Discontinued Operations

6 Months Ended

Jul. 11, 2015

Discontinued Operations and Disposal Groups [Abstract]

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

Note H – Discontinued Operations

On October 1, 2014, the Company completed the sale of the Information Security business. The sale of the Information Security business, coupled with the sale of our Print Finishing business on June 30, 2014, represents the Company’s exit from the Information Security and Print Finishing segment. 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 in prior periods are classified as held for sale.

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
	July 11,		July 12,		July 11,		July 12,
All Amounts in Thousands	2015		2014		2015		2014
Net sales	$	—	$	9,555	$	—	$	15,908
Cost of products sold		—		6,277		—		10,282
Selling, administrative and general expenses		—		3,331		—		5,467
Interest expense		—		93		—		162
Other expense (income)		—		13		—		13
Loss Before Income Taxes		—		(159)		—		(16)
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)		—		(1,549)
Net Loss from Discontinued Operations	$	—	$	(10,851)	$	—	$	(10,865)

The assets and liabilities held for sale are summarized below.

	July 11,		December 27,		July 12,
All Amounts in Thousands	2015		2014		2014
ASSETS
Cash and cash equivalents	$	—	$	—	$	1,333
Receivables, net		—		—		2,710
Inventories		—		—		6,785
Prepaid expenses		—		—		693
Property, plant and equipment, net		—		—		3,347
Intangible assets		—		—		1,110
Investments		—		—		329
Other assets		—		—		95
Less valuation allowance						12,054
Assets held for sale	$	—	$	—	$	4,348
LIABILITIES
Trade accounts payable	$	—	$	—	$	565
Accrued liabilities		—		—		4,565
Liabilities held for sale	$	—	$	—	$	5,130