10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 27, 2015

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 October 29, 2015, there were 41,550,175 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	28
Item 3. Quantitative and Qualitative Disclosures About Market Risk	41
Item 4. Controls and Procedures	42
PART II. OTHER INFORMATION	44
Item 1. Legal Proceedings	44
Item 1A. Risk Factors	45
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 3. Defaults Upon Senior Securities	45
Item 4. Mine Safety Disclosures	45
Item 5. Other Information	45
Item 6. Exhibits	46
SIGNATURES	47
INDEX TO EXHIBITS	48
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 James M. Lucania, Acting Chief Financial Officer and Treasurer
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 Definition Linkbase Document
XBRL Taxonomy Extension Label Linkbase Document
XBRL Taxonomy Extension Presentation Linkbase Document

2

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(amounts in thousands)	September 27, 2015			December 28, 2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	98,050		$	135,537
Accounts receivable, net of allowance of $6,472 and $8,526	112,182			131,720
Inventories	92,729			91,860
Other current assets	17,125			25,928
Deferred income taxes	5,173			5,557
Total Current Assets	325,259			390,602
REVENUE EQUIPMENT ON OPERATING LEASE, net	1,016			1,057
PROPERTY, PLANT, AND EQUIPMENT, net	76,405			76,332
GOODWILL	165,986			173,569
OTHER INTANGIBLES, net	55,772			64,940
DEFERRED INCOME TAXES	22,692			25,284
OTHER ASSETS	5,957			6,882
TOTAL ASSETS	$	653,087		$	738,666
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term debt	$	185		$	236
Current portion of financing liability	6,139			—
Accounts payable	40,602			48,928
Accrued compensation and related taxes	21,056			27,511
Other accrued expenses	45,740			44,204
Income taxes	511			1,278
Unearned revenues	8,051			7,663
Restructuring reserve	1,937			6,255
Accrued pensions — current	4,113			4,472
Other current liabilities	16,253			17,504
Total Current Liabilities	144,587			158,051
LONG-TERM DEBT, LESS CURRENT MATURITIES	65,201			65,161
FINANCING LIABILITY	25,777			33,094
ACCRUED PENSIONS	99,299			108,920
OTHER LONG-TERM LIABILITIES	28,505			30,140
DEFERRED INCOME TAXES	14,292			15,369
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, 46,197,226 and 45,840,171 shares issued, 41,722,379 and 41,804,259 shares outstanding	4,620			4,584
Additional capital	425,198			441,882
Accumulated deficit	(28,373		)	(12,331		)
Common stock in treasury, at cost, 4,474,847 and 4,035,912 shares	(74,930		)	(71,520		)
Accumulated other comprehensive (loss) income, net of tax	(51,089		)	(34,684		)
TOTAL STOCKHOLDERS' EQUITY	275,426			327,931
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	653,087		$	738,666

See Notes to Consolidated Financial Statements.

3

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands, except per share data)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Net revenues	$	145,930		$	160,595		$	422,022		$	478,926
Cost of revenues	87,204			89,630			245,262			273,168
Gross profit	58,726			70,965			176,760			205,758
Selling, general, and administrative expenses	48,923			55,480			152,120			165,195
Research and development	5,281			3,971			14,745			11,663
Restructuring expense	(5		)	459			1,583			2,692
Litigation matters	6,584			—			15,564			—
Acquisition costs	15			291			135			291
Other operating income	—			—			(493		)	—
Operating (loss) income	(2,072		)	10,764			(6,894		)	25,917
Interest income	179			323			638			875
Interest expense	971			1,062			2,899			3,517
Other gain (loss), net	852			10			364			(518		)
(Loss) earnings before income taxes	(2,012		)	10,035			(8,791		)	22,757
Income tax expense	1,979			14,110			7,251			17,107
Net (loss) earnings	$	(3,991	)	$	(4,075	)	$	(16,042	)	$	5,650
Net (loss) earnings per common share:
Basic (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13
Diluted (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13
Dividend declared per share	$	—		$	—		$	0.50		$	—

See Notes to Consolidated Financial Statements.    

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CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Net (loss) earnings	$	(3,991	)	$	(4,075	)	$	(16,042	)	$	5,650
Other comprehensive loss, net of tax:
Pension liability adjustments, net of tax (benefit) expense of ($425), ($217), $10 and $5, respectively	1,111			1,762			5,053			2,494
Foreign currency translation adjustment	(7,590		)	(12,316		)	(21,458		)	(11,618		)
Total other comprehensive loss, net of tax	$	(6,479	)	$	(10,554	)	$	(16,405	)	$	(9,124	)
Comprehensive loss	$	(10,470	)	$	(14,629	)	$	(32,447	)	$	(3,474	)

See Notes to Consolidated Financial Statements.

5

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(Unaudited)

(amounts in thousands)	Common Stock			Additional Capital			Accumulated Deficit			Treasury Stock				Accumulated Other Comprehensive Income (Loss)			Total Equity
	Shares	Amount								Shares	Amount
Balance, December 29, 2013	45,484	$	4,548	$	434,336		$	(23,284	)	4,036	$	(71,520	)	$	2,245		$	346,325
Net earnings							10,953										10,953
Exercise of stock-based compensation and awards released	356	36		907													943
Tax benefit on stock-based compensation				(14		)											(14		)
Stock-based compensation expense				5,781													5,781
Deferred compensation plan				872													872
Pension liability adjustments														(17,263		)	(17,263		)
Foreign currency translation adjustment														(19,666		)	(19,666		)
Balance, December 28, 2014	45,840	$	4,584	$	441,882		$	(12,331	)	4,036	$	(71,520	)	$	(34,684	)	$	327,931
Net loss							(16,042		)								(16,042		)
Exercise of stock-based compensation and awards released	357	36		(88		)											(52		)
Tax benefit on stock-based compensation				(275		)											(275		)
Stock-based compensation expense				4,116													4,116
Deferred compensation plan				947													947
Dividend declared ($0.50 per share)				(21,384		)											(21,384		)
Repurchase of common stock										439	(3,410		)				(3,410		)
Pension liability adjustments														5,053			5,053
Foreign currency translation adjustment														(21,458		)	(21,458		)
Balance, September 27, 2015	46,197	$	4,620	$	425,198		$	(28,373	)	4,475	$	(74,930	)	$	(51,089	)	$	275,426

See Notes to Consolidated Financial Statements.

6

CHECKPOINT SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(amounts in thousands)
Nine months (39 weeks) ended	September 27, 2015			September 28, 2014
Cash flows from operating activities:
Net (loss) earnings	$	(16,042	)	$	5,650
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
Depreciation and amortization	19,188			18,712
Amortization of debt issuance costs	325			325
Interest on financing liability	1,479			1,686
Deferred taxes	(1,030		)	11,329
Stock-based compensation	4,116			4,349
Provision for losses on accounts receivable	(152		)	75
Excess tax benefit on stock-based compensation	(104		)	(6		)
(Gain) loss on disposal of fixed assets	(214		)	105
Litigation matters	6,584			—
Restructuring related asset impairment	—			172
Decrease (increase) in operating assets:
Accounts receivable	12,801			34,653
Inventories	(8,275		)	(19,797		)
Other assets	7,316			4,678
(Decrease) increase in operating liabilities:
Accounts payable	(5,890		)	(8,844		)
Income taxes	(566		)	(987		)
Unearned revenues - current	890			(131		)
Restructuring reserve	(3,888		)	(3,658		)
Other liabilities	(8,830		)	(6,417		)
Net cash provided by operating activities	7,708			41,894
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(13,922		)	(12,833		)
Cash receipts on note receivable from sale of discontinued operations	212			212
Other investing activities	290			77
Net cash used in investing activities	(13,420		)	(12,544		)
Cash flows from financing activities:
Proceeds from stock issuances	1,131			1,378
Excess tax benefit on stock-based compensation	104			6
Net change in factoring and bank overdrafts	24			(110		)
Proceeds from long-term debt	—			1,000
Payment of long-term debt	(71		)	(7,217		)
Purchase of treasury stock	(3,146		)	—
Dividend paid	(20,980		)	—
Net cash used in financing activities	(22,938		)	(4,943		)
Effect of foreign currency rate fluctuations on cash and cash equivalents	(8,837		)	(4,471		)
Net (decrease) increase in cash and cash equivalents	(37,487		)	19,936
Cash and cash equivalents:
Beginning of period	135,537			121,573
End of period	$	98,050		$	141,509

See Notes to Consolidated Financial Statements.

7

CHECKPOINT SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICES

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 28, 2014 is derived from the Company's audited Consolidated Financial Statements at December 28, 2014. Refer to our Annual Report on Form 10-K for the fiscal year ended December 28, 2014 for the most recent disclosure of our accounting policies.

The Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position at September 27, 2015 and December 28, 2014 and our results of operations for the thirteen and thirty-nine weeks ended September 27, 2015 and September 28, 2014 and changes in cash flows for the thirty-nine weeks ended September 27, 2015 and September 28, 2014. 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 have been made to prior period information to conform to the current period presentation.

Out of Period Adjustments

During the third quarter of 2014, we recorded a reduction in revenues of $0.7 million related to the correction of the accounting for a maintenance agreement for the period of 2009 through 2014. Also impacting the third quarter of 2014 is a reduction in revenues of $1.1 million (with a corresponding decrease in gross profit of $0.6 million) related to a revenue cut-off error in the second quarter of 2014. Offsetting these are adjustments to accrued expenses related to 2012 through 2014 that resulted in a reduction in operating expenses of $1.1 million in the third quarter of 2014. These adjustments were not material to any previously issued interim or annual financial statements or to the third quarter or full year of fiscal 2014 financial statements.

In the period ended March 29, 2015, we recorded an out of period adjustment to the valuation allowance of a non U.S. entity with a deferred tax liability related to an indefinite lived intangible pertaining to the third quarter ended September 28, 2014. The total impact of the adjustment on the first quarter of 2015 and year-to-date periods within 2015 is a reduction in income tax expense of $1.0 million and a reduction in net loss of $1.0 million. This adjustment was not material to any previously issued interim or annual financial statements or to the 2015 interim consolidated financial statements, and is not expected to be material to the full year 2015 consolidated financial statements.

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 Sheets, was $11.7 million and $12.5 million as of September 27, 2015 and December 28, 2014, 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.

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)
Nine months ended	September 27, 2015			September 28, 2014
Balance at beginning of year	$	4,379		$	4,521
Accruals for warranties issued, net	1,684			3,054
Settlements made	(2,364		)	(2,717		)
Foreign currency translation adjustment	(191		)	(184		)
Balance at end of period	$	3,508		$	4,674

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 27, 2015 were as follows:

(amounts in thousands)	Pension plan			Foreign currency translation adjustment			Total accumulated other comprehensive income (loss)
Balance, December 28, 2014	$	(35,036	)	$	352		$	(34,684	)
Foreign currency translation adjustment	2,823			(21,458		)	(18,635		)
Amounts reclassified from other comprehensive income	2,230			—			2,230
Net other comprehensive income (loss)	5,053			(21,458		)	(16,405		)
Balance, September 27, 2015	$	(29,983	)	$	(21,106	)	$	(51,089	)

The significant items reclassified from each component of other comprehensive income (loss) for the three months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)	September 27, 2015				September 28, 2014
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)	$	(737	)		$	(373	)
Prior service cost (1)	(7		)		(3		)
	(744		)	Total before tax	(376		)	Total before tax
	(425		)	Tax benefit	(217		)	Tax benefit
Total reclassifications for the period	$	(1,169	)	Net of tax	$	(593	)	Net of tax

⁽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.

9

The significant items reclassified from each component of other comprehensive income (loss) for the nine months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)	September 27, 2015				September 28, 2014
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)	$	(2,220	)		$	(1,144	)
Prior service cost (1)	(20		)		(9		)
	(2,240		)	Total before tax	(1,153		)	Total before tax
	10			Tax expense	5			Tax expense
Total reclassifications for the period	$	(2,230	)	Net of tax	$	(1,148	)	Net of tax

⁽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.

Dividend

On March 5, 2015, we declared a special dividend (the Dividend) of $0.50 per outstanding common share for all shareholders of record as of March 20, 2015. This Dividend reflects our commitment to building shareholder value through the execution of our strategic plan and a disciplined approach to capital allocation. After the Dividend, we believe we have the appropriate level of liquidity both to fund our internal initiatives and act quickly on any strategic opportunities.

The cash dividend of $21.0 million was paid to common shareholders on April 10, 2015. Dividend distributions to shareholders are recognized as a liability in the period in which the dividend is formally approved by our Board of Directors and communicated to shareholders. The Dividend was recorded as a reduction of Additional Capital in Stockholders' Equity.

The Dividend did not provide any cash payment or benefit to stock options, restricted stock units, or performance shares, and instead only applied to the outstanding common stock and as outlined in the executive and director deferred compensation plans. The non-cash portion of the Dividend of $0.4 million was credited to the executive and director deferred compensation plan deferred stock accounts on April 10, 2015 in accordance with the plans.

Share Repurchase Program

In July 2015, our Board of Directors approved a stock repurchase program that authorized the repurchase of up to $30 million of our common stock. The repurchase program will be funded using our available cash and is expected to be executed over the next two years. We are authorized to repurchase from time to time shares of our outstanding common stock on the open market or in privately negotiated transactions. The timing and amount of stock repurchases, and the prices at which such purchases may be made, will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified or discontinued at any time and we have no obligation to repurchase any amount of our common stock under the program. During the nine months ended September 27, 2015, we repurchased 439 thousand shares of our common stock at an average cost of $7.75, spending a total of $3.4 million. Common stock obtained by us through the repurchase program has been added to our treasury stock holdings.

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 or required in our financial statements.

Recently Adopted Accounting Standards

In April 2014, the FASB issued ASU 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): 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

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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 was effective for fiscal and interim periods beginning on or after December 15, 2014, which for us was December 29, 2014, the first day of our 2015 fiscal year. The adoption of this standard has not had a material effect on our consolidated results of operations and financial condition.

New Accounting Pronouncements and Other Standards

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09), which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved the deferral of the effective date by one year. The accounting standard is now effective for annual and interim periods beginning after December 15, 2017, which for us is January 1, 2018, the first day of our 2018 fiscal year. The final ASU permits organizations to adopt the new revenue standard early, but not before annual and interim periods beginning after December 15, 2016. We are currently evaluating the impact of adopting this guidance.

In June 2014, the FASB issued “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (ASU 2014-12). The amendments in this update require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2014-12. Entities may apply the amendments in ASU 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to apply this guidance prospectively to all awards granted or modified after the effective date. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In August 2014, the FASB issued “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU 2014-15). Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, “Presentation of Financial Statements-Liquidation Basis of Accounting.” Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the new criteria in this update should be followed to determine whether to disclose information about the relevant conditions and events. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. We have not early adopted ASU 2014-15. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In January 2015, the FASB issued “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (ASU 2015-01). The amendments in this update eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We have not early adopted ASU 2015-01. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

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In February 2015, the FASB issued “Consolidation (Topic 810): Amendments to the Consolidation Analysis” (ASU 2015-02). The amendments in this update modifies existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) certain investment funds. These changes reduce the number of consolidation models from four to two and place more emphasis on the risk of loss when determining a controlling financial interest. ASU 2015-02 is effective for public companies for fiscal years beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03). The amendments in this update change the presentation of debt issuance costs in financial statements requiring an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2016, which for us is December 26, 2016, the first day of our 2017 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-03. The new guidance will be applied retrospectively to each prior period presented. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets” (ASU 2015-04). The amendments in this update provide a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. ASU 2015-04 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-04. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (ASU 2015-05). The amendments in this update help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-05. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In June 2015, the FASB issued “Technical Corrections and Improvements” (ASU 2015-10). The amendments in this update provide technical corrections and improvements to a wide range of Topics in the Accounting Standards Codification (the Codification). The purpose of these amendments is to correct unintended differences between original guidance and the Codification, to provide clarification through updating wording or correcting references, to streamline or simplify the Codification through minor changes, and to make other minor improvements to the guidance which are not expected to have a significant effect on current accounting practice. ASU 2015-10 is effective for fiscal and interim periods beginning on or after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition.

In July 2015, the FASB issued “Inventory (Topic 330): Simplifying the Measurement of Inventory” (ASU 2015-11). The amendments in this update simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 is effective for fiscal and interim periods beginning on or after December 15, 2016, which for us is December 26, 2016, the first day of our 2017 fiscal year. Early application is permitted. We have not early adopted ASU 2015-11. The new guidance must be applied prospectively after the date of adoption. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition.

In August 2015, the FASB issued “Interest-Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting” (ASU 2015-15). The amendments to the SEC Paragraphs in this update state that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of

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whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance in ASU 2015-15 is effective upon the adoption of ASU 2015-03 and is not expected to have a material effect on our consolidated results of operations and financial condition.

In September 2015, the FASB issued “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16). The amendments in this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update also requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years and interim periods beginning on or after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. The new guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not yet been made available for issuance. We do not have any business combination for which the accounting is incomplete. We do not expect this to have a material effect on our consolidated results of operations and financial condition.

Note 2. INVENTORIES

Inventories consist of the following:

(amounts in thousands)	September 27, 2015		December 28, 2014
Raw materials	$	18,817	$	21,085
Work-in-process	3,100		3,264
Finished goods	70,812		67,511
Total	$	92,729	$	91,860

Note 3. GOODWILL AND OTHER INTANGIBLE ASSETS

We had intangible assets with a net book value of $55.8 million and $64.9 million as of September 27, 2015 and December 28, 2014, respectively.

The following table reflects the components of intangible assets as of September 27, 2015 and December 28, 2014:

		September 27, 2015				December 28, 2014
(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	$	76,356	$	60,447	$	79,110	$	58,873
Trade name	1 to 30	25,045		17,101		27,172		18,031
Patents, license agreements	3 to 14	55,605		51,478		58,060		52,448
Internal-use software	3 to 7	23,744		16,553		24,034		14,758
Other	2 to 6	6,980		6,890		7,029		6,867
Total amortized finite-lived intangible assets		187,730		152,469		195,405		150,977
Indefinite-lived intangible assets:
Trade name		20,512		—		20,512		—
Total identifiable intangible assets		$	208,242	$	152,469	$	215,917	$	150,977

Amortization expense for the three and nine months ended September 27, 2015 was $2.7 million and $8.1 million, respectively.

Amortization expense for the three and nine months ended September 28, 2014 was $2.8 million and $8.4 million, respectively.

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

(amounts in thousands)
2015	(1)	$	10,778
2016		$	10,391
2017		$	9,319
2018		$	3,435
2019		$	2,439

⁽¹⁾  The estimated amortization expense for the remainder of 2015 is anticipated to be $2.7 million.

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 29, 2013	$	159,157		$	2,116	$	24,591		$	185,864
Translation adjustments	(9,511		)	—		(2,784		)	(12,295		)
Balance as of December 28, 2014	$	149,646		$	2,116	$	21,807		$	173,569
Translation adjustments	(5,782		)	—		(1,801		)	(7,583		)
Balance as of September 27, 2015	$	143,864		$	2,116	$	20,006		$	165,986

The following table reflects the components of goodwill as of September 27, 2015 and December 28, 2014:

	September 27, 2015						December 28, 2014
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	177,916	$	34,052	$	143,864	$	192,303	$	42,657	$	149,646
Apparel Labeling Solutions	83,010		80,894		2,116		84,407		82,291		2,116
Retail Merchandising Solutions	112,998		92,992		20,006		124,127		102,320		21,807
Total goodwill	$	373,924	$	207,938	$	165,986	$	400,837	$	227,268	$	173,569

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.

The May 2011 acquisition of the Shore to Shore businesses included a purchase price payment to escrow of $17.5 million related to the 2010 performance of the acquired business. This amount was subject to adjustment pending final determination of the 2010 performance and could have resulted in an additional purchase price payment of up to $6.3 million. In the third quarter of 2015, we engaged in discussions with the sellers regarding the possibility of reaching a settlement of this matter. On August 25, 2015, we entered into a settlement with the sellers. Pursuant to the settlement, the sellers received the $17.5 million in escrow, plus the earnings in the escrow account, in exchange for full and final resolution of this matter between the parties. As a result of this settlement, there is no final adjustment to the purchase price recognized through earnings and we are released from any and all claim or liability in connection with the final determination of the 2010 performance. Acquisition related 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 are approximately $15 thousand and $0.1 million for the three and nine months ended September 27, 2015 compared to $0.3 million and $0.3 million for the three and nine months ended September 28, 2014, respectively.

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Note 4. DEBT

Debt as of September 27, 2015 and December 28, 2014 consisted of the following:

(amounts in thousands)	September 27, 2015		December 28, 2014
2013 Senior Secured Credit Facility:
$200 million variable interest rate revolving credit facility maturing in 2018	$	65,000	$	65,000
Full-recourse factoring liabilities	—		83
Bank overdraft credit facility	97		65
Capital leases with maturities through 2020	289		249
Total	65,386		65,397
Less current portion	185		236
Total long-term portion	$	65,201	$	65,161

2013 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. 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 (i) the Federal Funds Rate, plus 0.50%, (ii) the Administrative Agent’s prime rate, and (iii) a daily rate equal to the one-month LIBOR rate, plus 1.00%. Swingline loans bear interest of 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 September 27, 2015. 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.

As of September 27, 2015, there were $1.3 million in issued letters of credit outstanding under the 2013 Senior Secured Credit Facility.

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 Financing Liability in our Consolidated Balance Sheets. The balance of the financing liability is $31.9 million and $33.1 million as of September 27, 2015 and December 28, 2014, respectively. Of this balance, $6.1 million was included in current portion of financing liability as of September 27, 2015. 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 for the three and nine months ended September 27, 2015 of $0.5 million and $1.5 million, respectively. The recognized interest expense related to the financing liability for the three and nine months ended September 28, 2014 was $0.6 million and $1.7 million, respectively.

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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.

In March 2015, we again sold rights to future customer receivables to a financial institution in Spain resulting from the negotiated extension of previously executed sales-type lease arrangements. The 2015 transaction qualified as a legal sale without recourse. For the nine months ended September 27, 2015, we recognized $0.5 million of income on the sale in Other Operating Income on our Consolidated Statement of Operations. A portion of the receivables were previously sold to another financial institution and we did not complete the reacquisition of these receivables until after the end of the first quarter of 2015. Therefore, a portion of the proceeds from the fiscal 2015 legal sale were accounted for as a financing arrangement and reflected as Financing Liability in our Consolidated Balance Sheets until the reacquisition of the receivables was completed in the second quarter of 2015.

Note 5. STOCK-BASED COMPENSATION

Stock-based compensation cost recognized in operating results (included in selling, general, and administrative expenses) for the three and nine months ended September 27, 2015 was $1.1 million and $4.1 million ($1.2 million and $4.1 million, net of tax), respectively. For the three and nine months ended September 28, 2014, the total compensation expense was $1.4 million and $4.3 million ($1.4 million and $4.2 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 nine months ended September 27, 2015 and September 28, 2014, respectively.

