins increased due primarily to increased volume on high margin programs in the U.S. Alpha^® margins increased due to product mix and favorable manufacturing variances. RFID margins increased as prior year margins were also negatively impacted by pilot programs and additional investments with new and existing customers as well as higher field service costs resulting from a significant roll-out in the U.S.

Apparel Labeling Solutions

Apparel Labeling Solutions gross profit as a percentage of Apparel Labeling Solutions revenues increased to 33.5% in the first quarter of 2014, from 26.9% in the first quarter of 2013. Due to the recent actions of Project LEAN to restructure and right size our manufacturing footprint, we are continuing to see positive gross margin impact most notably from business rationalization, inventory management, and improved manufacturing efficiencies.

Retail Merchandising Solutions

Retail Merchandising Solutions gross profit as a percentage of Retail Merchandising Solutions revenues decreased to 35.9% in the first quarter of 2014 from 37.8% in the first quarter of 2013. 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. The decrease was partially offset by higher margins in HLS due to favorable manufacturing variances.

Selling, General, and Administrative Expenses

Selling, general, and administrative (SG&A) expenses decreased $1.2 million, or 2.1%, during the first quarter of 2014 compared to the first quarter of 2013. The SG&A and enhanced Global Restructuring programs continued to reduce selling-related expenses by $1.6 million. Offsetting these cost reductions was an increase in bad debt expense due to a $0.4 million net recovery in the first quarter of 2013 compared to $0.7 million of expense in the first quarter of 2014.

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Research and Development Expenses

Research and development (R&D) expenses were $3.9 million, or 2.6%, of revenues in the first quarter of 2014 and $4.7 million, or 3.1%, of revenues in the first quarter of 2013, as we have placed focus on operational efficiency specifically through Project LEAN.

Restructuring Expenses

Restructuring expenses were $1.9 million, or 1.3% of revenues in the first quarter of 2014 compared to $2.0 million or 1.3% of revenues in the first quarter of 2013.

Litigation Settlement

Litigation settlement for the first quarter of 2013 was a benefit of $6.6 million without a comparable amount in 2014. The benefit was related to the All-Tag Security S.A., et al litigation in which a decision was reversed in our favor.

Acquisition Costs

Acquisition costs were $0.2 million for the first quarter of 2013 without a comparable expense in 2014. The decrease in acquisition costs was primarily due to the timing of services related to the ongoing EBITDA contingent payment arbitration process related to the acquisition of the Shore to Shore businesses in May 2011.

Other Operating Income

Other operating income for the first quarter of 2014 decreased $0.3 million from the comparable first quarter of 2013. The decrease is primarily due to the sale of customer related receivables associated with the renewal and extension of sales-type lease arrangements in the first quarter of 2013.

Interest Income and Interest Expense

Interest income for the first quarter of 2014 decreased $0.1 million from the comparable quarter of 2013. The decrease in interest income was primarily due to decreased interest income recognized for sales-type leases during the first quarter of 2014 compared to the first quarter of 2013.

Interest expense for the first quarter of 2014 decreased $1.3 million from the first quarter of 2013. The decrease in interest expense was primarily due to securing the new Senior Secured Credit Facility in December 2013, which reduced the cost of debt from approximately 6% to 2%.

Other Gain (Loss), net

Other gain (loss), net was a net loss of $0.1 million in the first quarter of 2014 compared to a net loss of $0.5 million in the first quarter of 2013. There was a $0.1 million foreign exchange loss during the first quarter of 2014 compared to a $0.5 million foreign exchange loss during the first quarter of 2013. The decreased foreign exchange loss is primarily attributed to U.S. Dollar and Euro fluctuations versus currencies in emerging markets where hedging is either impossible or impractical.

Income Taxes

The year to date effective tax rate for the first quarter of 2014 was 111.8% as compared to the year to date effective rate for the first quarter of 2013 of 0.0%. The 2014 effective tax rate was higher due to the mix of income among subsidiaries. The 2014 rate was also impacted by losses in countries with valuation allowances that do not result in a tax benefit, causing the overall tax expense as a percentage of income to increase. In the first quarter of 2014, we accounted for the U.S. operations by applying an estimated annual effective rate methodology. We determined that if the U.S. operations are included in the estimated annual effective tax rate, small changes in estimated pretax earnings would no longer result in significant fluctuations in the tax rate. For the three months ended March 31, 2013, we applied the discrete method to our U.S. operations.

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Loss from Discontinued Operations

Loss from discontinued operations, net of tax, $2.6 million in the first quarter of 2013, without a comparable amount in 2014. Consistent with our refined strategy to focus on inventory management systems relating to on-shelf availability, we decided to reduce our emphasis on CheckView^® services and solutions. In April 2013, we completed the sale of our U.S. and Canada based CheckView^® business so that we can focus on the growth of our core business. As such, the business, which was included in our Merchandise Availability Solutions segment, was excluded from continuing operations.

Net Loss Attributable to Checkpoint Systems, Inc.

Net loss attributable to Checkpoint Systems, Inc. was $0.1 million, or $0.00 per diluted share, during the first quarter of 2014 compared to $7.4 million, or $0.18 per diluted share, during the first quarter of 2013. The weighted-average number of shares used in the diluted earnings per share computation were 41.9 million and 41.2 million for the first quarter of 2014 and 2013, respectively.

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. We have met our liquidity needs primarily through cash generated from operations. 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 agreement should be adequate to service debt and working capital needs, meet our capital investment requirements, other potential restructuring requirements, and product development requirements.

On December 11, 2013, we entered into a new $200.0 million five-year senior secured multi-currency revolving credit facility("2013 Senior Secured Credit Facility") agreement ("2013 Credit Agreement") with a syndicate of lenders. The 2013 Senior Secured Credit Facility was used to repay $32.0 million outstanding under the 2010 Senior Secured Credit Facility as well as the $55.6 million outstanding under the Senior Secured Notes. We may borrow, prepay and re-borrow under the 2013 Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The 2013 Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the 2013 Senior Secured Credit Facility of up to an aggregate of $100.0 million, for a potential total commitment of $300.0 million.

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, hand-held labeling tools and services from maintenance), repeat customer business, the anticipated effect of our restructuring activities, and our cash position and borrowing capacity should provide us with adequate cash flow and liquidity to continue with the successful execution of our strategic plan. We have worked to reduce our liquidity risk by implementing working capital improvements while reducing expenses in areas that will not adversely impact the future potential of our business. We evaluate the risk and 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 March 30, 2014, our cash and cash equivalents were $121.2 million compared to $121.6 million as of December 29, 2013. A significant portion of this cash is held overseas and can be repatriated. We do not expect to incur material costs associated with repatriation. Cash and cash equivalents changed in 2014 primarily due to $8.6 million of cash provided by operating activities and favorable $0.2 million effect of foreign currency, partially offset by $6.0 million of cash used in financing activities and $3.2 million of cash used in investing activities.

Cash provided by operating activities was $4.5 million less during the first quarter of 2014 compared to the first quarter of 2013. In the first quarter of 2014 compared to the first quarter of 2013, our cash from operating activities was positively impacted by the significant increase in operating income, which was offset by investments in working capital including investments to support new market share gains resulting in an increase in inventory by $11.1 million compared to an increase of $1.3 million in the first quarter of 2013. The remainder of the variances are explained by changes in other liabilities, unearned revenues, other assets, the restructuring reserve and income taxes.

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Cash used in investing activities was $2.3 million higher during the first quarter of 2014 compared to the first quarter of 2013. This was primarily due to an increase in the acquisition of property, plant, and equipment during the first quarter of 2014 compared to the first quarter of 2013. In addition, the 2013 cash from investing activities includes proceeds from the sale of property, plant and equipment.

Cash used in financing activities was $8.1 million higher during the first quarter of 2014 compared to the first quarter of 2013. This was due primarily to repayments of debt in the first quarter of 2014 compared to net borrowings in the first quarter of 2013.

Our percentage of total debt to total equity as of March 30, 2014, was 24.6% compared to 26.5% as of December 29, 2013. As of March 30, 2014, our working capital was $231.3 million compared to $233.5 million as of December 29, 2013.

We continue to make investments in technology and process improvement. Our investment in R&D amounted to $3.9 million and $4.7 million during the first quarter of 2014 and 2013, respectively. These amounts are reflected in cash used in operations, as we expense our R&D as it is incurred. We anticipate spending approximately $13 million on R&D to support achievement of our strategic plan during the remainder of 2014.

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 the first quarter of 2014, our contribution to these plans was $1.2 million. Our total funding expectation for 2014 is $5.4 million. We believe our current cash position and cash generated from operations will be adequate to fund these requirements.

Acquisition of property, plant, and equipment during the first quarter of 2014 totaled $3.3 million compared to $1.4 million during the same period in 2013. We anticipate our capital expenditures, used primarily to upgrade information technology, improve our production capabilities, and upgrade facilities, to approximate $17 million for the remainder of 2014.

Senior Secured Credit Facility

On December 11, 2013, we entered into a new $200.0 million five-year senior secured multi-currency revolving credit facility("2013 Senior Secured Credit Facility") agreement ("2013 Credit Agreement") with a syndicate of lenders. The 2013 Senior Secured Credit Facility was used to repay $32.0 million outstanding under the 2010 Senior Secured Credit Facility as well as the $55.6 million outstanding under the Senior Secured Notes. We may borrow, prepay and re-borrow under the 2013 Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The 2013 Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the 2013 Senior Secured Credit Facility of up to an aggregate of $100.0 million, for a potential total commitment of $300.0 million.

All obligations under the 2013 Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by certain domestic subsidiaries. Collateral under the 2013 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 subsidiary. All domestic tangible and intangible personal property, excluding any real property with a value of less than $5 million, are also pledged as collateral.

Borrowings under the 2013 Senior Secured Credit Facility, other than swingline loans, bear interest at our option of either (i) a spread ranging from 0.25% to 1.25% over the Base Rate (as described below), or (ii) a spread ranging from 1.25% to 2.25% over the LIBOR rate, and in each case fluctuating in accordance with changes in our leverage ratio, as defined in the 2013 Credit Agreement.  The “Base Rate” is the highest of (a) the Federal Funds Rate, plus 0.50%, (b) the Administrative Agent’s prime rate, 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 0.25% to 1.25% over the Base Rate.  We pay an unused line fee ranging from 0.20% to 0.40% per annum on the unused portion of the 2013 Senior Secured Credit Facility.

Pursuant to the terms of the 2013 Senior Secured Credit Facility, we are subject to various requirements, including covenants requiring the maintenance of (i) a maximum total leverage ratio of 3.00 and (ii) a minimum interest coverage ratio of 3.00. We are in compliance with the maximum total leverage ratio and minimum interest coverage ratio as of March 30, 2014. Although we cannot provide full assurance, we expect to be in compliance with all of our covenants for the next twelve months. The 2013 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 2013 Senior Secured Credit Facility, including the non-payment of principal or interest, our obligations under the 2013 Credit Agreement may be accelerated and the assets securing such obligations may be sold.

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During the year ended December 29, 2013, we incurred $1.8 million in fees and expenses in connection with the 2013 Senior Secured Credit Facility, which are amortized over the term of the 2013 Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations. The remaining unamortized debt issuance costs recognized in connection with the 2010 Secured Credit Facility of $0.4 million are amortized over the term of the 2013 Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations.

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). The payment of cash dividends is subject to certain restrictions in our Debt Agreements. We do not anticipate paying any cash dividends in the near future.

Other Long-Term Debt

In December 2013, we entered into a sale-lease-back transaction in Spain. As of December 29, 2013, the lease had a balance of $1.2 million (€0.9 million), of which $0.2 million (€0.2 million) was included in the current portion of long-term debt and $1.0 million (€0.7 million) was included in long-term borrowings in the accompanying Consolidated Balance Sheets. On February 7, 2014, the outstanding balance of $1.2 million (€0.9 million) was repaid and the liability was released.

We have full-recourse factoring arrangements in Europe. The arrangements are secured by trade receivables. We received a weighted average of 92.4% of the face amount of receivables that we desired to sell and the bank agreed, at its discretion, to buy. As of March 30, 2014 the factoring arrangements had a balance of $0.2 million (€0.1 million), of which $0.1 million (€0.1 million) was included in the current portion of long-term debt and $0.1 million (€40 thousand) was included in long-term borrowings in the accompanying Consolidated Balance Sheets since the receivables are collectible through 2016.

Financing Liability

In June 2011, we sold, to a financial institution in Spain, rights to future customer receivables resulting from the negotiated extension of previously executed sales-type lease arrangements, whose receivables were previously sold. The 2011 transaction qualified as a legal sale without recourse. However, until the receivables are recognized, the proceeds from the fiscal 2011 legal sale are accounted for as a financing arrangement and reflected as a financing liability in our consolidated balance sheet. The balance of the financing liability is $35.6 million and $35.1 million as of March 30, 2014 and December 29, 2013, respectively. We impute a non-cash interest charge on the financing liability using a rate of 6.365%, which we recognize as interest expense, until our right to recognize the legal sales permits us to de-recognize the liability and record operating income on the sale. We recognized interest expense related to the financing liability of $0.6 million and $0.5 million for the three months ended March 30, 2014 and March 31, 2013, respectively.

During fiscal 2016 through 2018, when we are permitted to recognize the lease receivables upon the commencement of the lease extensions, we expect to de-recognize both the associated receivables and the related financing liability and record other operating income on the sale. At this point, our obligation under the financing liability will have been extinguished.  

Provisions 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. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed, with final headcount terminations expected to be finalized by the third quarter of 2014.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan has impacted over 2,600 existing employees since inception. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are $79 million through the end of the first quarter of 2014, with $61 million in total costs for the Global Restructuring Plan including Project LEAN and $18 million of costs incurred for the SG&A Restructuring Plan. Total savings of the two plans since their inception are expected to approximate $108 million by the end of the third quarter of 2015, with $88 million in total anticipated savings for the Global Restructuring Plan including Project LEAN and $20 million in total anticipated savings for the SG&A Restructuring Plan. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed, with final headcount terminations expected to be finalized by the third quarter of 2014. Our Global Restructuring Plan including Project LEAN included initiatives to stabilize sales, actively manage margins, dramatically reduce operating expenses, more effectively manage working capital and improve global cash management control.

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Restructuring expense for the three months ended March 30, 2014 and March 31, 2013 was as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	1,572	$	339
Asset Impairments	172		731
Other exit costs	143		885
SG&A Restructuring Plan
Severance and other employee-related charges	5		(16		)
Other exit costs	—		77
Total	$	1,892	$	2,016

Restructuring accrual activity for the three months ended March 30, 2014 was as follows:

(amounts in thousands)	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at March 30, 2014
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	7,757	$	2,093	$	(521	)	$	(1,850	)	$	(6	)	$	7,473
Other exit costs(1)	66		143		—			(173		)	(1		)	35
SG&A Restructuring Plan
Severance and other employee-related charges	352		5		—			(214		)	—			143
Total	$	8,175	$	2,241	$	(521	)	$	(2,237	)	$	(7	)	$	7,651

⁽¹⁾  During the first quarter of 2013, there was a net charge to earnings of $0.1 million primarily due to restructuring agent costs and legal costs in connection with the restructuring plan.

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, including final headcount terminations, expected to be substantially completed by the third quarter of 2014.

For the quarter ended March 30, 2014, the net charge to earnings of $1.9 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60.8 million have been incurred through March 30, 2014. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,273, of which 2,181 have been terminated. Termination benefits are planned to be paid 1 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.

For the quarter ended March 30, 2014, the net charge to earnings of $5 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 affected by the SG&A Restructuring Plan was approximately 369, all of which have been terminated. Termination benefits are planned to be paid 1 month to 24 months after termination.

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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. There have been no material changes to the discussion of these rental commitments under non-cancelable operation leases presented in our Annual Report on Form 10-K for the year ended December 29, 2013.

Contractual Obligations

Except as described below, there have been no material changes to the table entitled “Contractual Obligations” presented in our Annual Report on Form 10-K for the year ended December 29, 2013. In February 2014, we entered into an amendment of one of our lease agreements whereby beginning in March 2014, we reduced the annual rent by approximately $0.4 million per year on an annualized basis and decreased the expiration date of the lease from November 30, 2018 to February 28, 2018. The table of contractual obligations excludes our gross liability for uncertain tax positions, including accrued interest and penalties, which totaled $32.3 million as of March 30, 2014, and $31.9 million as of December 29, 2013, because we cannot predict with reasonable reliability the timing of cash settlements to the respective taxing authorities.

Recently Adopted Accounting Standards

In December 2011, the FASB issued ASU 2011-11, "Balance Sheet – Disclosures about Offsetting Assets and Liabilities (Topic 210-20)," (ASU 2011-11). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for fiscal years beginning on or after January 1, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting From Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” (ASU 2013-04). The update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed as of the reporting date as the sum of the obligation the entity agreed to pay among its co-obligors and any additional amount the entity expects to pay on behalf of its co-obligors. This ASU is effective for annual and interim periods beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In March 2013, the FASB issued ASU 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” (ASU 2013-05). The update clarifies that complete or substantially complete liquidation of a foreign entity is required to release the cumulative translation adjustment (CTA) for transactions occurring within a foreign entity. However, transactions impacting investments in a foreign entity may result in a full or partial release of CTA even though complete or substantially complete liquidation of the foreign entity has not occurred. Furthermore, for transactions involving step acquisitions, the CTA associated with the previous equity-method investment will be fully released when control is obtained and consolidation occurs. This ASU is effective for fiscal years beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In April 2013, the FASB issued ASU 2013-07, “Liquidation Basis of Accounting,” (ASU 2013-07). The objective of ASU 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The ASU is effective prospectively for entities that determine liquidation is imminent during annual and interim reporting periods beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In July 2013, the FASB issued ASU 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes,” (ASU 2013-10). The update permits the use of the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under FASB ASC Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR). The update also removes the restriction on using different benchmark rates for similar hedges. This ASU is

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effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In March 2014, the FASB issued ASU 2014-06, "Technical Corrections and Improvements Related to Glossary Terms," (ASU 2014-06). This ASU provides technical corrections and improvements to Accounting Standards Codification glossary terms. Our adoption of this standard, effective March 14, 2014, did has not had a material impact on our Consolidated Results of Operations and Financial Condition.

New Accounting Pronouncements and Other Standards

In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," (ASU 2014-08). Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014. The impact of the adoption of this ASU on our Consolidated Results of Operations and Financial Condition will be based on our future disposal activity.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Except as noted below, there have been no significant changes to the market risks as disclosed in Part II - Item 7A. - “Quantitative And Qualitative Disclosures About Market Risk” of our Annual Report on Form 10-K for the year ended December 29, 2013.

