Business Segments And Geographic Information

12 Months Ended

Dec. 28, 2014

Segment Reporting [Abstract]

Business Segments And Geographic Information

BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

We report our financial results in three segments: Merchandise Availability Solutions (MAS), Apparel Labeling Solutions (ALS), and Retail Merchandising Solutions (RMS).

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^®. ALS includes the results of our radio frequency identification (RFID) labels business, coupled with our data management platform and network of service bureaus that manage the printing of variable information on apparel labels and tags. Our RMS segment includes hand-held labeling applicators and tags, promotional displays, and customer queuing systems.

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

(A) Business Segments

(amounts in thousands)	December 28, 2014				December 29, 2013				December 30, 2012
Business segment net revenue:
Merchandise Availability Solutions	$	438,847		(1)	$	456,101		(2)	$	446,798		(3)
Apparel Labeling Solutions	174,287				182,259				187,419
Retail Merchandising Solutions	48,906				51,378				55,703
Total	$	662,040			$	689,738			$	689,920
Business segment gross profit:
Merchandise Availability Solutions	$	207,113			$	195,568			$	197,308
Apparel Labeling Solutions	60,179				54,672				47,050
Retail Merchandising Solutions	17,792				18,851				25,478
Total gross profit	285,084				269,091				269,836
Operating expenses	246,351			(4)	245,815			(5)	390,337			(6)
Interest expense	(3,457		)		(17,440		)		(10,783		)
Other gain (loss), net	(1,102		)		(3,936		)		(1,731		)
Earnings (loss) from continuing operations before income taxes	$	34,174			$	1,900			$	(133,015	)
Business segment total assets:
Merchandise Availability Solutions	$	500,795			$	550,801
Apparel Labeling Solutions	175,411				174,797
Retail Merchandising Solutions	62,460				73,895
Total	$	738,666			$	799,493

⁽¹⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $179.0 million, $125.3 million and $107.8 million, respectively, representing more than 10% of total revenue.

⁽²⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $192.9 million, $128.1 million and $102.3 million, respectively, representing more than 10% of total revenue.

⁽³⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $194.9 million, $121.4 million and $95.9 million, respectively, representing more than 10% of total revenue.

⁽⁴⁾  Includes a $6.7 million restructuring charge, a $1.6 million litigation settlement charge, a $0.9 million asset impairment, and a $0.4 million acquisition charge.

⁽⁵⁾  Includes a $10.9 million restructuring charge, a $4.8 million asset impairment, a $1.2 million charge related to our CFO transition, $1.0 million in acquisition charge, a benefit of $6.6 million due to a litigation ruling reversal, and a $0.2 million gain on sale of our interest in the non-strategic Sri Lanka subsidiary.

⁽⁶⁾  Includes a $102.7 million goodwill impairment charge, a $28.4 million restructuring charge, a $2.9 million charge related to our CEO transition, $0.3 million in acquisition costs, a $0.3 million litigation settlement charge, $3.9 million of income resulting from compensation for the financial impact of the fraudulent Canadian activities received from our insurance provider, partially offset by charges for forensic and legal fees associated with the improper and fraudulent Canadian activities, and a $1.7 million gain on sale of our non-strategic Suzhou, China subsidiary.

(B) Geographic Information

Operating results are prepared on a “country of domicile” basis, meaning that net revenues are included in the geographic area where the selling entity is located. Assets are included in the geographic area in which the producing entities are located. A direct sale from the U.S. to an unaffiliated customer in South America is reported as a sale in the U.S. Inter-area sales between our locations are made at transfer prices that approximate market price and have been eliminated from consolidated net revenues. International Americas is defined as all countries in North and South America, excluding the United States, Puerto Rico, and Dominican Republic.

The following table shows net revenues, and other financial information by geographic area for the years 2014, 2013, and 2012:

(amounts in thousands)	United States, Puerto Rico, & Dominican Republic			Europe			International Americas		Asia Pacific			Total
2014
Net revenues from unaffiliated customers	$	191,037	(1)	$	247,413	(2)	$	27,078	$	196,512		$	662,040
Long-lived assets	$	7,491		$	11,328		$	1,343	$	57,227	(3)	$	77,389
2013
Net revenues from unaffiliated customers	$	203,171	(4)	$	255,610	(5)	$	32,523	$	198,434		$	689,738
Long-lived assets	$	8,430	(6)	$	13,524		$	1,432	$	52,948	(7)	$	76,334
2012
Net revenues from unaffiliated customers	$	184,905	(8)	$	276,028		$	37,131	$	191,856		$	689,920

⁽¹⁾  Includes net revenue from the United States of $191.0 million.

⁽²⁾  Includes net revenue from Germany of $77.1 million.

⁽³⁾  Includes long-lived assets from China and Japan of $37.4 million and $8.3 million, respectively.

⁽⁴⁾  Includes net revenue from the United States of $203.2 million.

⁽⁵⁾  Includes net revenue from Germany of $81.7 million.

⁽⁶⁾  Includes long-lived assets from the United States of $8.4 million.

⁽⁷⁾  Includes long-lived assets from China and Japan of $33.8 million and $9.8 million, respectively.

⁽⁸⁾  Includes net revenue from the United States of $184.9 million.