Stock Options

Option activity under the principal option plans as of September 27, 2015 and changes during the nine months ended September 27, 2015 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 28, 2014	2,349,447		$	17.77	3.98	$	2,716
Granted	266,080		13.40
Exercised	(15,430	)	8.98
Forfeited or expired	(436,542	)	18.76
Outstanding at September 27, 2015	2,163,555		$	17.10	4.51	$	—
Vested and expected to vest at September 27, 2015	2,145,409		$	17.12	4.47	$	—
Exercisable at September 27, 2015	1,748,868		$	17.89	3.45	$	—

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 third quarter of fiscal 2015 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 September 27, 2015. This amount changes based on the fair market value of our stock. The total intrinsic value of options exercised for the nine months ended September 27, 2015 and September 28, 2014 was $45 thousand and $0.3 million, respectively.

As of September 27, 2015, $1.4 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.0 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. The expected dividend yield is based on the estimate of annual dividends expected to be paid at the time of the grant. 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.

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

Nine months ended	September 27, 2015			September 28, 2014
Weighted-average fair value of grants	$	5.48		$	6.41
Valuation assumptions:
Expected life (in years)	5.51			7.68
Expected dividend yield	0.00		%	0.00		%
Expected volatility	45.95		%	48.09		%
Risk-free interest rate	1.541		%	1.465		%

Restricted Stock Units

Nonvested restricted stock units as of September 27, 2015 and changes during the nine months ended September 27, 2015 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 28, 2014	940,857		0.56	$	17.11
Granted	331,000			$	12.61
Vested	(290,938	)		$	12.93
Forfeited	(38,563	)		$	14.61
Nonvested at September 27, 2015	942,356		0.98	$	16.92
Vested and expected to vest at September 27, 2015	926,720		0.96
Vested and deferred at September 27, 2015	424,375		—

The total fair value of restricted stock awards vested during the first nine months of 2015 was $3.8 million as compared to $2.9 million in the first nine months of 2014. As of September 27, 2015, there was $4.1 million of unrecognized stock-based compensation expense related to nonvested restricted stock units (RSUs). That cost is expected to be recognized over a weighted-average period of 1.7 years.

Long-Term Incentive Plans (LTIPs)

The following awards of restricted stock units (RSUs) with a performance or market condition are excluded from the balance of nonvested RSUs at September 27, 2015 in the table above. There were no new LTIP awards in the first nine months of 2015.

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 value of these units was 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. As of September 27, 2015, we assessed the performance of our LTIP 2014 plan. Due to current and projected shortfalls in our EBIDTA growth compared to the LTIP 2014 plan requirements, we concluded that it was probable that these performance conditions would not be met. We therefore reversed $0.5 million of previously recognized compensation cost during the third quarter of 2015.

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 $41 thousand and $63 thousand was recognized in connection with these RSUs for the nine months ended September 27, 2015 and September 28, 2014, respectively. As of September 27, 2015, total unamortized compensation expense for these grants was $16 thousand. As of September 27, 2015, the maximum achievable RSUs outstanding under this

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plan are 22,500 units. Due to our performance under the LTIP 2013 Plan, we do not expect these outstanding RSUs to vest. These RSUs reduce the shares available to grant under the 2004 Plan.

On May 2, 2013 a cash-based performance award was awarded to our CEO under the terms of our LTIP 2013 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. The value of this award was charged to compensation expense on a straight-line basis over the vesting period which ends December 31, 2015. As of September 27, 2015, due to the Company’s low ranking among peers and short remaining period, the fair value of the award has been reduced to zero. Compensation expense of $0.1 million was fully reversed in the first nine months of 2015. For the first nine months of 2014, $31 thousand was charged to compensation expense.

2015 Incentive Award Plan

In April 2015, the Board of Directors adopted the Checkpoint Systems, Inc. 2015 Incentive Award Plan (the 2015 Plan), with shareholder approval obtained at the annual meeting of shareholders held on June 3, 2015. Upon approval of the 2015 Plan, no additional awards are to be made under the 2004 Plan. All awards previously granted under the 2004 Plan will remain subject to the terms of the 2004 Plan. The 2015 Plan authorizes the issuance of a total of 3,877,777 shares of common stock, which will be reduced by any shares issued pursuant to awards granted under the 2004 Plan after December 28, 2014. This represents an increase of 1,252,766 shares over the current reserve in the 2004 Plan. In addition, subject to certain limitations, shares covered by an award granted under the 2015 Plan or shares covered by an award previously granted under the 2004 Plan which expire or are canceled without having been exercised in full or that are forfeited or repurchased shall be added to the shares of Common Stock authorized for issuance under the 2015 Plan.

2015 Employee Stock Purchase Plan

In April 2015, the Board of Directors adopted the 2015 Employee Stock Purchase Plan (the 2015 ESPP), with shareholder approval obtained at the annual meeting of shareholders held on June 3, 2015. The 2015 ESPP is designed to replace the Checkpoint Systems, Inc. 423 Employee Stock Purchase Plan (the Prior ESPP). We exhausted the number of shares available for issuance under the Prior ESPP at the end of March 2015. In connection with the adoption of the 2015 ESPP, we registered an additional 600,000 shares of common stock in a Registration Statement on Form S-8 under the Securities Act of 1933, as amended, on March 31, 2015.

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 $0.7 million as of September 27, 2015, of which $0.3 million and $0.8 million was expensed for the three and nine months ended September 27, 2015. The total amount accrued related to the plan equaled $0.6 million as of September 28, 2014, of which $0.3 million and $0.9 million was expensed for the three and nine months ended September 28, 2014. 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 nine months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)
Nine months ended	September 27, 2015		September 28, 2014
Interest	$	1,098	$	1,395
Income tax payments	$	4,842	$	7,478

As of September 27, 2015 and September 28, 2014, we accrued $1.5 million and $0.4 million of capital expenditures, respectively. These amounts were excluded from the Consolidated Statements of Cash Flows at September 27, 2015 and September 28, 2014 since they represent non-cash investing activities. Accrued capital expenditures at September 27, 2015 and September 28, 2014 are included in Accounts Payable and Other Accrued Expenses on the Consolidated Balance Sheets. A special dividend was declared on March 5, 2015. The cash portion of the Dividend of $21.0 million was paid to common

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shareholders on April 10, 2015. The non-cash portion of the Dividend of $0.4 million was also credited to the executive and director deferred compensation plan deferred stock accounts on April 10, 2015 in accordance with the plans. As of September 27, 2015, $0.3 million of the repurchase of common stock in connection with our stock repurchase program was included in Other Current Liabilities on the Consolidated Balance Sheets, which represents shares that were traded during the reporting period, but settled 3 days later in the subsequent reporting period.

Note 7. EARNINGS PER SHARE

The following data shows the amounts used in computing earnings per share and the effect on net earnings and the weighted-average number of shares of dilutive potential common stock:

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands, except per share data)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Net (loss) earnings available to common stockholders	$	(3,991	)	$	(4,075	)	$	(16,042	)	$	5,650
Shares:
Weighted-average number of common shares outstanding	42,106			41,714			42,010			41,644
Shares issuable under deferred compensation agreements	869			376			854			361
Basic weighted-average number of common shares outstanding	42,975			42,090			42,864			42,005
Common shares assumed upon exercise of stock options and awards	—			—			—			304
Unvested shares issuable under deferred compensation arrangements	—			—			—			12
Dilutive weighted-average number of common shares outstanding	42,975			42,090			42,864			42,321
Basic (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13
Diluted (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13

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 performance vesting criteria not being met.

The number of anti-dilutive common share equivalents for the three and nine months ended September 27, 2015 and September 28, 2014 were as follows:

	Quarter		Nine months
	(13 weeks) Ended		(39 weeks) Ended
(amounts in thousands)	September 27, 2015	September 28, 2014	September 27, 2015	September 28, 2014
Weighted-average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	2,376	1,839	2,337	2,017

⁽¹⁾  Stock options and awards of 64 thousand and 167 thousand shares and deferred compensation arrangements of 37 thousand and 42 thousand shares were anti-dilutive in the three and nine months ended September 27, 2015 and were therefore excluded from the earnings per share calculation due to our net loss for the period. Stock options and awards of 294 thousand shares and deferred compensation arrangements of 14 thousand shares were anti-dilutive in the three months ended September 28, 2014, and were therefore excluded from the earnings per share calculation due to our loss for the period.

8. INCOME TAXES

The effective tax rate for the nine months ended September 27, 2015 was negative 82.5% as compared to 75.2% for the nine months ended September 28, 2014. The change in the effective tax rate for the nine months ended September 27, 2015 was due to the mix of income between subsidiaries and increased losses for entities with valuation allowances for which no tax benefit is received. These changes primarily relate to the U.S. jurisdiction, which had significant year to date losses as of

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September 27, 2015 and a projected loss for the full fiscal year 2015 for which no tax benefit is received. In contrast, the U.S. jurisdiction had significant year to date income as of September 28, 2014 and projected income for the full fiscal year 2014.

In calculating the tax provision for the three months ended September 27, 2015, we have accounted for the U.S. operations by applying the discrete method. The use of the estimated effective tax rate methodology for the U.S. operations is not considered a reliable estimate for the reporting period ended September 27, 2015 due to significant permanent items related to deferred tax liabilities associated with non amortizable assets such as goodwill and indefinite lived intangibles.

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 each of the respective lines of business experiences changes in operating results across their geographic footprint, 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 September 27, 2015 and December 28, 2014, we had net deferred tax assets of $11.3 million and $12.8 million, respectively.

At December 28, 2014, the U.S. had a valuation allowance of $108.3 million recorded against its net deferred tax assets of $96.1 million. The amount of valuation allowance recorded was greater than the net domestic deferred tax asset after consideration of deferred tax liabilities associated with non amortizable assets such as goodwill and indefinite lived intangibles. The valuation allowance is reviewed quarterly and will be maintained until there is sufficient positive evidence to support a release. At each reporting date, we consider new evidence, both positive and negative, that could impact the future realization of deferred tax assets. We will consider a release of the valuation allowance once there is sufficient positive evidence that it is more likely than not that the deferred tax assets will be realized. Any release of the valuation allowance will be recorded as a tax benefit increasing net income.

As of September 27, 2015, we have a current income tax payable of $0.5 million reflected as Income Taxes on our Consolidated Balance Sheets. This amount represents a net receivable of $2.4 million as of December 28, 2014, year to date estimated tax payments made in excess of refunds received in the amount of $5.4 million, and current tax expense recorded on our year to date pretax income of $8.3 million. Included in Other Current Liabilities is our current deferred tax liability of $2.3 million.

Penalties and tax-related interest expense are reported as a component of Income Tax Expense on our Consolidated Statement of Operations. During the nine months ended September 27, 2015 we recognized an interest and penalties benefit of $0.1 million compared to no interest in penalties recognized during the nine months ended September 28, 2014. As of September 27, 2015 and December 28, 2014, we had accrued interest and penalties related to unrecognized tax benefits of $2.4 million and $4.3 million, respectively.

As of September 27, 2015 and December 28, 2014, $15.9 million and $16.1 million, respectively, of our unrecognized tax benefits, penalties, and interest were recorded as a component of Other Long-Term Liabilities on the Consolidated Balance Sheets.

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 expiration of various statutes of limitation and the potential resolution of federal, state, and foreign examinations, it is reasonably possible that the gross unrecognized tax benefits balance may decrease within the next twelve months by a range of $4.4 million to $4.6 million.

We are currently under audit in the following major jurisdictions: India - 2012 to 2013, France - 2012 to 2013, and Canada - 2011 to 2014. During the second quarter we resolved an audit with the German tax authorities for tax years 2006 to 2009 with no impact to income tax expense. The following major jurisdictions have tax years that remain subject to examination: Germany - 2010 to 2014, United States - 2012 to 2014, China - 2012 to 2014 and Hong Kong - 2008 to 2014. Our tax returns for open years in all jurisdictions are subject to changes upon examination.

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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 and nine months ended September 27, 2015 and September 28, 2014 were as follows:

	Quarter					Nine months
	(13 weeks) Ended					(39 weeks) Ended
(amounts in thousands)	September 27, 2015			September 28, 2014		September 27, 2015			September 28, 2014
Service cost	$	299		$	274	$	900		$	839
Interest cost	526			887		1,586			2,720
Expected return on plan assets	(34		)	—		(101		)	(1		)
Amortization of actuarial loss	737			373		2,220			1,144
Amortization of prior service costs	7			3		20			9
Net periodic pension cost	$	1,535		$	1,537	$	4,625		$	4,711

We expect the cash requirements for funding the pension benefits to be approximately $4.4 million during fiscal 2015, including $3.3 million which was funded during the nine months ended September 27, 2015.

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 September 27, 2015 and December 28, 2014 and the basis for that measurement:

	September 27, 2015
(amounts in thousands)	Total Fair Value Measurement September 27, 2015		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	$	14	$	—	$	14	$	—
Total assets	$	14	$	—	$	14	$	—
Foreign currency forward exchange contracts	$	69	$	—	$	69	$	—
Total liabilities	$	69	$	—	$	69	$	—

	December 28, 2014
(amounts in thousands)	Total Fair Value Measurement December 28, 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	$	55	$	—	$	55	$	—
Total assets	$	55	$	—	$	55	$	—
Foreign currency forward exchange contracts	$	23	$	—	$	23	$	—
Total liabilities	$	23	$	—	$	23	$	—

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 September 27, 2015 and December 28, 2014 are summarized in the following table:

	September 27, 2015				December 28, 2014
(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)
2013 Senior secured credit facility	$	65,000	$	65,000	$	65,000	$	65,000

⁽¹⁾  The carrying amounts are reported on the Consolidated Balance Sheets under the indicated captions.

Long-term debt is carried at the original offering price, less any payments of principal. The carrying amount of the Senior Secured Credit Facility approximates fair value due to the variable rate nature of its interest at current market rates. The related fair value measurement has generally been classified as Level 2 in the fair value hierarchy.

Nonrecurring Fair Value Measurements

In connection with our restructuring plans, we recorded impairment losses in restructuring expense during the nine months ended September 28, 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.

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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. 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 September 27, 2015 and December 28, 2014:

	September 27, 2015						December 28, 2014
	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	$	14	Other current liabilities	$	69	Other current assets	$	55	Other current liabilities	$	23
Total derivatives not designated as hedging instruments		14			69			55			23
Total derivatives		$	14		$	69		$	55		$	23

The following table represents the amounts affecting the Consolidated Statements of Operations for the three and nine months ended September 27, 2015 and September 28, 2014:

Quarter

Nine months

(13 weeks) Ended

(39 weeks) Ended

September 27, 2015

September 28, 2014

September 27, 2015

September 28, 2014

(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

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

$

15

Other gain (loss), net

$

380

Other gain (loss), net

$

290

Other gain (loss), net

$

315

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

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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 September 27, 2015, we had currency forward exchange contracts with notional amounts totaling approximately$6.6 million. The fair values of the forward exchange contracts were reflected as a$14 thousand asset and a $0.1 million 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

Profit Enhancement Plan

During September 2014, we initiated the Profit Enhancement Plan focused on increasing profitability through strategic headcount reductions and the streamlining of manufacturing processes. The projects currently approved under this plan are underway with final headcount reductions expected to be recognized by the fourth quarter of 2015. For the nine months ended September 27, 2015, the net charge to earnings of $1.7 million represents the current year activity related to the Profit Enhancement Plan. Total costs of the plan are $7 million through the end of the third quarter of 2015. Termination benefits are planned to be paid 1 month to 24 months after termination.

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. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed.

For the nine months ended September 27, 2015, the net release to earnings of $0.1 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60 million have been incurred through September 27, 2015. All terminations for the plan were substantially completed during the fourth quarter of 2014. Termination benefits are planned to be paid 1 month to 24 months after termination.

Restructuring expense for the three and nine months ended September 27, 2015 and September 28, 2014 was as follows:

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Profit Enhancement Plan
Severance and other employee-related charges	$	14		$	925		$	1,530		$	925
Other exit costs	28			9			191			9
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	(50		)	(485		)	(152		)	1,359
Asset impairments	—			—			—			172
Other exit costs	4			10			15			252
SG&A Restructuring Plan
Severance and other employee-related charges	(1		)	—			(1		)	(25		)
Total	$	(5	)	$	459		$	1,583		$	2,692

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Restructuring accrual activity for the nine months ended September 27, 2015 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 September 27, 2015
Profit Enhancement Plan
Severance and other employee-related charges	$	4,082	$	2,419	$	(889	)	$	(3,970	)	$	(266	)	$	1,376
Other exit costs(1)	—		191		—			(191		)	—			—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	2,050		64		(216		)	(1,252		)	(154		)	492
Other exit costs (2)	15		15		—			(15		)	—			15
SG&A Restructuring Plan
Severance and other employee-related charges	108		—		(1		)	(45		)	(8		)	54
Total	$	6,255	$	2,689	$	(1,106	)	$	(5,473	)	$	(428	)	$	1,937

⁽¹⁾  During the first nine months of 2015, there was a net charge to earnings of $0.2 million primarily due to legal costs and restructuring agent costs in connection with the restructuring plan.

⁽²⁾  During the first nine months of 2015, there was a net charge to earnings of $15 thousand primarily due to lease costs and restructuring agent costs in connection with the restructuring plan.

Note 12. CONTINGENCIES

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 paragraphs.

Additionally, 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.

Matters related to All-Tag Security S.A. and All-Tag Security Americas, Inc.

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 (the 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 the 555 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 555 Patent and the enforceability of the 555 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. The Appellate Court decision was appealed by All-Tag and Sensormatic to the U.S. Supreme Court.

While the appeal was still pending, the U.S. Supreme Court agreed to hear two cases (Octane Fitness, LLC v. ICON Health & Fitness, Inc. and Highmark, Inc. v. Allcare Health Management Systems) arguing that the governing standard for finding a case exceptional under 35 U.S.C. § 285 was too rigid. On December 30, 2013, based on the Supreme Court’s willingness to re-evaluate the exceptional case standard, defendants requested that the Supreme Court also hear our case. On April 29, 2014, the Supreme Court issued its rulings in Octane Fitness and Highmark and relaxed the standard for determining when a case is exceptional. As a result, on May 5, 2014, the Supreme Court vacated the judgment of the Appellate Court in our case

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(reinstating the Pennsylvania Court’s exceptional case finding) and sent the case back to the Appellate Court for further consideration in light of the new standards set forth in Octane Fitness and Highmark. On June 10, 2014, defendants filed a motion in the Appellate Court asking that the Appellate Court either affirm the Pennsylvania Court’s exceptional case finding outright or send the case back to the Pennsylvania Court so that it could consider the case again under the new exceptional case standard. On June 23, 2014, we filed our opposition to the motion to remand and moved the Appellate Court to once again reverse the Pennsylvania Court’s exceptional case finding. On October 14, 2014, the Appellate Court remanded the case to the Pennsylvania Court for further proceedings.

On August 18, 2015, the Pennsylvania Court granted defendants' motions for attorney fees designating the case as an exceptional case under the new exceptional case standard. The Pennsylvania Court reinstated the original award in the amount of $6.6 million and awarded an unspecified portion of defendants' attorney fees, including appellate fees, and post-judgment interest under 35 U.S.C. § 285. We recorded a legal contingency accrual of $6.6 million equal to the amount of the reinstated original award during the third quarter ended September 27, 2015 within Other Accrued Expenses on the Consolidated Balance Sheet and in Litigation Matters on the Consolidated Statement of Operations. The defendants are seeking approximately $11.0 million. The range of possible loss is between $6.6 million and $11.0 million. The final amount of the award for the defendants is pending the Pennsylvania Court proceeding and ruling on the parties' submissions. We intend to again appeal the Pennsylvania Court's ruling and award of attorneys' fees to the defendants.

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. 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.

Our legal fees related to the USS matter were being paid pursuant to our coverage under insurance policies with American Home Assurance Company and National Union Fire Insurance Company of Pittsburgh, Pa. (AIG). On July 9, 2014, AIG filed a complaint against us in the Superior Court of New Jersey (the New Jersey Court) claiming that AIG has no duty to defend or indemnify us under the insurance policies as they relate to the USS matter. AIG also claims reimbursement of legal fees, costs, and expenses previously paid by AIG on our behalf that are not covered by insurance as well as our reimbursement of AIG’s legal costs related to this matter. AIG continued to pay on our behalf most of our legal fees, costs, and expenses related to this matter. In May 2015, we engaged in formal discussions with AIG regarding the possibility of reaching a settlement of this matter in advance of the scheduled hearing in July 2015. In early June, we discussed the possibility of settling this matter with our Board of Directors and, on June 3, 2015, we obtained their approval to make a settlement offer. On June 26, 2015, we entered into a settlement with AIG. Pursuant to the settlement, we paid approximately $9.0 million to AIG in exchange for full and final resolution of this matter between the parties. Further pursuant to this settlement, each party will be responsible for a portion of the legal fees, costs, and expenses at issue in the litigation, and AIG is released from any further obligation with respect to future defense costs and indemnity in connection with the USS litigation.

Matter related to Zucker Derivative Suit

On June 24, 2014, a complaint was filed by Lawrence Zucker in a shareholder derivative suit on behalf of himself, others who are similarly situated and derivatively on behalf of us, of which we are also a nominal defendant, against our Board of Directors (the Board of Directors) in the Court of Common Pleas of Allegheny County, Pennsylvania, under the caption Zucker v. Checkpoint Systems, Inc., et al., No. GD-14-11035. The plaintiff generally asserts claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment against our Board of Directors for allegedly exceeding its authority under our Amended and Restated 2004 Omnibus Incentive Compensation Plan (the Plan).

The plaintiff sought, in addition to other relief, (i) a declaration that certain of the awards granted under the Plan in 2013 were ultra vires; (ii) rescission of awards allegedly granted in violation of the Plan; (iii) monetary damages; (iv) equitable or injunctive relief; (v) direction by the court that we reform our corporate governance and internal procedures and (vi) an award of attorneys’ fees and other fees and costs. The parties agreed to a dismissal of the case with prejudice on October 21, 2015.

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Note 13. BUSINESS SEGMENTS

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.

	Quarter								Nine months
	(13 weeks) Ended								(39 weeks) Ended
(amounts in thousands)	September 27, 2015				September 28, 2014				September 27, 2015				September 28, 2014
Business segment net revenue:
Merchandise Availability Solutions	$	98,729		(1)	$	107,494		(2)	$	271,582		(3)	$	312,436		(4)
Apparel Labeling Solutions	38,032				41,427				122,159				131,167
Retail Merchandising Solutions	9,169				11,674				28,281				35,323
Total revenues	$	145,930			$	160,595			$	422,022			$	478,926
Business segment gross profit:
Merchandise Availability Solutions	$	44,666			$	52,212			$	129,073			$	147,416
Apparel Labeling Solutions	10,659				14,248				37,050				45,584
Retail Merchandising Solutions	3,401				4,505				10,637				12,758
Total gross profit	58,726				70,965				176,760				205,758
Operating expenses	60,798			(5)	60,201			(6)	183,654			(7)	179,841			(8)
Interest expense, net	(792		)		(739		)		(2,261		)		(2,642		)
Other gain (loss), net	852				10				364				(518		)
(Loss) earnings before income taxes	$	(2,012	)		$	10,035			$	(8,791	)		$	22,757

⁽¹⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $42.0 million, $28.8 million, and $23.2 million, respectively, representing more than 10% of total revenue.