Exposure to Foreign Currency

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.

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 March 30, 2014, we had currency forward exchange contracts with notional amounts totaling approximately $8.1 million. The fair values of the forward exchange contracts were reflected as a $4 thousand asset and $25 thousand liability included in other current assets and other liabilities in the accompanying Consolidated Balance Sheets. The contracts are in the various local currencies covering primarily our operations in the U.S. 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.

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Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As described in more detail in our Annual Report on Form 10-K for the year ended December 29, 2013, we identified a material weakness in internal control over financial reporting as of December 29, 2013. We did not maintain effective controls over the accounting for the occurrence, valuation, rights and obligations and presentation and disclosure of non-routine complex transactions. Specifically, we did not have effective controls surrounding the documentation, evaluation and review of the technical accounting considerations that were adequately designed to determine whether the transactions were accounted for appropriately. This control deficiency resulted in a misstatement of our gross investment in lease receivables, other financing liabilities, unearned revenue, revenue and other operating income accounts and related disclosures. The misstatement was a result of modifications made to leasing arrangements, the transfer of financial assets to a third party financial institution and multi-element revenue arrangements, and resulted in the restatement of the Company’s consolidated financial statements for the fiscal years 2012 and 2011 and each of the quarters of fiscal 2012 and the first three quarters of fiscal 2013. Additionally, this control deficiency could result in a misstatement of account balances or disclosures associated with non-rountine complex transactions that would result in a material misstatement of the consolidated financial statements that would not be prevented or detected.

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 Exchange Act) as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, due to our material weakness in our controls over financial reporting disclosed in our Annual Report on Form 10-K for the year ended December 29, 2013, our disclosure controls and procedures were not effective as of the end of the period covered by this report.

Based on additional analysis and other post-closing procedures designed to ensure that the Company’s Consolidated Financial Statements will be presented in accordance with generally accepted accounting principles, management believes, notwithstanding the material weakness, that the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP).

Changes in Internal Control over Financial Reporting

Management has been actively engaged in developing remediation plans to address the above described material weakness. The remediation efforts in process or expected to be implemented include the following:

• Instituting additional training programs for accounting personnel; and

• Re-designing controls to identify, research, evaluate and review the appropriate accounting related to non-routine complex transactions and technical accounting matters. These include matters in the areas of leasing, the sale of financial assets, and revenue recognition, as well as other areas.

We believe that the controls that we will be implementing will improve the effectiveness of our internal control over financial reporting. As we continue to evaluate and work to improve our internal control over financial reporting, we may determine to take additional measures to address the material weakness or determine to supplement or modify certain of the remediation measures described above. The remediation of the material weakness is expected to be completed in 2014.

There have been no other changes in our internal control over financial reporting that occurred during our first fiscal quarter of 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. 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 paragraph.

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 (the “Pennsylvania Court”) 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 United States Court of Appeals for the Federal Circuit (the “Appellate Court”) reversed the grant of summary judgment and remanded the case to the Pennsylvania 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 Pennsylvania Court entered judgment in favor of defendants based on the jury's infringement and enforceability findings. On February 10, 2009, the Pennsylvania 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 Pennsylvania 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 Pennsylvania Court's award of attorneys' fees to the defendants. Following the filing of briefs and the completion of oral arguments, the Appellate Court reversed the decision of the Pennsylvania Court on March 25, 2013. As a result of the final decision, we reversed the All-Tag reserve of $6.6 million in the first quarter ended March 31, 2013.

Matter related to Universal Surveillance Corporation EAS RF Anti-trust Litigation

Universal Surveillance Corporation (“USS”) filed a complaint against us in the United States Federal District Court of the Northern District of Ohio (the “Ohio Court”) on August 19, 2011. USS claims that, in connection with our competition in the electronic article surveillance market, we violated the federal antitrust laws (Sherman Act and Clayton Act) and state antitrust laws (Ohio Valentine Act). USS also claims that we violated the federal Lanham Act, the Ohio Deceptive Trade Practices Act, and the Ohio Trade Secrets Act, and engaged in conduct that allegedly disparaged USS and tortiously interfered with USS's business relationships and contracts. USS is seeking injunctive relief as well as approximately $65 million in claimed damages for alleged lost profits, plus treble damages and attorney's fees under the Sherman Act. As of March 30, 2014, we have neither recorded a reserve for this matter nor do we believe that there is a reasonable possibility that a loss has been incurred.

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Item 1A. RISK FACTORS

There have been no material changes from December 29, 2013 to the significant risk factors and uncertainties known to us that, if they were to occur, could materially adversely affect our business, financial condition, operating results and/or cash flow. For a discussion of our risk factors, refer to Part I - Item 1A - “Risk Factors”, contained in our Annual Report on Form 10-K for the year ended December 29, 2013.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

Item 3. DEFAULTS UPON SENIOR SECURITIES

None.

Item 4. MINE SAFETY DISCLOSURES

Not Applicable.

Item 5. OTHER INFORMATION

None.

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Item 6. 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 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 32.1	Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements 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.

	CHECKPOINT SYSTEMS, INC.
May 5, 2014	/s/ Jeffrey O. Richard
	Jeffrey O. Richard
	Executive Vice President and Chief Financial Officer

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INDEX TO 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 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 32.1	Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.

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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-Q 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.

		By: /s/ George Babich, Jr.
		Name: George Babich, Jr.
		Title: President and Chief Executive Officer
Date:	May 5, 2014

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, Jeffrey O. Richard, certify that:

1. I have reviewed this Form 10-Q 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.

		By: /s/ Jeffrey O. Richard
		Name: Jeffrey O. Richard
		Title: Executive Vice President and Chief Financial Officer
Date:	May 5, 2014

EX-32.1

EXHIBIT 32.1

CERTIFICATION FURNISHED PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

The undersigned executive officers of Checkpoint Systems, Inc. (the “Company”) hereby certify that this Quarterly Report on Form 10-Q for the quarter ended March 30, 2014 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By: /s/ George Babich, Jr.

Name: George Babich, Jr.

Title: President and Chief Executive Officer

By: /s/ Jeffrey O. Richard

Name: Jeffrey O. Richard

Title: Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission upon request. This certification accompanies the Report and shall not be treated as having been filed as part of the Report.

Date: May 5, 2014

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Summary Of Significant Accounting Policies (Comparison of Financial Statements as Previously Filed - Statement of Operations) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Net revenues	$ 147,406	$ 148,173
Cost of revenues	85,120	94,907
Gross profit	62,286	53,266
Selling, general, and administrative expenses	54,346	55,525
Research and development	3,882	4,693
Restructuring expenses	1,892	2,016
Litigation settlement		(6,584)
Acquisition costs	0	161
Other expense		0
Other operating income	0	(330)
Operating income	2,166	(2,215)
Interest income	267	399
Interest expense	1,256	2,564
Other gain (loss), net	(86)	(545)
Loss from continuing operations before income taxes	1,091	(4,925)
Income taxes expense	1,220	0
Net loss from continuing operations	(129)	(4,925)
Loss from discontinued operations, net of tax expense of $134		(2,556)
Net loss	(129)	(7,481)	(18,927)
Less: loss attributable to non-controlling interests	0	(58)
Net loss attributable to Checkpoint Systems, Inc.	(129)	(7,423)
Loss from continuing operations	$ 0.00	$ (0.12)
Loss from discontinued operations, net of tax	$ 0.00	$ (0.06)
Basic loss attributable to Checkpoint Systems, Inc. per share	$ 0.00	$ (0.18)
Loss from continuing operations	$ 0.00	$ (0.12)
Loss from discontinued operations, net of tax	$ 0.00	$ (0.06)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$ 0.00	$ (0.18)
As Previously Reported
Net revenues		148,835
Cost of revenues		94,894
Gross profit		53,941
Selling, general, and administrative expenses		55,287
Research and development		4,693
Restructuring expenses		2,016
Litigation settlement		(6,584)
Acquisition costs		161
Other expense		0
Other operating income		(330)
Operating income		(1,302)
Interest income		399
Interest expense		2,059
Other gain (loss), net		(545)
Loss from continuing operations before income taxes		(3,507)
Income taxes expense		279
Net loss from continuing operations		(3,786)
Loss from discontinued operations, net of tax expense of $134		(2,556)
Net loss		(6,342)
Less: loss attributable to non-controlling interests		(58)
Net loss attributable to Checkpoint Systems, Inc.		(6,284)
Loss from continuing operations		$ (0.09)
Loss from discontinued operations, net of tax		$ (0.06)
Basic loss attributable to Checkpoint Systems, Inc. per share		$ (0.15)
Loss from continuing operations		$ (0.09)
Loss from discontinued operations, net of tax		$ (0.06)
Diluted loss attributable to Checkpoint Systems, Inc. per share		$ (0.15)
Restatement Adjustments
Net revenues		(662)
Cost of revenues		13
Gross profit		(675)
Selling, general, and administrative expenses		238
Research and development		0
Restructuring expenses		0
Litigation settlement		0
Acquisition costs		0
Other expense		0
Other operating income		0
Operating income		(913)
Interest income		0
Interest expense		505
Other gain (loss), net		0
Loss from continuing operations before income taxes		(1,418)
Income taxes expense		(279)
Net loss from continuing operations		(1,139)
Loss from discontinued operations, net of tax expense of $134		0
Net loss		(1,139)
Less: loss attributable to non-controlling interests		0
Net loss attributable to Checkpoint Systems, Inc.		$ (1,139)
Loss from continuing operations		$ (0.03)
Loss from discontinued operations, net of tax		$ 0.00
Basic loss attributable to Checkpoint Systems, Inc. per share		$ (0.03)
Loss from continuing operations		$ (0.03)
Loss from discontinued operations, net of tax		$ 0.00
Diluted loss attributable to Checkpoint Systems, Inc. per share		$ (0.03)

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Debt (Financing Liability) (Details) (USD $)	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Debt Disclosure [Abstract]
FINANCING LIABILITY	$ 35,621,000		$ 35,068,000
Financing Arrangement, Imputed Interest on Financing Liability	6.365%
Financing Arrangement, Interest Expense Recognized	$ 600,000	$ 500,000

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Goodwill And Other Intangible Assets (Estimated Future Amortization Expense) (Details) (USD $)	Mar. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2014	$ 11,283,000	[1]
2015	10,919,000
2016	10,505,000
2017	9,433,000
2018	3,659,000
Estimated amortization expense for the remainder of 2014	$ 8,400,000

[1] The estimated amortization expense for the remainder of 2014 is anticipated to be $8.4 million.

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Provision For Restructuring (Schedule Of Restructuring Expense) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Restructuring Cost and Reserve [Line Items]
Asset impairments	$ 172	$ 731
Total	1,892	2,016
Global Restructuring Plan (including LEAN)
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	1,572	339
Asset impairments	172	731
Other exit costs	143	885
Total	1,900
SG&A Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	5	(16)
Other exit costs	0	77
Total	$ 5

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Stock-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended							3 Months Ended		0 Months Ended		3 Months Ended	1 Months Ended	3 Months Ended	0 Months Ended		3 Months Ended		0 Months Ended	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Mar. 30, 2014 Stock Options [Member]	Mar. 31, 2013 Stock Options [Member]	Mar. 30, 2014 Restricted Stock Units (RSUs) [Member]	Mar. 31, 2013 Restricted Stock Units (RSUs) [Member]	Dec. 29, 2013 Restricted Stock Units (RSUs) [Member]	Mar. 30, 2014 Time-Vested Cash Unit Awards [Member]	Mar. 31, 2013 Time-Vested Cash Unit Awards [Member]	Feb. 27, 2013 Monte Carlo Simulation RSU February 27, 2013 [Member]	May 28, 2013 Monte Carlo Simulation RSU May 28, 2013 [Member]	Mar. 30, 2014 Monte Carlo Simulation Cash-Based Award May 2, 2013 [Member]	Mar. 30, 2014 Long Term Incentive Plan, 2014 Plan [Member] Restricted Stock Units (RSUs) [Member]	Mar. 30, 2014 Long Term Incentive Plan, 2014 Plan [Member] Restricted Stock Units (RSUs) [Member]	May 28, 2013 LTIP 2013 Plan [Member]	Feb. 27, 2013 LTIP 2013 Plan [Member]	Mar. 30, 2014 LTIP 2013 Plan [Member]	Mar. 31, 2013 LTIP 2013 Plan [Member]	May 02, 2013 May 2, 2013 Cash-Based Award [Member]	Mar. 30, 2014 May 2, 2013 Cash-Based Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 1,500,000	$ 2,000,000												$ 32,000			$ 29,000	$ 4,000
Share-based compensation expense net of tax	1,400,000	2,000,000
Tax benefit from option exercise	100,000	100,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value					$ 14.87								$ 14.90		$ 11.56	$ 11.91
Unrecognized compensation cost			1,800,000		5,000,000												100,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options													1,100,000	1,100,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized					891,094.000		852,508						76,910	76,910
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Maximum Units Outstanding Achievable																	26,400
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	48.16%	50.85%								47.01%	45.23%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	1.461%	0.792%								0.35%	0.41%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%	0.00%								0.00%	0.00%
Cash-based Compensation Arrangement by Cash-based Payment Award, Established Target Cash Amount																			400,000
Cash-based Compensation Arrangement by Cash-based Payment Award, Fair Value																				0.0045
Allocated Cash-based Compensation Expense																				1,000
Cash-based Compensation Arrangement by Cash-based Payment Award, Fair Value Assumptions, Expected Volatility Rate												45.32%
Cash-based Compensation Arrangement by Cash-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate												0.37%
Cash-based Compensation Arrangement by Cash-based Payment Award, Fair Value Assumptions, Expected Dividend Rate												0.00%
Total intrinsic value of options exercised			18,000	100,000
Weighted-average period over which unrecognized compensation cost will be recognized (years)			2 years 0 months 19 days		2 years 2 months 24 days
Total fair value of restricted stock awards					2,800,000	1,300,000
Deferred compensation arrangement liability, current and noncurrent								300,000	400,000
Deferred compensation arrangement with individual, share-based compensation expense								$ 300,000	$ 300,000

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Goodwill And Other Intangible Assets (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended
	May 16, 2011	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net		$ 75,292,000		$ 78,166,000	[1]
Amortization expense		2,900,000	3,000,000
Settlement date of acquisition	May 16, 2011
Business acquisition, purchase price	78,700,000
Cash acquired on acquisition	1,900,000
Assumption of debt	4,200,000
Cash payment to escrow	17,500,000
Additional purchase price contingent on performance of acquired businesses	6,300,000
Acquisition costs		$ 0	$ 161,000

[1] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjdjMzZhNjJkNDMwMjRhYWViMmQ3ZDljM2IzOTZjMjEyfFRleHRTZWxlY3Rpb246Q0EzODk2M0YwNkM3Q0Y3QkI2MTQ3NTMzNzUwQ0YxMzUM}

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Fair Value Measurement, Financial Instruments And Risk Management (Tables)

3 Months Ended

Mar. 30, 2014

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 March 30, 2014 and December 29, 2013 and the basis for that measurement:

(amounts in thousands)	Total Fair Value Measurement March 30, 2014		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	$	4	$	—	$	4	$	—
Total assets	$	4	$	—	$	4	$	—
Foreign currency forward exchange contracts	$	25	$	—	$	25	$	—
Total liabilities	$	25	$	—	$	25	$	—

(amounts in thousands)	Total Fair Value Measurement December 29, 2013		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	$	—	$	—	$	—	$	—
Total assets	$	—	$	—	$	—	$	—
Foreign currency forward exchange contracts	$	18	$	—	$	18	$	—
Total liabilities	$	18	$	—	$	18	$	—

Carrying And Fair Values 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 March 30, 2014 and December 29, 2013 are summarized in the following table:

	March 30, 2014				December 29, 2013
(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	$	85,000	$	85,000	$	90,000	$	90,000

⁽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 March 30, 2014 and December 29, 2013:

	March 30, 2014						December 29, 2013
	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 not designated as hedging instruments
Foreign currency forward exchange contracts	Other current assets	$	4	Other current liabilities	$	25	Other current assets	$	—	Other current liabilities	$	18
Total derivatives not designated as hedging instruments		4			25			—			18
Total derivatives		$	4		$	25		$	—		$	18

Amounts Affecting The Consolidated Statement Of Operations

The following tables represent the amounts affecting the Consolidated Statement of Operations for the quarter ended March 30, 2014 and March 31, 2013:

	March 30, 2014						March 31, 2013
(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		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	$	—	Cost of sales		$	—	$	1	Cost of sales	$	(158	)	$	11

Effect Of Non-Designated Hedging Instruments On Financial Performance

	Quarter
	(13 weeks) Ended
	March 30, 2014				March 31, 2013
(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
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	(30	)	Other gain (loss), net	$	213	Other gain (loss), net

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Business Segments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014		Mar. 31, 2013
Segment Reporting Information [Line Items]
Total revenues	$ 147,406		$ 148,173
Gross profit	62,286		53,266
Operating expenses	60,120	[1]	55,481	[2]
Interest (expense) income, net	(989)		(2,165)
Other gain (loss), net	(86)		(545)
Earnings (loss) from continuing operations before income taxes	1,091		(4,925)
Restructuring expenses	1,892		2,016
Benefit due to reversal of accrued litigation reserve	0		6,584
Acquisition costs	0		161
Merchandise Availability Solutions
Segment Reporting Information [Line Items]
Total revenues	93,464		94,250
Gross profit	43,942		37,328
Apparel Labeling Solutions
Segment Reporting Information [Line Items]
Total revenues	42,081		40,833
Gross profit	14,085		10,996
Retail Merchandising Solutions
Segment Reporting Information [Line Items]
Total revenues	11,861		13,090
Gross profit	$ 4,259		$ 4,942

[1] Includes a $1.9 million restructuring charge.

[2] Includes a benefit of $6.6 million due to a litigation accrual reversal, a $2.0 million restructuring charge and a $0.2 million acquisition charge.

