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.