⁽²⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $43.5 million, $29.3 million, and $24.5 million, respectively, representing more than 10% of total revenue.

⁽³⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $107.2 million, $76.0 million, and $69.7 million, respectively, representing more than 10% of total revenue.

⁽⁴⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $130.1 million, $84.8 million and $77.2 million, respectively, representing more than 10% of total revenue.

⁽⁵⁾  Includes a $6.6 million litigation matter, a$15 thousand acquisition charge, and a $5 thousand restructuring release.

⁽⁶⁾  Includes a $0.5 million restructuring charge, and a $0.3 million acquisition charge.

⁽⁷⁾  Includes $15.6 million in litigation matters, a $1.6 million restructuring charge, a $0.8 million management transition charge, and a$0.1 million acquisition charge.

⁽⁸⁾  Includes a $2.7 million restructuring charge, and a $0.3 million acquisition charge.

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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 information that constitutes forward-looking statements. Forward-looking statements often address our expected future business and financial performance, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” or “will.” By their nature, forward-looking statements address matters that are subject to risks and uncertainties. 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 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; our ability to manage growth effectively including our ability to integrate acquisitions and to achieve our financial and operational goals for our acquisitions; 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 and additional matters disclosed in our Securities and Exchange Commission filings.

For a more detailed discussion of these and other factors, see “Risk Factors” and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” in our 2014 Form 10-K, filed on March 5, 2015 with the Securities and Exchange Commission as amended by our Amendment No. 1 to our Annual Report on Form 10-K/A filed on November 3, 2015 with the Securities and Exchange Commission. The forward-looking statements included in this document are made only as of the date of this document, and we undertake no obligation to update these statements to reflect subsequent events or circumstances, other than as may be required by law.

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 27 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 two-thirds of our revenues and operations are located outside the U.S., fluctuations in foreign currency exchange rates have a significant impact on reported results.

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

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

Our business strategy is to be a provider of inventory management solutions that give retailers ready insight into the on-shelf availability of merchandise in their stores. Additionally, our business strategy is focusing on improving revenues and profitability, reducing costs, and improving working capital management. In support of this strategy, we 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 ALS, we are focusing on those products that support our strategy and leveraging our competitive advantage in the transfer and printing of variable data onto apparel labels. We will also consider acquisitions that are aligned with our strategic plan.

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), expand our market share in soft goods markets (specifically apparel), and 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 radio-frequency (RF) and identification technologies to assist retailers and manufacturers in realizing the benefits of RFID.

To achieve these objectives, we expect to continuously enhance and expand our technologies and products, and provide superior service to our customers. We intend to offer customers a wide variety of integrated shrink management solutions, apparel labeling, and retail merchandising solutions characterized by superior quality, ease-of-use, and good value, with enhanced merchandising opportunities. In 2014, we reiterated our commitment to this strategy and our focus on innovation and internally-developed technologies with the appointment of a Senior Vice President of Innovation. We are building a corporate development and mergers and acquisitions (M&A) team to complement our internally-developed innovation with targeted strategic acquisitions.

Our ALS 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 ALS 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 ALS product offerings to only those that are also necessary to support our RFID strategy.

During September 2014, we initiated the Profit Enhancement Plan focused on increasing profitability through strategic headcount reductions and the streamlining of manufacturing processes. Total costs of the plan through September 27, 2015 are $7 million. Total annual savings of the Profit Enhancement Plan are expected to approximate $8 million, with an expected $6 million in savings to be realized in 2015.

A number of risks and uncertainties have emerged over the past few weeks that we expect to have a material impact on our fourth quarter results. First, a number of our large North American retail customers have announced reorganizations, restructurings, mergers or spending cuts. Orders for our EAS Consumables and Alpha products have been particularly impacted by these near-term events in what is typically our busiest seasonal quarter. As a result, underabsorption in our factories due to slowdowns in production to match reduced orders likely will cause lower than anticipated gross profit margins in the fourth quarter. Second, in our largest ALS markets, several of our competitors continue to aggressively quote for open nomination new business. We anticipate the resulting market average selling price erosion will continue to negatively impact our ALS gross profit margins in the near term. Finally, foreign currency translation effects have reduced our full year revenue expectation by an additional $3 million.

In response to these market conditions, during the fourth quarter of 2015, we expect to add $20 million of additional cost reduction initiatives to the Profit Enhancement Plan. These initiatives are still being developed, but we expect that they will generate $15 million of cost reductions by the end of 2016 with the remainder of the savings realized in the following fiscal years.

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Future financial results will be dependent upon our ability to successfully implement our 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, our existing cash balances, and our borrowing capacity should provide us with adequate cash flow and liquidity to execute our strategic plan.

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 28, 2014 (the "2014 Annual Report"). There have been no material changes to our Critical Accounting Policies and Estimates set forth in our 2014 Annual Report.

Results of Operations

All comparisons are with the prior year period, unless otherwise stated.

Net Revenues

Our unit volume is driven by product offerings, number of direct sales personnel, recurring sales, and pricing. Our base of installed systems provides a source of recurring revenues from the sale of disposable tags, labels, and service revenues.

Our customers are substantially dependent on retail sales, which are seasonal, subject to significant fluctuations, and difficult to predict. In addition, current economic trends have particularly affected our customers, and consequently our net revenues have been, and may continue to be impacted in the future. Historically, we have experienced lower sales in the first half of each year.

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Analysis of Statement of Operations

Thirteen Weeks Ended September 27, 2015 Compared to Thirteen Weeks Ended September 28, 2014

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 (13 weeks) ended	September 27, 2015 (Fiscal 2015)		September 28, 2014 (Fiscal 2014)		Fiscal 2015 vs. Fiscal 2014
Net revenues
Merchandise Availability Solutions	67.6	%	66.9	%	(8.2	)%
Apparel Labeling Solutions	26.1		25.8		(8.2	)
Retail Merchandising Solutions	6.3		7.3		(21.5	)
Net revenues	100.0		100.0		(9.1	)
Cost of revenues	59.8		55.8		(2.7	)
Gross profit	40.2		44.2		(17.2	)
Selling, general, and administrative expenses	33.5		34.5		(11.8	)
Research and development	3.6		2.5		33.0
Restructuring expenses	—		0.3		(101.1	)
Litigation settlement	4.5		—		100.0
Acquisition costs	—		0.2		(94.8	)
Operating (loss) income	(1.4	)	6.7		(119.2	)
Interest income	0.1		0.2		(44.6	)
Interest expense	0.7		0.7		(8.6	)
Other gain (loss), net	0.6		—		100.0
(Loss) earnings before income taxes	(1.4	)	6.2		(120.0	)
Income tax expense	1.3		8.7		(86.0	)
Net loss	(2.7	)%	(2.5	)%	(2.1	)%

Net Revenues

Revenues for the third quarter of 2015 compared to the third quarter of 2014 decreased $14.7 million, or 9.1%, to $145.9 million from $160.6 million. Foreign currency translation had a negative impact on revenues of approximately $13.6 million, or 8.5%, in the third quarter of 2015 as compared to the third quarter of 2014.

(amounts in millions)					Dollar Amount Change			Percentage Change
Quarter (13 weeks) ended	September 27, 2015 (Fiscal 2015)		September 28, 2014 (Fiscal 2014)		Fiscal 2015 vs. Fiscal 2014			Fiscal 2015 vs. Fiscal 2014
Net revenues:
Merchandise Availability Solutions	$	98.7	$	107.5	$	(8.8	)	(8.2	)%
Apparel Labeling Solutions	38.0		41.4		(3.4		)	(8.2	)
Retail Merchandising Solutions	9.2		11.7		(2.5		)	(21.5	)
Net revenues	$	145.9	$	160.6	$	(14.7	)	(9.1	)%

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Merchandise Availability Solutions

MAS revenues decreased $8.8 million, or 8.2%, during the third quarter of 2015 compared to the third quarter of 2014. After considering the foreign currency translation negative impact of $9.7 million, or 9.0%, revenues increased $0.9 million, or 0.8%, primarily due to increases in EAS Systems, Alpha^®, and EAS Consumables, partially offset by decreases in Merchandise Visibility™ (RFID).

EAS Systems revenues increased in the third quarter of 2015 as compared to the third quarter of 2014, primarily due to EAS hardware roll-outs in Asia. We expect challenging year-over-year comparisons for the remainder of 2015 as roll-outs in Asia and North America replace a large North America roll-out from 2014.

Alpha^® revenues increased in the third quarter of 2015 as compared to the third quarter of 2014, primarily due to stronger sales in the U.S. We expect our global Alpha^® revenues in 2015 to remain constant despite significant competition entering the market. Growth is expected to be hindered due to lack of new customer build-ups which occurred in previous years and increased competitive pressure.

EAS Consumables revenues increased in the third quarter of 2015 as compared to the third quarter of 2014, primarily due to stronger EAS labels sales in the U.S. and International Americas and to a lesser extent decreases in sales in Europe and Asia Pacific. We continue to pursue selective growth opportunities by working with customers, vendors, and expanding to new categories.

Merchandise Visibility™ (RFID) revenues decreased in the third quarter of 2015 as compared to the third quarter of 2014 reflecting the sunset of projects in both Europe and the U.S. without comparable completed projects in the third quarter of 2015. We continue to expand the number of retailers piloting with RFID-based inventory management solutions. We remain confident in our ability to grow this business as our solutions continue to deliver strong return on investment results to our customers. The rate of adoption remains under pressure due to financial challenges at key retail customers.

Apparel Labeling Solutions

ALS revenues decreased $3.4 million, or 8.2%, in the third quarter of 2015 as compared to the third quarter of 2014. After considering the foreign currency translation negative impact of $2.1 million, or 5.1%, ALS revenues decreased $1.3 million, or 3.1%, primarily due to competitive pricing pressures in our Asian factories. These decreases were partially offset by increases resulting from higher demand for RFID labels. RFID labels grew nearly 20% year-over-year due to new customer roll-outs with RFID enabled technology. We expect to see some modest growth during the remainder of 2015 in our ALS business as we continue to build on new business developments in both our core and RFID labels businesses.

Retail Merchandising Solutions

RMS revenues decreased $2.5 million, or 21.5%, in the third quarter of 2015 as compared to the third quarter of 2014. After considering the foreign currency translation negative impact of $1.8 million, or 15.5%, RMS revenues decreased $0.7 million, or 6.0%, reflecting softness in our indirect markets worldwide. We anticipate HLS will face difficult revenue trends due to the continued shifts in market demand for HLS products.

Gross Profit

During the third quarter of 2015, gross profit decreased $12.2 million, or 17.2%, to $58.7 million from $71.0 million in the third quarter of 2014. The negative impact of foreign currency translation on gross profit was approximately $3.9 million, or 5.5%, in the third quarter of 2015 as compared to the third quarter of 2014. Gross profit, as a percentage of net revenues, decreased to 40.2% in the third quarter of 2015 from 44.2% in the third quarter of 2014.

Merchandise Availability Solutions

MAS gross profit as a percentage of MAS revenues decreased to 45.2% in the third quarter of 2015 from 48.6% in the third quarter of 2014. The decrease in the gross profit percentage of MAS was due primarily to lower margins in EAS Systems, Alpha^®, and Merchandise Visibility™ (RFID) principally due to unfavorable manufacturing variances in our factories from lower production volumes, higher input costs, unfavorable sales mix, and the impact of the stronger U.S. Dollar eroding overall supply chain margins.

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Apparel Labeling Solutions

ALS gross profit as a percentage of ALS revenues decreased to 28.0% in the third quarter of 2015 from 34.4% in the third quarter of 2014. The decrease in the gross profit percentage of ALS was primarily due to average selling price erosion in certain geographies due to market oversupply, partially offset by volume increases in both RFID labels and legacy tickets and tags.

Retail Merchandising Solutions

RMS gross profit as a percentage of RMS revenues decreased to 37.1% in the third quarter of 2015 from 38.6% in the third quarter of 2014. The decrease in the gross profit percentage of RMS was primarily due to lower sales and production volumes partially offset by our cost reduction initiatives.

Selling, General, and Administrative Expenses

Selling, general, and administrative (SG&A) expenses decreased $6.6 million, or 11.8%, during the third quarter of 2015 compared to the third quarter of 2014. Foreign currency had a favorable impact on the 2015 expense of $4.4 million, or 7.9%. After considering the foreign currency translation impact, SG&A expenses decreased $2.2 million due to a reversal of a portion of our performance incentive accrual and a decrease of our incentive award expense. The benefits of our cost reduction initiatives were offset by incremental spending increases related to our strategic initiatives and some one-time consulting costs in the quarter.

Research and Development Expenses

Research and development (R&D) expenses were $5.3 million, or 3.6% of revenues, in the third quarter of 2015 compared to the $4.0 million, or 2.5% of revenues in the third quarter of 2014, as we have increased our investment in the development of new products and solutions.

Restructuring Expenses

Restructuring expenses were a net $5 thousand income, or 0.0% of revenues in the third quarter of 2015 compared to $0.5 million of expense or 0.3% of revenues in the third quarter of 2014. The decrease is due to the wind-down of the Global Restructuring Plan, including Project LEAN partially offset by additional expense incurred related to the initiation of our Profit Enhancement Plan in September 2014.

Litigation Matters

During the third quarter of 2015, we recorded an expense for a legal contingency accrual of $6.6 million relating to the All-Tag litigation as a result of the August 18, 2015 United States District Court for the Eastern District of Pennsylvania ruling as further described in Note 12 to the Consolidated Financial Statements.

Acquisition Costs

Acquisition costs were $15 thousand for the third quarter of 2015 compared to $0.3 million for the third quarter of 2014. The decrease is due to a reduction in legal and arbitration-related costs incurred for the May 2011 acquisition of the Shore to Shore businesses. The Shore to Shore arbitration matter was settled during the third quarter of 2015 without further costs incurred by us as further described in Note 4 to the Consolidated Financial Statements.

Interest Income and Interest Expense

Interest income for the third quarter of 2015 was $0.2 million which is comparable to the $0.3 million recognized in the third quarter of 2014.

Interest expense for the third quarter of 2015 decreased $0.1 million from the third quarter of 2014. The decrease in interest expense was primarily due to significant reductions in the outstanding balance on our Senior Secured Credit Facility as well as a reduction in non-cash imputed interest expense on our Financing Liability resulting from the weakening of the Euro against the US Dollar.

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Other Gain (Loss), net

Other gain (loss), net was a net gain of $0.9 million in the third quarter of 2015 compared to a net gain of $10 thousand in the third quarter of 2014. The change was primarily due to a $0.9 million foreign exchange gain during the third quarter of 2015 compared to a $37 thousand foreign exchange loss in the third quarter of 2014. The increased foreign exchange gain 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 effective tax rate for the third quarter of 2015 was negative 98.4% as compared to 140.6% for the third quarter of 2014. The change in the effective tax rate was due to the mix of income between subsidiaries and increased losses in entities with valuation allowances for which no tax benefit is received.

Net Loss

Net loss was $4.0 million, or $0.09 per diluted share, during the third quarter of 2015 compared to a net loss of $4.1 million, or $0.10 per diluted share, during the third quarter of 2014. The weighted-average number of shares used in the diluted earnings per share computation was 43.0 million and 42.1 million for the third quarters of 2015 and 2014, respectively.

Thirty-nine Weeks Ended September 27, 2015 Compared to Thirty-nine Weeks Ended September 28, 2014

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 Net Revenues				Percentage Change In Dollar Amount
Nine months (39 weeks) ended	September 27, 2015 (Fiscal 2015)		September 28, 2014 (Fiscal 2014)		Fiscal 2015 vs. Fiscal 2014
Net revenues
Merchandise Availability Solutions	64.4	%	65.2	%	(13.1	)%
Apparel Labeling Solutions	28.9		27.4		(6.9	)
Retail Merchandising Solutions	6.7		7.4		(19.9	)
Net revenues	100.0		100.0		(11.9	)
Cost of revenues	58.1		57.0		(10.2	)
Gross profit	41.9		43.0		(14.1	)
Selling, general, and administrative expenses	36.0		34.5		(7.9	)
Research and development	3.5		2.4		26.4
Restructuring expenses	0.4		0.6		(41.2	)
Litigation settlement	3.7		—		100.0
Acquisition costs	—		0.1		(53.6	)
Other operating income	(0.1	)	—		100.0
Operating (loss) income	(1.6	)	5.4		(126.6	)
Interest income	0.2		0.2		(27.1	)
Interest expense	0.8		0.7		(17.6	)
Other gain (loss), net	0.1		(0.1	)	(170.3	)
(Loss) earnings before income taxes	(2.1	)	4.8		(138.6	)
Income tax expense	1.7		3.6		(57.6	)
Net (loss) earnings	(3.8	)%	1.2	%	(383.9	)%

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Net Revenues

Revenues for the first nine months of 2015 compared to the first nine months of 2014 decreased $56.9 million, or 11.9%, to $422.0 million from $478.9 million. Foreign currency translation had a negative impact on revenues of approximately $39.7 million, or 8.3%, in the first nine months of 2015 as compared to the first nine months of 2014.

(amounts in millions)					Dollar Amount Change			Percentage Change
Nine months (39 weeks) ended	September 27, 2015 (Fiscal 2015)		September 28, 2014 (Fiscal 2014)		Fiscal 2015 vs. Fiscal 2014			Fiscal 2015 vs. Fiscal 2014
Net revenues:
Merchandise Availability Solutions	$	271.5	$	312.4	$	(40.9	)	(13.1	)%
Apparel Labeling Solutions	122.2		131.2		(9.0		)	(6.9	)
Retail Merchandising Solutions	28.3		35.3		(7.0		)	(19.9	)
Net revenues	$	422.0	$	478.9	$	(56.9	)	(11.9	)%

Merchandise Availability Solutions

MAS revenues decreased $40.9 million, or 13.1%, during the first nine months of 2015 compared to the first nine months of 2014. After considering the foreign currency translation negative impact of $27.7 million, or 8.9%, revenues decreased $13.2 million, or 4.2%, primarily due to decreases in EAS systems and Alpha^®. There were also less significant decreases in EAS consumables and CheckView^®. These decreases were partially offset by an increase in Merchandise Visibility^™ (RFID).

EAS systems revenues decreased in the first nine months of 2015 as compared to the first nine months of 2014, primarily due to a large roll-out in the U.S. that was ongoing in the first nine months of 2014 without comparable projects for 2015. This was offset partially by new large roll-outs in Asia and increases in International Americas. In July 2015, we began a new EAS hardware roll-out with a major Asian retailer. We expect challenging year-over-year comparisons for the remainder of 2015 as roll-outs in Asia and North America replace a large North America roll-out from 2014.

Alpha^® revenues decreased in the first nine months of 2015 as compared to the first nine months of 2014, primarily due to strong sales in the U.S. and Asia with key customers in 2014 without comparable levels of demand in 2015. The decreases were partially offset by increases in Europe and International Americas primarily due to larger orders completed in the first nine months of 2015 without comparable orders in 2014. We expect growth to be hindered due to lack of new customer build-ups which occurred in previous years and increased competitive pressure.

EAS consumables revenues decreased in the first nine months of 2015 as compared to the first nine months of 2014, primarily due to decreased EAS label revenues in the U.S. and Europe, and to a lesser extent decreases in Asia. These decreases were partially offset by increases in Hard Tag @ Source^™ revenues in the U.S. We continue to pursue selective growth opportunities by working with customers, vendors, and expanding to new categories.

Merchandise Visibility™ (RFID) revenues increased in the first nine months of 2015 as compared to the first nine months of 2014 as the business continues to gain traction with installations at several major retailers in the Europe. This increase was partially offset by decreases in the U.S. due to a large roll-out that was ongoing in the first nine months of 2014 without a comparable project for 2015. We continue to expand the number of retailers piloting with RFID-based inventory management solutions. We remain confident in our ability to grow this business as our solutions continue to deliver strong return on investment results to our customers. The rate of adoption remains under pressure due to financial challenges at key retail customers.

We now only provide CheckView^® CCTV services in Asia in connection with EAS systems when our customers require combined security solutions. Due to our decreased focus on this business, our CheckView^® Asia revenues decreased in the first nine months of 2015 as compared to the first nine months of 2014. This decline was mostly attributable to decreases in revenue in the first quarter of 2015 compared to the first quarter of 2014.

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Apparel Labeling Solutions

ALS revenues decreased $9.0 million, or 6.9%, in the first nine months of 2015 as compared to the first nine months of 2014. After considering the foreign currency translation negative impact of $6.2 million, or 4.7%, the revenues decreased $2.8 million, or 2.2%, driven by declines in sales in Asia, the U.S. and Europe due to the impact of some market share loss, market pricing pressures, and lower volumes with some key retailers in our legacy ticket and tag business. This decrease was partially offset by increases in Europe and Asia resulting from higher demand for RFID labels. RFID labels grew over 12% year-over-year due to new customer roll-outs with RFID enabled technology. We expect to see some modest growth during the remainder of 2015 in our ALS business as we continue to build on new business developments in both our core and RFID labels businesses.

Retail Merchandising Solutions

RMS revenues decreased $7.0 million, or 19.9%, in the first nine months of 2015 as compared to the first nine months of 2014. After considering the foreign currency translation negative impact of $5.8 million, or 16.5%, the revenues decreased $1.2 million, or 3.4%, due to decreased sales of our Hand-held Labeling Solutions (HLS) in Europe and the impact of the sunset of a major project in the U.S., partially offset by increases in Retail Display Solutions revenues in Europe. We anticipate HLS will continue to face difficult revenue trends due to the on-going shifts in market demand for HLS products.

Gross Profit

During the first nine months of 2015, gross profit decreased $29.0 million, or 14.1%, to $176.8 million from $205.8 million in the first nine months of 2014. Foreign currency translation had a negative impact on gross profit of approximately $11.0 million, or 5.3%, in the first nine months of 2015 as compared to the first nine months of 2014. Gross profit, as a percentage of net revenues, decreased to 41.9% in the first nine months of 2015 from 43.0% in the first nine months of 2014.

Merchandise Availability Solutions

MAS gross profit as a percentage of MAS revenues increased to 47.5% in the first nine months of 2015 from 47.2% in the first nine months of 2014. The increase in the gross profit percentage of MAS was primarily due to higher margins in EAS Systems, Alpha^®, and Merchandise Visibility (RFID) reflecting our operational initiatives in field service, professional services, pricing and supply chain optimization. Alpha^® margins increased due to manufacturing cost savings, margin enhancement initiatives and favorable mix of sales towards higher margin products. Merchandise Visibility margins also increased as revenue growth drove strong utilization of our professional services team. The margin improvement was partially offset by the stronger U.S. Dollar eroding overall supply chain margins, as well as unfavorable manufacturing variances in our EAS Consumables factories from lower production volumes and higher input costs.