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Stock-Based Compensation (Assumption And Weighted-Average Fair Values Used In The Black Scholes Model) (Details) (USD $)	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average fair value of grants	$ 6.44	$ 5.42
Expected dividend yield	0.00%	0.00%
Expected volatility	48.16%	50.85%
Expected life (in years)	5 years 1 month 10 days	5 years 0 months 26 days
Risk-free interest rate	1.461%	0.792%

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Provision For Restructuring (Schedule Of Restructuring Accrual Activity) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014
Restructuring Cost and Reserve [Line Items]
Accrual at Beginning of Year	$ 8,175
Charged to Earnings	2,241
Charge Reversed to Earnings	(521)
Cash Payments	(2,237)
Exchange Rate Changes	(7)
Accrual at March 30, 2014	7,651
Global Restructuring Plan (including LEAN) | Severance and other employee-related charges
Restructuring Cost and Reserve [Line Items]
Accrual at Beginning of Year	7,757
Charged to Earnings	2,093
Charge Reversed to Earnings	(521)
Cash Payments	(1,850)
Exchange Rate Changes	(6)
Accrual at March 30, 2014	7,473
Global Restructuring Plan (including LEAN) | Other exit costs
Restructuring Cost and Reserve [Line Items]
Accrual at Beginning of Year	66	[1]
Charged to Earnings	143	[1]
Charge Reversed to Earnings	0	[1]
Cash Payments	(173)	[1]
Exchange Rate Changes	(1)	[1]
Accrual at March 30, 2014	35	[1]
SG&A Restructuring Plan | Severance and other employee-related charges
Restructuring Cost and Reserve [Line Items]
Accrual at Beginning of Year	352
Charged to Earnings	5
Charge Reversed to Earnings	0
Cash Payments	(214)
Exchange Rate Changes	0
Accrual at March 30, 2014	$ 143

[1] During the first quarter of 2014, there was a net charge to earnings of $0.1 million primarily due to restructuring agent costs and legal costs in connection with the restructuring plan.

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Summary Of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 30, 2014

Accounting Policies [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables compare our previously reported Consolidated Statements of Operations, Comprehensive Income (Loss), and Cash Flows for the quarter ended March 31, 2013 to the corresponding financial statements for the quarterly period as restated.

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands, except per share data)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Net revenues	$	148,835		$	(662	)	$	148,173
Cost of revenues	94,894			13			94,907
Gross profit	53,941			(675		)	53,266
Selling, general, and administrative expenses	55,287			238			55,525
Research and development	4,693			—			4,693
Restructuring expenses	2,016			—			2,016
Litigation settlement	(6,584		)	—			(6,584		)
Acquisition costs	161			—			161
Other expense	—			—			—
Other operating income	(330		)	—			(330		)
Operating loss	(1,302		)	(913		)	(2,215		)
Interest income	399			—			399
Interest expense	2,059			505			2,564
Other gain (loss), net	(545		)	—			(545		)
Loss from continuing operations before income taxes	(3,507		)	(1,418		)	(4,925		)
Income taxes expense (benefit)	279			(279		)	—
Net loss from continuing operations	(3,786		)	(1,139		)	(4,925		)
Loss from discontinued operations, net of tax expense of $134	(2,556		)	—			(2,556		)
Net loss	(6,342		)	(1,139		)	(7,481		)
Less: loss attributable to non-controlling interests	(58		)	—			(58		)
Net loss attributable to Checkpoint Systems, Inc.	$	(6,284	)	$	(1,139	)	$	(7,423	)
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(0.09	)	$	(0.03	)	$	(0.12	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	—		$	(0.06	)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	(0.15	)	$	(0.03	)	$	(0.18	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(0.09	)	$	(0.03	)	$	(0.12	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	—		$	(0.06	)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	(0.15	)	$	(0.03	)	$	(0.18	)

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Net loss	$	(6,342	)	$	(1,139	)	$	(7,481	)
Other comprehensive income (loss), net of tax:
Amortization of pension plan actuarial losses, net of tax benefit of $108 and $0	282			—			282
Change in realized and unrealized losses on derivative hedges, net of tax benefit of $0 and $13	(157		)	—			(157		)
Foreign currency translation adjustment	(3,341		)	742			(2,599		)
Total other comprehensive income (loss), net of tax	(3,216		)	742			(2,474		)
Comprehensive loss	(9,558		)	(397		)	(9,955		)
Less: comprehensive loss attributable to non-controlling interests	(225		)	—			(225		)
Comprehensive loss attributable to Checkpoint Systems, Inc.	$	(9,333	)	$	(397	)	$	(9,730	)

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Cash flows from operating activities:
Net loss	$	(6,342	)	$	(1,139	)	$	(7,481	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,309			—			6,962
Amortization of debt issuance costs	—			—			347
Interest on financing liability	—			505			505
Deferred taxes	(114		)	(279		)	(393		)
Stock-based compensation	1,972			—			1,972
Provision for losses on accounts receivable	(699		)	—			(699		)
Excess tax benefit on stock compensation	(23		)	—			(23		)
Loss on disposal of fixed assets	170			—			170
Litigation settlement	(6,584		)	—			(6,584		)
Restructuring-related asset impairment	731			—			731
Decrease (increase) in operating assets, net of the effects of acquired companies:
Accounts receivable	39,180			(4,329		)	34,851
Inventories	(1,181		)	(73		)	(1,254		)
Other current assets	10,302			(3,538		)	6,764
(Decrease) increase in operating liabilities, net of the effects of acquired companies:
Accounts payable	(6,973		)	4,942			(2,031		)
Income taxes	(2,462		)	—			(2,462		)
Unearned revenues - current	(8,846		)	4,167			(4,679		)
Restructuring reserve	(3,063		)	—			(3,063		)
Other liabilities	(10,334		)	(256		)	(10,590		)
Net cash provided by operating activities	13,043			—			13,043
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(1,363		)	—			(1,363		)
Other investing activities	440			—			440
Net cash used in investing activities	(923		)	—			(923		)
Cash flows from financing activities:
Proceeds from stock issuances	600			—			600
Excess tax benefit on stock compensation	23			—			23
Proceeds from short-term debt	2,272			—			2,272
Payment of short-term debt	(248		)	—			(248		)
Net change in factoring and bank overdrafts	(431		)	—			(431		)
Payment of long-term debt	(71		)	—			(71		)
Net cash provided by financing activities	2,145			—			2,145
Effect of foreign currency rate fluctuations on cash and cash equivalents	(2,015		)	—			(2,015		)
Net increase in cash and cash equivalents	12,250			—			12,250
Cash and cash equivalents:
Beginning of period	118,829			—			118,829
End of period	$	131,079		$	—		$	131,079

The aggregate impacts of correcting the errors relating to the Spain transaction as of and for the first quarter ended March 31, 2013 were as follows:

(amounts in millions)	Restatement Adjustments to Previously Reported Income Statement - Income/(Expense)
For the Quarter ended	March 31, 2013
Net revenues	$	(0.9	)
Operating income	(0.9		)
Interest expense	(0.5		)
Income taxes expense	(0.3		)
Net loss	(1.1		)

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 Sheets:

(amounts in thousands)
Three months ended	March 30, 2014			March 31, 2013
Balance at beginning of year	$	4,521		3,995
Accruals for warranties issued, net	810			888
Settlements made	(962		)	(679		)
Foreign currency translation adjustment	13			(107		)
Balance at end of period	$	4,382		$	4,097

Schedule of Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 30, 2014 were as follows:

(amounts in thousands)	Pension plan			Changes in realized and unrealized gains (losses) on derivative hedges		Foreign currency translation adjustment		Total accumulated other comprehensive income
Balance, December 29, 2013	$	(17,773	)	$	—	$	20,018	$	2,245
Other comprehensive (loss) income before reclassifications	50			—		355		405
Amounts reclassified from other comprehensive income (loss)	278			—		—		278
Net other comprehensive income (loss)	328			—		355		683
Balance, March 30, 2014	$	(17,445	)	$	—	$	20,373	$	2,928

Reclassification Out Of Accumulated Other Comprehensive Income

The significant items reclassified from each component of other comprehensive income (loss) for the three months ended March 30, 2014 and March 31, 2013 were as follows:

(amounts in thousands)	March 30, 2014				March 31, 2013
Details about accumulated other comprehensive income (loss) components	Amount reclassified from accumulated other comprehensive income (loss)			Affected line item in the statement where net loss is presented	Amount reclassified from accumulated other comprehensive income (loss)			Affected line item in the statement where net loss is presented
Amortization of pension plan items
Actuarial loss (1)	$	(385	)		$	(389	)
Prior service cost (1)	(3		)		(1		)
	(388		)	Total before tax	(390		)	Total before tax
	110			Tax benefit	108			Tax benefit
	$	(278	)	Net of tax	$	(282	)	Net of tax
Gains and (losses) on cash flow hedges
Foreign currency revenue forecast contracts	$	—		Cost of revenues	$	158		Cost of revenues
	—			Total before tax	158			Total before tax
	—			Tax expense	—			Tax expense
	$	—		Net of tax	$	158		Net of tax
Total reclassifications for the period	$	(278	)		$	(124	)

⁽¹⁾  These accumulated other comprehensive income components are included in the computation of net periodic pension costs. Refer to Note 9 of the Consolidated Financial Statements.

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Goodwill And Other Intangible Assets (Schedule Of Components Of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified	Mar. 30, 2014	Dec. 29, 2013		Dec. 30, 2012
Goodwill [Line Items]
Gross Amount	$ 431,512	$ 432,451
Accumulated Impairment Losses	245,619	246,587
Goodwill, Net	185,893	185,864	[1]	182,741
Merchandise Availability Solutions [Member]
Goodwill [Line Items]
Gross Amount	206,489	207,589
Accumulated Impairment Losses	47,285	48,432
Goodwill, Net	159,204	159,157		159,031
Apparel Labeling Solutions [Member]
Goodwill [Line Items]
Gross Amount	86,566	86,764
Accumulated Impairment Losses	84,450	84,648
Goodwill, Net	2,116	2,116		0
Retail Merchandising Solutions [Member]
Goodwill [Line Items]
Gross Amount	138,457	138,098
Accumulated Impairment Losses	113,884	113,507
Goodwill, Net	$ 24,573	$ 24,591		$ 23,710

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Summary Of Significant Accounting Policies (Schedule Of Movement Of Warranty Reserves) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Accounting Policies [Abstract]
Balance at beginning of year	$ 4,521	$ 3,995
Accruals for warranties issued, net	810	888
Settlements made	(962)	(679)
Foreign currency translation adjustment	13	(107)
Balance at end of period	$ 4,382	$ 4,097

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Discontinued Operations (Selected Financial Information Included In Earnings) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss from discontinued operations, net of tax	$ 0	$ (2,556)
Checkview Business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue	0	12,543
Gross profit	0	(25)
Selling, general, and administrative expenses	0	2,318
Research and development	0	79
Operating loss	0	(2,422)
Loss from discontinued operations before income taxes	0	(2,422)
Loss from discontinued operations, net of tax	$ 0	$ (2,556)

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Summary Of Significant Accounting Policies (Narrative) (Details) (USD $)	0 Months Ended	3 Months Ended					3 Months Ended			3 Months Ended			3 Months Ended
	Jun. 24, 2013	Mar. 30, 2014	Mar. 31, 2013	Jun. 26, 2011	Dec. 29, 2013		Mar. 30, 2014 Internal-Use Software [Member] Minimum [Member]	Mar. 30, 2014 Internal-Use Software [Member] Maximum [Member]	May 16, 2011 Shore To Shore PVT Ltd. [Member]	Mar. 31, 2013 Restatement Adjustments	Mar. 31, 2013 Restatement Adjustments Other Out of Period Adjustments [Member]	Dec. 30, 2012 Restatement Adjustments Other Out of Period Adjustments [Member]	Mar. 31, 2013 Europe [Member] Restatement Adjustments Other Out of Period Adjustments [Member]
Summary Of Significant Accounting Policies [Line Items]
Proceeds From Factored Receivables, Net of Deferred Amounts				$ 17,400,000
Net revenues		147,406,000	148,173,000							(662,000)	300,000
Net loss attributable to Checkpoint Systems, Inc.		(129,000)	(7,423,000)							(1,139,000)	37,000		300,000
Assets		777,447,000			799,493,000	[1]					1,600,000
Other current liabilities		17,047,000			19,536,000	[1]					1,400,000
Liabilities, Noncurrent											3,900,000
Impact of Restatement on Opening Retained Earnings, Net of Tax												3,700,000
Deferred Revenue													2,100,000
OTHER LONG-TERM LIABILITIES		35,211,000			36,436,000	[1]							3,900,000
Estimated useful life, years							3 years	7 years
Customer Refund Liability, Current		13,000,000			11,100,000
Voting interest acquired									51.00%
Purchase price of cash from operations									1,700,000
Proceeds Net of Stamp Tax from Divestiture of Interest in Consolidated Subsidiaries	200,000
Gain on sale of subsidiary	$ 200,000

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Debt (Senior Secured Credit Facility) (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended			0 Months Ended			0 Months Ended		0 Months Ended
	Dec. 11, 2013 Senior Secured Notes [Member]	Dec. 11, 2013 Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member]	Dec. 29, 2013 Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member]	Dec. 11, 2013 Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Maximum [Member]	Dec. 11, 2013 Revolving Credit Facility [Member] $62 Million Variable Interest Rate Revolving Credit Facility Maturing In 2014 [Member]	Dec. 29, 2013 Revolving Credit Facility [Member] $62 Million Variable Interest Rate Revolving Credit Facility Maturing In 2014 [Member]	Dec. 11, 2013 Bridge Loan [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Minimum [Member]	Mar. 30, 2014 Letter of Credit [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member]	Dec. 11, 2013 Domestic Subsidiary [Member] Common Stock Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member]	Dec. 11, 2013 Foreign Subsidiary [Member] Common Stock Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member]	Dec. 11, 2013 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member]	Dec. 11, 2013 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Minimum [Member]	Dec. 11, 2013 London Interbank Offered Rate (LIBOR) [Member] Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Maximum [Member]	Dec. 11, 2013 Federal Funds Rate [Member] Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member]	Dec. 11, 2013 Base Rate [Member] Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Minimum [Member]	Dec. 11, 2013 Base Rate [Member] Revolving Credit Facility [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Maximum [Member]	Dec. 11, 2013 Base Rate [Member] Bridge Loan [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Minimum [Member]	Dec. 11, 2013 Base Rate [Member] Bridge Loan [Member] Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Maximum [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Borrowing Capacity, Description		$ 200.0
Extinguishment of Debt, Amount	55.6				32.0
Line of Credit Facility, Potential Additional Borrowing Capacity		100.0
Borrowing availability under credit facility		300.0
Debt Instrument, Collateral Amount, Percent									100.00%	65.00%
Debt Instrument, Property Pledged as Collateral, Amount		5
Debt Instrument, Basis Spread on Variable Rate												1.25%	2.25%		0.25%	1.25%	0.25%	1.25%
Debt Instrument, Basis Spread on Base Rate											1.00%			0.50%
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage				0.40%			0.20%
Leverage ratio		3.00
Fixed charge coverage ratio		3.00
Unamortized Debt Issuance Expense			1.8			0.4
Amount outstanding under credit facility								$ 1.8

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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	Mar. 30, 2014	Dec. 29, 2013
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 4	$ 0
Liability Derivatives	25	18
Foreign currency forward exchange contracts
Derivatives, Fair Value [Line Items]
Asset Derivatives	4	0
Liability Derivatives	25	18
Derivatives not designated as hedging instruments:
Derivatives, Fair Value [Line Items]
Asset Derivatives	4	0
Liability Derivatives	25	18
Derivatives not designated as hedging instruments: | Foreign currency forward exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	4	0
Derivatives not designated as hedging instruments: | Foreign currency forward exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 25	$ 18

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Earnings Per Share (Schedule Of Anti-Dilutive Common Share Equivalents) (Details) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014		Mar. 31, 2013
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	2,260	[1]	2,471	[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	345		196
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	17		49

[1] Stock options and awards of 196 shares and deferred compensation arrangements of 49 shares were anti-dilutive in the first three months of 2013 and were therefore excluded from the earnings per share calculation due to our loss from continuing operations for the period.

