Discontinued Operations

6 Months Ended

Jul. 12, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note I – Discontinued Operations

As of the quarter ended July 12, 2014, the Company has committed to a plan to divest the Information Security business. The divesture of the Information Security business, coupled with the previously announced sale of our Print Finishing business on June 30, 2014, will represent the Company’s exit from the Information Security and Print Finishing segment. The Company plans to sell the Information Security business within one year. As a result, the Information Security and Print Finishing segment has been classified as discontinued operations for all periods presented and certain assets and liabilities are classified as held for sale for all periods presented.

The carrying value of these assets was greater than their fair value, less the cost to sell the Information Security business, resulting in an impairment of certain accounts receivables, inventories, long-lived assets, intangible assets and other assets totaling $12.9 million. The impairment charge reduced the carrying value of intangible assets to fair value and the remaining assets to the lower of their carrying amount or fair value less cost to sell.  The fair value for these assets was determined by estimating the most likely sale price with a third-party buyer based on market data. The Company does not expect to have any further significant losses to record in the future for these assets. Because of the significance of the unobservable inputs and management’s judgment used in the assets held for sell analysis, these measurements were classified in level three of the valuation hierarchy.

The results of operations presented as discontinued operations are summarized below.

	Three Months Ended				Six Months Ended
All Amounts in Thousands	July 12, 2014		July 13, 2013		July 12, 2014		July 13, 2013
Net sales	$	9,555	$	8,982	$	15,908	$	15,555
Cost of products sold		6,277		6,006		10,282		10,257
Selling, administrative and general expenses		3,331		3,646		5,467		6,401
Amortization		--		--		--		18
Interest expense		93		114		162		187
Other expense (income)		13		(1)		13		(2)
Income (Loss) Before Income Taxes		(159)		(783)		(16)		(1,306)
Discontinued Operations
Loss on classification as held for sale		(12,945)		--		(12,945)		--
Gain on disposal		547		--		547		--
Provision (benefit) for income taxes		(1,706)		450		(1,549)		544
Net Loss from Discontinued Operations	$	(10,851)	$	(1,233)	$	(10,865)	$	(1,850)

The assets and liabilities held for sale are summarized below.

All Amounts in Thousands	July 12, 2014		December 28, 2013		July 13, 2013
ASSETS
Cash and cash equivalents	$	1,333	$	1,255	$	1,086
Receivables, net		2,710		5,480		4,652
Inventories		6,785		9,366		12,182
Prepaid expenses		693		429		643
Property, plant and equipment, net		3,347		4,323		4,398
Intangible assets		1,110		1,754		1,666
Investments		329		331		320
Other assets		95		93		56
Less valuation allowance		12,054		--		--
Assets held for sale	$	4,348	$	23,031	$	25,003
LIABILITIES
Trade accounts payable	$	565	$	428	$	987
Accrued liabilities		4,565		6,412		5,692
Liabilities held for sale	$	5,130	$	6,840	$	6,679