Apparel Labeling Solutions

ALS gross profit as a percentage of ALS revenues decreased to 30.3% in the first nine months of 2015, from 34.8% in the first nine months of 2014. The decrease in the gross profit percentage of ALS was primarily due to the weaker Euro, accelerated depreciation on machinery in Asia that has been removed from production, overhead under-absorption due to lower production volumes and competitive pricing pressures in certain geographies due to market overcapacity.

Retail Merchandising Solutions

RMS gross profit as a percentage of RMS revenues increased to 37.6% in the first nine months of 2015 from 36.1% in the first nine months of 2014. The increase in the gross profit percentage of RMS was primarily due to improvements in manufacturing efficiencies in the first nine months of 2015.

Selling, General, and Administrative Expenses

Selling, general, and administrative (SG&A) expenses decreased $13.1 million, or 7.9%, during the first nine months of 2015 compared to the first nine months of 2014. Foreign currency had a favorable impact on the 2015 expense of $13.1 million. After considering the foreign currency translation impact, SG&A expenses were flat year-over-year due to offsetting changes. The decreases were due to a reversal of a portion of our performance incentive accrual, a decrease of our incentive award expense, and the benefits of our cost reduction initiatives. The increases were due to management transition costs of $0.8 million incurred in the first quarter of 2015 without comparable expense in 2014, as well as incremental spending increases related to our strategic initiatives.

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Research and Development Expenses

Research and development (R&D) expenses were $14.7 million, or 3.5% of revenues, in the first nine months of 2015 and $11.7 million, or 2.4% of revenues, in the first nine months of 2014, as we have increased our investment in the development of new products and solutions.

Restructuring Expenses

Restructuring expenses were $1.6 million, or 0.4% of revenues, in the first nine months of 2015 compared to $2.7 million, or 0.6% of revenues, in the first nine months of 2014. The decrease is a result of the completion of Project LEAN partially offset by additional expense incurred related to the continued execution of our Profit Enhancement Plan.

Litigation Matters

During the third quarter of 2015, we incurred an expense for a legal contingency accrual of $6.6 million relating to the All-Tag litigation as a result of the August 18, 2015 United States District Court for the Eastern District of Pennsylvania ruling as further described in Note 12 to the Consolidated Financial Statements. Additionally, during the second quarter of 2015, we incurred a litigation expense of $9.0 million relating to a litigation settlement entered into by us on June 26, 2015 with AIG related to its claims for reimbursement of legal fees, costs, and expenses previously paid by AIG on our behalf for the defense of the USS matter as further described in Note 12 to the Consolidated Financial Statements.

Acquisition Costs

Acquisition costs were $0.1 million for the first nine months of 2015 compared to $0.3 million for the first nine months of 2014. The decrease is due to a reduction in legal and arbitration-related costs incurred for the May 2011 acquisition of the Shore to Shore businesses. The Shore to Shore arbitration matter was settled during the third quarter of 2015 without further costs incurred by us as further described in Note 4 to the Consolidated Financial Statements.

Other Operating Income

Other operating income for the first nine months of 2015 increased $0.5 million from the comparable first nine months of 2014. The increase is due to the sale of customer-related receivables associated with the renewal and extension of sales-type lease arrangements in the first nine months of 2015. There were no sales of customer-related receivables in the first nine months of 2014.

Interest Income and Interest Expense

Interest income was $0.6 million in the first nine months of 2015 compared to $0.9 million in the first nine months of 2014. The decrease in interest income was primarily due to decreased interest income recognized for sales-type leases.

Interest expense for the first nine months of 2015 decreased $0.6 million from the first nine months of 2014. The decrease in interest expense was primarily due to significant reductions in the outstanding balance on our Senior Secured Credit Facility as well as a reduction in non-cash imputed interest expense on our Financing Liability resulting from the weakening of the Euro against the US Dollar.

Other Gain (Loss), net

Other gain (loss), net was a net gain of $0.4 million in the first nine months of 2015 compared to a net loss of $0.5 million in the first nine months of 2014. The balances were entirely due to foreign exchange gains and losses during the first nine months of 2015 and 2014, respectively. The increased foreign exchange gain 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 effective tax rate for the first nine months of 2015 was negative 82.5% as compared to the year to date effective rate for the first nine months of 2014 of 75.2%. The change in the effective tax rate was due to the mix of income between subsidiaries and increased losses in entities with valuation allowances for which no tax benefit is received.

37

Net (Loss) Earnings

Net loss was $16.0 million, or $0.37 per diluted share, during the first nine months of 2015 compared to net earnings of $5.7 million, or $0.13 per diluted share, during the first nine months of 2014. The weighted-average number of shares used in the diluted earnings per share computation was 42.9 million and 42.3 million for the first nine months of 2015 and 2014, respectively.

Liquidity and Capital Resources

We continue to execute our strategic plan in a volatile global economic environment. 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, potential repurchases under our share repurchase program, other potential restructuring requirements, product development requirements, internally developed innovation and targeted strategic acquisitions requirements.

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 continue to 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 September 27, 2015, our cash and cash equivalents were $98.1 million compared to $135.5 million as of December 28, 2014. 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 2015 primarily due to $22.9 million of cash used in financing activities, $13.4 million of cash used in investing activities, and an unfavorable $8.8 million effect of foreign currency, offset by $7.7 million of cash provided by operating activities.

Cash provided by operating activities was $34.2 million lower during the first nine months of 2015 compared to the first nine months of 2014. Our cash from operating activities was negatively impacted by a decrease in operating income, an increase in accounts receivable, and a decrease in other liabilities, which was offset by decreased inventory investments, decreased other assets, and increased accounts payable and unearned revenues balances.

Cash used in investing activities was $0.9 million higher during the first nine months of 2015 compared to the first nine months of 2014. This was primarily due to an increase in the acquisition of property, plant, and equipment during the first nine months of 2015 compared to the first nine months of 2014.

Cash used in financing activities was $18.0 million higher during the first nine months of 2015 compared to the first nine months of 2014. This was primarily due to the payout of our dividend and purchase of shares of our common stock on the open market pursuant to our previously announced share repurchase program, which was partially offset by a greater reduction of debt levels in the first nine months of 2014 compared to the first nine months of 2015.

Our percentage of total debt to total equity as of September 27, 2015, was 23.7% compared to 19.9% as of December 28, 2014. As of September 27, 2015, our working capital was $180.7 million compared to $232.6 million as of December 28, 2014.

We continue to reinvest in the Company through our investment in technology and process improvement. Our investment in R&D amounted to $14.7 million and $11.7 million during the first nine months of 2015 and 2014, respectively. These amounts are reflected in cash used in operations, as we expense our R&D as it is incurred. We anticipate additional spending to be about $5.0 million on R&D to support achievement of our strategic plan during the remainder of 2015.

38

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 nine months of 2015, our contribution to these plans was $3.3 million. Our total funding expectation for 2015 is $4.4 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 nine months of 2015 totaled $13.9 million compared to $12.8 million during the same period in 2014. We anticipate our capital expenditures, used primarily to upgrade information technology, improve our production capabilities, and upgrade facilities, to be about $6.0 million for the remainder of 2015.

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. As of September 27, 2015, we were in compliance with all of our covenants, and although we cannot provide full assurance, we expect to be in compliance for the next twelve months.

Dividend

Historically, 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). On March 5, 2015, we declared a special dividend (the Dividend) of $0.50 per outstanding common share for all shareholders of record as of March 20, 2015. This Dividend reflects our commitment to building shareholder value through the execution of our strategic plan and a disciplined approach to capital allocation. After the Dividend, we believe we have the appropriate level of liquidity both to fund our internal initiatives and act quickly on any strategic opportunities.

The cash portion of the Dividend of $21.0 million was paid to common shareholders on April 10, 2015. Dividend distributions to shareholders are recognized as a liability in the period in which a dividend is formally approved by our Board of Directors and communicated to shareholders. The dividend was recorded as a reduction of Additional Capital in Stockholders' Equity.

The Dividend did not provide any cash payment or benefit to stock options, restricted stock units, or performance shares, and instead only applied to the outstanding common stock and as outlined in the executive and director deferred compensation plans. The non-cash portion of the Dividend of $0.4 million was credited to the executive and director deferred compensation plan deferred stock accounts on April 10, 2015 in accordance with the plans.

Provisions for Restructuring

During September 2014, we initiated the Profit Enhancement Plan focused on increasing profitability through strategic headcount reductions and the streamlining of manufacturing processes. Total costs of the plan through September 27, 2015 are $7 million. Total annual savings of the Profit Enhancement Plan are expected to approximate $8 million, with an expected $6 million in savings to be realized in 2015. During the fourth quarter of 2015, we expect to add $20 million of additional cost reduction initiatives to the Profit Enhancement Plan. These initiatives are still being developed, but we expect that they will generate $15 million of cost reductions by the end of 2016 with the remainder of the savings realized in the following fiscal years.

As of December 2014, our expanded Global Restructuring Plan including Project LEAN has been substantially completed with total costs incurred to date of $60 million. With initiatives to stabilize sales, actively manage margins, reduce operating expense and effectively manage working capital, the plan has effectively lowered costs and we expect to maintain these savings in future periods.

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 operating leases presented in our Annual Report on Form 10-K for the year ended December 28, 2014 except as discussed in the Contractual Obligations section.

39

Contractual Obligations

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 28, 2014. The table of contractual obligations excludes our gross liability for uncertain tax positions, including accrued interest and penalties, which totaled $26.4 million as of September 27, 2015, and $31.3 million as of December 28, 2014, because we cannot predict with reasonable reliability the timing of cash settlements to the respective taxing authorities.

Recently Adopted Accounting Standards

See Note 1 to the Consolidated Financial Statements for additional information related to recently adopted accounting standards.

New Accounting Pronouncements and Other Standards

See Note 1 to the Consolidated Financial Statements for additional information related to new accounting pronouncements and other standards.

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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 28, 2014 as amended by our Amendment No. 1 to our Annual Report on Form 10-K/A filed on November 3, 2015 with the Securities and Exchange Commission.

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 orlosses 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 September 27, 2015, we had currency forward exchange contracts with notional amounts totaling approximately$6.6 million. The fair values of the forward exchange contracts were reflected as a$14 thousand asset and a $0.1 million 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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Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Management, with the participation of the Chief Executive Officer and Acting Chief Financial Officer, conducted an evaluation (as required by Rule 13a-15 under the Securities Exchange Act of 1934, as amended (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 Acting Chief Financial Officer concluded that, due to the material weakness identified in our internal control over financial reporting discussed below, our disclosure controls and procedures were not effective as of September 27, 2015.

Material Weakness

During the preparation of the third quarter financial statements, we discovered financial statement errors attributable to the accounting for our quarterly income tax provision. As a result of these errors, on November 2, 2015, the Audit Committee of our Board of Directors concluded that our unaudited financial statements for the quarterly period ended March 29, 2015, the quarterly period ended June 28, 2015 and the year-to-date period ended June 28, 2015 contained in the Company’s Quarterly Reports on Form 10-Q for the quarterly period ended March 29, 2015 and the quarterly period ended June 28, 2015 should no longer be relied upon due to the effect of financial statement errors that are attributable to an error in the accounting for the Company’s quarterly income tax provision. We have restated the previously-issued financial statements for the quarterly periods ended March 29, 2015 and June 28, 2015 and the six month period ended June 28, 2015 and have filed amended Quarterly Reports on Form 10-Q/A for the quarterly periods ended March 29, 2015 and June 28, 2015 to include those restated financial statements and provide related disclosure.

We assessed the effect of this error on our prior interim financial statements and concluded that the effect of this error was material to the unaudited consolidated financial statements for each of the quarters ended March 29, 2015 and June 28, 2015 and the year-to-date period ended June 28, 2015. We concluded that the effect of the error on interim periods within our 2014 fiscal year was not material. There is no effect of the error on our consolidated financial statements for the year ended December 28, 2014 or any prior period.

As a result of the determination to restate these previously-issued financial statements, management re-evaluated the effectiveness of the design and operation of our internal control over financial reporting and disclosure controls and procedures and has concluded that we did not maintain effective controls over the period end financial reporting process for the quarterly periods ended March 29, 2015 and June 28, 2015. Specifically, effective controls were not maintained over the accounting for our quarterly income tax calculation surrounding the inclusion or exclusion of entities with valuation allowances. Additionally, we incorrectly calculated the valuation allowance related to a non U.S. entity with a deferred tax liability related to an indefinite lived intangible. This control deficiency resulted in the restatement of our unaudited consolidated financial statements for the quarters ended March 29, 2015 and June 28, 2015 and the year-to-date period ended June 28, 2015. Accordingly, we concluded that this control deficiency constitutes a material weakness.

The control deficiency constituted a material weakness, but did not result in a material misstatement to our audited consolidated financial statements for the year ended December 28, 2014, or any of the interim unaudited consolidated financial statements for the quarters included therein. However, the control deficiency could have resulted in a material misstatement to the annual or interim consolidated financial statements that would not have been prevented or detected. We have filed an amendment to our Annual Report on Form 10-K for the year ended December 28, 2014 on Form 10-K/A to reflect the conclusion by management that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 28, 2014.

Remediation

We are re-assessing the design of the controls and modifying processes related to the calculation of our interim effective tax rate as well as enhancing monitoring and oversight controls in the application of applicable accounting guidance related to the tax treatment of jurisdictions with valuation allowances. We believe that these initiatives will remediate the material weakness in internal control over financial reporting described above. We will test the ongoing operating effectiveness of the revised controls in future periods. The material weakness cannot be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.

42

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during our third fiscal quarter of 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

43

PART II. OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

See Note 12 to the Consolidated Financial Statements for the discussion of legal proceedings under Contingencies, which is incorporated herein by reference.

44

Item 1A. RISK FACTORS

There have been no material changes from December 28, 2014 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 Amended Annual Report on Form 10-K for the year ended December 28, 2014, as amended by our Amendment No. 1 to our Annual Report on Form 10-K/A.

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.

45

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 10.1	2015 Incentive Award Plan is hereby incorporated by reference to Exhibit 99.1 to our Registration Statement on Form S-8, filed with the SEC on August 4, 2015.
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 Acting 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 Acting Chief Financial Officer pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.

46

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.
November 3, 2015	/s/ James M. Lucania
	James M. Lucania
	Acting Chief Financial Officer and Treasurer

47

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 10.1	2015 Incentive Award Plan is hereby incorporated by reference to Exhibit 99.1 to our Registration Statement on Form S-8, filed with the SEC on August 4, 2015.
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 Acting 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 Acting Chief Financial Officer pursuant to 18 United States Code Section 1350, as enacted by Section 906 of the Sarbanes-Oxley Act of 2002.

48

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:	November 3, 2015

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, James M. Lucania, 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/ James M. Lucania
		Name: James M. Lucania
		Title: Acting Chief Financial Officer and Treasurer
Date:	November 3, 2015

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

In connection with this Quarterly Report on Form 10-Q of Checkpoint Systems, Inc. (the "Company") for the quarter ended September 27, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), George Babich Jr., as Chief Executive Officer of the Company and James M. Luciana, as Acting Chief Financial Officer and Treasurer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, respectively, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) 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/ James M. Lucania

Name: James M. Lucania

Title: Acting Chief Financial Officer and Treasurer

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

Date: November 3, 2015

XML

Summary Of Significant Accounting Policies (Amounts Reclassified from Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
(Loss) earnings before income taxes	$ (2,012)	$ 10,035	$ (8,791)	$ 22,757
Income tax benefit (expense)	(1,979)	(14,110)	(7,251)	(17,107)
Net (loss) earnings	(3,991)	(4,075)	(16,042)	5,650	$ 10,953
Reclassification out of Accumulated Other Comprehensive Income [Member] | Amortization of pension plan items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Actuarial loss	(737)	(373)	(2,220)	(1,144)
Prior service cost	(7)	(3)	(20)	(9)
(Loss) earnings before income taxes	(744)	(376)	(2,240)	(1,153)
Income tax benefit (expense)	(425)	(217)	10	5
Net (loss) earnings	$ (1,169)	$ (593)	$ (2,230)	$ (1,148)

XML

Earnings Per Share (Schedule Of Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Earnings Per Share [Abstract]
Net (loss) earnings available to common stockholders	$ (3,991)	$ (4,075)	$ (16,042)	$ 5,650
Weighted-average number of common shares outstanding (shares)	42,106	41,714	42,010	41,644
Shares issuable under deferred compensation agreements (shares)	869	376	854	361
Basic weighted-average number of common shares outstanding (shares)	42,975	42,090	42,864	42,005
Common shares assumed upon exercise of stock options and awards (shares)	0	0	0	304
Unvested shares issuable under deferred compensation arrangements (shares)	0	0	0	12
Dilutive weighted-average number of common shares outstanding (shares)	42,975	42,090	42,864	42,321
Basic (loss) earnings per share (USD per share)	$ (0.09)	$ (0.10)	$ (0.37)	$ 0.13
Diluted (loss) earnings per share (USD per share)	$ (0.09)	$ (0.10)	$ (0.37)	$ 0.13

XML

Debt (Financing Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Debt Instrument [Line Items]
Current portion of financing liability	$ 6,139		$ 6,139		$ 0
Other operating income	0	$ 0	493	$ 0
Financing Agreement June 2011 | SPAIN
Debt Instrument [Line Items]
Financing liability	$ 31,900		$ 31,900		$ 33,100
Financing arrangement, imputed interest on financing liability	6.365%		6.365%
Financing arrangement, interest expense recognized	$ 500	$ 600	$ 1,500	$ 1,700

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Earnings Per Share (Schedule Of Anti-Dilutive Common Share Equivalents) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
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	2,376	1,839	2,337	2,017
Stock Options
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	64	294	167
Deferred Compensation Arrangement
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	37	14	42

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Debt (Schedule Of Long-Term Debt) (Details) - USD ($)	Sep. 27, 2015	Dec. 28, 2014
Debt Instrument [Line Items]
Full-recourse factoring liabilities	$ 0	$ 83,000
Bank overdraft credit facility	97,000	65,000
Capital leases with maturities through 2020	289,000	249,000
Total	65,386,000	65,397,000
Less current portion	185,000	236,000
Total long-term portion	65,201,000	65,161,000
Face value	200,000,000	200,000,000
2013 $200 Million Variable Interest Rate Revolving Facility Maturing in 2018 | Senior Secured Credit Facility
Debt Instrument [Line Items]
$200 million variable interest rate revolving credit facility maturing in 2018	$ 65,000,000	$ 65,000,000

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Provision For Restructuring (Tables)

9 Months Ended

Sep. 27, 2015

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Expense

Restructuring expense for the three and nine months ended September 27, 2015 and September 28, 2014 was as follows:

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Profit Enhancement Plan
Severance and other employee-related charges	$	14		$	925		$	1,530		$	925
Other exit costs	28			9			191			9
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	(50		)	(485		)	(152		)	1,359
Asset impairments	—			—			—			172
Other exit costs	4			10			15			252
SG&A Restructuring Plan
Severance and other employee-related charges	(1		)	—			(1		)	(25		)
Total	$	(5	)	$	459		$	1,583		$	2,692

Schedule of Restructuring Accrual Activity

Restructuring accrual activity for the nine months ended September 27, 2015 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 September 27, 2015
Profit Enhancement Plan
Severance and other employee-related charges	$	4,082	$	2,419	$	(889	)	$	(3,970	)	$	(266	)	$	1,376
Other exit costs(1)	—		191		—			(191		)	—			—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	2,050		64		(216		)	(1,252		)	(154		)	492
Other exit costs (2)	15		15		—			(15		)	—			15
SG&A Restructuring Plan
Severance and other employee-related charges	108		—		(1		)	(45		)	(8		)	54
Total	$	6,255	$	2,689	$	(1,106	)	$	(5,473	)	$	(428	)	$	1,937

⁽¹⁾  During the first nine months of 2015, there was a net charge to earnings of $0.2 million primarily due to legal costs and restructuring agent costs in connection with the restructuring plan.

⁽²⁾  During the first nine months of 2015, there was a net charge to earnings of $15 thousand primarily due to lease costs and restructuring agent costs in connection with the restructuring plan.