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Goodwill And Other Intangible Assets (Components Of Intangible Assets) (Details) (USD $) In Thousands, unless otherwise specified													3 Months Ended
	Mar. 30, 2014	Dec. 29, 2013	Mar. 30, 2014 Customer Lists [Member]	Dec. 29, 2013 Customer Lists [Member]	Mar. 30, 2014 Trade Name [Member]	Dec. 29, 2013 Trade Name [Member]	Mar. 30, 2014 Patents, License Agreements [Member]	Dec. 29, 2013 Patents, License Agreements [Member]	Mar. 30, 2014 Software and Software Development Costs [Member]	Dec. 29, 2013 Software and Software Development Costs [Member]	Mar. 30, 2014 Other Intangibles [Member]	Dec. 29, 2013 Other Intangibles [Member]	Mar. 30, 2014 Minimum [Member] Customer Lists [Member]	Mar. 30, 2014 Minimum [Member] Trade Name [Member]	Mar. 30, 2014 Minimum [Member] Patents, License Agreements [Member]	Mar. 30, 2014 Minimum [Member] Software and Software Development Costs [Member]	Mar. 30, 2014 Minimum [Member] Other Intangibles [Member]	Mar. 30, 2014 Maximum [Member] Customer Lists [Member]	Mar. 30, 2014 Maximum [Member] Trade Name [Member]	Mar. 30, 2014 Maximum [Member] Patents, License Agreements [Member]	Mar. 30, 2014 Maximum [Member] Software and Software Development Costs [Member]	Mar. 30, 2014 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	3 years	2 years	20 years	30 years	14 years	7 years	6 years
Finite-lived customer lists, Gross Amount			$ 83,042	$ 83,063
Finite-lived trade name, Gross Amount					30,243	30,256
Finite-lived patents, license agreements, Gross Amount							61,828	61,820
Finite-Lived Computer Software, Gross	24,039	24,039
Finite-lived other intangibles, Gross Amount											7,151	7,132
Total amortized finite-lived intangible assets, Gross Amount	206,303	206,310
Indefinite-lived trade names, Gross Amount					21,376	21,376
Total identifiable intangible assets, Gross Amount	227,679	227,686
Amortized finite-lived intangible assets, Gross Accumulated Amortization	152,387	149,520	58,178	56,798	19,508	19,346	54,728	54,225	13,100	12,358	6,873	6,793
Total identifiable assets accumulated amortization	$ 152,387	$ 149,520

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Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014		Mar. 31, 2013
Cash flows from operating activities:
Net loss	$ (129)		$ (7,481)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	6,164		6,962
Amortization of debt issuance costs	108		347
Interest on financing liability	559		505
Deferred taxes	(93)		(393)
Stock-based compensation	1,501		1,972
Provision for losses on accounts receivable	676		(699)
Excess tax benefit on stock compensation	(186)		(23)
Loss on disposal of fixed assets	29		170
Litigation settlement	0		(6,584)
Restructuring related asset impairment	172		731
Decrease (increase) in operating assets, net of the effects of acquired companies:
Accounts receivable	24,279		34,851
Inventories	(11,111)		(1,254)
Other assets	3,995		6,764
(Decrease) increase in operating liabilities, net of the effects of acquired companies:
Accounts payable	(13,209)		(2,031)
Income taxes	(2,376)		(2,462)
Unearned revenues - current	594		(4,679)
Restructuring reserve	(517)		(3,063)
Other liabilities	(1,893)		(10,590)
Net cash provided by operating activities	8,563		13,043
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(3,318)		(1,363)
Cash proceeds from the sale of discontinued operations	71		0
Other investing activities	36		440
Cash flows from financing activities:	(3,211)		(923)
Cash flows from financing activities:
Proceeds from stock issuances	59		600
Excess tax benefit on stock compensation	186		23
Proceeds from short-term debt	0		2,272
Payment of short-term debt	0		(248)
Net change in factoring and bank overdrafts	(55)		(431)
Proceeds from long-term debt	1,000		0
Payment of long-term debt	(7,179)		(71)
Net cash (used in) provided by financing activities	(5,989)		2,145
Effect of foreign currency rate fluctuations on cash and cash equivalents	227		(2,015)
Net (decrease) increase in cash and cash equivalents	(410)		12,250
Cash and cash equivalents:
Beginning of period	121,573	[1]	118,829
End of period	$ 121,163		$ 131,079	[1]

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Income Taxes [Line Items]
Effective tax rate	111.80%	0.00%
Net deferred tax assets	$ 31.5		$ 31.5
Current income tax receivable	3.2		2.8
Estimated tax payments	1.6
Income tax expense	(1.2)
Current deferred tax liability	2.6
Unrecognized tax benefit, if recognized, would affect the effective tax rate	18.2		18.1
Interest and penalties benefit	0.2	0.2
Accrued interest and penalties related to unrecognized tax benefits	4.6		4.4
Expected change of gross unrecognized tax benefits, minimum	3.1
Expected change of gross unrecognized tax benefits, maximum	12.1
UNITED STATES
Income Taxes [Line Items]
Income Tax Examination, Year under Examination	2011
INDIA
Income Taxes [Line Items]
Income Tax Examination, Year under Examination	2010
Maximum [Member]
Income Taxes [Line Items]
Income Tax Holiday, Termination Date	2017
Maximum [Member] | UNITED STATES
Income Taxes [Line Items]
Open tax years currently under audit	2013
Maximum [Member] | CHINA
Income Taxes [Line Items]
Open tax years currently under audit	2013
Maximum [Member] | Germany [Member]
Income Taxes [Line Items]
Income Tax Examination, Year under Examination	2009
Open tax years currently under audit	2013
Maximum [Member] | Finland [Member]
Income Taxes [Line Items]
Income Tax Examination, Year under Examination	2009
Maximum [Member] | HONG KONG
Income Taxes [Line Items]
Open tax years currently under audit	2013
Minimum [Member]
Income Taxes [Line Items]
Income Tax Holiday, Termination Date	2015
Minimum [Member] | UNITED STATES
Income Taxes [Line Items]
Open tax years currently under audit	2010
Minimum [Member] | CHINA
Income Taxes [Line Items]
Open tax years currently under audit	2010
Minimum [Member] | Germany [Member]
Income Taxes [Line Items]
Income Tax Examination, Year under Examination	2006
Open tax years currently under audit	2006
Minimum [Member] | Finland [Member]
Income Taxes [Line Items]
Income Tax Examination, Year under Examination	2005
Minimum [Member] | HONG KONG
Income Taxes [Line Items]
Open tax years currently under audit	2007
Other Liabilities [Member]
Income Taxes [Line Items]
Accrued interest and penalties related to unrecognized tax benefits	$ 19.6		$ 19.6

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Summary Of Significant Accounting Policies (Components of Other Comprehensive Income (Loss)) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 29, 2013	$ 2,245	[1]
Other comprehensive (loss) income before reclassficiations	405
Amounts reclassified from other comprehensive income (loss)	278
Net other comprehensive income (loss)	683
Balance, March 30, 2014	2,928
Accumulated Defined Benefit Plans Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 29, 2013	(17,773)
Other comprehensive (loss) income before reclassficiations	50
Amounts reclassified from other comprehensive income (loss)	278
Net other comprehensive income (loss)	328
Balance, March 30, 2014	(17,445)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 29, 2013	0
Other comprehensive (loss) income before reclassficiations	0
Amounts reclassified from other comprehensive income (loss)	0
Net other comprehensive income (loss)	0
Balance, March 30, 2014	0
Accumulated Translation Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 29, 2013	20,018
Other comprehensive (loss) income before reclassficiations	355
Amounts reclassified from other comprehensive income (loss)	0
Net other comprehensive income (loss)	355
Balance, March 30, 2014	$ 20,373

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Stock-Based Compensation (Tables)

3 Months Ended

Mar. 30, 2014

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 March 30, 2014 and changes during the quarter ended March 30, 2014 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 29, 2013	2,450,660		$	17.70	4.35	$	4,285
Granted	206,280		14.84
Exercised	(5,430	)	10.80
Forfeited or expired	(100,857	)	16.85
Outstanding at March 30, 2014	2,550,653		$	17.51	4.66	$	2,593
Vested and expected to vest at March 30, 2014	2,449,476		$	17.77	4.49	$	2,336
Exercisable at March 30, 2014	2,017,125		$	19.06	3.52	$	1,431

Assumptions And Weighted-Average Fair Values Of Share-Based Payment Units Under Black-Scholes Option Pricing Model

The assumptions and weighted-average fair values were as follows:

Three months ended	March 30, 2014		March 31, 2013
Weighted-average fair value of grants	6.44		5.42
Valuation assumptions:
Expected dividend yield	0.00	%	0.00	%
Expected volatility	48.16	%	50.85	%
Expected life (in years)	5.11		5.07
Risk-free interest rate	1.461	%	0.792	%

Nonvested Service Based Restricted Stock Units

Nonvested restricted stock units as of March 30, 2014 and changes during the quarter ended March 30, 2014 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 29, 2013	852,508		0.64	$	17.36
Granted	266,715			$	14.87
Vested	(188,333	)		$	14.81
Forfeited	(39,796	)		$	12.87
Nonvested at March 30, 2014	891,094		1.18	$	17.36
Vested and expected to vest at March 30, 2014	822,424		1.13
Vested at March 30, 2014	—		—

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Debt (Tables)

3 Months Ended

Mar. 30, 2014

Debt Disclosure [Abstract]

Schedule Of Long-Term Debt

Long-term debt as of March 30, 2014 and December 29, 2013 consisted of the following:

(amounts in thousands)	March 30, 2014		December 29, 2013
Senior Secured Credit Facility:
$200 million variable interest rate revolving credit facility maturing in 2018	$	85,000	$	90,000
Full-recourse factoring liabilities	201		257
Other capital leases with maturities through 2018	170		1,365
Total	85,371		91,622
Less current portion	203		435
Total long-term portion	$	85,168	$	91,187

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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	3 Months Ended	12 Months Ended
	Mar. 30, 2014	Dec. 29, 2013
Stock Options And Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Outstanding at beginning of period	2,450,660
Number of Shares, Granted	206,280
Number of Shares, Exercised	(5,430)
Number of Shares, Forfeited or expired	(100,857)
Number of Shares, Outstanding at end of period	2,550,653	2,450,660
Number of Shares, Vested and expected to vest	2,449,476
Number of Shares, Exercisable	2,017,125
Weighted-Average Exercise Price, Outstanding at beginning of period	$ 17.70
Weighted-Average Exercise Price, Granted	$ 14.84
Weighted-Average Exercise Price, Exercised	$ 10.80
Weighted-Average Exercise Price, Forfeited or expired	$ 16.85
Weighted-Average Exercise Price, Outstanding at end of period	$ 17.51	$ 17.70
Weighted-Average Exercise Price, Vested and expected to vest	$ 17.77
Weighted-Average Exercise Price, Exercisable	$ 19.06
Weighted-Average Remaining Contractual Term, Outstanding at beginning of period in years	4 years 7 months 28 days	4 years 4 months 6 days
Weighted-Average Remaining Contractual Term, Outstanding at end of period in years	4 years 7 months 28 days	4 years 4 months 6 days
Weighted-Average Remaining Contractual Term, Vested and expected to vest in years	4 years 5 months 27 days
Weighted-Average Remaining Contractual Term, Exercisable	3 years 6 months 7 days
Aggregate Intrinsic Value, Outstanding at beginning of period	$ 4,285
Aggregate Intrinsic Value, Outstanding at end of period	2,593	4,285
Aggregate Intrinsic Value, Vested and expected to vest	2,336
Aggregate Intrinsic Value, Exercisable	$ 1,431

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Summary Of Significant Accounting Policies (Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014		Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of revenues - foreign currency revenue forecast contracts	$ 85,120		$ 94,907
Net loss from continuing operations	(129)		(4,925)
Tax benefit	(1,220)		0
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net of tax	(278)		(124)
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) [Member] | Amortization of Pension Plan Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial loss	(385)	[1]	(389)	[1]
Prior service cost	(3)		(1)
Net loss from continuing operations	(388)		(390)
Tax benefit	110		108
Net of tax	(278)		(282)
Reclassification Out Of Accumulated Other Comprehensive Income (Loss) [Member] | Gains and Losses on Cash flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cost of revenues - foreign currency revenue forecast contracts	0		158
Net loss from continuing operations	0		158
Tax benefit	0		0
Net of tax	$ 0		$ 158

[1] These accumulated other comprehensive income components are included in the computation of net periodic pension costs. Refer to Note 9 of the Consolidated Financial Statements.

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Supplemental Cash Flow Information (Tables)

3 Months Ended

Mar. 30, 2014

Supplemental Cash Flow Information [Abstract]

Schedule Of Cash Payments For Interest And Income Taxes

Cash payments for interest and income taxes for the quarter ended March 30, 2014 and March 31, 2013 were as follows:

(amounts in thousands)
Three months ended	March 30, 2014		March 31, 2013
Interest	$	541	$	2,782
Income tax payments	$	2,287	$	2,504

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Earnings Per Share (Tables)

3 Months Ended

Mar. 30, 2014

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 attributable to Checkpoint Systems, Inc. and the weighted-average number of shares of dilutive potential common stock:

	Quarter
	(13 weeks) Ended
(amounts in thousands, except per share data)	March 30, 2014			March 31, 2013
				(As Restated)
Basic loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(129	)	$	(4,867	)
Basic loss from discontinued operations, net of tax expense of $0 and $134	—			(2,556		)
Diluted loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	(129		)	(4,867		)
Diluted loss from discontinued operations, net of tax expense of $0 and $134	$	—		$	(2,556	)
Shares:
Weighted-average number of common shares outstanding	41,541			40,784
Vested shares issuable under deferred compensation agreements	345			404
Basic weighted-average number of common shares outstanding	41,886			41,188
Common shares assumed upon exercise of stock options and awards	—			—
Unvested shares issuable under deferred compensation arrangements	—			—
Dilutive weighted-average number of common shares outstanding	41,886			41,188
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)

Schedule Of Anti-Dilutive Common Share Equivalents

The number of anti-dilutive common share equivalents for the three months ended March 30, 2014 and March 31, 2013 were as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014	March 31, 2013
Weighted-average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	2,260	2,471

⁽¹⁾  Stock options and awards of 345 shares and deferred compensation arrangements of 17 shares were anti-dilutive in the first three months of 2014 and were therefore excluded from the earnings per share calculation due to our loss from continuing operations for the period. Stock options and awards of 196 shares and deferred compensation arrangements of 49 shares were anti-dilutive in the first three months of 2013 and were therefore excluded from the earnings per share calculation due to our loss from continuing operations for the period.

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Consolidated Statements Of Equity (USD $) In Thousands	Total		Common Stock	Additional Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Non-controlling Interests
Balance at Dec. 30, 2012	$ 354,309		$ 4,476	$ 424,715	$ (4,356)	$ (71,520)	$ 306	$ 688
Balance, shares at Dec. 30, 2012			44,763			4,036
Net loss	(18,927)				(18,928)			1
Exercise of stock-based compensation and awards released	2,561		72	2,489
Exercise of stock-based compensation and awards released, shares			721
Tax benefit on stock-based compensation	82			82
Stock-based compensation expense	6,369			6,369
Deferred compensation plan	681			681
Sale of interest in subsidiary	(516)							(516)
Amortization of pension plan actuarial losses, net of tax	1,120						1,120
Change in realized and unrealized losses on derivative hedges, net of tax	(21)						(21)
Recognized loss on pension, net of tax	1,403						1,403
Prior service cost arising during period, net of tax	(158)						(158)
Foreign currency translation adjustment	(578)						(405)	(173)
Balance at Dec. 29, 2013	346,325	[1]	4,548	434,336	(23,284)	(71,520)	2,245	0
Balance, shares at Dec. 29, 2013			45,484			4,036
Net loss	(129)				(129)			0
Exercise of stock-based compensation and awards released	(953)		16	(969)
Exercise of stock-based compensation and awards released, shares			160
Tax benefit on stock-based compensation	(6)			(6)
Stock-based compensation expense	1,501			1,501
Deferred compensation plan	184			184
Amortization of pension plan actuarial losses, net of tax	278						278
Change in realized and unrealized losses on derivative hedges, net of tax	0
Foreign currency translation adjustment	405						405
Balance at Mar. 30, 2014	$ 347,605		$ 4,564	$ 435,046	$ (23,413)	$ (71,520)	$ 2,928	$ 0
Balance, shares at Mar. 30, 2014			45,644			4,036

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Pension Benefits (Tables)

3 Months Ended

Mar. 30, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Components Of Net Periodic Benefit Cost

The components of net periodic benefit cost for the three months ended March 30, 2014 and March 31, 2013 were as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Service cost	$	282	$	268
Interest cost	916		879
Expected return on plan assets	—		26
Amortization of actuarial loss	385		389
Amortization of prior service costs	3		1
Net periodic pension cost	$	1,586	$	1,563

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Summary Of Significant Accounting Policies (Comparison of Financial Statements as Previously Filed - Statement of Comprehensive Income (Loss)) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Net loss	$ (129)	$ (7,481)	$ (18,927)
Amortization of pension plan actuarial losses, net of tax benefit of $108 and $0	278	282	1,120
Change in realized and unrealized losses on derivative hedges, net of tax benefit of $0 and $13	0	(157)	(21)
Foreign currency translation adjustment		(2,599)
Total other comprehensive income (loss), net of tax	683	(2,474)
Comprehensive loss	554	(9,955)
Less: comprehensive loss attributable to non-controlling interests	0	(225)
Comprehensive loss attributable to Checkpoint Systems, Inc.	554	(9,730)
As Previously Reported
Net loss		(6,342)
Amortization of pension plan actuarial losses, net of tax benefit of $108 and $0		282
Change in realized and unrealized losses on derivative hedges, net of tax benefit of $0 and $13		(157)
Foreign currency translation adjustment		(3,341)
Total other comprehensive income (loss), net of tax		(3,216)
Comprehensive loss		(9,558)
Less: comprehensive loss attributable to non-controlling interests		(225)
Comprehensive loss attributable to Checkpoint Systems, Inc.		(9,333)
Restatement Adjustments
Net loss		(1,139)
Amortization of pension plan actuarial losses, net of tax benefit of $108 and $0		0
Change in realized and unrealized losses on derivative hedges, net of tax benefit of $0 and $13		0
Foreign currency translation adjustment		742
Total other comprehensive income (loss), net of tax		742
Comprehensive loss		(397)
Less: comprehensive loss attributable to non-controlling interests		0
Comprehensive loss attributable to Checkpoint Systems, Inc.		$ (397)

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Debt (Other Long-term Debt) (Details)	Mar. 30, 2014 USD ($)	Mar. 30, 2014 EUR (€)	Dec. 29, 2013 USD ($)	Dec. 29, 2013 SPAIN USD ($)	Dec. 29, 2013 SPAIN EUR (€)
Debt Instrument [Line Items]
Capital Lease Obligations				$ 1,200,000	€ 900,000
Capital Lease Obligations, Current				200,000	200,000
Other capital leases with maturities through 2018	170,000		1,365,000	1,000,000	700,000
Weighted Average Percentage Of Face Amount Of Receivables	92.40%	92.40%
Full-recourse factoring liabilities	201,000	100,000	257,000
Current portion of full-recourse factoring agreements	100,000	100,000
Long-term portion of full-recourse factoring agreements	$ 100,000	€ 40,000

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Contingent Liabilities And Settlements (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 25, 2011	Nov. 02, 2011	Dec. 28, 2008
Commitments and Contingencies Disclosure [Abstract]
Loss Contingency Accrual, at Carrying Value					$ 5,700,000
Estimated Litigation Liability				6,600,000
Loss Contingency Accrual, Carrying Value, Provision			900,000
Benefit due to reversal of accrued litigation reserve	0	6,584,000
Loss Contingency, Damages Sought, Value	$ 65,000,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 30, 2014	Dec. 29, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 121,163	$ 121,573	[1]
Accounts receivable, net of allowance of $12,933 and $12,404	142,059	167,864	[1]
Inventories	94,821	83,521	[1]
Other current assets	25,335	29,119	[1]
Deferred income taxes	9,084	9,108	[1]
Total Current Assets	392,462	411,185	[1]
REVENUE EQUIPMENT ON OPERATING LEASE, net	1,139	1,267	[1]
PROPERTY, PLANT, AND EQUIPMENT, net	74,463	75,067	[1]
GOODWILL	185,893	185,864	[1]
OTHER INTANGIBLES, net	75,292	78,166	[1]
DEFERRED INCOME TAXES	37,981	38,131	[1]
OTHER ASSETS	10,217	9,813	[1]
TOTAL ASSETS	777,447	799,493	[1]
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term debt	203	435	[1]
Accounts payable	53,861	67,203	[1]
Accrued compensation and related taxes	25,860	24,341	[1]
Other accrued expenses	41,935	41,580	[1]
Income taxes	0	2,439	[1]
Unearned revenues	9,608	9,011	[1]
Restructuring reserve	7,651	8,175	[1]
Accrued pensions — current	5,012	5,013	[1]
Other current liabilities	17,047	19,536	[1]
Total Current Liabilities	161,177	177,733	[1]
LONG-TERM DEBT, LESS CURRENT MATURITIES	85,168	91,187	[1]
FINANCING LIABILITY	35,621	35,068
ACCRUED PENSIONS	99,694	99,677	[1]
OTHER LONG-TERM LIABILITIES	35,211	36,436	[1]
DEFERRED INCOME TAXES	12,971	13,067	[1]
COMMITMENTS AND CONTINGENCIES			[1]
STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, 500,000 shares authorized, none issued	0	0	[1]
Common stock, par value $.10 per share, 100,000,000 shares authorized, issued 45,644,492 and 45,484,524 shares	4,564	4,548	[1]
Additional capital	435,046	434,336	[1]
Accumulated deficit	(23,413)	(23,284)	[1]
Common stock in treasury, at cost, 4,035,912 and 4,035,912 shares	(71,520)	(71,520)	[1]
Accumulated other comprehensive income, net of tax	2,928	2,245	[1]
TOTAL STOCKHOLDERS' EQUITY	347,605	346,325	[1]
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 777,447	$ 799,493	[1]

