Business Segments And Geographic Information

12 Months Ended

Dec. 27, 2015

Segment Reporting [Abstract]

Business Segments And Geographic Information

BUSINESS SEGMENTS AND GEOGRAPHIC INFORMATION

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

Our MAS segment, which is focused on loss prevention and Merchandise Visibility^™ (RFID), includes EAS systems, EAS consumables, Alpha^® high-theft solutions, RFID systems and software and non-U.S. and Canada-based CheckView^®. ALS includes the results of our radio frequency identification (RFID) labels business, coupled with our data management platform and network of service bureaus that manage the printing of variable information on apparel labels and tags. Our RMS segment includes hand-held labeling applicators and tags, promotional displays, and customer queuing systems.

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

(A) Business Segments

(amounts in thousands)	December 27, 2015				December 28, 2014				December 29, 2013
Business segment net revenue:
Merchandise Availability Solutions	$	383,198		(1)	$	438,847		(2)	$	456,101		(3)
Apparel Labeling Solutions	164,708				174,287				182,259
Retail Merchandising Solutions	39,251				48,906				51,378
Total	$	587,157			$	662,040			$	689,738
Business segment gross profit:
Merchandise Availability Solutions	$	179,528			$	207,113			$	195,568
Apparel Labeling Solutions	50,107				60,179				54,672
Retail Merchandising Solutions	14,779				17,792				18,851
Total gross profit	244,414				285,084				269,091
Operating expenses	259,815			(4)	246,351			(5)	245,815			(6)
Interest expense, net	(3,151		)		(3,457		)		(17,440		)
Other gain (loss), net	(23		)		(1,102		)		(3,936		)
(Loss) earnings from continuing operations before income taxes	$	(18,575	)		$	34,174			$	1,900
Business segment total assets:
Merchandise Availability Solutions	$	444,775			$	500,795
Apparel Labeling Solutions	159,743				175,411
Retail Merchandising Solutions	53,352				62,460
Total	$	657,870			$	738,666

⁽¹⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $152.5 million, $108.6 million and $94.8 million, respectively, representing more than 10% of total revenue.

⁽²⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $179.0 million, $125.3 million and $107.8 million, respectively, representing more than 10% of total revenue.

⁽³⁾  Includes net revenue from EAS systems, Alpha^® and EAS consumables of $192.9 million, $128.1 million and $102.3 million, respectively, representing more than 10% of total revenue.

⁽⁴⁾  Includes a $19.2 million litigation matters expense, a $10.0 million restructuring charge, a $5.8 million asset impairment, a $0.8 million charge related to our CFO transition, and $0.1 million in acquisition costs.

⁽⁵⁾  Includes a $6.7 million restructuring charge, a $1.6 million litigation matters expense, a $0.9 million asset impairment, and $0.4 million in acquisition costs.

⁽⁶⁾  Includes a $10.9 million restructuring charge, a $4.8 million asset impairment, a $1.2 million charge related to our CFO transition, $1.0 million in acquisition costs, a benefit of $6.6 million due to a litigation ruling reversal, and a $0.2 million gain on sale of our interest in the non-strategic Sri Lanka subsidiary.

(B) Geographic Information

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

The following table shows net revenues, and other financial information by geographic area for the years 2015, 2014, and 2013:

(amounts in thousands)	United States		Europe			International Americas		Asia Pacific			Total
2015
Net revenues from unaffiliated customers	$	168,286	$	207,987		$	25,858	$	185,026		$	587,157
Long-lived assets	$	7,682	$	12,229		$	1,193	$	56,282	(1)	$	77,386
2014
Net revenues from unaffiliated customers	$	191,037	$	247,413	(2)	$	27,078	$	196,512		$	662,040
Long-lived assets	$	7,491	$	11,328		$	1,343	$	57,227	(3)	$	77,389
2013
Net revenues from unaffiliated customers	$	203,171	$	255,610	(4)	$	32,523	$	198,434		$	689,738

⁽¹⁾  Includes long-lived assets from China and Japan of $37.0 million and $8.0 million, respectively.

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

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

⁽⁴⁾  Includes net revenue from Germany of $81.7 million.