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Pension Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Compensation and Retirement Disclosure [Abstract]
Service cost	$ 299	$ 274	$ 900	$ 839
Interest cost	526	887	1,586	2,720
Expected return on plan assets	(34)	0	(101)	(1)
Amortization of actuarial loss	737	373	2,220	1,144
Amortization of prior service costs	7	3	20	9
Net periodic pension cost	$ 1,535	$ 1,537	4,625	$ 4,711
Estimated employer contributions			4,400
Pension contributions			$ 3,300

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Inventories (Tables)

9 Months Ended

Sep. 27, 2015

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:

(amounts in thousands)	September 27, 2015		December 28, 2014
Raw materials	$	18,817	$	21,085
Work-in-process	3,100		3,264
Finished goods	70,812		67,511
Total	$	92,729	$	91,860

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Stock-Based Compensation (Stock Option Activity Under The Principal Option Plans) (Details) - Stock Options And Awards - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 27, 2015	Dec. 28, 2014
Number of Options Outstanding (in shares)
Number of shares, outstanding at beginning of period (shares)	2,349,447
Number of shares, granted (shares)	266,080
Number of shares, exercised (shares)	(15,430)
Number of shares, forfeited or expired (shares)	(436,542)
Number of shares, outstanding at end of period (shares)	2,163,555	2,349,447
Number of shares, vested and expected to vest (shares)	2,145,409
Number of shares, exercisable (shares)	1,748,868
Weighted average exercise price
Weighted-average exercise price, outstanding at beginning of period (USD per share)	$ 17.77
Weighted-average exercise price, granted (USD per share)	13.40
Weighted-average exercise price, exercised (USD per share)	8.98
Weighted-average exercise price, forfeited or expired (USD per share)	18.76
Weighted-average exercise price, outstanding at end of period (USD per share)	17.10	$ 17.77
Weighted-average exercise price, vested and expected to vest (USD per share)	17.12
Weighted-average exercise price, exercisable (USD per share)	$ 17.89
Additional Disclosures [Abstract]
Weighted-average remaining contractual term, outstanding at beginning of period in years	4 years 6 months 4 days	3 years 11 months 23 days
Weighted-average remaining contractual term, vested and expected to vest in years	4 years 5 months 18 days
Weighted-average remaining contractual term, exercisable	3 years 5 months 11 days
Aggregate intrinsic value, outstanding at beginning of period	$ 2,716
Aggregate intrinsic value, outstanding at end of period	0	$ 2,716
Aggregate intrinsic value, vested and expected to vest	0
Aggregate intrinsic value, exercisable	$ 0

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Goodwill And Other Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2015	Dec. 28, 2014
Finite-Lived Intangible Assets [Line Items]
Total amortized finite-lived intangible assets, gross amount	$ 187,730	$ 195,405
Total identifiable intangible assets, gross amount	208,242	215,917
Total amortized finite-lived intangible assets, gross accumulated amortization	152,469	150,977
Total identifiable intangible assets accumulated amortization	152,469	150,977
Customer Lists
Finite-Lived Intangible Assets [Line Items]
Finite-lived customer lists, gross amount	76,356	79,110
Total amortized finite-lived intangible assets, gross accumulated amortization	60,447	58,873
Trade Name
Finite-Lived Intangible Assets [Line Items]
Finite-lived trade name, gross amount	25,045	27,172
Indefinite-lived trade names, gross amount	20,512	20,512
Total amortized finite-lived intangible assets, gross accumulated amortization	17,101	18,031
Patents, License Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived patents, license agreements, gross amount	55,605	58,060
Total amortized finite-lived intangible assets, gross accumulated amortization	51,478	52,448
Software and Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived internal-use software, gross amount	23,744	24,034
Total amortized finite-lived intangible assets, gross accumulated amortization	16,553	14,758
Other Intangibles
Finite-Lived Intangible Assets [Line Items]
Finite-lived other intangible assets, gross amount	6,980	7,029
Total amortized finite-lived intangible assets, gross accumulated amortization	$ 6,890	$ 6,867
Minimum | Customer Lists
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	6 years
Minimum | Trade Name
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	1 year
Minimum | Patents, License Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	3 years
Minimum | Software and Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	3 years
Minimum | Other Intangibles
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	2 years
Maximum | Customer Lists
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	20 years
Maximum | Trade Name
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	30 years
Maximum | Patents, License Agreements
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	14 years
Maximum | Software and Software Development Costs
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	7 years
Maximum | Other Intangibles
Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, useful life	6 years

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Summary Of Significant Accounting Policies (Schedule Of Movement Of Warranty Reserves) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of year	$ 4,379	$ 4,521
Accruals for warranties issued, net	1,684	3,054
Settlements made	(2,364)	(2,717)
Foreign currency translation adjustment	(191)	(184)
Balance at end of period	$ 3,508	$ 4,674

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Stock-Based Compensation (Nonvested Service Based Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 27, 2015	Dec. 28, 2014
Number of Shares Outstanding (in shares)
Number of shares, nonvested at beginning of period (shares)	940,857
Number of shares, granted (shares)	331,000
Number of shares, vested (shares)	(290,938)
Number of shares, forfeited (shares)	(38,563)
Number of shares, nonvested at end of period (shares)	942,356	940,857
Number of shares, vested and expected to vest (shares)	926,720
Number of shares, vested at end of period (shares)	424,375
Weighted-average vest date
Weighted-average vest date, nonvested	11 months 24 days	6 months 23 days
Weighted-Average vest date, vested and expected to vest	11 months 15 days
Weighted-average grant date fair value
Weighted-average grant date fair value, nonvested at beginning of period (USD per share)	$ 17.11
Weighted-average grant date fair value, granted (USD per share)	12.61
Weighted-average grant date fair value, vested (USD per share)	12.93
Weighted-average grant date fair value, forfeited (USD per share)	14.61
Weighted-average grant date fair value, nonvested at end of period (USD per share)	$ 16.92	$ 17.11

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Business Segments (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 27, 2015 USD ($)	Sep. 28, 2014 USD ($)	Mar. 31, 2013 USD ($)	Sep. 27, 2015 USD ($) segment	Sep. 28, 2014 USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment				3
Net revenues	$ 145,930	$ 160,595		$ 422,022	$ 478,926
Gross profit	58,726	70,965		176,760	205,758
Operating expenses	60,798	60,201		183,654	179,841
Interest expense, net	(792)	(739)		(2,261)	(2,642)
Other gain (loss), net	852	10		364	(518)
(Loss) earnings before income taxes	$ (2,012)	$ 10,035		$ (8,791)	$ 22,757
Concentration risk, percentage	10.00%	10.00%		10.00%	10.00%
Restructuring expense	$ (5)	$ 459		$ 1,583	$ 2,692
Litigation matters	6,584	0	$ (6,600)	15,564	0
Acquisition costs	15	291		135	291
Chief Financial Officer
Segment Reporting Information [Line Items]
Operating expenses				800
Merchandise Availability Solutions | Electronic Article Surveillance (EAS) Systems
Segment Reporting Information [Line Items]
Net revenues	42,000	43,500		107,200	130,100
Merchandise Availability Solutions | Alpha Business
Segment Reporting Information [Line Items]
Net revenues	28,800	29,300		76,000	84,800
Merchandise Availability Solutions | Electronic Article Surveillance (EAS) Consumables
Segment Reporting Information [Line Items]
Net revenues	23,200	24,500		69,700	77,200
Operating Segments | Merchandise Availability Solutions
Segment Reporting Information [Line Items]
Net revenues	98,729	107,494		271,582	312,436
Gross profit	44,666	52,212		129,073	147,416
Operating Segments | Apparel Labeling Solutions
Segment Reporting Information [Line Items]
Net revenues	38,032	41,427		122,159	131,167
Gross profit	10,659	14,248		37,050	45,584
Operating Segments | Retail Merchandising Solutions
Segment Reporting Information [Line Items]
Net revenues	9,169	11,674		28,281	35,323
Gross profit	$ 3,401	$ 4,505		$ 10,637	$ 12,758

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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	Sep. 27, 2015	Dec. 28, 2014
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 14	$ 55
Liability Derivatives	69	23
Foreign currency forward exchange contracts
Derivatives, Fair Value [Line Items]
Asset Derivatives	14	55
Liability Derivatives	69	23
Derivatives not designated as hedging instruments:
Derivatives, Fair Value [Line Items]
Asset Derivatives	14	55
Liability Derivatives	69	23
Derivatives not designated as hedging instruments: | Foreign currency forward exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Asset Derivatives	14	55
Derivatives not designated as hedging instruments: | Foreign currency forward exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 69	$ 23

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Debt (Senior Secured Credit Facility) (Details) - 2013 $200 Million Variable Interest Rate Revolving Facility Maturing in 2018 - USD ($)	Dec. 11, 2013	Sep. 27, 2015
Revolving Credit Facility
Debt Instrument [Line Items]
Borrowing capacity	$ 200,000,000
Debt instrument, property pledged as collateral, amount	$ 5,000,000
Leverage ratio	3.00
Fixed charge coverage ratio	3.00
Revolving Credit Facility | Minimum | Senior Secured Credit Facility
Debt Instrument [Line Items]
Line of credit facility, unused capacity, commitment fee percentage	0.20%
Revolving Credit Facility | Maximum | Senior Secured Credit Facility
Debt Instrument [Line Items]
Line of credit facility, unused capacity, commitment fee percentage	0.40%
Revolving Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.25%
Revolving Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.25%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, basis spread on base rate	1.00%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.25%
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	2.25%
Revolving Credit Facility | Federal Funds Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on base rate	0.50%
Revolving Credit Facility | Common Stock | Domestic Subsidiary
Debt Instrument [Line Items]
Debt instrument, collateral amount, percent	100.00%
Revolving Credit Facility | Common Stock | Foreign Subsidiary
Debt Instrument [Line Items]
Debt instrument, collateral amount, percent	65.00%
Bridge Loan | Base Rate | Minimum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	0.25%
Bridge Loan | Base Rate | Maximum
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.25%
Letter of Credit
Debt Instrument [Line Items]
Amount outstanding under credit facility		$ 1,300,000

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Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Cash flows from operating activities:
Net (loss) earnings	$ (16,042)	$ 5,650
Adjustments to reconcile net (loss) earnings to net cash provided by operating activities:
Depreciation and amortization	19,188	18,712
Amortization of debt issuance costs	325	325
Interest on financing liability	1,479	1,686
Deferred taxes	(1,030)	11,329
Stock-based compensation	4,116	4,349
Provision for losses on accounts receivable	(152)	75
Excess tax benefit on stock-based compensation	(104)	(6)
(Gain) loss on disposal of fixed assets	(214)	105
Litigation matters	6,584	0
Restructuring related asset impairment	0	172
Decrease (increase) in operating assets:
Accounts receivable	12,801	34,653
Inventories	(8,275)	(19,797)
Other assets	7,316	4,678
(Decrease) increase in operating liabilities:
Accounts payable	(5,890)	(8,844)
Income taxes	(566)	(987)
Unearned revenues - current	890	(131)
Restructuring reserve	(3,888)	(3,658)
Other liabilities	(8,830)	(6,417)
Net cash provided by operating activities	7,708	41,894
Cash flows from investing activities:
Acquisition of property, plant, and equipment and intangibles	(13,922)	(12,833)
Cash receipts on note receivable from sale of discontinued operations	212	212
Other investing activities	290	77
Net cash used in investing activities	(13,420)	(12,544)
Cash flows from financing activities:
Proceeds from stock issuances	1,131	1,378
Excess tax benefit on stock-based compensation	104	6
Net change in factoring and bank overdrafts	24	(110)
Proceeds from long-term debt	0	1,000
Payment of long-term debt	(71)	(7,217)
Purchase of treasury stock	(3,146)	0
Dividend paid	(20,980)	0
Net cash used in financing activities	(22,938)	(4,943)
Effect of foreign currency rate fluctuations on cash and cash equivalents	(8,837)	(4,471)
Net (decrease) increase in cash and cash equivalents	(37,487)	19,936
Cash and cash equivalents:
Beginning of period	135,537	121,573
End of period	$ 98,050	$ 141,509

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Fair Value Measurement, Financial Instruments And Risk Management (Amounts Affecting Consolidated Statement Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
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	$ 15	$ 380	$ 290	$ 315

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Goodwill And Other Intangible Assets (Estimated Future Amortization Expense) (Details) $ in Thousands	Sep. 27, 2015 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$ 10,778
2016	10,391
2017	9,319
2018	3,435
2019	2,439
Estimated amortization expense for the remainder of 2015	$ 2,700

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Supplemental Cash Flow Information (Tables)

9 Months Ended

Sep. 27, 2015

Supplemental Cash Flow Information [Abstract]

Schedule Of Cash Payments For Interest And Income Taxes

Cash payments for interest and income taxes for the nine months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)
Nine months ended	September 27, 2015		September 28, 2014
Interest	$	1,098	$	1,395
Income tax payments	$	4,842	$	7,478

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 27, 2015

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 September 27, 2015 and changes during the nine months ended September 27, 2015 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 28, 2014	2,349,447		$	17.77	3.98	$	2,716
Granted	266,080		13.40
Exercised	(15,430	)	8.98
Forfeited or expired	(436,542	)	18.76
Outstanding at September 27, 2015	2,163,555		$	17.10	4.51	$	—
Vested and expected to vest at September 27, 2015	2,145,409		$	17.12	4.47	$	—
Exercisable at September 27, 2015	1,748,868		$	17.89	3.45	$	—

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

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

Nine months ended	September 27, 2015			September 28, 2014
Weighted-average fair value of grants	$	5.48		$	6.41
Valuation assumptions:
Expected life (in years)	5.51			7.68
Expected dividend yield	0.00		%	0.00		%
Expected volatility	45.95		%	48.09		%
Risk-free interest rate	1.541		%	1.465		%

Nonvested Service Based Restricted Stock Units

Nonvested restricted stock units as of September 27, 2015 and changes during the nine months ended September 27, 2015 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 28, 2014	940,857		0.56	$	17.11
Granted	331,000			$	12.61
Vested	(290,938	)		$	12.93
Forfeited	(38,563	)		$	14.61
Nonvested at September 27, 2015	942,356		0.98	$	16.92
Vested and expected to vest at September 27, 2015	926,720		0.96
Vested and deferred at September 27, 2015	424,375		—

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Income Taxes (Details) - USD ($)	9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Income Taxes [Line Items]
Effective tax rate	(82.50%)	75.20%
Net deferred tax assets	$ 11,300,000		$ 12,800,000
Income tax payable	500,000
Current income tax receivable			2,400,000
Estimated tax payments	5,400,000
Current income tax expense	8,300,000
Current deferred tax liability	2,300,000
Interest and penalties benefit	100,000	$ 0
Accrued interest and penalties related to unrecognized tax benefits	2,400,000		4,300,000
Minimum
Income Taxes [Line Items]
Expected decrease of gross unrecognized tax benefits, minimum	4,400,000.0
Maximum
Income Taxes [Line Items]
Expected decrease of gross unrecognized tax benefits, minimum	4,600,000.0
Other Liabilities
Income Taxes [Line Items]
Accrued interest and penalties related to unrecognized tax benefits	$ 15,900,000		16,100,000
Domestic Tax Authority
Income Taxes [Line Items]
Valuation allowance			108,300,000
Deferred tax assets			$ 96,100,000

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Goodwill And Other Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 27, 2015	Dec. 28, 2014
Goodwill [Roll Forward]
Beginning Balance	$ 173,569	$ 185,864
Translation adjustments	(7,583)	(12,295)
Ending Balance	165,986	173,569
Merchandise Availability Solutions
Goodwill [Roll Forward]
Beginning Balance	149,646	159,157
Translation adjustments	(5,782)	(9,511)
Ending Balance	143,864	149,646
Apparel Labeling Solutions
Goodwill [Roll Forward]
Beginning Balance	2,116	2,116
Translation adjustments	0	0
Ending Balance	2,116	2,116
Retail Merchandising Solutions
Goodwill [Roll Forward]
Beginning Balance	21,807	24,591
Translation adjustments	(1,801)	(2,784)
Ending Balance	$ 20,006	$ 21,807

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Earnings Per Share (Tables)

9 Months Ended

Sep. 27, 2015

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 and the weighted-average number of shares of dilutive potential common stock:

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands, except per share data)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Net (loss) earnings available to common stockholders	$	(3,991	)	$	(4,075	)	$	(16,042	)	$	5,650
Shares:
Weighted-average number of common shares outstanding	42,106			41,714			42,010			41,644
Shares issuable under deferred compensation agreements	869			376			854			361
Basic weighted-average number of common shares outstanding	42,975			42,090			42,864			42,005
Common shares assumed upon exercise of stock options and awards	—			—			—			304
Unvested shares issuable under deferred compensation arrangements	—			—			—			12
Dilutive weighted-average number of common shares outstanding	42,975			42,090			42,864			42,321
Basic (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13
Diluted (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13

Schedule Of Anti-Dilutive Common Share Equivalents

The number of anti-dilutive common share equivalents for the three and nine months ended September 27, 2015 and September 28, 2014 were as follows:

	Quarter		Nine months
	(13 weeks) Ended		(39 weeks) Ended
(amounts in thousands)	September 27, 2015	September 28, 2014	September 27, 2015	September 28, 2014
Weighted-average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	2,376	1,839	2,337	2,017

⁽¹⁾  Stock options and awards of 64 thousand and 167 thousand shares and deferred compensation arrangements of 37 thousand and 42 thousand shares were anti-dilutive in the three and nine months ended September 27, 2015 and were therefore excluded from the earnings per share calculation due to our net loss for the period. Stock options and awards of 294 thousand shares and deferred compensation arrangements of 14 thousand shares were anti-dilutive in the three months ended September 28, 2014, and were therefore excluded from the earnings per share calculation due to our loss for the period.

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Pension Benefits (Tables)

9 Months Ended

Sep. 27, 2015

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost for the three and nine months ended September 27, 2015 and September 28, 2014 were as follows:

	Quarter					Nine months
	(13 weeks) Ended					(39 weeks) Ended
(amounts in thousands)	September 27, 2015			September 28, 2014		September 27, 2015			September 28, 2014
Service cost	$	299		$	274	$	900		$	839
Interest cost	526			887		1,586			2,720
Expected return on plan assets	(34		)	—		(101		)	(1		)
Amortization of actuarial loss	737			373		2,220			1,144
Amortization of prior service costs	7			3		20			9
Net periodic pension cost	$	1,535		$	1,537	$	4,625		$	4,711

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Consolidated Statements Of Equity (Unaudited) (Parenthetical) - $ / shares		3 Months Ended		9 Months Ended
	Mar. 05, 2015	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Statement of Stockholders' Equity [Abstract]
Cash dividend declared (USD per share)	$ 0.5	$ 0	$ 0	$ 0.50	$ 0

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

9 Months Ended

Sep. 27, 2015

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 September 27, 2015 and December 28, 2014 and the basis for that measurement:

	September 27, 2015
(amounts in thousands)	Total Fair Value Measurement September 27, 2015		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	$	14	$	—	$	14	$	—
Total assets	$	14	$	—	$	14	$	—
Foreign currency forward exchange contracts	$	69	$	—	$	69	$	—
Total liabilities	$	69	$	—	$	69	$	—

	December 28, 2014
(amounts in thousands)	Total Fair Value Measurement December 28, 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	$	55	$	—	$	55	$	—
Total assets	$	55	$	—	$	55	$	—
Foreign currency forward exchange contracts	$	23	$	—	$	23	$	—
Total liabilities	$	23	$	—	$	23	$	—

Carrying And Fair Values Of Non-Current Financial Assets And Liabilities Not Measured At Fair Value On A Recurring Basis

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 September 27, 2015 and December 28, 2014 are summarized in the following table:

	September 27, 2015				December 28, 2014
(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)
2013 Senior secured credit facility	$	65,000	$	65,000	$	65,000	$	65,000

⁽¹⁾  The carrying amounts are reported on the Consolidated Balance Sheets 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 September 27, 2015 and December 28, 2014:

	September 27, 2015						December 28, 2014
	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	$	14	Other current liabilities	$	69	Other current assets	$	55	Other current liabilities	$	23
Total derivatives not designated as hedging instruments		14			69			55			23
Total derivatives		$	14		$	69		$	55		$	23

Effect Of Non-Designated Hedging Instruments On Financial Performance

The following table represents the amounts affecting the Consolidated Statements of Operations for the three and nine months ended September 27, 2015 and September 28, 2014:

Quarter

Nine months

(13 weeks) Ended

(39 weeks) Ended

September 27, 2015

September 28, 2014

September 27, 2015

September 28, 2014

(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

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

$

15

Other gain (loss), net

$

380

Other gain (loss), net

$

290

Other gain (loss), net

$

315

Other gain (loss), net

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Inventories (Details) - USD ($) $ in Thousands	Sep. 27, 2015	Dec. 28, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 18,817	$ 21,085
Work-in-process	3,100	3,264
Finished goods	70,812	67,511
Total	$ 92,729	$ 91,860

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands		9 Months Ended
	Apr. 10, 2015	Sep. 27, 2015	Sep. 28, 2014
Equity, Class of Treasury Stock [Line Items]
Interest		$ 1,098	$ 1,395
Income tax payments		4,842	7,478
Capital expenditures accrued		1,500	400
Dividend paid	$ 21,000	20,980	$ 0
Dividend payable, non-cash liability	$ 400
Other current liabilities
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, amount not settled during period		$ 300

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Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 27, 2015	Dec. 28, 2014
CURRENT ASSETS:
Cash and cash equivalents	$ 98,050	$ 135,537
Accounts receivable, net of allowance of $6,472 and $8,526	112,182	131,720
Inventories	92,729	91,860
Other current assets	17,125	25,928
Deferred income taxes	5,173	5,557
Total Current Assets	325,259	390,602
REVENUE EQUIPMENT ON OPERATING LEASE, net	1,016	1,057
PROPERTY, PLANT, AND EQUIPMENT, net	76,405	76,332
GOODWILL	165,986	173,569
OTHER INTANGIBLES, net	55,772	64,940
DEFERRED INCOME TAXES	22,692	25,284
OTHER ASSETS	5,957	6,882
TOTAL ASSETS	653,087	738,666
CURRENT LIABILITIES:
Short-term borrowings and current portion of long-term debt	185	236
Current portion of financing liability	6,139	0
Accounts payable	40,602	48,928
Accrued compensation and related taxes	21,056	27,511
Other accrued expenses	45,740	44,204
Income taxes	511	1,278
Unearned revenues	8,051	7,663
Restructuring reserve	1,937	6,255
Accrued pensions — current	4,113	4,472
Other current liabilities	16,253	17,504
Total Current Liabilities	144,587	158,051
LONG-TERM DEBT, LESS CURRENT MATURITIES	65,201	65,161
FINANCING LIABILITY	25,777	33,094
ACCRUED PENSIONS	99,299	108,920
OTHER LONG-TERM LIABILITIES	28,505	30,140
DEFERRED INCOME TAXES	$ 14,292	$ 15,369
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, 500,000 shares authorized, none issued	$ 0	$ 0
Common stock, par value $.10 per share, 100,000,000 shares authorized, 46,197,226 and 45,840,171 shares issued, 41,722,379 and 41,804,259 shares outstanding	4,620	4,584
Additional capital	425,198	441,882
Accumulated deficit	(28,373)	(12,331)
Common stock in treasury, at cost, 4,474,847 and 4,035,912 shares	(74,930)	(71,520)
Accumulated other comprehensive (loss) income, net of tax	(51,089)	(34,684)
TOTAL STOCKHOLDERS' EQUITY	275,426	327,931
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 653,087	$ 738,666

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Goodwill And Other Intangible Assets (Schedule Of Components Of Goodwill) (Details) - USD ($) $ in Thousands	Sep. 27, 2015	Dec. 28, 2014	Dec. 29, 2013
Goodwill [Line Items]
Gross Amount	$ 373,924	$ 400,837
Accumulated Impairment Losses	207,938	227,268
Goodwill, Net	165,986	173,569	$ 185,864
Merchandise Availability Solutions
Goodwill [Line Items]
Gross Amount	177,916	192,303
Accumulated Impairment Losses	34,052	42,657
Goodwill, Net	143,864	149,646	159,157
Apparel Labeling Solutions
Goodwill [Line Items]
Gross Amount	83,010	84,407
Accumulated Impairment Losses	80,894	82,291
Goodwill, Net	2,116	2,116	2,116
Retail Merchandising Solutions
Goodwill [Line Items]
Gross Amount	112,998	124,127
Accumulated Impairment Losses	92,992	102,320
Goodwill, Net	$ 20,006	$ 21,807	$ 24,591

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Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Statement of Comprehensive Income [Abstract]
Amortization of pension plan actuarial losses, tax (benefit)	$ (425)	$ (217)	$ 10	$ 5

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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) - Estimated Fair Value - Senior Secured Credit Facility - USD ($) $ in Thousands	Sep. 27, 2015	Dec. 28, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying Amount	$ 65,000	$ 65,000
Estimated Fair Value	$ 65,000	$ 65,000

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Summary Of Significant Accounting Policies (Out of Period Adjustments) (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 27, 2015	Mar. 29, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in revenue	$ (145,930)		$ (160,595)	$ (422,022)	$ (478,926)
Decrease in gross profit	(58,726)		(70,965)	(176,760)	(205,758)
Decrease in operating expenses	(60,798)		(60,201)	(183,654)	(179,841)
Net (loss) earnings	(3,991)		(4,075)	(16,042)	5,650	$ 10,953
Reduction of income taxes	$ (1,979)		(14,110)	$ (7,251)	$ (17,107)
Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in operating expenses			1,100
Net (loss) earnings		$ 1,000
Reduction of income taxes		$ 1,000
Correction Of Accounting For Maintenance Agreement [Member] | Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in revenue			700
Revenue Cutoff [Member] | Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in revenue			1,100
Decrease in gross profit			$ 600

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Provision For Restructuring (Schedule Of Restructuring Accrual Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year			$ 6,255
Charged to Earnings			2,689
Charge Reversed to Earnings			(1,106)
Cash Payments			(5,473)
Exchange Rate Changes			(428)
Accrual at September 27, 2015	$ 1,937		1,937
Restructuring expense	(5)	$ 459	1,583	$ 2,692
Profit Enhancement Plan
Restructuring Reserve [Roll Forward]
Restructuring expense			1,700
Profit Enhancement Plan | Severance and other employee-related charges
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year			4,082
Charged to Earnings			2,419
Charge Reversed to Earnings			(889)
Cash Payments			(3,970)
Exchange Rate Changes			(266)
Accrual at September 27, 2015	1,376		1,376
Profit Enhancement Plan | Other exit costs
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year			0
Charged to Earnings			191
Charge Reversed to Earnings			0
Cash Payments			(191)
Exchange Rate Changes			0
Accrual at September 27, 2015	0		0
Restructuring expense			200
Global Restructuring Plan (including LEAN)
Restructuring Reserve [Roll Forward]
Restructuring expense			(100)
Global Restructuring Plan (including LEAN) | Severance and other employee-related charges
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year			2,050
Charged to Earnings			64
Charge Reversed to Earnings			(216)
Cash Payments			(1,252)
Exchange Rate Changes			(154)
Accrual at September 27, 2015	492		492
Global Restructuring Plan (including LEAN) | Other exit costs
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year			15
Charged to Earnings			15
Charge Reversed to Earnings			0
Cash Payments			(15)
Exchange Rate Changes			0
Accrual at September 27, 2015	15		15
SG&A Restructuring Plan | Severance and other employee-related charges
Restructuring Reserve [Roll Forward]
Accrual at Beginning of Year			108
Charged to Earnings			0
Charge Reversed to Earnings			(1)
Cash Payments			(45)
Exchange Rate Changes			(8)
Accrual at September 27, 2015	$ 54		$ 54

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Business Segments

9 Months Ended

Sep. 27, 2015

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

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.