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Inventories (Details) (USD $) In Thousands, unless otherwise specified	Mar. 30, 2014	Dec. 29, 2013
Inventory Disclosure [Abstract]
Raw materials	$ 18,325	$ 18,040
Work-in-process	3,828	2,901
Finished goods	72,668	62,580
Total	$ 94,821	$ 83,521	[1]

[1] {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOjdjMzZhNjJkNDMwMjRhYWViMmQ3ZDljM2IzOTZjMjEyfFRleHRTZWxlY3Rpb246Q0EzODk2M0YwNkM3Q0Y3QkI2MTQ3NTMzNzUwQ0YxMzUM}

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Consolidated Statements Of Comprehensive Income (Loss) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Statement of Other Comprehensive Income [Abstract]
Net loss	$ (129)	$ (7,481)	$ (18,927)
Amortization of pension plan actuarial losses, net of tax benefit of $110 and $108	278	282	1,120
Change in realized and unrealized gains (losses) on derivative hedges, net of tax expense of $0 and $0	0	(157)	(21)
Foreign currency translation adjustment	405	(2,599)	(578)
Total other comprehensive income (loss), net of tax	683	(2,474)
Comprehensive income (loss)	554	(9,955)
Less: comprehensive loss attributable to non-controlling interests	0	(225)
Comprehensive income (loss) attributable to Checkpoint Systems, Inc.	$ 554	$ (9,730)

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Supplemental Cash Flow Information (Details) (USD $)	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Supplemental Cash Flow Information [Abstract]
Interest	$ 541,000	$ 2,782,000
Income tax payments	2,287,000	2,504,000
Capital expenditures accrued	$ 600,000	$ 600,000

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Business Segments (Tables)

3 Months Ended

Mar. 30, 2014

Segment Reporting [Abstract]

Schedule Of Earnings From Business Segments

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014				March 31, 2013
					(As Restated)
Business segment net revenue:
Merchandise Availability Solutions	$	93,464			$	94,250
Apparel Labeling Solutions	42,081				40,833
Retail Merchandising Solutions	11,861				13,090
Total revenues	$	147,406			$	148,173
Business segment gross profit:
Merchandise Availability Solutions	$	43,942			$	37,328
Apparel Labeling Solutions	14,085				10,996
Retail Merchandising Solutions	4,259				4,942
Total gross profit	62,286				53,266
Operating expenses	60,120			(1)	55,481			(2)
Interest (expense) income, net	(989		)		(2,165		)
Other gain (loss), net	(86		)		(545		)
Earnings (loss) from continuing operations before income taxes	$	1,091			$	(4,925	)

⁽¹⁾  Includes a $1.9 million restructuring charge.

⁽²⁾  Includes a benefit of $6.6 million due to a litigation accrual reversal, a $2.0 million restructuring charge and a $0.2 million acquisition charge

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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	Mar. 30, 2014	Dec. 29, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 4	$ 0
Total liabilities	25	18
Foreign currency forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	4	0
Total liabilities	25	18
Quoted Prices In Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	0	0
Quoted Prices In Active Markets for Identical Assets (Level 1) | Foreign currency forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	0	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	4	0
Total liabilities	25	18
Significant Other Observable Inputs (Level 2) | Foreign currency forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	4	0
Total liabilities	25	18
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) | Foreign currency forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	0	0
Total liabilities	$ 0	$ 0

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Business Segments

3 Months Ended

Mar. 30, 2014

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

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 three months ended March 31, 2013 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.

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014				March 31, 2013
					(As Restated)
Business segment net revenue:
Merchandise Availability Solutions	$	93,464			$	94,250
Apparel Labeling Solutions	42,081				40,833
Retail Merchandising Solutions	11,861				13,090
Total revenues	$	147,406			$	148,173
Business segment gross profit:
Merchandise Availability Solutions	$	43,942			$	37,328
Apparel Labeling Solutions	14,085				10,996
Retail Merchandising Solutions	4,259				4,942
Total gross profit	62,286				53,266
Operating expenses	60,120			(1)	55,481			(2)
Interest (expense) income, net	(989		)		(2,165		)
Other gain (loss), net	(86		)		(545		)
Earnings (loss) from continuing operations before income taxes	$	1,091			$	(4,925	)

⁽¹⁾  Includes a $1.9 million restructuring charge.

⁽²⁾  Includes a benefit of $6.6 million due to a litigation accrual reversal, a $2.0 million restructuring charge and a $0.2 million acquisition charge.

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Discontinued Operations (Tables)

3 Months Ended

Mar. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Selected Financial Information Included In Earnings

The results for the three months ended March 30, 2014 and March 31, 2013 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:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Net revenue	$	—	$	12,543
Gross profit	—		(25		)
Selling, general, and administrative expenses	—		2,318
Research and development	—		79
Operating loss	—		(2,422		)
Loss from discontinued operations before income taxes	—		(2,422		)
Loss from discontinued operations, net of tax	$	—	$	(2,556	)

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Summary Of Significant Accounting Policies (Policy)

3 Months Ended

Mar. 30, 2014

Accounting Policies [Abstract]

Noncontrolling Interests

Non-controlling Interests

On May 16, 2011, Checkpoint Holland Holding B.V., a wholly-owned subsidiary, acquired 51% of the outstanding voting shares of Shore to Shore PVT Ltd. (Sri Lanka) in exchange for $1.7 million in cash.

In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the unrelated third party holding the non-controlling interest. On June 24, 2013, we completed the sale of our 51% interest for which we received cash proceeds of $0.2 million (net of a stamp duty). The gain on sale of $0.2 million was recorded within other operating income on the Consolidated Statement of Operations.

We have presented net income attributable to non-controlling interests separately on our Consolidated Statements of Operations for the three months ended March 31, 2013.

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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	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Derivatives designated as cash flow hedges: | Foreign currency revenue forecast contracts
Fair Value Disclosures [Line Items]
Amount of Gain (Loss) Recognized in Other Comprehensive Income on Derivatives	$ 0	$ 1
Amount of Forward Points Recognized in Other Gain (Loss), net	0	11
Derivatives designated as cash flow hedges: | Cost of sales | Foreign currency revenue forecast contracts
Fair Value Disclosures [Line Items]
Amount of Gain (Loss) Reclassified From Accumulated Other Comprehensive Income into Income		(158)
Derivatives not designated as hedging instruments: | Other gain (loss), net | Foreign exchange forwards and options
Fair Value Disclosures [Line Items]
Amount of Gain (Loss) Recognized in Income on Derivatives	$ (30)	$ 213

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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Statement of Other Comprehensive Income [Abstract]
Amortization of pension plan actuarial losses, tax	$ 110	$ 108
Change in realized and unrealized losses on derivative hedges, tax	$ 0	$ 0

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 30, 2014	Dec. 29, 2013
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 12,933	$ 12,404
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	45,644,492	45,484,524
Treasury stock, shares	4,035,912	4,035,912

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Income Taxes

3 Months Ended

Mar. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The effective tax rate for the quarter ended March 30, 2014 was 111.8% as compared to 0.0% for the quarter ended March 31, 2013. The change in the effective tax rate for the quarter ended March 30, 2014 was due to the mix of income between subsidiaries. The 2014 effective tax rate was higher due to the mix of income among subsidiaries. The 2014 rate was also impacted by losses in countries with valuation allowances that do not result in a tax benefit, causing the overall tax expense as a percentage of income to increase.

Historically, we determined our interim tax provision using an estimated annual effective tax rate methodology. For the quarter ended March 31, 2013, we accounted for the U.S. operations by applying the discrete method based on the determination that if the U.S. operations were included in the estimated annual effective tax rate, small changes in estimated pretax earnings could result in significant fluctuations in the tax rate. In the quarter ended March 30, 2014, we accounted for the U.S. operations by applying an estimated annual effective rate methodology. We determined that if the U.S. operations are included in the estimated annual effective tax rate, small changes in estimated pretax earnings would no longer result in significant fluctuations in the tax rate.

We evaluate our deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. We are required to 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 across multiple jurisdictions. As the geographic footprint of the business changes, 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. As of March 30, 2014 and December 29, 2013, we had net deferred tax assets of $31.5 million and $31.5 million, respectively.

Included in other current assets as of March 30, 2014, is a current income tax receivable of $3.2 million. This amount represents a net receivable of $2.8 million as of December 29, 2013, year to date estimated tax payments made in excess of refunds received in the amount of $1.6 million, and tax expense recorded on our year to date pretax income of $1.2 million. Included in other current liabilities is our current deferred tax liability of $2.6 million.

The total amount of gross unrecognized tax benefits that, if recognized, would affect the effective tax rate was $18.2 million and $18.1 million at March 30, 2014 and December 29, 2013, respectively. Penalties and tax-related interest expense are reported as a component of income tax expense. During the quarter ended March 30, 2014 we recognized an interest and penalties benefit of $0.2 million compared to interest and penalties expense of $0.2 million during the quarter ended March 31, 2013. As of March 30, 2014 and December 29, 2013, we had accrued interest and penalties related to unrecognized tax benefits of $4.6 million and $4.4 million, respectively.

As of March 30, 2014 and December 29, 2013, $19.6 million and $19.6 million, respectively, of our unrecognized tax benefits, penalties, and interest were recorded as a component of other long term liabilities on the consolidated balance sheet.

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 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 decrease within the next twelve months by a range of

$3.1 million to $12.1 million.

We are currently under audit in the following major jurisdictions: United States 2011, Germany 2006 – 2009, Finland 2005 – 2009, and India 2010. The following major jurisdictions have tax years that remain subject to examination: Germany - 2006 to 2013, United States - 2010 to 2013, China - 2010 to 2013 and Hong Kong - 2007 to 2013. Our tax returns for open years in all jurisdictions are subject to changes upon examination.

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

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Document And Entity Information	3 Months Ended
	Mar. 30, 2014	May 02, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 30, 2014
Entity Registrant Name	CHECKPOINT SYSTEMS INC
Entity Central Index Key	0000215419
Current Fiscal Year End Date	--12-28
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		41,675,364
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1

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Pension Benefits

3 Months Ended

Mar. 30, 2014

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Pension Benefits

PENSION BENEFITS

The components of net periodic benefit cost for the three months ended March 30, 2014 and March 31, 2013 were as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Service cost	$	282	$	268
Interest cost	916		879
Expected return on plan assets	—		26
Amortization of actuarial loss	385		389
Amortization of prior service costs	3		1
Net periodic pension cost	$	1,586	$	1,563

We expect the cash requirements for funding the pension benefits to be approximately $5.4 million during fiscal 2014, including $1.2 million which was funded during the quarter ended March 30, 2014.

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Consolidated Statements Of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Income Statement [Abstract]
Net revenues	$ 147,406	$ 148,173
Cost of revenues	85,120	94,907
Gross profit	62,286	53,266
Selling, general, and administrative expenses	54,346	55,525
Research and development	3,882	4,693
Restructuring expenses	1,892	2,016
Litigation settlement	0	(6,584)
Acquisition costs	0	161
Other operating income	0	(330)
Operating income (loss)	2,166	(2,215)
Interest income	267	399
Interest expense	1,256	2,564
Other gain (loss), net	(86)	(545)
Earnings (loss) from continuing operations before income taxes	1,091	(4,925)
Income taxes expense	1,220	0
Net loss from continuing operations	(129)	(4,925)
Loss from discontinued operations, net of tax expense of $0 and $134	0	(2,556)
Net loss	(129)	(7,481)	(18,927)
Less: loss attributable to non-controlling interests	0	(58)
Net loss attributable to Checkpoint Systems, Inc.	$ (129)	$ (7,423)
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$ 0.00	$ (0.12)
Loss from discontinued operations, net of tax	$ 0.00	$ (0.06)
Basic earnings (loss) attributable to Checkpoint Systems, Inc. per share	$ 0.00	$ (0.18)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$ 0.00	$ (0.12)
Loss from discontinued operations, net of tax	$ 0.00	$ (0.06)
Diluted earnings (loss) attributable to Checkpoint Systems, Inc. per share	$ 0.00	$ (0.18)

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Goodwill And Other Intangible Assets

3 Months Ended

Mar. 30, 2014

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 $75.3 million and $78.2 million as of March 30, 2014 and December 29, 2013, respectively.

The following table reflects the components of intangible assets as of March 30, 2014 and December 29, 2013:

		March 30, 2014				December 29, 2013
(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	$	83,042	$	58,178	$	83,063	$	56,798
Trade name	1 to 30	30,243		19,508		30,256		19,346
Patents, license agreements	3 to 14	61,828		54,728		61,820		54,225
Internal-use software	3 to 7	24,039		13,100		24,039		12,358
Other	2 to 6	7,151		6,873		7,132		6,793
Total amortized finite-lived intangible assets		206,303		152,387		206,310		149,520
Indefinite-lived intangible assets:
Trade name		21,376		—		21,376		—
Total identifiable intangible assets		$	227,679	$	152,387	$	227,686	$	149,520

Amortization expense for the three months ended March 30, 2014 and March 31, 2013 was $2.9 million and $3.0 million, respectively.

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

(amounts in thousands)
2014	(1)	$	11,283
2015		$	10,919
2016		$	10,505
2017		$	9,433
2018		$	3,659

⁽¹⁾  The estimated amortization expense for the remainder of 2014 is anticipated to be $8.4 million.

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 changes in the carrying amount of goodwill are as follows:

(amounts in thousands)	Merchandise Availability Solutions			Apparel Labeling Solutions		Retail Merchandising Solutions			Total
Balance as of December 30, 2012	$	159,031		$	—	$	23,710		$	182,741
Segment reallocation	(2,116		)	2,116		—			—
Translation adjustments	2,242			—		881			3,123
Balance as of December 29, 2013	$	159,157		$	2,116	$	24,591		$	185,864
Translation adjustments	47			—		(18		)	29
Balance as of March 30, 2014	$	159,204		$	2,116	$	24,573		$	185,893

The following table reflects the components of goodwill as of March 30, 2014 and December 29, 2013:

	March 30, 2014						December 29, 2013
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	206,489	$	47,285	$	159,204	$	207,589	$	48,432	$	159,157
Apparel Labeling Solutions	86,566		84,450		2,116		86,764		84,648		2,116
Retail Merchandising Solutions	138,457		113,884		24,573		138,098		113,507		24,591
Total goodwill	$	431,512	$	245,619	$	185,893	$	432,451	$	246,587	$	185,864

On January 28, 2011, we entered into a Master Purchase Agreement to acquire the equity and/or assets of 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 included 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 recognized through earnings.

Acquisition costs incurred in connection with the transaction including legal and other arbitration-related costs, are recognized within acquisition costs in the Consolidated Statement of Operations and approximate $0.2 million for the three months ended March 31, 2013 without a comparable expense for the three months ended March 30, 2014.

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.

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Inventories

3 Months Ended

Mar. 30, 2014

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consist of the following:

(amounts in thousands)	March 30, 2014		December 29, 2013
Raw materials	$	18,325	$	18,040
Work-in-process	3,828		2,901
Finished goods	72,668		62,580
Total	$	94,821	$	83,521

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Discontinued Operations

3 Months Ended

Mar. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

Banking Security Systems Integration

On October 1, 2012, we 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, we 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%. We received $0.1 million of principal on the note receivable for the three months ended March 30, 2014. The proceeds are included in cash proceeds from the sale of discontinued operations on the Consolidated Statement of Cash Flows.

U.S and Canada CheckView^®

In December of 2012, our U.S. and Canada based CheckView^® business included in our Merchandise Availability Solutions segment met the criteria for classification as discontinued operations. On March 19, 2013, we entered into an asset purchase agreement for the sale of our U.S. and Canada based CheckView^® business for $5.4 million in cash, subject to a working capital adjustment to the extent that the net working capital of the business deviates from targeted working capital of $17.9 million.

On April 28, 2013, we completed the sale of our U.S. and Canada based CheckView^® business unit for $5.4 million less a working capital adjustment of $4.1 million to arrive at cash proceeds of $1.3 million received on April 29, 2013. We initially recorded a receivable from the buyer of $0.2 million as a working capital adjustment based on the closing balance sheet. In the fourth quarter of 2013, the buyer disputed some amounts on the closing balance sheet. As a result, we recorded a payable to the buyer of $0.9 million as a working capital adjustment based on the buyer's preliminary review of the final closing balance sheet. This amount was paid to the buyer during the three months ended March 30, 2014. We incurred selling costs of $1.1 million in connection with the transaction. We also issued a guarantee to the lessor of the related facilities and executed a transition services agreement with the buyer to provide services including but not limited to standalone information technology environment setup access, systems modifications, human resources and payroll processing support. The transition services have various contract periods, ranging from 60 days to one year. The leases on the facilities for which we issued a guarantee terminate in 2018. Our maximum potential future payments under the guarantee are $4.1 million as of March 30, 2014. We have a total lease guarantee liability of $0.1 million recorded in both other current liabilities and other long term liabilities on the Consolidated Balance Sheet as of March 30, 2014. Direct costs incurred by us in connection with this agreement will be billed to the buyer on a monthly basis. Transition services income, net of transition services expense, was $29 thousand for the three months ended March 30, 2014. This amount is included within other gain (loss), net on the Consolidated Statement of Operations for the three months ended March 30, 2014. Costs incurred to carve-out the CheckView^® business from our enterprise resource planning system for the buyer totaled $0.4 million and were recorded through discontinued operations on the Consolidated Statement of Operations for the year ended December 29, 2013. The loss on our sale of the U.S. and Canada based CheckView^® business of $13.6 million was recorded through discontinued operations on the Consolidated Statement of Operations for the year ended December 29, 2013.

The results for the three months ended March 30, 2014 and March 31, 2013 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:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Net revenue	$	—	$	12,543
Gross profit	—		(25		)
Selling, general, and administrative expenses	—		2,318
Research and development	—		79
Operating loss	—		(2,422		)
Loss from discontinued operations before income taxes	—		(2,422		)
Loss from discontinued operations, net of tax	$	—	$	(2,556	)

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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Fair Value Measurement, Financial Instruments And Risk Management

3 Months Ended

Mar. 30, 2014

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.

The fair value hierarchy 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 our derivatives are not listed on an exchange, we value 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. Our methodology also incorporates the impact of both ours and the counterparty’s credit standing.

The following tables represent our assets and liabilities measured at fair value on a recurring basis as of March 30, 2014 and December 29, 2013 and the basis for that measurement:

(amounts in thousands)	Total Fair Value Measurement March 30, 2014		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	$	4	$	—	$	4	$	—
Total assets	$	4	$	—	$	4	$	—
Foreign currency forward exchange contracts	$	25	$	—	$	25	$	—
Total liabilities	$	25	$	—	$	25	$	—

(amounts in thousands)	Total Fair Value Measurement December 29, 2013		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	$	—	$	—	$	—	$	—
Total assets	$	—	$	—	$	—	$	—
Foreign currency forward exchange contracts	$	18	$	—	$	18	$	—
Total liabilities	$	18	$	—	$	18	$	—

We believe that the fair values of our current assets and current liabilities (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 March 30, 2014 and December 29, 2013 are summarized in the following table:

	March 30, 2014				December 29, 2013
(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	$	85,000	$	85,000	$	90,000	$	90,000

⁽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 related fair value measurement has generally been classified as Level 2.

Nonrecurring Fair Value Measurements

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 11 of the Consolidated Financial Statements.

Accrued restructuring costs for lease termination liabilities of $12 thousand were valued using a discounted cash flow model during the quarter ended March 30, 2014. 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. We recorded a $5 thousand release related to fair value adjustments to existing lease termination liabilities of $64 thousand during the quarter ended March 30, 2014. 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 11 of the Consolidated Financial Statements.

In connection with our restructuring plans, we have recorded impairment losses in restructuring expense during the quarter ended March 30, 2014 of $0.2 million 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. Assets with carrying amounts of $0.2 million were written down to their fair values of $21 thousand. 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 11 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 March 30, 2014 and December 29, 2013:

	March 30, 2014						December 29, 2013
	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 not designated as hedging instruments
Foreign currency forward exchange contracts	Other current assets	$	4	Other current liabilities	$	25	Other current assets	$	—	Other current liabilities	$	18
Total derivatives not designated as hedging instruments		4			25			—			18
Total derivatives		$	4		$	25		$	—		$	18

The following tables represent the amounts affecting the Consolidated Statement of Operations for the quarter ended March 30, 2014 and March 31, 2013:

	March 30, 2014						March 31, 2013
(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		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	$	—	Cost of sales		$	—	$	1	Cost of sales	$	(158	)	$	11

	Quarter
	(13 weeks) Ended
	March 30, 2014				March 31, 2013
(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
Derivatives not designated as hedging instruments:
Foreign exchange forwards and options	$	(30	)	Other gain (loss), net	$	213	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 March 30, 2014, we had currency forward exchange contracts with notional amounts totaling approximately $8.1 million. The fair values of the forward exchange contracts were reflected as a $4 thousand asset and $25 thousand liability 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. 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.

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Supplemental Cash Flow Information

3 Months Ended

Mar. 30, 2014

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest and income taxes for the quarter ended March 30, 2014 and March 31, 2013 were as follows:

(amounts in thousands)
Three months ended	March 30, 2014		March 31, 2013
Interest	$	541	$	2,782
Income tax payments	$	2,287	$	2,504

As of March 30, 2014 and March 31, 2013, we accrued $0.6 million and $0.6 million of capital expenditures, respectively. These amounts were excluded from the Consolidated Statements of Cash Flows at March 30, 2014 and March 31, 2013 since they represent non-cash investing activities. Accrued capital expenditures at March 30, 2014 and March 31, 2013 are included in accounts payable and other accrued expenses on the Consolidated Balance Sheets.

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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
	Mar. 30, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]
Basic loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$ (129)	$ (4,867)
Basic loss from discontinued operations, net of tax expense of $0 and $134	0	(2,556)
Diluted loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	(129)	(4,867)
Diluted loss from discontinued operations, net of tax expense of $0 and $134	0	(2,556)
Weighted-average number of common shares outstanding	41,541	40,784
Vested shares issuable under deferred compensation agreements	345	404
Basic weighted-average number of common shares outstanding	41,886	41,188
Common shares assumed upon exercise of stock options and awards	0	0
Unvested shares issuable under deferred compensation arrangements	0	0
Dilutive weighted-average number of common shares outstanding	41,886	41,188
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$ 0.00	$ (0.12)
Loss from discontinued operations, net of tax	$ 0.00	$ (0.06)
Basic loss attributable to Checkpoint Systems, Inc. per share	$ 0.00	$ (0.18)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$ 0.00	$ (0.12)
Loss from discontinued operations, net of tax	$ 0.00	$ (0.06)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$ 0.00	$ (0.18)
Discontinued Operation, Tax Effect of Discontinued Operation	0	134
Discontinued Operation, Tax Effect Of Discontinued Operations, Diluted	$ 0	$ 134

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Debt

3 Months Ended

Mar. 30, 2014

Debt Disclosure [Abstract]

Debt

DEBT

Long-term debt as of March 30, 2014 and December 29, 2013 consisted of the following:

(amounts in thousands)	March 30, 2014		December 29, 2013
Senior Secured Credit Facility:
$200 million variable interest rate revolving credit facility maturing in 2018	$	85,000	$	90,000
Full-recourse factoring liabilities	201		257
Other capital leases with maturities through 2018	170		1,365
Total	85,371		91,622
Less current portion	203		435
Total long-term portion	$	85,168	$	91,187

Senior Secured Credit Facility

On December 11, 2013, we entered into a new $200.0 million five-year senior secured multi-currency revolving credit facility("2013 Senior Secured Credit Facility") agreement ("2013 Credit Agreement") with a syndicate of lenders. The 2013 Senior Secured Credit Facility was used to repay $32.0 million outstanding under the 2010 Senior Secured Credit Facility as well as the $55.6 million outstanding under the Senior Secured Notes. We may borrow, prepay and re-borrow under the 2013 Senior Secured Credit Facility as long as the sum of the outstanding principal amounts is less than the aggregate facility availability. The 2013 Senior Secured Credit Facility also includes an expansion option that will allow us to request an increase in the 2013 Senior Secured Credit Facility of up to an aggregate of $100.0 million, for a potential total commitment of $300.0 million.

All obligations under the 2013 Senior Secured Credit Facility are irrevocably and unconditionally guaranteed on a joint and several basis by certain domestic subsidiaries. Collateral under the 2013 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 subsidiary. All domestic tangible and intangible personal property, excluding any real property with a value of less than $5 million, are also pledged as collateral.

Borrowings under the 2013 Senior Secured Credit Facility, other than swingline loans, bear interest at our option of either (i) a spread ranging from 0.25% to 1.25% over the Base Rate (as described below), or (ii) a spread ranging from 1.25% to 2.25% over the LIBOR rate, and in each case fluctuating in accordance with changes in our leverage ratio, as defined in the 2013 Credit Agreement.  The “Base Rate” is the highest of (a) the Federal Funds Rate, plus 0.50%, (b) the Administrative Agent’s prime rate, 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 0.25% to 1.25% over the Base Rate.  We pay an unused line fee ranging from 0.20% to 0.40% per annum on the unused portion of the 2013 Senior Secured Credit Facility.

Pursuant to the terms of the 2013 Senior Secured Credit Facility, we are subject to various requirements, including covenants requiring the maintenance of (i) a maximum total leverage ratio of 3.00 and (ii) a minimum interest coverage ratio of 3.00. We are in compliance with the maximum total leverage ratio and minimum interest coverage ratio as of March 30, 2014. The 2013 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 2013 Senior Secured Credit Facility, including the non-payment of principal or interest, our obligations under the 2013 Credit Agreement may be accelerated and the assets securing such obligations may be sold.

During the year ended December 29, 2013, we incurred $1.8 million in fees and expenses in connection with the 2013 Senior Secured Credit Facility, which are amortized over the term of the 2013 Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations. The remaining unamortized debt issuance costs recognized in connection with the 2010 Secured Credit Facility of $0.4 million are amortized over the term of the 2013 Senior Secured Credit Facility to interest expense on the Consolidated Statement of Operations.

As of March 30, 2014, $1.8 million, issued in letters of credit, were outstanding under the 2013 Senior Secured Credit Facility.

Other Long-Term Debt

In December 2013, we entered into a sale-lease-back transaction in Spain. As of December 29, 2013, the lease had a balance of $1.2 million (€0.9 million), of which $0.2 million (€0.2 million) was included in the current portion of long-term debt and $1.0 million (€0.7 million) was included in long-term borrowings in the accompanying Consolidated Balance Sheets. On February 7, 2014, the outstanding balance of $1.2 million (€0.9 million) was repaid and the liability was released.

We have full-recourse factoring arrangements in Europe. The arrangements are secured by trade receivables. We received a weighted average of 92.4% of the face amount of receivables that we desired to sell and the bank agreed, at its discretion, to buy. As of March 30, 2014 the factoring arrangements had a balance of $0.2 million (€0.1 million), of which $0.1 million (€0.1 million) was included in the current portion of long-term debt and $0.1 million (€40 thousand) was included in long-term borrowings in the accompanying Consolidated Balance Sheets since the receivables are collectible through 2016.

Financing Liability

In June 2011, we sold, to a financial institution in Spain, rights to future customer receivables resulting from the negotiated extension of previously executed sales-type lease arrangements, whose receivables were previously sold. The 2011 transaction qualified as a legal sale without recourse. However, until the receivables are recognized, the proceeds from the fiscal 2011 legal sale are accounted for as a financing arrangement and reflected as a financing liability in our consolidated balance sheet. The balance of the financing liability is $35.6 million and $35.1 million as of March 30, 2014 and December 29, 2013, respectively.We impute a non-cash interest charge on the financing liability using a rate of 6.365%, which we recognize as interest expense, until our right to recognize the legal sales permits us to de-recognize the liability and record operating income on the sale. We recognized interest expense related to the financing liability of $0.6 million and $0.5 million for the three months ended March 30, 2014 and March 31, 2013, respectively.

During fiscal 2016 through 2018, when we are permitted to recognize the lease receivables upon the commencement of the lease extensions, we expect to de-recognize both the associated receivables and the related financing liability and record other operating income on the sale. At this point, our obligation under the financing liability will have been extinguished.

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Stock-Based Compensation

3 Months Ended

Mar. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

Stock-based compensation cost recognized in operating results (included in selling, general, and administrative expenses) for the three months ended March 30, 2014 and March 31, 2013 was $1.5 million and $2.0 million ($1.4 million and $2.0 million, net of tax), respectively. The associated actual tax benefit realized for the tax deduction from option exercises of share-based payment units and awards released equaled $0.1 million and $0.1 million for the quarter ended March 30, 2014 and March 31, 2013, respectively.

On February 27, 2014, RSUs were awarded to certain key employees as part of the LTIP 2014 plan. The number of shares for these units varies based on the growth of our earnings before interest, taxes, depreciation, and amortization (EBITDA) during the January 2014 to December 2016 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 $14.90 per share. Compensation expense of $32 thousand was recognized in connection with these RSUs for the three months ended March 30, 2014. As of March 30, 2014, total unamortized compensation expense for this grant was $1.1 million. As of March 30, 2014, the maximum achievable RSUs outstanding under this plan are 76,910 units. These RSUs reduce the shares available to grant under the 2004 Plan.

On February 27, 2013, RSUs were awarded to certain key employees as part of the LTIP 2013 plan. These awards have a market condition. The number of shares for these units varies based on the relative ranking of our total shareholder return (TSR) against the TSRs of the constituents of the Russell 2000 Index during the January 2013 to December 2015 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 grant date fair value for these RSUs was $11.91 per share. Additional RSUs related to the LTIP 2013 plan were awarded on May 28, 2013, with a grant date fair value of $11.56 per share. Compensation expense of $29 thousand and $4 thousand was recognized in connection with these RSUs for the three months ended March 30, 2014 and March 31, 2013, respectively. As of March 30, 2014, total unamortized compensation expense for these grants was $0.1 million. As of March 30, 2014, the maximum achievable RSUs outstanding under this plan are 26,400 units. These RSUs reduce the shares available to grant under the 2004 Plan.

To determine the fair value of RSUs with market conditions that were awarded on February 27, 2013, we used a Monte Carlo simulation using the following assumptions: (i) expected volatility of 47.01%, (ii) risk-free rate of 0.35%, and (iii) an expected dividend yield of zero.

To determine the fair value of RSUs with market conditions that were awarded on May 28, 2013, we used a Monte Carlo simulation using the following assumptions: (i) expected volatility of 45.23%, (ii) risk-free rate of 0.41%, and (iii) an expected dividend yield of zero.

On May 2, 2013 a cash-based performance award was awarded to our CEO under the terms of our 2013 LTIP plan. Our relative TSR performance determines the payout as a percentage of an established target cash amount of $0.4 million. Because the final payout of the award is made in cash, the award is classified as a liability and the fair value is marked-to-market each reporting period. As of March 30, 2014, the fair value of the award is $0.45 per dollar of the target cash amount awarded. The value of this award is charged to compensation expense on a straight-line basis over the vesting period. For the first quarter of 2014, less than $1 thousand was charged to compensation expense. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.

To determine the fair value of the cash-based performance award as of March 30, 2014, we used a Monte Carlo simulation using the following assumptions: (i) expected volatility of 45.32%, (ii) risk-free rate of 0.37%, and (iii) an expected dividend yield of zero.

Stock Options

Option activity under the principal option plans as of March 30, 2014 and changes during the quarter ended March 30, 2014 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 29, 2013	2,450,660		$	17.70	4.35	$	4,285
Granted	206,280		14.84
Exercised	(5,430	)	10.80
Forfeited or expired	(100,857	)	16.85
Outstanding at March 30, 2014	2,550,653		$	17.51	4.66	$	2,593
Vested and expected to vest at March 30, 2014	2,449,476		$	17.77	4.49	$	2,336
Exercisable at March 30, 2014	2,017,125		$	19.06	3.52	$	1,431

The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between our closing stock price on the last trading day of the first quarter of fiscal 2014 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 March 30, 2014. This amount changes based on the fair market value of our stock. The total intrinsic value of options exercised for the quarter ended March 30, 2014 and March 31, 2013 was $18 thousand and $0.1 million, respectively.

As of March 30, 2014, $1.8 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.1 years.

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

Three months ended	March 30, 2014		March 31, 2013
Weighted-average fair value of grants	6.44		5.42
Valuation assumptions:
Expected dividend yield	0.00	%	0.00	%
Expected volatility	48.16	%	50.85	%
Expected life (in years)	5.11		5.07
Risk-free interest rate	1.461	%	0.792	%

Restricted Stock Units

Nonvested restricted stock units as of March 30, 2014 and changes during the quarter ended March 30, 2014 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 29, 2013	852,508		0.64	$	17.36
Granted	266,715			$	14.87
Vested	(188,333	)		$	14.81
Forfeited	(39,796	)		$	12.87
Nonvested at March 30, 2014	891,094		1.18	$	17.36
Vested and expected to vest at March 30, 2014	822,424		1.13
Vested at March 30, 2014	—		—

The total fair value of restricted stock awards vested during the first quarter of 2014 was $2.8 million as compared to $1.3 million in the first quarter of 2013. As of March 30, 2014, there was $5.0 million of unrecognized stock-based compensation expense related to nonvested restricted stock units. That cost is expected to be recognized over a weighted-average period of 2.2 years.

Other Compensation Arrangements

On March 15, 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 $0.3 million as of March 30, 2014, of which $0.3 million was expensed for the three months ended March 30, 2014. The total amount accrued related to the plan equaled $0.4 million as of March 31, 2013, of which $0.3 million was expensed for the three months ended March 31, 2013. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.

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Earnings Per Share

3 Months Ended

Mar. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

The following data shows the amounts used in computing earnings per share and the effect on net earnings from continuing operations attributable to Checkpoint Systems, Inc. and the weighted-average number of shares of dilutive potential common stock:

	Quarter
	(13 weeks) Ended
(amounts in thousands, except per share data)	March 30, 2014			March 31, 2013
				(As Restated)
Basic loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	$	(129	)	$	(4,867	)
Basic loss from discontinued operations, net of tax expense of $0 and $134	—			(2,556		)
Diluted loss from continuing operations attributable to Checkpoint Systems, Inc. available to common stockholders	(129		)	(4,867		)
Diluted loss from discontinued operations, net of tax expense of $0 and $134	$	—		$	(2,556	)
Shares:
Weighted-average number of common shares outstanding	41,541			40,784
Vested shares issuable under deferred compensation agreements	345			404
Basic weighted-average number of common shares outstanding	41,886			41,188
Common shares assumed upon exercise of stock options and awards	—			—
Unvested shares issuable under deferred compensation arrangements	—			—
Dilutive weighted-average number of common shares outstanding	41,886			41,188
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	—		$	(0.12	)
Loss from discontinued operations, net of tax	—			(0.06		)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	—		$	(0.18	)

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 three months ended March 30, 2014 and March 31, 2013 were as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014	March 31, 2013
Weighted-average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	2,260	2,471

⁽¹⁾  Stock options and awards of 345 shares and deferred compensation arrangements of 17 shares were anti-dilutive in the first three months of 2014 and were therefore excluded from the earnings per share calculation due to our loss from continuing operations for the period. Stock options and awards of 196 shares and deferred compensation arrangements of 49 shares were anti-dilutive in the first three months of 2013 and were therefore excluded from the earnings per share calculation due to our loss from continuing operations for the period.