	Quarter								Nine months
	(13 weeks) Ended								(39 weeks) Ended
(amounts in thousands)	September 27, 2015				September 28, 2014				September 27, 2015				September 28, 2014
Business segment net revenue:
Merchandise Availability Solutions	$	98,729		(1)	$	107,494		(2)	$	271,582		(3)	$	312,436		(4)
Apparel Labeling Solutions	38,032				41,427				122,159				131,167
Retail Merchandising Solutions	9,169				11,674				28,281				35,323
Total revenues	$	145,930			$	160,595			$	422,022			$	478,926
Business segment gross profit:
Merchandise Availability Solutions	$	44,666			$	52,212			$	129,073			$	147,416
Apparel Labeling Solutions	10,659				14,248				37,050				45,584
Retail Merchandising Solutions	3,401				4,505				10,637				12,758
Total gross profit	58,726				70,965				176,760				205,758
Operating expenses	60,798			(5)	60,201			(6)	183,654			(7)	179,841			(8)
Interest expense, net	(792		)		(739		)		(2,261		)		(2,642		)
Other gain (loss), net	852				10				364				(518		)
(Loss) earnings before income taxes	$	(2,012	)		$	10,035			$	(8,791	)		$	22,757

⁽¹⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $42.0 million, $28.8 million, and $23.2 million, respectively, representing more than 10% of total revenue.

⁽²⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $43.5 million, $29.3 million, and $24.5 million, respectively, representing more than 10% of total revenue.

⁽³⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $107.2 million, $76.0 million, and $69.7 million, respectively, representing more than 10% of total revenue.

⁽⁴⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $130.1 million, $84.8 million and $77.2 million, respectively, representing more than 10% of total revenue.

⁽⁵⁾  Includes a $6.6 million litigation matter, a$15 thousand acquisition charge, and a $5 thousand restructuring release.

⁽⁶⁾  Includes a $0.5 million restructuring charge, and a $0.3 million acquisition charge.

⁽⁷⁾  Includes $15.6 million in litigation matters, a $1.6 million restructuring charge, a $0.8 million management transition charge, and a$0.1 million acquisition charge.

⁽⁸⁾  Includes a $2.7 million restructuring charge, and a $0.3 million acquisition charge.

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Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ / shares in Units, shares in Thousands			1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 10, 2015	Mar. 05, 2015	Jul. 31, 2015	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accrued customer incentives and rebates				$ 11,700,000		$ 11,700,000		$ 12,500,000
Cash dividend declared (USD per share)		$ 0.5		$ 0	$ 0	$ 0.50	$ 0
Dividend paid	$ 21,000,000					$ 20,980,000	$ 0
Stock repurchase program, authorized amount			$ 30,000,000
Stock repurchase program, period in which shares may be repurchased			2 years
Repurchase of common stock (shares)						439
Treasury stock acquired, average cost per share (USD per share)						$ 7.75
Repurchase of common stock						$ 3,410,000
Stock Compensation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Non-cash portion of the dividend	$ 400,000

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Summary Of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 27, 2015

Accounting Policies [Abstract]

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)
Nine months ended	September 27, 2015			September 28, 2014
Balance at beginning of year	$	4,379		$	4,521
Accruals for warranties issued, net	1,684			3,054
Settlements made	(2,364		)	(2,717		)
Foreign currency translation adjustment	(191		)	(184		)
Balance at end of period	$	3,508		$	4,674

Schedule of Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 27, 2015 were as follows:

(amounts in thousands)	Pension plan			Foreign currency translation adjustment			Total accumulated other comprehensive income (loss)
Balance, December 28, 2014	$	(35,036	)	$	352		$	(34,684	)
Foreign currency translation adjustment	2,823			(21,458		)	(18,635		)
Amounts reclassified from other comprehensive income	2,230			—			2,230
Net other comprehensive income (loss)	5,053			(21,458		)	(16,405		)
Balance, September 27, 2015	$	(29,983	)	$	(21,106	)	$	(51,089	)

Reclassification Out Of Accumulated Other Comprehensive Income (Loss)

The significant items reclassified from each component of other comprehensive income (loss) for the three months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)	September 27, 2015				September 28, 2014
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)	$	(737	)		$	(373	)
Prior service cost (1)	(7		)		(3		)
	(744		)	Total before tax	(376		)	Total before tax
	(425		)	Tax benefit	(217		)	Tax benefit
Total reclassifications for the period	$	(1,169	)	Net of tax	$	(593	)	Net of tax

⁽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.

The significant items reclassified from each component of other comprehensive income (loss) for the nine months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)	September 27, 2015				September 28, 2014
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)	$	(2,220	)		$	(1,144	)
Prior service cost (1)	(20		)		(9		)
	(2,240		)	Total before tax	(1,153		)	Total before tax
	10			Tax expense	5			Tax expense
Total reclassifications for the period	$	(2,230	)	Net of tax	$	(1,148	)	Net of tax

⁽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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Consolidated Statements Of Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Capital	Accumulated Deficit	Treasury Stock	Accumulated Other Comprehensive Income (Loss)
Balance (shares) at Dec. 29, 2013		45,484			4,036
Balance at Dec. 29, 2013	$ 346,325	$ 4,548	$ 434,336	$ (23,284)	$ (71,520)	$ 2,245
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) earnings	10,953			10,953
Exercise of stock-based compensation and awards released (shares)		356
Exercise of stock-based compensation and awards released	943	$ 36	907
Tax benefit on stock-based compensation	(14)		(14)
Stock-based compensation expense	5,781		5,781
Deferred compensation plan	872		872
Pension liability adjustments	(17,263)					(17,263)
Foreign currency translation adjustment	(19,666)					(19,666)
Balance (shares) at Dec. 28, 2014		45,840			4,036
Balance at Dec. 28, 2014	327,931	$ 4,584	441,882	(12,331)	$ (71,520)	(34,684)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) earnings	(16,042)			(16,042)
Exercise of stock-based compensation and awards released (shares)		357
Exercise of stock-based compensation and awards released	(52)	$ 36	(88)
Tax benefit on stock-based compensation	(275)		(275)
Stock-based compensation expense	4,116		4,116
Deferred compensation plan	947		947
Dividend declared	$ (21,384)		(21,384)
Repurchase of common stock (shares)	439				439
Repurchase of common stock	$ (3,410)				$ (3,410)
Pension liability adjustments	5,053					5,053
Foreign currency translation adjustment	(21,458)					(21,458)
Balance (shares) at Sep. 27, 2015		46,197			4,475
Balance at Sep. 27, 2015	$ 275,426	$ 4,620	$ 425,198	$ (28,373)	$ (74,930)	$ (51,089)

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Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 27, 2015	Dec. 28, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 6,472	$ 8,526
Preferred stock, no par value (USD per share)	$ 0	$ 0
Preferred stock, shares authorized (shares)	500,000	500,000
Preferred stock, shares issued (shares)	0	0
Common stock, par value (USD per share)	$ 0.1	$ 0.1
Common stock, shares authorized (shares)	100,000,000	100,000,000
Common stock, shares issued (shares)	46,197,226	45,840,171
Common stock, shares outstanding (shares)	41,722,379	41,804,259
Treasury stock (shares)	4,474,847	4,035,912

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Income Taxes

9 Months Ended

Sep. 27, 2015

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The effective tax rate for the nine months ended September 27, 2015 was negative 82.5% as compared to 75.2% for the nine months ended September 28, 2014. The change in the effective tax rate for the nine months ended September 27, 2015 was due to the mix of income between subsidiaries and increased losses for entities with valuation allowances for which no tax benefit is received. These changes primarily relate to the U.S. jurisdiction, which had significant year to date losses as of September 27, 2015 and a projected loss for the full fiscal year 2015 for which no tax benefit is received. In contrast, the U.S. jurisdiction had significant year to date income as of September 28, 2014 and projected income for the full fiscal year 2014.

In calculating the tax provision for the three months ended September 27, 2015, we have accounted for the U.S. operations by applying the discrete method. The use of the estimated effective tax rate methodology for the U.S. operations is not considered a reliable estimate for the reporting period ended September 27, 2015 due to significant permanent items related to deferred tax liabilities associated with non amortizable assets such as goodwill and indefinite lived intangibles.

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 each of the respective lines of business experiences changes in operating results across their geographic footprint, 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 September 27, 2015 and December 28, 2014, we had net deferred tax assets of $11.3 million and $12.8 million, respectively.

At December 28, 2014, the U.S. had a valuation allowance of $108.3 million recorded against its net deferred tax assets of $96.1 million. The amount of valuation allowance recorded was greater than the net domestic deferred tax asset after consideration of deferred tax liabilities associated with non amortizable assets such as goodwill and indefinite lived intangibles. The valuation allowance is reviewed quarterly and will be maintained until there is sufficient positive evidence to support a release. At each reporting date, we consider new evidence, both positive and negative, that could impact the future realization of deferred tax assets. We will consider a release of the valuation allowance once there is sufficient positive evidence that it is more likely than not that the deferred tax assets will be realized. Any release of the valuation allowance will be recorded as a tax benefit increasing net income.

As of September 27, 2015, we have a current income tax payable of $0.5 million reflected as Income Taxes on our Consolidated Balance Sheets. This amount represents a net receivable of $2.4 million as of December 28, 2014, year to date estimated tax payments made in excess of refunds received in the amount of $5.4 million, and current tax expense recorded on our year to date pretax income of $8.3 million. Included in Other Current Liabilities is our current deferred tax liability of $2.3 million.

Penalties and tax-related interest expense are reported as a component of Income Tax Expense on our Consolidated Statement of Operations. During the nine months ended September 27, 2015 we recognized an interest and penalties benefit of $0.1 million compared to no interest in penalties recognized during the nine months ended September 28, 2014. As of September 27, 2015 and December 28, 2014, we had accrued interest and penalties related to unrecognized tax benefits of $2.4 million and $4.3 million, respectively.

As of September 27, 2015 and December 28, 2014, $15.9 million and $16.1 million, respectively, of our unrecognized tax benefits, penalties, and interest were recorded as a component of Other Long-Term Liabilities on the Consolidated Balance Sheets.

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 expiration of various statutes of limitation and the potential resolution of federal, state, and foreign examinations, it is reasonably possible that the gross unrecognized tax benefits balance may decrease within the next twelve months by a range of $4.4 million to $4.6 million.

We are currently under audit in the following major jurisdictions: India - 2012 to 2013, France - 2012 to 2013, and Canada - 2011 to 2014. During the second quarter we resolved an audit with the German tax authorities for tax years 2006 to 2009 with no impact to income tax expense. The following major jurisdictions have tax years that remain subject to examination: Germany - 2010 to 2014, United States - 2012 to 2014, China - 2012 to 2014 and Hong Kong - 2008 to 2014. 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 - shares	9 Months Ended
	Sep. 27, 2015	Oct. 29, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 27, 2015
Entity Registrant Name	CHECKPOINT SYSTEMS INC
Entity Central Index Key	0000215419
Current Fiscal Year End Date	--12-27
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		41,550,175
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3

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Pension Benefits

9 Months Ended

Sep. 27, 2015

Compensation and Retirement Disclosure [Abstract]

Pension Benefits

PENSION BENEFITS

The components of net periodic benefit cost for the three and nine months ended September 27, 2015 and September 28, 2014 were as follows:

	Quarter					Nine months
	(13 weeks) Ended					(39 weeks) Ended
(amounts in thousands)	September 27, 2015			September 28, 2014		September 27, 2015			September 28, 2014
Service cost	$	299		$	274	$	900		$	839
Interest cost	526			887		1,586			2,720
Expected return on plan assets	(34		)	—		(101		)	(1		)
Amortization of actuarial loss	737			373		2,220			1,144
Amortization of prior service costs	7			3		20			9
Net periodic pension cost	$	1,535		$	1,537	$	4,625		$	4,711

We expect the cash requirements for funding the pension benefits to be approximately $4.4 million during fiscal 2015, including $3.3 million which was funded during the nine months ended September 27, 2015.

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Consolidated Statements Of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Income Statement [Abstract]
Net revenues	$ 145,930	$ 160,595	$ 422,022	$ 478,926
Cost of revenues	87,204	89,630	245,262	273,168
Gross profit	58,726	70,965	176,760	205,758
Selling, general, and administrative expenses	48,923	55,480	152,120	165,195
Research and development	5,281	3,971	14,745	11,663
Restructuring expense	(5)	459	1,583	2,692
Litigation matters	6,584	0	15,564	0
Acquisition costs	15	291	135	291
Other operating income	0	0	(493)	0
Operating (loss) income	(2,072)	10,764	(6,894)	25,917
Interest income	179	323	638	875
Interest expense	971	1,062	2,899	3,517
Other gain (loss), net	852	10	364	(518)
(Loss) earnings before income taxes	(2,012)	10,035	(8,791)	22,757
Income tax expense	1,979	14,110	7,251	17,107
Net (loss) earnings	$ (3,991)	$ (4,075)	$ (16,042)	$ 5,650
Net (loss) earnings per common share:
Basic (loss) earnings per share (USD per share)	$ (0.09)	$ (0.10)	$ (0.37)	$ 0.13
Diluted (loss) earnings per share (USD per share)	(0.09)	(0.10)	(0.37)	0.13
Dividends declared per share (USD per share)	$ 0	$ 0	$ 0.50	$ 0

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Goodwill And Other Intangible Assets

9 Months Ended

Sep. 27, 2015

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 $55.8 million and $64.9 million as of September 27, 2015 and December 28, 2014, respectively.

The following table reflects the components of intangible assets as of September 27, 2015 and December 28, 2014:

		September 27, 2015				December 28, 2014
(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	$	76,356	$	60,447	$	79,110	$	58,873
Trade name	1 to 30	25,045		17,101		27,172		18,031
Patents, license agreements	3 to 14	55,605		51,478		58,060		52,448
Internal-use software	3 to 7	23,744		16,553		24,034		14,758
Other	2 to 6	6,980		6,890		7,029		6,867
Total amortized finite-lived intangible assets		187,730		152,469		195,405		150,977
Indefinite-lived intangible assets:
Trade name		20,512		—		20,512		—
Total identifiable intangible assets		$	208,242	$	152,469	$	215,917	$	150,977

Amortization expense for the three and nine months ended September 27, 2015 was $2.7 million and $8.1 million, respectively.

Amortization expense for the three and nine months ended September 28, 2014 was $2.8 million and $8.4 million, respectively.

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

(amounts in thousands)
2015	(1)	$	10,778
2016		$	10,391
2017		$	9,319
2018		$	3,435
2019		$	2,439

⁽¹⁾  The estimated amortization expense for the remainder of 2015 is anticipated to be $2.7 million.

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 29, 2013	$	159,157		$	2,116	$	24,591		$	185,864
Translation adjustments	(9,511		)	—		(2,784		)	(12,295		)
Balance as of December 28, 2014	$	149,646		$	2,116	$	21,807		$	173,569
Translation adjustments	(5,782		)	—		(1,801		)	(7,583		)
Balance as of September 27, 2015	$	143,864		$	2,116	$	20,006		$	165,986

The following table reflects the components of goodwill as of September 27, 2015 and December 28, 2014:

	September 27, 2015						December 28, 2014
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	177,916	$	34,052	$	143,864	$	192,303	$	42,657	$	149,646
Apparel Labeling Solutions	83,010		80,894		2,116		84,407		82,291		2,116
Retail Merchandising Solutions	112,998		92,992		20,006		124,127		102,320		21,807
Total goodwill	$	373,924	$	207,938	$	165,986	$	400,837	$	227,268	$	173,569

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.

The May 2011 acquisition of the Shore to Shore businesses included a purchase price payment to escrow of $17.5 million related to the 2010 performance of the acquired business. This amount was subject to adjustment pending final determination of the 2010 performance and could have resulted in an additional purchase price payment of up to $6.3 million. In the third quarter of 2015, we engaged in discussions with the sellers regarding the possibility of reaching a settlement of this matter. On August 25, 2015, we entered into a settlement with the sellers. Pursuant to the settlement, the sellers received the $17.5 million in escrow, plus the earnings in the escrow account, in exchange for full and final resolution of this matter between the parties. As a result of this settlement, there is no final adjustment to the purchase price recognized through earnings and we are released from any and all claim or liability in connection with the final determination of the 2010 performance. Acquisition related 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 are approximately $15 thousand and $0.1 million for the three and nine months ended September 27, 2015 compared to $0.3 million and $0.3 million for the three and nine months ended September 28, 2014, respectively.

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Inventories

9 Months Ended

Sep. 27, 2015

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Inventories consist of the following:

(amounts in thousands)	September 27, 2015		December 28, 2014
Raw materials	$	18,817	$	21,085
Work-in-process	3,100		3,264
Finished goods	70,812		67,511
Total	$	92,729	$	91,860

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Summary Of Significant Accounting Policies (Policy)

9 Months Ended

Sep. 27, 2015

Accounting Policies [Abstract]

Principles of Consolidation

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 28, 2014 is derived from the Company's audited Consolidated Financial Statements at December 28, 2014. Refer to our Annual Report on Form 10-K for the fiscal year ended December 28, 2014 for the most recent disclosure of our accounting policies.

The Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position at September 27, 2015 and December 28, 2014 and our results of operations for the thirteen and thirty-nine weeks ended September 27, 2015 and September 28, 2014 and changes in cash flows for the thirty-nine weeks ended September 27, 2015 and September 28, 2014. The results of operations for the interim period should not be considered indicative of results to be expected for the full year.

Reclassifications

Reclassifications

Certain reclassifications have been made to prior period information to conform to the current period presentation.

Customer Rebates

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 Sheets, was $11.7 million and $12.5 million as of September 27, 2015 and December 28, 2014, 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.

Warranty Reserves

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.

Subsequent Events

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 or required in our financial statements.

Recently Adopted Accounting Standards and New Accounting Pronouncements and Other Standards

Recently Adopted Accounting Standards

In April 2014, the FASB issued ASU 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): 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 was effective for fiscal and interim periods beginning on or after December 15, 2014, which for us was December 29, 2014, the first day of our 2015 fiscal year. The adoption of this standard has not had a material effect on our consolidated results of operations and financial condition.

New Accounting Pronouncements and Other Standards

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09), which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved the deferral of the effective date by one year. The accounting standard is now effective for annual and interim periods beginning after December 15, 2017, which for us is January 1, 2018, the first day of our 2018 fiscal year. The final ASU permits organizations to adopt the new revenue standard early, but not before annual and interim periods beginning after December 15, 2016. We are currently evaluating the impact of adopting this guidance.

In June 2014, the FASB issued “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (ASU 2014-12). The amendments in this update require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2014-12. Entities may apply the amendments in ASU 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to apply this guidance prospectively to all awards granted or modified after the effective date. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In August 2014, the FASB issued “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU 2014-15). Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, “Presentation of Financial Statements-Liquidation Basis of Accounting.” Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the new criteria in this update should be followed to determine whether to disclose information about the relevant conditions and events. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. We have not early adopted ASU 2014-15. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In January 2015, the FASB issued “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (ASU 2015-01). The amendments in this update eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We have not early adopted ASU 2015-01. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In February 2015, the FASB issued “Consolidation (Topic 810): Amendments to the Consolidation Analysis” (ASU 2015-02). The amendments in this update modifies existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) certain investment funds. These changes reduce the number of consolidation models from four to two and place more emphasis on the risk of loss when determining a controlling financial interest. ASU 2015-02 is effective for public companies for fiscal years beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03). The amendments in this update change the presentation of debt issuance costs in financial statements requiring an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2016, which for us is December 26, 2016, the first day of our 2017 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-03. The new guidance will be applied retrospectively to each prior period presented. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets” (ASU 2015-04). The amendments in this update provide a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. ASU 2015-04 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-04. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (ASU 2015-05). The amendments in this update help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-05. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In June 2015, the FASB issued “Technical Corrections and Improvements” (ASU 2015-10). The amendments in this update provide technical corrections and improvements to a wide range of Topics in the Accounting Standards Codification (the Codification). The purpose of these amendments is to correct unintended differences between original guidance and the Codification, to provide clarification through updating wording or correcting references, to streamline or simplify the Codification through minor changes, and to make other minor improvements to the guidance which are not expected to have a significant effect on current accounting practice. ASU 2015-10 is effective for fiscal and interim periods beginning on or after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition.

In July 2015, the FASB issued “Inventory (Topic 330): Simplifying the Measurement of Inventory” (ASU 2015-11). The amendments in this update simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 is effective for fiscal and interim periods beginning on or after December 15, 2016, which for us is December 26, 2016, the first day of our 2017 fiscal year. Early application is permitted. We have not early adopted ASU 2015-11. The new guidance must be applied prospectively after the date of adoption. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition.

In August 2015, the FASB issued “Interest-Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting” (ASU 2015-15). The amendments to the SEC Paragraphs in this update state that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance in ASU 2015-15 is effective upon the adoption of ASU 2015-03 and is not expected to have a material effect on our consolidated results of operations and financial condition.

In September 2015, the FASB issued “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16). The amendments in this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update also requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years and interim periods beginning on or after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. The new guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not yet been made available for issuance. We do not have any business combination for which the accounting is incomplete. We do not expect this to have a material effect on our consolidated results of operations and financial condition.