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Fair Value Measurement, Financial Instruments And Risk Management (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Fair Value Disclosures [Line Items]
Restructuring Reserve	$ 7,651,000		$ 8,175,000
Restructuring related asset impairment	172,000	731,000
PROPERTY, PLANT, AND EQUIPMENT, net	74,463,000		75,067,000	[1]
Total assets	4,000		0
Total liabilities	25,000		18,000
Foreign currency forward exchange contracts
Fair Value Disclosures [Line Items]
Notional amount of derivatives not designated as hedging instruments	8,100,000
Total assets	4,000		0
Total liabilities	25,000		18,000
Fair Value, Measurements, Nonrecurring [Member]
Fair Value Disclosures [Line Items]
Property, Plant, and Equipment, Fair Value Disclosure	0
Lease termination liabilities [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value Disclosures [Line Items]
Other restructuring costs	12,000
Liabilities, Fair Value Adjustment	5,000
Restructuring Reserve	64,000
Impairment of certain long-lived assets [Member] | Fair Value, Measurements, Nonrecurring [Member]
Fair Value Disclosures [Line Items]
PROPERTY, PLANT, AND EQUIPMENT, net	$ 200,000

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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) (Senior Secured Credit Facility [Member], USD $) In Thousands, unless otherwise specified	Mar. 30, 2014		Dec. 29, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured credit facility, Carrying Amount	$ 85,000	[1]	$ 90,000	[1]
Estimated Fair Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior secured credit facility, Estimated Fair Value	$ 85,000	[1]	$ 90,000	[1]

[1] The carrying amounts are reported on the balance sheet under the indicated captions.

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Pension Benefits (Details) (USD $)	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Service cost	$ 282,000	$ 268,000
Interest cost	916,000	879,000
Expected return on plan assets	0	26,000
Amortization of actuarial loss	385,000	389,000
Amortization of prior service costs	3,000	1,000
Net periodic pension cost	1,586,000	1,563,000
Estimated employer contributions	5,400,000
Pension contributions	$ 1,200,000

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Provision For Restructuring (Tables)

3 Months Ended

Mar. 30, 2014

Restructuring and Related Activities [Abstract]

Schedule Of Restructuring Expense

Restructuring expense for the three months ended March 30, 2014 and March 31, 2013 was as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	1,572	$	339
Asset impairments	172		731
Other exit costs	143		885
SG&A Restructuring Plan
Severance and other employee-related charges	5		(16		)
Other exit costs	—		77
Total	$	1,892	$	2,016

Schedule Of Restructuring Accrual Activity

Restructuring accrual activity for the three months ended March 30, 2014 was as follows:

(amounts in thousands)	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at March 30, 2014
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	7,757	$	2,093	$	(521	)	$	(1,850	)	$	(6	)	$	7,473
Other exit costs(1)	66		143		—			(173		)	(1		)	35
SG&A Restructuring Plan
Severance and other employee-related charges	352		5		—			(214		)	—			143
Total	$	8,175	$	2,241	$	(521	)	$	(2,237	)	$	(7	)	$	7,651

⁽¹⁾  During the first quarter of 2014, there was a net charge to earnings of $0.1 million primarily due to restructuring agent costs and legal costs in connection with the restructuring plan.

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Debt (Schedule Of Long-Term Debt) (Details)	3 Months Ended
	Mar. 30, 2014 USD ($)	Mar. 30, 2014 EUR (€)	Dec. 29, 2013 USD ($)		Mar. 30, 2014 Senior Secured Credit Facility [Member] USD ($)		Dec. 29, 2013 Senior Secured Credit Facility [Member] USD ($)		Mar. 30, 2014 Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Senior Secured Credit Facility [Member] USD ($)	Dec. 29, 2013 Two Thousand Thirteen (2013) Two Hundred Million Variable Interest Rate Revolving Facility Maturing in 2018 [Member] Senior Secured Credit Facility [Member] USD ($)
Debt Instrument [Line Items]
$200 million variable interest rate revolving credit facility maturing in 2018					$ 85,000,000	[1]	$ 90,000,000	[1]	$ 85,000,000	$ 90,000,000
Full-recourse factoring liabilities	201,000	100,000	257,000
Other capital leases with maturities through 2018	170,000		1,365,000
Long-term debt	85,371,000		91,622,000
Less current portion	203,000		435,000
Total long-term portion	85,168,000		91,187,000	[2]
Face value	$ 200,000,000
Maturity date	2018	2018

[1] The carrying amounts are reported on the balance sheet under the indicated captions.

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Contingent Liabilities And Settlements

3 Months Ended

Mar. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Contingent Liabilities And Settlements

CONTINGENT LIABILITIES AND SETTLEMENTS

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 (the “ Pennsylvania Court”) 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 United States Court of Appeals for the Federal Circuit (the “Appellate Court”) reversed the grant of summary judgment and remanded the case to the Pennsylvania 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 Pennsylvania Court entered judgment in favor of defendants based on the jury's infringement and enforceability findings. On February 10, 2009, the Pennsylvania 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 sought 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 Pennsylvania 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 Pennsylvania Court's award of attorneys' fees to the defendants. Following the filing of briefs and the completion of oral arguments, the Appellate Court reversed the decision of the Pennsylvania Court on March 25, 2013. As a result of the final decision, we reversed the All-Tag reserve of $6.6 million in the first quarter ended March 31, 2013.

Matter related to Universal Surveillance Corporation EAS RF Anti-trust Litigation

Universal Surveillance Corporation (“USS”) filed a complaint against us in the United States Federal District Court of the Northern District of Ohio (the “Ohio Court”) on August 19, 2011. USS claims that, in connection with our competition in the electronic article surveillance market, we violated the federal antitrust laws (Sherman Act and Clayton Act) and state antitrust laws (Ohio Valentine Act). USS also claims that we violated the federal Lanham Act, the Ohio Deceptive Trade Practices Act, and the Ohio Trade Secrets Act, and engaged in conduct that allegedly disparaged USS and tortiously interfered with USS's business relationships and contracts. USS is seeking injunctive relief as well as approximately $65 million in claimed damages for alleged lost profits, plus treble damages and attorney's fees under the Sherman Act. As of March 30, 2014, we have neither recorded a reserve for this matter nor do we believe that there is a reasonable possibility that a loss has been incurred.

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Inventories (Tables)

3 Months Ended

Mar. 30, 2014

Inventory Disclosure [Abstract]

Schedule Of Inventories

Inventories consist of the following:

(amounts in thousands)	March 30, 2014		December 29, 2013
Raw materials	$	18,325	$	18,040
Work-in-process	3,828		2,901
Finished goods	72,668		62,580
Total	$	94,821	$	83,521

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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
	Mar. 30, 2014		Dec. 29, 2013
Goodwill [Roll Forward]
Beginning Balance	$ 185,864	[1]	$ 182,741
Segment reallocation			0
Translation adjustments	29		3,123
Ending Balance	185,893		185,864	[1]
Merchandise Availability Solutions [Member]
Goodwill [Roll Forward]
Beginning Balance	159,157		159,031
Segment reallocation			(2,116)
Translation adjustments	47		2,242
Ending Balance	159,204		159,157
Apparel Labeling Solutions [Member]
Goodwill [Roll Forward]
Beginning Balance	2,116		0
Segment reallocation			2,116
Translation adjustments	0		0
Ending Balance	2,116		2,116
Retail Merchandising Solutions [Member]
Goodwill [Roll Forward]
Beginning Balance	24,591		23,710
Segment reallocation			0
Translation adjustments	(18)		881
Ending Balance	$ 24,573		$ 24,591

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Summary Of Significant Accounting Policies (Comparison of Financial Statements as Previously Filed - Statement of Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				12 Months Ended
	Mar. 30, 2014		Mar. 31, 2013		Dec. 29, 2013
Net loss	$ (129)		$ (7,481)		$ (18,927)
Depreciation and amortization	6,164		6,962
Amortization of debt issuance costs	108		347
Interest on financing liability	559		505
Deferred taxes			(393)
Stock-based compensation	1,501		1,972
Provision for losses on accounts receivable	676		(699)
Excess tax benefit on stock compensation	(186)		(23)
Loss on disposal of fixed assets	29		170
Litigation settlement	0		(6,584)
Restructuring-related asset impairment			731
Accounts receivable	24,279		34,851
Inventories	(11,111)		(1,254)
Other current assets	3,995		6,764
Accounts payable	(13,209)		(2,031)
Income taxes	(2,376)		(2,462)
Unearned revenues - current	594		(4,679)
Restructuring reserve	(517)		(3,063)
Other liabilities	(1,893)		(10,590)
Net cash provided by operating activities	8,563		13,043
Acquisition of property, plant, and equipment and intangibles	(3,318)		(1,363)
Other investing activities	36		440
Net cash used in investing activities	(3,211)		(923)
Proceeds from stock issuances	59		600
Excess tax benefit on stock compensation	186		23
Proceeds from short-term debt	0		2,272
Payment of short-term debt	0		(248)
Net change in factoring and bank overdrafts	(55)		(431)
Repayments of Long-term Debt	(7,179)		(71)
Net cash provided by financing activities	(5,989)		2,145
Effect of foreign currency rate fluctuations on cash and cash equivalents	227		(2,015)
Net increase in cash and cash equivalents	(410)		12,250
Beginning of period	121,573	[1]	118,829		118,829
End of period	121,163		131,079	[1]	121,573	[1]
As Previously Reported
Net loss			(6,342)
Depreciation and amortization			7,309
Amortization of debt issuance costs			0
Interest on financing liability			0
Deferred taxes			(114)
Stock-based compensation			1,972
Provision for losses on accounts receivable			(699)
Excess tax benefit on stock compensation			(23)
Loss on disposal of fixed assets			170
Litigation settlement			(6,584)
Restructuring-related asset impairment			731
Accounts receivable			39,180
Inventories			(1,181)
Other current assets			10,302
Accounts payable			(6,973)
Income taxes			(2,462)
Unearned revenues - current			(8,846)
Restructuring reserve			(3,063)
Other liabilities			(10,334)
Net cash provided by operating activities			13,043
Acquisition of property, plant, and equipment and intangibles			(1,363)
Other investing activities			440
Net cash used in investing activities			(923)
Proceeds from stock issuances			600
Excess tax benefit on stock compensation			23
Proceeds from short-term debt			2,272
Payment of short-term debt			(248)
Net change in factoring and bank overdrafts			(431)
Repayments of Long-term Debt			(71)
Net cash provided by financing activities			2,145
Effect of foreign currency rate fluctuations on cash and cash equivalents			(2,015)
Net increase in cash and cash equivalents			12,250
Beginning of period			118,829		118,829
End of period			131,079
Restatement Adjustments
Net loss			(1,139)
Depreciation and amortization			0
Amortization of debt issuance costs			0
Interest on financing liability			505
Deferred taxes			(279)
Stock-based compensation			0
Provision for losses on accounts receivable			0
Excess tax benefit on stock compensation			0
Loss on disposal of fixed assets			0
Litigation settlement			0
Restructuring-related asset impairment			0
Accounts receivable			(4,329)
Inventories			(73)
Other current assets			(3,538)
Accounts payable			4,942
Income taxes			0
Unearned revenues - current			4,167
Restructuring reserve			0
Other liabilities			(256)
Net cash provided by operating activities			0
Acquisition of property, plant, and equipment and intangibles			0
Other investing activities			0
Net cash used in investing activities			0
Proceeds from stock issuances			0
Excess tax benefit on stock compensation			0
Proceeds from short-term debt			0
Payment of short-term debt			0
Net change in factoring and bank overdrafts			0
Repayments of Long-term Debt			0
Net cash provided by financing activities			0
Effect of foreign currency rate fluctuations on cash and cash equivalents			0
Net increase in cash and cash equivalents			0
Beginning of period			0		0
End of period			$ 0

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Consolidated Statements Of Operations (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Accounting Policies [Abstract]
Discontinued operations, tax expense (benefit)	$ 0	$ 134

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Summary Of Significant Accounting Policies

3 Months Ended

Mar. 30, 2014

Accounting Policies [Abstract]

Summary Of Significant Accounting Polices

SUMMARY OF SIGNIFICANT ACCOUNTING POLICES

Restatement of Previously Issued Consolidated Financial Statements

In our 2013 Annual Report on Form 10-K, we restated our previously issued consolidated financial statements and the related disclosures for the years ended December 30, 2012 and December 25, 2011 and unaudited interim financial information for each of the quarters in the year ended December 30, 2012 and for the first three quarters in the fiscal year ended December 29, 2013 (the "Restated Periods").

The restatement is the result of our corrections for the effect of financial statement errors attributable to the accounting for the future extension of a sales-type lease arrangement in Spain during the second quarter ended June 26, 2011 (“Spain transaction”). The sale of the underlying customer receivables to a financial institution qualified as a legal sale and we recognized the proceeds net of amounts deferred for future deliverables of $17.4 million in other operating income in the second quarter ended June 26, 2011. During of the fourth quarter of 2013, we discovered that the 2011 extension arrangement represented the execution of forward starting leases. The recognition of a lease receivable is not permitted until such time as the commencement of a lease or the sale of an unrecognized financial asset (i.e. a right to future income). Accordingly, we reversed the other operating income recognized in fiscal 2011 related to this transaction and recorded other necessary adjustments in the interim and annual periods from the second quarter ended June 26, 2011 through the third quarter ended September 29, 2013.

The aggregate impacts of correcting the errors relating to the Spain transaction as of and for the first quarter ended March 31, 2013 were as follows:

(amounts in millions)	Restatement Adjustments to Previously Reported Income Statement - Income/(Expense)
For the Quarter ended	March 31, 2013
Net revenues	$	(0.9	)
Operating income	(0.9		)
Interest expense	(0.5		)
Income taxes expense	(0.3		)
Net loss	(1.1		)

We assessed the impact of these errors, including the impact of the previously disclosed out-of-period adjustments on our prior interim and annual financial statements and concluded that the combined impact of these errors was material to our financial statements. Consequently, we have restated the prior period financial statements identified above. All amounts in our consolidated financial statements in this Quarterly Report on Form 10-Q affected by the restatement adjustments reflect such amounts as restated.

In addition to the Spain transaction resulting in the restatement of our previously issued consolidated financial statements, we also recorded certain other immaterial errors affecting the consolidated financial statements as of and for the quarter ended March 31, 2013 that are included in our restatement adjustments:

• Income tax adjustments - The correction of out of period income tax adjustments had no combined effect on net loss and total assets in the first quarter of 2013.

• Other out of period adjustments - We recorded certain other out of period errors which were not individually material to the financial statements which had the combined effect in the first quarter of 2013 of increasing net revenues by $0.3 million, increasing net loss by $37 thousand, increasing total assets by $1.6 million, increasing total current liabilities by $1.4 million and increasing long-term liabilities by $3.9 million. The cumulative impact of these adjustments in prior periods resulted in an adjustment to reduce the beginning retained earnings balance in fiscal 2013 by $3.7 million. The largest single contributor to these adjustments was a correction of our deferred maintenance balances in certain European countries which increased unearned revenues by $2.1 million and increased other long-term liabilities by $3.9 million as of March 31, 2013. The income statement impact of this adjustment was a decrease in net loss of $0.3 million in the quarter ended March 31, 2013.

This Quarterly Report on Form 10-Q for the quarter ended March 30, 2014 includes the impact of the restatement on the applicable unaudited quarterly financial information for the quarter ended March 31, 2013. In addition, our future Quarterly Reports on Form 10-Q for subsequent quarterly periods during 2014 will also include the impacts of the restatement on applicable 2013 comparable prior quarter and year to date periods. The effect of the restatement on previously issued quarterly financial information as of and for the three months ended March 31, 2013 is set forth in this footnote.

Previously filed Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q for quarterly and annual periods ended prior to December 29, 2013 have not been and will not be amended.

Comparison of restated financial statements to financial statements as previously reported

The following tables compare our previously reported Consolidated Statements of Operations, Comprehensive Income (Loss), and Cash Flows for the quarter ended March 31, 2013 to the corresponding financial statements for the quarterly period as restated.

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands, except per share data)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Net revenues	$	148,835		$	(662	)	$	148,173
Cost of revenues	94,894			13			94,907
Gross profit	53,941			(675		)	53,266
Selling, general, and administrative expenses	55,287			238			55,525
Research and development	4,693			—			4,693
Restructuring expenses	2,016			—			2,016
Litigation settlement	(6,584		)	—			(6,584		)
Acquisition costs	161			—			161
Other expense	—			—			—
Other operating income	(330		)	—			(330		)
Operating loss	(1,302		)	(913		)	(2,215		)
Interest income	399			—			399
Interest expense	2,059			505			2,564
Other gain (loss), net	(545		)	—			(545		)
Loss from continuing operations before income taxes	(3,507		)	(1,418		)	(4,925		)
Income taxes expense (benefit)	279			(279		)	—
Net loss from continuing operations	(3,786		)	(1,139		)	(4,925		)
Loss from discontinued operations, net of tax expense of $134	(2,556		)	—			(2,556		)
Net loss	(6,342		)	(1,139		)	(7,481		)
Less: loss attributable to non-controlling interests	(58		)	—			(58		)
Net loss attributable to Checkpoint Systems, Inc.	$	(6,284	)	$	(1,139	)	$	(7,423	)
Basic loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(0.09	)	$	(0.03	)	$	(0.12	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	—		$	(0.06	)
Basic loss attributable to Checkpoint Systems, Inc. per share	$	(0.15	)	$	(0.03	)	$	(0.18	)
Diluted loss attributable to Checkpoint Systems, Inc. per share:
Loss from continuing operations	$	(0.09	)	$	(0.03	)	$	(0.12	)
Loss from discontinued operations, net of tax	$	(0.06	)	$	—		$	(0.06	)
Diluted loss attributable to Checkpoint Systems, Inc. per share	$	(0.15	)	$	(0.03	)	$	(0.18	)

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Net loss	$	(6,342	)	$	(1,139	)	$	(7,481	)
Other comprehensive income (loss), net of tax:
Amortization of pension plan actuarial losses, net of tax benefit of $108 and $0	282			—			282
Change in realized and unrealized losses on derivative hedges, net of tax benefit of $0 and $13	(157		)	—			(157		)
Foreign currency translation adjustment	(3,341		)	742			(2,599		)
Total other comprehensive income (loss), net of tax	(3,216		)	742			(2,474		)
Comprehensive loss	(9,558		)	(397		)	(9,955		)
Less: comprehensive loss attributable to non-controlling interests	(225		)	—			(225		)
Comprehensive loss attributable to Checkpoint Systems, Inc.	$	(9,333	)	$	(397	)	$	(9,730	)

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENT OF CASH FLOWS

(Unaudited)

	Quarter Ended
	March 31, 2013
(amounts in thousands)	As Previously Reported			Restatement Adjustments			As Restated in this Quarterly Report on Form 10-Q
Cash flows from operating activities:
Net loss	$	(6,342	)	$	(1,139	)	$	(7,481	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	7,309			—			6,962
Amortization of debt issuance costs	—			—			347
Interest on financing liability	—			505			505
Deferred taxes	(114		)	(279		)	(393		)
Stock-based compensation	1,972			—			1,972
Provision for losses on accounts receivable	(699		)	—			(699		)
Excess tax benefit on stock compensation	(23		)	—			(23		)
Loss on disposal of fixed assets	170			—			170
Litigation settlement	(6,584		)	—			(6,584		)
Restructuring-related asset impairment	731			—			731
Decrease (increase) in operating assets, net of the effects of acquired companies:
Accounts receivable	39,180			(4,329		)	34,851
Inventories	(1,181		)	(73		)	(1,254		)
Other current assets	10,302			(3,538		)	6,764
(Decrease) increase in operating liabilities, net of the effects of acquired companies:
Accounts payable	(6,973		)	4,942			(2,031		)
Income taxes	(2,462		)	—			(2,462		)
Unearned revenues - current	(8,846		)	4,167			(4,679		)
Restructuring reserve	(3,063		)	—			(3,063		)
Other liabilities	(10,334		)	(256		)	(10,590		)
Net cash provided by operating activities	13,043			—			13,043
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(1,363		)	—			(1,363		)
Other investing activities	440			—			440
Net cash used in investing activities	(923		)	—			(923		)
Cash flows from financing activities:
Proceeds from stock issuances	600			—			600
Excess tax benefit on stock compensation	23			—			23
Proceeds from short-term debt	2,272			—			2,272
Payment of short-term debt	(248		)	—			(248		)
Net change in factoring and bank overdrafts	(431		)	—			(431		)
Payment of long-term debt	(71		)	—			(71		)
Net cash provided by financing activities	2,145			—			2,145
Effect of foreign currency rate fluctuations on cash and cash equivalents	(2,015		)	—			(2,015		)
Net increase in cash and cash equivalents	12,250			—			12,250
Cash and cash equivalents:
Beginning of period	118,829			—			118,829
End of period	$	131,079		$	—		$	131,079

The Consolidated Financial Statements include the accounts of Checkpoint Systems, Inc. and its majority-owned subsidiaries (collectively, the “Company”). All inter-company transactions are eliminated in consolidation. The Consolidated Financial Statements and related notes are unaudited and do not contain all disclosures required by generally accepted accounting principles in annual financial statements. The Consolidated Balance Sheet as of December 29, 2013 is derived from the Company's audited Consolidated Financial Statements at December 29, 2013. Refer to our Annual Report on Form 10-K for the fiscal year ended December 29, 2013 for the most recent disclosure of our accounting policies.