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Fair Value Measurement, Financial Instruments And Risk Management

9 Months Ended

Sep. 27, 2015

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 September 27, 2015 and December 28, 2014 and the basis for that measurement:

	September 27, 2015
(amounts in thousands)	Total Fair Value Measurement September 27, 2015		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	$	14	$	—	$	14	$	—
Total assets	$	14	$	—	$	14	$	—
Foreign currency forward exchange contracts	$	69	$	—	$	69	$	—
Total liabilities	$	69	$	—	$	69	$	—

	December 28, 2014
(amounts in thousands)	Total Fair Value Measurement December 28, 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	$	55	$	—	$	55	$	—
Total assets	$	55	$	—	$	55	$	—
Foreign currency forward exchange contracts	$	23	$	—	$	23	$	—
Total liabilities	$	23	$	—	$	23	$	—

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 September 27, 2015 and December 28, 2014 are summarized in the following table:

	September 27, 2015				December 28, 2014
(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)
2013 Senior secured credit facility	$	65,000	$	65,000	$	65,000	$	65,000

⁽¹⁾  The carrying amounts are reported on the Consolidated Balance Sheets under the indicated captions.

Long-term debt is carried at the original offering price, less any payments of principal. The carrying amount of the Senior Secured Credit Facility approximates fair value due to the variable rate nature of its interest at current market rates. The related fair value measurement has generally been classified as Level 2 in the fair value hierarchy.

Nonrecurring Fair Value Measurements

In connection with our restructuring plans, we recorded impairment losses in restructuring expense during the nine months ended September 28, 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. 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 September 27, 2015 and December 28, 2014:

	September 27, 2015						December 28, 2014
	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	$	14	Other current liabilities	$	69	Other current assets	$	55	Other current liabilities	$	23
Total derivatives not designated as hedging instruments		14			69			55			23
Total derivatives		$	14		$	69		$	55		$	23

The following table represents the amounts affecting the Consolidated Statements of Operations for the three and nine months ended September 27, 2015 and September 28, 2014:

Quarter

Nine months

(13 weeks) Ended

(39 weeks) Ended

September 27, 2015

September 28, 2014

September 27, 2015

September 28, 2014

(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

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

$

15

Other gain (loss), net

$

380

Other gain (loss), net

$

290

Other gain (loss), net

$

315

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 orlosses 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 September 27, 2015, we had currency forward exchange contracts with notional amounts totaling approximately$6.6 million. The fair values of the forward exchange contracts were reflected as a$14 thousand asset and a $0.1 million 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

9 Months Ended

Sep. 27, 2015

Supplemental Cash Flow Information [Abstract]

Supplemental Cash Flow Information

SUPPLEMENTAL CASH FLOW INFORMATION

Cash payments for interest and income taxes for the nine months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)
Nine months ended	September 27, 2015		September 28, 2014
Interest	$	1,098	$	1,395
Income tax payments	$	4,842	$	7,478

As of September 27, 2015 and September 28, 2014, we accrued $1.5 million and $0.4 million of capital expenditures, respectively. These amounts were excluded from the Consolidated Statements of Cash Flows at September 27, 2015 and September 28, 2014 since they represent non-cash investing activities. Accrued capital expenditures at September 27, 2015 and September 28, 2014 are included in Accounts Payable and Other Accrued Expenses on the Consolidated Balance Sheets. A special dividend was declared on March 5, 2015. The cash portion of the Dividend of $21.0 million was paid to common shareholders on April 10, 2015. The non-cash portion of the Dividend of $0.4 million was also credited to the executive and director deferred compensation plan deferred stock accounts on April 10, 2015 in accordance with the plans. As of September 27, 2015, $0.3 million of the repurchase of common stock in connection with our stock repurchase program was included in Other Current Liabilities on the Consolidated Balance Sheets, which represents shares that were traded during the reporting period, but settled 3 days later in the subsequent reporting period.

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Fair Value Measurement, Financial Instruments And Risk Management (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014
Fair Value Disclosures [Line Items]
Restructuring related asset impairment			$ 0	$ 172
Carrying amount of assets	$ 76,405		76,405		$ 76,332
Asset Derivatives	14		14		55
Liability Derivatives	69		69		23
Foreign currency forward exchange contracts
Fair Value Disclosures [Line Items]
Notional amount of derivatives not designated as hedging instruments	6,600		6,600
Asset Derivatives	14		14		55
Liability Derivatives	69		69		$ 23
Global Restructuring Plan (including LEAN)
Fair Value Disclosures [Line Items]
Restructuring related asset impairment	$ 0	$ 0	$ 0	172
Fair Value, Measurements, Nonrecurring | Impairment of certain long-lived assets
Fair Value Disclosures [Line Items]
Carrying amount of assets		200		200
Fair Value, Measurements, Nonrecurring | Global Restructuring Plan (including LEAN)
Fair Value Disclosures [Line Items]
Fair value of assets		$ 21		$ 21

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Debt

9 Months Ended

Sep. 27, 2015

Debt Disclosure [Abstract]

Debt

DEBT

Debt as of September 27, 2015 and December 28, 2014 consisted of the following:

(amounts in thousands)	September 27, 2015		December 28, 2014
2013 Senior Secured Credit Facility:
$200 million variable interest rate revolving credit facility maturing in 2018	$	65,000	$	65,000
Full-recourse factoring liabilities	—		83
Bank overdraft credit facility	97		65
Capital leases with maturities through 2020	289		249
Total	65,386		65,397
Less current portion	185		236
Total long-term portion	$	65,201	$	65,161

2013 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. 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 (i) the Federal Funds Rate, plus 0.50%, (ii) the Administrative Agent’s prime rate, and (iii) a daily rate equal to the one-month LIBOR rate, plus 1.00%. Swingline loans bear interest of 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 September 27, 2015. 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.

As of September 27, 2015, there were $1.3 million in issued letters of credit outstanding under the 2013 Senior Secured Credit Facility.

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 Financing Liability in our Consolidated Balance Sheets. The balance of the financing liability is $31.9 million and $33.1 million as of September 27, 2015 and December 28, 2014, respectively. Of this balance, $6.1 million was included in current portion of financing liability as of September 27, 2015. 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 for the three and nine months ended September 27, 2015 of $0.5 million and $1.5 million, respectively. The recognized interest expense related to the financing liability for the three and nine months ended September 28, 2014 was $0.6 million and $1.7 million, 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.

In March 2015, we again sold rights to future customer receivables to a financial institution in Spain resulting from the negotiated extension of previously executed sales-type lease arrangements. The 2015 transaction qualified as a legal sale without recourse. For the nine months ended September 27, 2015, we recognized $0.5 million of income on the sale in Other Operating Income on our Consolidated Statement of Operations. A portion of the receivables were previously sold to another financial institution and we did not complete the reacquisition of these receivables until after the end of the first quarter of 2015. Therefore, a portion of the proceeds from the fiscal 2015 legal sale were accounted for as a financing arrangement and reflected as Financing Liability in our Consolidated Balance Sheets until the reacquisition of the receivables was completed in the second quarter of 2015.

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Stock-Based Compensation

9 Months Ended

Sep. 27, 2015

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 and nine months ended September 27, 2015 was $1.1 million and $4.1 million ($1.2 million and $4.1 million, net of tax), respectively. For the three and nine months ended September 28, 2014, the total compensation expense was $1.4 million and $4.3 million ($1.4 million and $4.2 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 nine months ended September 27, 2015 and September 28, 2014, respectively.

Stock Options

Option activity under the principal option plans as of September 27, 2015 and changes during the nine months ended September 27, 2015 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 28, 2014	2,349,447		$	17.77	3.98	$	2,716
Granted	266,080		13.40
Exercised	(15,430	)	8.98
Forfeited or expired	(436,542	)	18.76
Outstanding at September 27, 2015	2,163,555		$	17.10	4.51	$	—
Vested and expected to vest at September 27, 2015	2,145,409		$	17.12	4.47	$	—
Exercisable at September 27, 2015	1,748,868		$	17.89	3.45	$	—

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 third quarter of fiscal 2015 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 September 27, 2015. This amount changes based on the fair market value of our stock. The total intrinsic value of options exercised for the nine months ended September 27, 2015 and September 28, 2014 was $45 thousand and $0.3 million, respectively.

As of September 27, 2015, $1.4 million of total unrecognized compensation cost related to stock options is expected to be recognized over a weighted-average period of 2.0 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. The expected dividend yield is based on the estimate of annual dividends expected to be paid at the time of the grant. 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 weighted-average fair values and assumptions were as follows:

Nine months ended	September 27, 2015			September 28, 2014
Weighted-average fair value of grants	$	5.48		$	6.41
Valuation assumptions:
Expected life (in years)	5.51			7.68
Expected dividend yield	0.00		%	0.00		%
Expected volatility	45.95		%	48.09		%
Risk-free interest rate	1.541		%	1.465		%

Restricted Stock Units

Nonvested restricted stock units as of September 27, 2015 and changes during the nine months ended September 27, 2015 were as follows:

	Number of Shares		Weighted- Average Vest Date (in years)	Weighted- Average Grant Date Fair Value
Nonvested at December 28, 2014	940,857		0.56	$	17.11
Granted	331,000			$	12.61
Vested	(290,938	)		$	12.93
Forfeited	(38,563	)		$	14.61
Nonvested at September 27, 2015	942,356		0.98	$	16.92
Vested and expected to vest at September 27, 2015	926,720		0.96
Vested and deferred at September 27, 2015	424,375		—

The total fair value of restricted stock awards vested during the first nine months of 2015 was $3.8 million as compared to $2.9 million in the first nine months of 2014. As of September 27, 2015, there was $4.1 million of unrecognized stock-based compensation expense related to nonvested restricted stock units (RSUs). That cost is expected to be recognized over a weighted-average period of 1.7 years.

Long-Term Incentive Plans (LTIPs)

The following awards of restricted stock units (RSUs) with a performance or market condition are excluded from the balance of nonvested RSUs at September 27, 2015 in the table above. There were no new LTIP awards in the first nine months of 2015.

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 value of these units was 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. As of September 27, 2015, we assessed the performance of our LTIP 2014 plan. Due to current and projected shortfalls in our EBIDTA growth compared to the LTIP 2014 plan requirements, we concluded that it was probable that these performance conditions would not be met. We therefore reversed $0.5 million of previously recognized compensation cost during the third quarter of 2015.

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 $41 thousand and $63 thousand was recognized in connection with these RSUs for the nine months ended September 27, 2015 and September 28, 2014, respectively. As of September 27, 2015, total unamortized compensation expense for these grants was $16 thousand. As of September 27, 2015, the maximum achievable RSUs outstanding under this plan are 22,500 units. Due to our performance under the LTIP 2013 Plan, we do not expect these outstanding RSUs to vest. These RSUs reduce the shares available to grant under the 2004 Plan.

On May 2, 2013 a cash-based performance award was awarded to our CEO under the terms of our LTIP 2013 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. The value of this award was charged to compensation expense on a straight-line basis over the vesting period which ends December 31, 2015. As of September 27, 2015, due to the Company’s low ranking among peers and short remaining period, the fair value of the award has been reduced to zero. Compensation expense of $0.1 million was fully reversed in the first nine months of 2015. For the first nine months of 2014, $31 thousand was charged to compensation expense.

2015 Incentive Award Plan

In April 2015, the Board of Directors adopted the Checkpoint Systems, Inc. 2015 Incentive Award Plan (the 2015 Plan), with shareholder approval obtained at the annual meeting of shareholders held on June 3, 2015. Upon approval of the 2015 Plan, no additional awards are to be made under the 2004 Plan. All awards previously granted under the 2004 Plan will remain subject to the terms of the 2004 Plan. The 2015 Plan authorizes the issuance of a total of 3,877,777 shares of common stock, which will be reduced by any shares issued pursuant to awards granted under the 2004 Plan after December 28, 2014. This represents an increase of 1,252,766 shares over the current reserve in the 2004 Plan. In addition, subject to certain limitations, shares covered by an award granted under the 2015 Plan or shares covered by an award previously granted under the 2004 Plan which expire or are canceled without having been exercised in full or that are forfeited or repurchased shall be added to the shares of Common Stock authorized for issuance under the 2015 Plan.

2015 Employee Stock Purchase Plan

In April 2015, the Board of Directors adopted the 2015 Employee Stock Purchase Plan (the 2015 ESPP), with shareholder approval obtained at the annual meeting of shareholders held on June 3, 2015. The 2015 ESPP is designed to replace the Checkpoint Systems, Inc. 423 Employee Stock Purchase Plan (the Prior ESPP). We exhausted the number of shares available for issuance under the Prior ESPP at the end of March 2015. In connection with the adoption of the 2015 ESPP, we registered an additional 600,000 shares of common stock in a Registration Statement on Form S-8 under the Securities Act of 1933, as amended, on March 31, 2015.

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 $0.7 million as of September 27, 2015, of which $0.3 million and $0.8 million was expensed for the three and nine months ended September 27, 2015. The total amount accrued related to the plan equaled $0.6 million as of September 28, 2014, of which $0.3 million and $0.9 million was expensed for the three and nine months ended September 28, 2014. The associated liability is included in Accrued Compensation and Related Taxes in the accompanying Consolidated Balance Sheets.

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Earnings Per Share

9 Months Ended

Sep. 27, 2015

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 and the weighted-average number of shares of dilutive potential common stock:

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands, except per share data)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Net (loss) earnings available to common stockholders	$	(3,991	)	$	(4,075	)	$	(16,042	)	$	5,650
Shares:
Weighted-average number of common shares outstanding	42,106			41,714			42,010			41,644
Shares issuable under deferred compensation agreements	869			376			854			361
Basic weighted-average number of common shares outstanding	42,975			42,090			42,864			42,005
Common shares assumed upon exercise of stock options and awards	—			—			—			304
Unvested shares issuable under deferred compensation arrangements	—			—			—			12
Dilutive weighted-average number of common shares outstanding	42,975			42,090			42,864			42,321
Basic (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13
Diluted (loss) earnings per share	$	(0.09	)	$	(0.10	)	$	(0.37	)	$	0.13

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 performance vesting criteria not being met.

The number of anti-dilutive common share equivalents for the three and nine months ended September 27, 2015 and September 28, 2014 were as follows:

	Quarter		Nine months
	(13 weeks) Ended		(39 weeks) Ended
(amounts in thousands)	September 27, 2015	September 28, 2014	September 27, 2015	September 28, 2014
Weighted-average common share equivalents associated with anti-dilutive stock options and restricted stock units excluded from the computation of diluted EPS(1)	2,376	1,839	2,337	2,017

⁽¹⁾  Stock options and awards of 64 thousand and 167 thousand shares and deferred compensation arrangements of 37 thousand and 42 thousand shares were anti-dilutive in the three and nine months ended September 27, 2015 and were therefore excluded from the earnings per share calculation due to our net loss for the period. Stock options and awards of 294 thousand shares and deferred compensation arrangements of 14 thousand shares were anti-dilutive in the three months ended September 28, 2014, and were therefore excluded from the earnings per share calculation due to our loss for the period.

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Provision For Restructuring (Schedule Of Restructuring Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Restructuring Cost and Reserve [Line Items]
Asset impairments			$ 0	$ 172
Total	$ (5)	$ 459	1,583	2,692
Profit Enhancement Plan
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	14	925	1,530	925
Other exit costs	28	9	191	9
Total			1,700
Global Restructuring Plan (including LEAN)
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	(50)	(485)	(152)	1,359
Other exit costs	4	10	15	252
Asset impairments	0	0	0	172
Total			(100)
SG&A Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Severance and other employee-related charges	$ (1)	$ 0	$ (1)	$ (25)

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Contingencies (Narrative) (Details) - USD ($)			3 Months Ended				9 Months Ended
	Aug. 18, 2015	Jun. 26, 2015	Sep. 27, 2015	Sep. 28, 2014	Mar. 31, 2013	Dec. 25, 2011	Sep. 27, 2015	Sep. 28, 2014	Nov. 02, 2011	Dec. 28, 2008
Loss Contingencies [Line Items]
Loss contingency accrual										$ 5,700,000
Estimated litigation liability									$ 6,600,000
Loss contingency accrual, provision						$ 900,000
Litigation settlement			$ (6,584,000)	$ 0	$ 6,600,000		$ (15,564,000)	$ 0
Loss contingency, damages sought							65,000,000
Pending Litigation | All-Tag Security Americas, Inc.
Loss Contingencies [Line Items]
Loss Contingency, damages awarded	$ 6,600,000
Loss contingency, damages sought			11,000,000
Loss contingency, range of possible loss, minimum			6,600,000				6,600,000
Loss contingency, range of possible loss, maximum			$ 11,000,000				$ 11,000,000
Settled Litigation | AIG Superior Court of New Jersey
Loss Contingencies [Line Items]
Litigation settlement		$ 9,000,000

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Provision For Restructuring (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring expense	$ (5)	$ 459	$ 1,583	$ 2,692
Profit Enhancement Plan
Restructuring Cost and Reserve [Line Items]
Restructuring expense			1,700
Restructuring related cost incurred to date	7,000		$ 7,000
Profit Enhancement Plan | Minimum
Restructuring Cost and Reserve [Line Items]
Termination benefits, expected payment period			1 month
Profit Enhancement Plan | Maximum
Restructuring Cost and Reserve [Line Items]
Termination benefits, expected payment period			24 months
Profit Enhancement Plan | Other exit costs
Restructuring Cost and Reserve [Line Items]
Restructuring expense			$ 200
Global Restructuring Plan (including LEAN)
Restructuring Cost and Reserve [Line Items]
Restructuring expense			(100)
Restructuring related cost incurred to date	$ 60,000		$ 60,000
Global Restructuring Plan (including LEAN) | Minimum
Restructuring Cost and Reserve [Line Items]
Termination benefits, expected payment period			1 month
Global Restructuring Plan (including LEAN) | Maximum
Restructuring Cost and Reserve [Line Items]
Termination benefits, expected payment period			24 months

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Business Segments (Tables)

9 Months Ended

Sep. 27, 2015

Segment Reporting [Abstract]

Schedule of Earnings from Business Segments

	Quarter								Nine months
	(13 weeks) Ended								(39 weeks) Ended
(amounts in thousands)	September 27, 2015				September 28, 2014				September 27, 2015				September 28, 2014
Business segment net revenue:
Merchandise Availability Solutions	$	98,729		(1)	$	107,494		(2)	$	271,582		(3)	$	312,436		(4)
Apparel Labeling Solutions	38,032				41,427				122,159				131,167
Retail Merchandising Solutions	9,169				11,674				28,281				35,323
Total revenues	$	145,930			$	160,595			$	422,022			$	478,926
Business segment gross profit:
Merchandise Availability Solutions	$	44,666			$	52,212			$	129,073			$	147,416
Apparel Labeling Solutions	10,659				14,248				37,050				45,584
Retail Merchandising Solutions	3,401				4,505				10,637				12,758
Total gross profit	58,726				70,965				176,760				205,758
Operating expenses	60,798			(5)	60,201			(6)	183,654			(7)	179,841			(8)
Interest expense, net	(792		)		(739		)		(2,261		)		(2,642		)
Other gain (loss), net	852				10				364				(518		)
(Loss) earnings before income taxes	$	(2,012	)		$	10,035			$	(8,791	)		$	22,757

⁽¹⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $42.0 million, $28.8 million, and $23.2 million, respectively, representing more than 10% of total revenue.

⁽²⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $43.5 million, $29.3 million, and $24.5 million, respectively, representing more than 10% of total revenue.

⁽³⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $107.2 million, $76.0 million, and $69.7 million, respectively, representing more than 10% of total revenue.

⁽⁴⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $130.1 million, $84.8 million and $77.2 million, respectively, representing more than 10% of total revenue.

⁽⁵⁾  Includes a $6.6 million litigation matter, a$15 thousand acquisition charge, and a $5 thousand restructuring release.

⁽⁶⁾  Includes a $0.5 million restructuring charge, and a $0.3 million acquisition charge.

⁽⁷⁾  Includes $15.6 million in litigation matters, a $1.6 million restructuring charge, a $0.8 million management transition charge, and a$0.1 million acquisition charge.

⁽⁸⁾  Includes a $2.7 million restructuring charge, and a $0.3 million acquisition charge.

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Stock-Based Compensation (Assumption And Weighted-Average Fair Values Used In The Black Scholes Model) (Details) - $ / shares	9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-average fair value of grants (USD per share)	$ 5.48	$ 6.41
Expected life (in years)	5 years 6 months 5 days	7 years 8 months 5 days
Expected dividend yield	0.00%	0.00%
Expected volatility	45.95%	48.09%
Risk-free interest rate	1.541%	1.465%

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Contingencies

9 Months Ended

Sep. 27, 2015

Commitments and Contingencies Disclosure [Abstract]

Contingencies

CONTINGENCIES

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 paragraphs.

Additionally, 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.

Matters related to All-Tag Security S.A. and All-Tag Security Americas, Inc.

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 (the 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 the 555 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 555 Patent and the enforceability of the 555 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. The Appellate Court decision was appealed by All-Tag and Sensormatic to the U.S. Supreme Court.

While the appeal was still pending, the U.S. Supreme Court agreed to hear two cases (Octane Fitness, LLC v. ICON Health & Fitness, Inc. and Highmark, Inc. v. Allcare Health Management Systems) arguing that the governing standard for finding a case exceptional under 35 U.S.C. § 285 was too rigid. On December 30, 2013, based on the Supreme Court’s willingness to re-evaluate the exceptional case standard, defendants requested that the Supreme Court also hear our case. On April 29, 2014, the Supreme Court issued its rulings in Octane Fitness and Highmark and relaxed the standard for determining when a case is exceptional. As a result, on May 5, 2014, the Supreme Court vacated the judgment of the Appellate Court in our case (reinstating the Pennsylvania Court’s exceptional case finding) and sent the case back to the Appellate Court for further consideration in light of the new standards set forth in Octane Fitness and Highmark. On June 10, 2014, defendants filed a motion in the Appellate Court asking that the Appellate Court either affirm the Pennsylvania Court’s exceptional case finding outright or send the case back to the Pennsylvania Court so that it could consider the case again under the new exceptional case standard. On June 23, 2014, we filed our opposition to the motion to remand and moved the Appellate Court to once again reverse the Pennsylvania Court’s exceptional case finding. On October 14, 2014, the Appellate Court remanded the case to the Pennsylvania Court for further proceedings.

On August 18, 2015, the Pennsylvania Court granted defendants' motions for attorney fees designating the case as an exceptional case under the new exceptional case standard. The Pennsylvania Court reinstated the original award in the amount of $6.6 million and awarded an unspecified portion of defendants' attorney fees, including appellate fees, and post-judgment interest under 35 U.S.C. § 285. We recorded a legal contingency accrual of $6.6 million equal to the amount of the reinstated original award during the third quarter ended September 27, 2015 within Other Accrued Expenses on the Consolidated Balance Sheet and in Litigation Matters on the Consolidated Statement of Operations. The defendants are seeking approximately $11.0 million. The range of possible loss is between $6.6 million and $11.0 million. The final amount of the award for the defendants is pending the Pennsylvania Court proceeding and ruling on the parties' submissions. We intend to again appeal the Pennsylvania Court's ruling and award of attorneys' fees to the defendants.

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. 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.

Our legal fees related to the USS matter were being paid pursuant to our coverage under insurance policies with American Home Assurance Company and National Union Fire Insurance Company of Pittsburgh, Pa. (AIG). On July 9, 2014, AIG filed a complaint against us in the Superior Court of New Jersey (the New Jersey Court) claiming that AIG has no duty to defend or indemnify us under the insurance policies as they relate to the USS matter. AIG also claims reimbursement of legal fees, costs, and expenses previously paid by AIG on our behalf that are not covered by insurance as well as our reimbursement of AIG’s legal costs related to this matter. AIG continued to pay on our behalf most of our legal fees, costs, and expenses related to this matter. In May 2015, we engaged in formal discussions with AIG regarding the possibility of reaching a settlement of this matter in advance of the scheduled hearing in July 2015. In early June, we discussed the possibility of settling this matter with our Board of Directors and, on June 3, 2015, we obtained their approval to make a settlement offer. On June 26, 2015, we entered into a settlement with AIG. Pursuant to the settlement, we paid approximately $9.0 million to AIG in exchange for full and final resolution of this matter between the parties. Further pursuant to this settlement, each party will be responsible for a portion of the legal fees, costs, and expenses at issue in the litigation, and AIG is released from any further obligation with respect to future defense costs and indemnity in connection with the USS litigation.

Matter related to Zucker Derivative Suit

On June 24, 2014, a complaint was filed by Lawrence Zucker in a shareholder derivative suit on behalf of himself, others who are similarly situated and derivatively on behalf of us, of which we are also a nominal defendant, against our Board of Directors (the Board of Directors) in the Court of Common Pleas of Allegheny County, Pennsylvania, under the caption Zucker v. Checkpoint Systems, Inc., et al., No. GD-14-11035. The plaintiff generally asserts claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment against our Board of Directors for allegedly exceeding its authority under our Amended and Restated 2004 Omnibus Incentive Compensation Plan (the Plan).

The plaintiff sought, in addition to other relief, (i) a declaration that certain of the awards granted under the Plan in 2013 were ultra vires; (ii) rescission of awards allegedly granted in violation of the Plan; (iii) monetary damages; (iv) equitable or injunctive relief; (v) direction by the court that we reform our corporate governance and internal procedures and (vi) an award of attorneys’ fees and other fees and costs. The parties agreed to a dismissal of the case with prejudice on October 21, 2015.

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Goodwill And Other Intangible Assets (Tables)

9 Months Ended

Sep. 27, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Components Of Intangible Assets

The following table reflects the components of intangible assets as of September 27, 2015 and December 28, 2014:

		September 27, 2015				December 28, 2014
(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	$	76,356	$	60,447	$	79,110	$	58,873
Trade name	1 to 30	25,045		17,101		27,172		18,031
Patents, license agreements	3 to 14	55,605		51,478		58,060		52,448
Internal-use software	3 to 7	23,744		16,553		24,034		14,758
Other	2 to 6	6,980		6,890		7,029		6,867
Total amortized finite-lived intangible assets		187,730		152,469		195,405		150,977
Indefinite-lived intangible assets:
Trade name		20,512		—		20,512		—
Total identifiable intangible assets		$	208,242	$	152,469	$	215,917	$	150,977

Estimated Future Amortization Expense

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

(amounts in thousands)
2015	(1)	$	10,778
2016		$	10,391
2017		$	9,319
2018		$	3,435
2019		$	2,439

⁽¹⁾  The estimated amortization expense for the remainder of 2015 is anticipated to be $2.7 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 29, 2013	$	159,157		$	2,116	$	24,591		$	185,864
Translation adjustments	(9,511		)	—		(2,784		)	(12,295		)
Balance as of December 28, 2014	$	149,646		$	2,116	$	21,807		$	173,569
Translation adjustments	(5,782		)	—		(1,801		)	(7,583		)
Balance as of September 27, 2015	$	143,864		$	2,116	$	20,006		$	165,986

Schedule Of Components Of Goodwill

The following table reflects the components of goodwill as of September 27, 2015 and December 28, 2014:

	September 27, 2015						December 28, 2014
(amounts in thousands)	Gross Amount		Accumulated Impairment Losses		Goodwill, Net		Gross Amount		Accumulated Impairment Losses		Goodwill, Net
Merchandise Availability Solutions	$	177,916	$	34,052	$	143,864	$	192,303	$	42,657	$	149,646
Apparel Labeling Solutions	83,010		80,894		2,116		84,407		82,291		2,116
Retail Merchandising Solutions	112,998		92,992		20,006		124,127		102,320		21,807
Total goodwill	$	373,924	$	207,938	$	165,986	$	400,837	$	227,268	$	173,569

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Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	3 Months Ended		9 Months Ended
	May. 28, 2013	May. 02, 2013	Feb. 27, 2013	Apr. 30, 2015	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense					$ 1,100	$ 1,400	$ 4,100	$ 4,300
Share-based compensation expense net of tax					1,200	1,400	4,100	4,200
Tax benefit from option exercise							100	100
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total intrinsic value of options exercised							45	300
Unrecognized compensation cost					1,400		$ 1,400
Weighted-average period over which unrecognized compensation cost will be recognized (years)							2 years
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost					4,100		$ 4,100
Weighted-average period over which unrecognized compensation cost will be recognized (years)							1 year 8 months 24 days
Total fair value of restricted stock awards							$ 3,800	2,900
Weighted-average grant date fair value (USD per share)							$ 12.61
Time-Vested Cash Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred compensation arrangement liability, current and noncurrent					700	600	$ 700	600
Deferred compensation arrangement with individual, share-based compensation expense					300	$ 300	800	900
Long Term Incentive Plan, 2014 Plan | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense					(500)
LTIP 2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense							41	63
Unrecognized compensation cost					$ 16		$ 16
Weighted-average grant date fair value (USD per share)	$ 11.56		$ 11.91
Share based compensation arrangement by share based payment award equity instruments other than options maximum units outstanding achievable					22,500		22,500
2015 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance				3,877,777
Additional shares authorized for issuance				1,252,766
2015 ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additional shares authorized for issuance				600,000
May 2, 2013 Cash-Based Award
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash-based compensation arrangement by cash-based payment award, established target cash amount		$ 400
Cash-based compensation arrangement by cash-based payment award, fair value							$ 0
Allocated cash-based compensation expense							$ (100)	$ 31

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Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Aug. 25, 2015	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014	Dec. 28, 2014	May. 31, 2011
Business Acquisition [Line Items]
Intangible assets, net		$ 55,772		$ 55,772		$ 64,940
Amortization expense		2,700	$ 2,800	8,100	$ 8,400
Cash payment to escrow							$ 17,500
Escrow amount paid related to acquisition	$ 17,500
Acquisition costs		$ 15	$ 291	$ 135	$ 291
Two Thousand Ten Performance
Business Acquisition [Line Items]
Additional purchase price contingent on performance of acquired businesses							$ 6,300

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Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Statement of Comprehensive Income [Abstract]
Net (loss) earnings	$ (3,991)	$ (4,075)	$ (16,042)	$ 5,650
Other comprehensive loss, net of tax:
Pension liability adjustments, net of tax (benefit) expense of ($425), ($217), $10 and $5, respectively	1,111	1,762	5,053	2,494
Foreign currency translation adjustment	(7,590)	(12,316)	(21,458)	(11,618)
Net other comprehensive income (loss)	(6,479)	(10,554)	(16,405)	(9,124)
Comprehensive loss	$ (10,470)	$ (14,629)	$ (32,447)	$ (3,474)

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Summary Of Significant Accounting Policies

9 Months Ended

Sep. 27, 2015

Accounting Policies [Abstract]

Summary Of Significant Accounting Polices

SUMMARY OF SIGNIFICANT ACCOUNTING POLICES

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 28, 2014 is derived from the Company's audited Consolidated Financial Statements at December 28, 2014. Refer to our Annual Report on Form 10-K for the fiscal year ended December 28, 2014 for the most recent disclosure of our accounting policies.

The Consolidated Financial Statements include all adjustments, consisting of normal recurring adjustments, necessary to state fairly our financial position at September 27, 2015 and December 28, 2014 and our results of operations for the thirteen and thirty-nine weeks ended September 27, 2015 and September 28, 2014 and changes in cash flows for the thirty-nine weeks ended September 27, 2015 and September 28, 2014. 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 have been made to prior period information to conform to the current period presentation.

Out of Period Adjustments

During the third quarter of 2014, we recorded a reduction in revenues of $0.7 million related to the correction of the accounting for a maintenance agreement for the period of 2009 through 2014. Also impacting the third quarter of 2014 is a reduction in revenues of $1.1 million (with a corresponding decrease in gross profit of $0.6 million) related to a revenue cut-off error in the second quarter of 2014. Offsetting these are adjustments to accrued expenses related to 2012 through 2014 that resulted in a reduction in operating expenses of $1.1 million in the third quarter of 2014. These adjustments were not material to any previously issued interim or annual financial statements or to the third quarter or full year of fiscal 2014 financial statements.

In the period ended March 29, 2015, we recorded an out of period adjustment to the valuation allowance of a non U.S. entity with a deferred tax liability related to an indefinite lived intangible pertaining to the third quarter ended September 28, 2014. The total impact of the adjustment on the first quarter of 2015 and year-to-date periods within 2015 is a reduction in income tax expense of $1.0 million and a reduction in net loss of $1.0 million. This adjustment was not material to any previously issued interim or annual financial statements or to the 2015 interim consolidated financial statements, and is not expected to be material to the full year 2015 consolidated financial statements.

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 Sheets, was $11.7 million and $12.5 million as of September 27, 2015 and December 28, 2014, 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.

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)
Nine months ended	September 27, 2015			September 28, 2014
Balance at beginning of year	$	4,379		$	4,521
Accruals for warranties issued, net	1,684			3,054
Settlements made	(2,364		)	(2,717		)
Foreign currency translation adjustment	(191		)	(184		)
Balance at end of period	$	3,508		$	4,674

Accumulated Other Comprehensive Income (Loss)

The components of accumulated other comprehensive income (loss), net of tax, for the nine months ended September 27, 2015 were as follows:

(amounts in thousands)	Pension plan			Foreign currency translation adjustment			Total accumulated other comprehensive income (loss)
Balance, December 28, 2014	$	(35,036	)	$	352		$	(34,684	)
Foreign currency translation adjustment	2,823			(21,458		)	(18,635		)
Amounts reclassified from other comprehensive income	2,230			—			2,230
Net other comprehensive income (loss)	5,053			(21,458		)	(16,405		)
Balance, September 27, 2015	$	(29,983	)	$	(21,106	)	$	(51,089	)

The significant items reclassified from each component of other comprehensive income (loss) for the three months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)	September 27, 2015				September 28, 2014
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)	$	(737	)		$	(373	)
Prior service cost (1)	(7		)		(3		)
	(744		)	Total before tax	(376		)	Total before tax
	(425		)	Tax benefit	(217		)	Tax benefit
Total reclassifications for the period	$	(1,169	)	Net of tax	$	(593	)	Net of tax

⁽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.

The significant items reclassified from each component of other comprehensive income (loss) for the nine months ended September 27, 2015 and September 28, 2014 were as follows:

(amounts in thousands)	September 27, 2015				September 28, 2014
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)	$	(2,220	)		$	(1,144	)
Prior service cost (1)	(20		)		(9		)
	(2,240		)	Total before tax	(1,153		)	Total before tax
	10			Tax expense	5			Tax expense
Total reclassifications for the period	$	(2,230	)	Net of tax	$	(1,148	)	Net of tax

⁽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.

Dividend

On March 5, 2015, we declared a special dividend (the Dividend) of $0.50 per outstanding common share for all shareholders of record as of March 20, 2015. This Dividend reflects our commitment to building shareholder value through the execution of our strategic plan and a disciplined approach to capital allocation. After the Dividend, we believe we have the appropriate level of liquidity both to fund our internal initiatives and act quickly on any strategic opportunities.

The cash dividend of $21.0 million was paid to common shareholders on April 10, 2015. Dividend distributions to shareholders are recognized as a liability in the period in which the dividend is formally approved by our Board of Directors and communicated to shareholders. The Dividend was recorded as a reduction of Additional Capital in Stockholders' Equity.

The Dividend did not provide any cash payment or benefit to stock options, restricted stock units, or performance shares, and instead only applied to the outstanding common stock and as outlined in the executive and director deferred compensation plans. The non-cash portion of the Dividend of $0.4 million was credited to the executive and director deferred compensation plan deferred stock accounts on April 10, 2015 in accordance with the plans.

Share Repurchase Program

In July 2015, our Board of Directors approved a stock repurchase program that authorized the repurchase of up to $30 million of our common stock. The repurchase program will be funded using our available cash and is expected to be executed over the next two years. We are authorized to repurchase from time to time shares of our outstanding common stock on the open market or in privately negotiated transactions. The timing and amount of stock repurchases, and the prices at which such purchases may be made, will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified or discontinued at any time and we have no obligation to repurchase any amount of our common stock under the program. During the nine months ended September 27, 2015, we repurchased 439 thousand shares of our common stock at an average cost of $7.75, spending a total of $3.4 million. Common stock obtained by us through the repurchase program has been added to our treasury stock holdings.

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 or required in our financial statements.

Recently Adopted Accounting Standards

In April 2014, the FASB issued ASU 2014-08 “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): 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 was effective for fiscal and interim periods beginning on or after December 15, 2014, which for us was December 29, 2014, the first day of our 2015 fiscal year. The adoption of this standard has not had a material effect on our consolidated results of operations and financial condition.

New Accounting Pronouncements and Other Standards

In May 2014, the FASB issued ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” (ASU 2014-09), which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved the deferral of the effective date by one year. The accounting standard is now effective for annual and interim periods beginning after December 15, 2017, which for us is January 1, 2018, the first day of our 2018 fiscal year. The final ASU permits organizations to adopt the new revenue standard early, but not before annual and interim periods beginning after December 15, 2016. We are currently evaluating the impact of adopting this guidance.

In June 2014, the FASB issued “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period” (ASU 2014-12). The amendments in this update require that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. ASU 2014-12 is effective for annual periods and interim periods beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2014-12. Entities may apply the amendments in ASU 2014-12 either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to apply this guidance prospectively to all awards granted or modified after the effective date. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In August 2014, the FASB issued “Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” (ASU 2014-15). Continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, “Presentation of Financial Statements-Liquidation Basis of Accounting.” Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the new criteria in this update should be followed to determine whether to disclose information about the relevant conditions and events. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. We have not early adopted ASU 2014-15. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In January 2015, the FASB issued “Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (ASU 2015-01). The amendments in this update eliminate from GAAP the concept of extraordinary items. Although the amendments will eliminate the requirements in Subtopic 225-20 for reporting entities to consider whether an underlying event or transaction is extraordinary, the presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. ASU 2015-01 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We have not early adopted ASU 2015-01. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In February 2015, the FASB issued “Consolidation (Topic 810): Amendments to the Consolidation Analysis” (ASU 2015-02). The amendments in this update modifies existing consolidation guidance related to (i) limited partnerships and similar legal entities, (ii) the evaluation of variable interests for fees paid to decision makers or service providers, (iii) the effect of fee arrangements and related parties on the primary beneficiary determination, and (iv) certain investment funds. These changes reduce the number of consolidation models from four to two and place more emphasis on the risk of loss when determining a controlling financial interest. ASU 2015-02 is effective for public companies for fiscal years beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03). The amendments in this update change the presentation of debt issuance costs in financial statements requiring an entity to present such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2016, which for us is December 26, 2016, the first day of our 2017 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-03. The new guidance will be applied retrospectively to each prior period presented. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets” (ASU 2015-04). The amendments in this update provide a practical expedient for employers with fiscal year-ends that do not fall on a month-end by permitting those employers to measure defined benefit plan assets and obligations as of the month-end that is closest to the entity's fiscal year-end. ASU 2015-04 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-04. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In April 2015, the FASB issued “Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement” (ASU 2015-05). The amendments in this update help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement by providing guidance as to whether an arrangement includes the sale or license of software. ASU 2015-05 is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. Early adoption is permitted. We have not early adopted ASU 2015-05. The adoption of this standard is not expected to have a material effect on our consolidated results of operations and financial condition.

In June 2015, the FASB issued “Technical Corrections and Improvements” (ASU 2015-10). The amendments in this update provide technical corrections and improvements to a wide range of Topics in the Accounting Standards Codification (the Codification). The purpose of these amendments is to correct unintended differences between original guidance and the Codification, to provide clarification through updating wording or correcting references, to streamline or simplify the Codification through minor changes, and to make other minor improvements to the guidance which are not expected to have a significant effect on current accounting practice. ASU 2015-10 is effective for fiscal and interim periods beginning on or after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition.

In July 2015, the FASB issued “Inventory (Topic 330): Simplifying the Measurement of Inventory” (ASU 2015-11). The amendments in this update simplify the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. ASU 2015-11 is effective for fiscal and interim periods beginning on or after December 15, 2016, which for us is December 26, 2016, the first day of our 2017 fiscal year. Early application is permitted. We have not early adopted ASU 2015-11. The new guidance must be applied prospectively after the date of adoption. We are in the process of evaluating the adoption of this ASU, and do not expect this to have a material effect on our consolidated results of operations and financial condition.

In August 2015, the FASB issued “Interest-Imputation of Interest (Subtopic 835-30), Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting” (ASU 2015-15). The amendments to the SEC Paragraphs in this update state that given the absence of authoritative guidance within ASU 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance in ASU 2015-15 is effective upon the adoption of ASU 2015-03 and is not expected to have a material effect on our consolidated results of operations and financial condition.

In September 2015, the FASB issued “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (ASU 2015-16). The amendments in this update require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must also record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The update also requires an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. ASU 2015-16 is effective for fiscal years and interim periods beginning on or after December 15, 2015, which for us is December 28, 2015, the first day of our 2016 fiscal year. The new guidance should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not yet been made available for issuance. We do not have any business combination for which the accounting is incomplete. We do not expect this to have a material effect on our consolidated results of operations and financial condition.

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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	Sep. 27, 2015	Dec. 28, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 14	$ 55
Total liabilities	69	23
Foreign currency forward exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	14	55
Total liabilities	69	23
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	14	55
Total liabilities	69	23
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	14	55
Total liabilities	69	23
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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Debt (Tables)

9 Months Ended

Sep. 27, 2015

Debt Disclosure [Abstract]

Schedule Of Long-Term Debt

Debt as of September 27, 2015 and December 28, 2014 consisted of the following:

(amounts in thousands)	September 27, 2015		December 28, 2014
2013 Senior Secured Credit Facility:
$200 million variable interest rate revolving credit facility maturing in 2018	$	65,000	$	65,000
Full-recourse factoring liabilities	—		83
Bank overdraft credit facility	97		65
Capital leases with maturities through 2020	289		249
Total	65,386		65,397
Less current portion	185		236
Total long-term portion	$	65,201	$	65,161

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Summary Of Significant Accounting Policies (Components of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 27, 2015	Sep. 28, 2014	Sep. 27, 2015	Sep. 28, 2014
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 28, 2014			$ (34,684)
Foreign currency translation adjustment			(18,635)
Amounts reclassified from other comprehensive income			2,230
Net other comprehensive income (loss)	$ (6,479)	$ (10,554)	(16,405)	$ (9,124)
Balance, September 27, 2015	(51,089)		(51,089)
Pension plan
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 28, 2014			(35,036)
Foreign currency translation adjustment			2,823
Amounts reclassified from other comprehensive income			2,230
Net other comprehensive income (loss)			5,053
Balance, September 27, 2015	(29,983)		(29,983)
Foreign currency translation adjustment
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Balance, December 28, 2014			352
Foreign currency translation adjustment			(21,458)
Amounts reclassified from other comprehensive income			0
Net other comprehensive income (loss)			(21,458)
Balance, September 27, 2015	$ (21,106)		$ (21,106)

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Provision For Restructuring

9 Months Ended

Sep. 27, 2015

Restructuring and Related Activities [Abstract]

Provision For Restructuring

PROVISION FOR RESTRUCTURING

Profit Enhancement Plan

During September 2014, we initiated the Profit Enhancement Plan focused on increasing profitability through strategic headcount reductions and the streamlining of manufacturing processes. The projects currently approved under this plan are underway with final headcount reductions expected to be recognized by the fourth quarter of 2015. For the nine months ended September 27, 2015, the net charge to earnings of $1.7 million represents the current year activity related to the Profit Enhancement Plan. Total costs of the plan are $7 million through the end of the third quarter of 2015. Termination benefits are planned to be paid 1 month to 24 months after termination.

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. All projects in our Global Restructuring Plan including Project LEAN have been substantially completed.

For the nine months ended September 27, 2015, the net release to earnings of $0.1 million represents the current year activity related to the Global Restructuring Plan including Project LEAN. Total costs related to the plan of $60 million have been incurred through September 27, 2015. All terminations for the plan were substantially completed during the fourth quarter of 2014. Termination benefits are planned to be paid 1 month to 24 months after termination.

Restructuring expense for the three and nine months ended September 27, 2015 and September 28, 2014 was as follows:

	Quarter						Nine months
	(13 weeks) Ended						(39 weeks) Ended
(amounts in thousands)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
Profit Enhancement Plan
Severance and other employee-related charges	$	14		$	925		$	1,530		$	925
Other exit costs	28			9			191			9
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	(50		)	(485		)	(152		)	1,359
Asset impairments	—			—			—			172
Other exit costs	4			10			15			252
SG&A Restructuring Plan
Severance and other employee-related charges	(1		)	—			(1		)	(25		)
Total	$	(5	)	$	459		$	1,583		$	2,692

Restructuring accrual activity for the nine months ended September 27, 2015 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 September 27, 2015
Profit Enhancement Plan
Severance and other employee-related charges	$	4,082	$	2,419	$	(889	)	$	(3,970	)	$	(266	)	$	1,376
Other exit costs(1)	—		191		—			(191		)	—			—
Global Restructuring Plan (including LEAN)
Severance and other employee-related charges	2,050		64		(216		)	(1,252		)	(154		)	492
Other exit costs (2)	15		15		—			(15		)	—			15
SG&A Restructuring Plan
Severance and other employee-related charges	108		—		(1		)	(45		)	(8		)	54
Total	$	6,255	$	2,689	$	(1,106	)	$	(5,473	)	$	(428	)	$	1,937

⁽¹⁾  During the first nine months of 2015, there was a net charge to earnings of $0.2 million primarily due to legal costs and restructuring agent costs in connection with the restructuring plan.

⁽²⁾  During the first nine months of 2015, there was a net charge to earnings of $15 thousand primarily due to lease costs and restructuring agent costs in connection with the restructuring plan.