The Consolidated Financial Statements include all adjustments, consisting only of normal recurring adjustments, necessary to state fairly our financial position at March 30, 2014 and December 29, 2013 and our results of operations for the thirteen weeks ended March 30, 2014 and March 31, 2013 and changes in cash flows for the thirteen weeks ended March 30, 2014 and March 31, 2013. The results of operations for the interim period should not be considered indicative of results to be expected for the full year.

Reclassifications

Certain reclassifications and retrospective adjustments have been made to prior period information to conform to the current period presentation. In order to conform to the current period presentation, the As Restated amounts include a balance sheet reclassification of internal-use software from property, plant and equipment to other intangibles and also include a statement of cash flows reclassification of amortization of debt issuance costs from depreciation and amortization.

Internal-Use Software

Included in intangible 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 seven years. Costs incurred related to design or maintenance of internal-use software are expensed as incurred.

Customer Rebates

We record estimated reductions to revenue for customer incentive offerings, including volume-based incentives and rebates. The accrual for these incentives and rebates, which is included in the Other Accrued Expenses section of our Consolidated Balance Sheet, was $13.0 million and $11.1 million as of March 30, 2014 and December 29, 2013, 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.

Non-controlling Interests

On May 16, 2011, Checkpoint Holland Holding B.V., a wholly-owned subsidiary, acquired 51% of the outstanding voting shares of Shore to Shore PVT Ltd. (Sri Lanka) in exchange for $1.7 million in cash.

In January 2013, we entered into an agreement to sell our 51% interest in Sri Lanka to the unrelated third party holding the non-controlling interest. On June 24, 2013, we completed the sale of our 51% interest for which we received cash proceeds of $0.2 million (net of a stamp duty). The gain on sale of $0.2 million was recorded within other operating income on the Consolidated Statement of Operations.

We have presented net income attributable to non-controlling interests separately on our Consolidated Statements of Operations for the three months ended March 31, 2013.

Warranty Reserves

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

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

(amounts in thousands)
Three months ended	March 30, 2014			March 31, 2013
Balance at beginning of year	$	4,521		3,995
Accruals for warranties issued, net	810			888
Settlements made	(962		)	(679		)
Foreign currency translation adjustment	13			(107		)
Balance at end of period	$	4,382		$	4,097

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the three months ended March 30, 2014 were as follows:

(amounts in thousands)	Pension plan			Changes in realized and unrealized gains (losses) on derivative hedges		Foreign currency translation adjustment		Total accumulated other comprehensive income
Balance, December 29, 2013	$	(17,773	)	$	—	$	20,018	$	2,245
Other comprehensive (loss) income before reclassifications	50			—		355		405
Amounts reclassified from other comprehensive income (loss)	278			—		—		278
Net other comprehensive income (loss)	328			—		355		683
Balance, March 30, 2014	$	(17,445	)	$	—	$	20,373	$	2,928

The significant items reclassified from each component of other comprehensive income (loss) for the three months ended March 30, 2014 and March 31, 2013 were as follows:

(amounts in thousands)	March 30, 2014				March 31, 2013
Details about accumulated other comprehensive income (loss) components	Amount reclassified from accumulated other comprehensive income (loss)			Affected line item in the statement where net loss is presented	Amount reclassified from accumulated other comprehensive income (loss)			Affected line item in the statement where net loss is presented
Amortization of pension plan items
Actuarial loss (1)	$	(385	)		$	(389	)
Prior service cost (1)	(3		)		(1		)
	(388		)	Total before tax	(390		)	Total before tax
	110			Tax benefit	108			Tax benefit
	$	(278	)	Net of tax	$	(282	)	Net of tax
Gains and (losses) on cash flow hedges
Foreign currency revenue forecast contracts	$	—		Cost of revenues	$	158		Cost of revenues
	—			Total before tax	158			Total before tax
	—			Tax expense	—			Tax expense
	$	—		Net of tax	$	158		Net of tax
Total reclassifications for the period	$	(278	)		$	(124	)

⁽¹⁾  These accumulated other comprehensive income components are included in the computation of net periodic pension costs. Refer to Note 9 of the Consolidated Financial Statements.

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, are reflected where appropriate in our financial statements.

Recently Adopted Accounting Standards

In December 2011, the FASB issued ASU 2011-11, "Balance Sheet – Disclosures about Offsetting Assets and Liabilities (Topic 210-20)," (ASU 2011-11). ASU 2011-11 requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU 2011-11 is effective for fiscal years beginning on or after January 1, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting From Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” (ASU 2013-04). The update requires an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed as of the reporting date as the sum of the obligation the entity agreed to pay among its co-obligors and any additional amount the entity expects to pay on behalf of its co-obligors. This ASU is effective for annual and interim periods beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In March 2013, the FASB issued ASU 2013-05, “Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” (ASU 2013-05). The update clarifies that complete or substantially complete liquidation of a foreign entity is required to release the cumulative translation adjustment (CTA) for transactions occurring within a foreign entity. However, transactions impacting investments in a foreign entity may result in a full or partial release of CTA even though complete or substantially complete liquidation of the foreign entity has not occurred. Furthermore, for transactions involving step acquisitions, the CTA associated with the previous equity-method investment will be fully released when control is obtained and consolidation occurs. This ASU is effective for fiscal years beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In April 2013, the FASB issued ASU 2013-07, “Liquidation Basis of Accounting,” (ASU 2013-07). The objective of ASU 2013-07 is to clarify when an entity should apply the liquidation basis of accounting and to provide principles for the measurement of assets and liabilities under the liquidation basis of accounting, as well as any required disclosures. The ASU is effective prospectively for entities that determine liquidation is imminent during annual and interim reporting periods beginning after December 15, 2013, which for us was December 30, 2013, the first day of our 2014 fiscal year. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In July 2013, the FASB issued ASU 2013-10, “Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes,” (ASU 2013-10). The update permits the use of the Fed Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes under FASB ASC Topic 815, in addition to the interest rates on direct Treasury obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR). The update also removes the restriction on using different benchmark rates for similar hedges. This ASU is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. The adoption of this standard has not had a material effect on our Consolidated Results of Operations and Financial Condition.

In March 2014, the FASB issued ASU 2014-06, "Technical Corrections and Improvements Related to Glossary Terms," (ASU 2014-06). This ASU provides technical corrections and improvements to Accounting Standards Codification glossary terms. Our adoption of this standard, effective March 14, 2014, has not had a material impact on our Consolidated Results of Operations and Financial Condition.

New Accounting Pronouncements and Other Standards

In April 2014, the FASB issued ASU 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," (ASU 2014-08). Under ASU 2014-08, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results. Additionally, ASU 2014-08 requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations, including disclosure of pretax profit or loss of an individually significant component of an entity that does not qualify for discontinued operations reporting. ASU 2014-08 is effective for fiscal and interim periods beginning on or after December 15, 2014. The impact of the adoption of this ASU on our Consolidated Results of Operations and Financial Condition will be based on our future disposal activity.

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Stock-Based Compensation (Nonvested Service Based Restricted Stock Units) (Details) (Restricted Stock Units (RSUs) [Member], USD $)	3 Months Ended	12 Months Ended
	Mar. 30, 2014	Dec. 29, 2013
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Shares, Nonvested at beginning of period	852,508
Number of Shares, Granted	266,715
Number of Shares, Vested	(188,333)
Number of Shares, Forfeited	(39,796)
Number of Shares, Nonvested at end of period	891,094.000	852,508
Number of Shares, Vested and expected to vest	822,424
Number of Shares, Vested at end of period	0
Weighted-Average Vest Date, Nonvested at beginning in years	1 year 2 months 5 days	7 months 21 days
Weighted-Average Vest Date, Nonvested at end in years	1 year 2 months 5 days	7 months 21 days
Weighted-Average Vest Date, Vested and expected to vest in years	1 year 1 month 17 days
Weighted-Average Grant Date Fair Value, Nonvested at beginning of period	$ 17.36
Weighted-Average Grant Date Fair Value, Granted	$ 14.87
Weighted-Average Grant Date Fair Value, Vested	$ 14.81
Weighted-Average Grant Date Fair Value, Forfeited	$ 12.87
Weighted-Average Grant Date Fair Value, Nonvested at end of period	$ 17.36	$ 17.36

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Provision For Restructuring (Narrative) (Details) (USD $)	3 Months Ended
	Mar. 30, 2014	Mar. 31, 2013
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	$ 79,000,000
Charged to earnings	1,892,000	2,016,000
Combined Global and SG&A Restructuring Plans [Member]
Restructuring Cost and Reserve [Line Items]
Minimum number of employees affected by restructuring plan	2,600
Global Restructuring Plan (including LEAN)
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	60,800,000
Charged to earnings	1,900,000
Total Number Of Employees Affected By Restructuring	2,273
Number of employees terminated	2,181
SG&A Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Cost Incurred to Date	18,000,000
Charged to earnings	5,000
Total Number Of Employees Affected By Restructuring	369
Maximum [Member] | Global Restructuring Plan (including LEAN)
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	24 months
Maximum [Member] | SG&A Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	24 months
Minimum [Member] | Global Restructuring Plan (including LEAN)
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	1 month
Minimum [Member] | SG&A Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs, Termination Benefits, Expected Payment Period	1 month
Other exit costs | Global Restructuring Plan (including LEAN)
Restructuring Cost and Reserve [Line Items]
Charged to earnings	$ 100,000

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Goodwill And Other Intangible Assets (Tables)

3 Months Ended

Mar. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Components Of Intangible Assets

The following table reflects the components of intangible assets as of March 30, 2014 and December 29, 2013:

		March 30, 2014				December 29, 2013
(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	$	83,042	$	58,178	$	83,063	$	56,798
Trade name	1 to 30	30,243		19,508		30,256		19,346
Patents, license agreements	3 to 14	61,828		54,728		61,820		54,225
Internal-use software	3 to 7	24,039		13,100		24,039		12,358
Other	2 to 6	7,151		6,873		7,132		6,793
Total amortized finite-lived intangible assets		206,303		152,387		206,310		149,520
Indefinite-lived intangible assets:
Trade name		21,376		—		21,376		—
Total identifiable intangible assets		$	227,679	$	152,387	$	227,686	$	149,520

Estimated Future Amortization Expense

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

(amounts in thousands)
2014	(1)	$	11,283
2015		$	10,919
2016		$	10,505
2017		$	9,433
2018		$	3,659

⁽¹⁾  The estimated amortization expense for the remainder of 2014 is anticipated to be $8.4 million.

Changes In Carrying Amount Of Goodwill

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

(amounts in thousands)	Merchandise Availability Solutions			Apparel Labeling Solutions		Retail Merchandising Solutions			Total
Balance as of December 30, 2012	$	159,031		$	—	$	23,710		$	182,741
Segment reallocation	(2,116		)	2,116		—			—
Translation adjustments	2,242			—		881			3,123
Balance as of December 29, 2013	$	159,157		$	2,116	$	24,591		$	185,864
Translation adjustments	47			—		(18		)	29
Balance as of March 30, 2014	$	159,204		$	2,116	$	24,573		$	185,893

Schedule Of Components Of Goodwill

The following table reflects the components of goodwill as of March 30, 2014 and December 29, 2013:

	March 30, 2014						December 29, 2013
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	206,489	$	47,285	$	159,204	$	207,589	$	48,432	$	159,157
Apparel Labeling Solutions	86,566		84,450		2,116		86,764		84,648		2,116
Retail Merchandising Solutions	138,457		113,884		24,573		138,098		113,507		24,591
Total goodwill	$	431,512	$	245,619	$	185,893	$	432,451	$	246,587	$	185,864

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Discontinued Operations (Narrative) (Details) (USD $)	3 Months Ended		0 Months Ended	3 Months Ended	0 Months Ended		3 Months Ended	12 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Oct. 01, 2012 Banking Security Systems Integration Business Unit [Member]	Mar. 30, 2014 Banking Security Systems Integration Business Unit [Member]	Apr. 28, 2013 Checkview Business [Member]	Apr. 29, 2013 Checkview Business [Member]	Mar. 30, 2014 Checkview Business [Member]	Dec. 29, 2013 Checkview Business [Member]	Mar. 19, 2013 Checkview Business [Member]	Dec. 29, 2013 Maximum [Member] Banking Security Systems Integration Business Unit [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	71,000	0	1,200,000	100,000		1,300,000
Proceeds from divestiture of business, promissory note, amount			1,400,000
Proceeds from divestiture of business, promissory note, basis spread on variable rate			5.50%
Business acquisition, purchase price					5,400,000				5,400,000
Target working capital									17,900,000
Divestiture of business, working capital adjustment					4,100,000
Proceeds from divestiture of businesses, receivable from buyer, amount					200,000
Divestiture of business, contingent consideration, potential cash payment										900,000
Divestiture of business, selling costs incurred					1,100,000
Guarantor obligations, maximum exposure, undiscounted							4,100,000
Guarantor obligations, current carrying value							100,000
Divestiture of business, transition services income, net of transition services expense							29,000
Divestiture of business, costs incurred to carve-out the CheckView® business from our enterprise resource planning system for the buyer							400,000
Loss on sale on business								$ 13,600,000

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Summary Of Significant Accounting Policies (Aggregate Impact of Restatement Adjustments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 30, 2014	Mar. 31, 2013	Dec. 29, 2013
Net revenues	$ 147,406	$ 148,173
Operating income	2,166	(2,215)
Interest expense	1,256	2,564
Income taxes expense	1,220	0
Net loss	(129)	(7,481)	(18,927)
Restatement Adjustments
Net revenues		(662)
Operating income		(913)
Interest expense		505
Income taxes expense		(279)
Net loss		(1,139)
Spain Transaction Adjustment [Member] | Restatement Adjustments
Net revenues		(900)
Operating income		(900)
Interest expense		(500)
Income taxes expense		(300)
Net loss		$ (1,100)

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Provision For Restructuring

3 Months Ended

Mar. 30, 2014

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. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed, with final headcount terminations expected to be finalized by the third quarter of 2014.

The expanded Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan has impacted over 2,600 existing employees since inception. Total costs of the Global Restructuring Plan including Project LEAN and the SG&A Restructuring Plan are $79 million through the end of the first quarter of 2014, with $61 million in total costs for the Global Restructuring Plan and $18 million of costs incurred 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 three months ended March 30, 2014 and March 31, 2013 was as follows:

	Quarter
	(13 weeks) Ended
(amounts in thousands)	March 30, 2014		March 31, 2013
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	1,572	$	339
Asset impairments	172		731
Other exit costs	143		885
SG&A Restructuring Plan
Severance and other employee-related charges	5		(16		)
Other exit costs	—		77
Total	$	1,892	$	2,016

Restructuring accrual activity for the three months ended March 30, 2014 was as follows:

(amounts in thousands)	Accrual at Beginning of Year		Charged to Earnings		Charge Reversed to Earnings			Cash Payments			Exchange Rate Changes			Accrual at March 30, 2014
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	$	7,757	$	2,093	$	(521	)	$	(1,850	)	$	(6	)	$	7,473
Other exit costs(1)	66		143		—			(173		)	(1		)	35
SG&A Restructuring Plan
Severance and other employee-related charges	352		5		—			(214		)	—			143
Total	$	8,175	$	2,241	$	(521	)	$	(2,237	)	$	(7	)	$	7,651

⁽¹⁾  During the first quarter of 2014, there was a net charge to earnings of $0.1 million primarily due to restructuring agent costs and legal costs in connection with the restructuring plan.

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, including final headcount terminations, expected to be substantially completed by the third quarter of 2014.

For the quarter ended March 30, 2014, the net charge to earnings of $1.9 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60.8 million have been incurred through March 30, 2014. The total number of employees planned to be affected by the Global Restructuring Plan including Project LEAN is approximately 2,273, of which 2,181 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.

For the quarter ended March 30, 2014, the net charge to earnings of $5 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 affected by the SG&A Restructuring Plan was approximately 369, all of which have been terminated. Termination benefits are planned to be paid one month to 24 months after termination.