Segment and Geographic Reporting

12 Months Ended

Dec. 31, 2012

Segment and Geographic Reporting [Abstract]

Segment and Geographic Reporting

Note 17 - Segment and Geographic Reporting

The Company's service offerings include strategic, creative and executional services related to four core competencies: graphic services, brand strategy and design, digital promotion and advertising, and software. Graphic services, brand strategy and design and digital promotion and advertising represented approximately 96 percent of the Company's revenues in 2012, with software sales representing the remaining 4 percent.  The nature of the Company's core service offerings creates significant overlap across competencies such that it is impracticable to report revenues for each of its service offerings.

These services are provided to clients in the consumer products packaging, retail, pharmaceutical and advertising markets. In 2012 and 2011, the Company's largest client accounted for approximately $35,739, or 7.8 percent, and $39,755, or 8.7 percent, respectively, of its total revenues. In 2012 and 2011, the 10 largest clients in the aggregate accounted for 45.5 percent and 46.3 percent, respectively, of revenues. The Company's services are provided with an employment force of approximately 3,600 employees worldwide, of which approximately 8 percent are production employees represented by labor unions. The percentage of employees covered by union contracts that expire within one year is approximately 3 percent.

The Company organizes and manages its operations primarily by geographic area and measures profit and loss of its segments based on operating income (loss). The accounting policies used to measure operating income of the segments are the same as those used to prepare the consolidated financial statements.

Accounting guidance requires that a public business enterprise report financial information about its reportable operating segments. Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance.

During 2011, the Company renamed its North America operating segment to Americas to reflect its expansion into South America. The Company's Americas segment includes all of the Company's operations located in North and South America, including its operations in the United States, Canada, Mexico and Brazil, its U.S. branding and design capabilities and its U.S. digital solutions business. The Company's Europe segment includes all operations located in Europe, including its European branding and design capabilities and its digital solutions business in London. The Company's Asia Pacific segment includes all operations in Asia and Australia, including its Asia Pacific branding and design capabilities. The Company has determined that each of its operating segments is also a reportable segment.

Corporate consists of unallocated general and administrative activities and associated expenses, including executive, legal, finance, information technology, human resources and certain facility costs. In addition, certain costs and employee benefit plans are included in Corporate and not allocated to operating segments.

The Company has disclosed operating income (loss) as the primary measure of segment profitability.  This is the measure of profitability used by the Company's CODM and is most consistent with the presentation of profitability reported within the consolidated financial statements.

Segment information relating to results of operations was as follows:

	2012			2011			2010
Sales to external clients:
Americas	$	385,013		$	385,230		$	399,658
Europe		83,743			75,257			66,238
Asia Pacific		38,923			33,704			31,393
Intercompany sales elimination		(46,949	)		(38,898	)		(36,663	)
Total	$	460,730		$	455,293		$	460,626
Operating segment income (loss):
Americas	$	10,759		$	50,638		$	68,428
Europe		836			6,419			3,812
Asia Pacific		2,124			4,214			4,855
Corporate		(44,379	)		(33,953	)		(27,529	)
Operating income (loss)		(30,660	)		27,318			49,566
Interest expense, net		(3,523	)		(5,211	)		(7,162	)
Income (loss) before income taxes	$	(34,183	)	$	22,107		$	42,404
Depreciation and amortization expense:
Americas	$	11,142		$	11,013		$	10,931
Europe		3,174			2,903			2,760
Asia Pacific		1,534			1,292			1,208
Corporate		3,067			2,849			2,712
Total	$	18,917		$	18,057		$	17,611

The Americas operating income for 2012 includes $31,683 of multiemployer pension withdrawal expense. The 2012 expense represents an estimated withdrawal liability recorded pursuant to the Company's decision to withdraw from the GCC/IBT National Pension Fund.

The Corporate operating loss for 2012 includes $12,086 of business systems integration expense, related to the Company's information technology and business process improvement initiative.

The Corporate operating loss for 2011 includes $8,467 of business and systems integration expense, related to the Company's information technology and business process improvement initiative, and $1,846 of multiemployer pension withdrawal expense. Partially offsetting the expense increases were credits to income of $3,320 for the reduction of contingent consideration payable related to a 2010 acquisition and $825 related to the reduction of an employment tax reserve for a 2008 acquisition.

The Corporate operating loss for 2010 includes $200 recorded as income related to the adjustment of a pension withdrawal liability recorded in a prior period.

Segment information related to total assets and expenditure for long-lived assets was as follows:

	2012		2011
Total Assets:
Americas	$	359,759	$	361,189
Europe (1)		54,001		62,476
Asia Pacific		27,193		31,032
Corporate (2)		17,868		24,816
Total	$	458,821	$	479,513

(1)Decrease in total assets includes $4,935 decrease in other intangible assets through purchase accounting adjustments, impairment and amortization.

(2)Decrease in total assets includes $3,980 Brandimage net working capital receivable at December 31, 2011 settled in 2012.

	2012		2011		2010
Expenditures for long-lived assets:
Americas	$	7,282	$	7,254	$	5,464
Europe		1,256		1,813		1,712
Asia Pacific		1,611		1,108		1,924
Corporate		9,615		14,546		3,105
Total	$	19,764	$	24,721	$	12,205

Summary financial information by geographic location for 2012, 2011 and 2010 is as follows:

	United States		Canada		Europe		Other		Total
2012
Sales	$	312,945	$	30,570	$	83,857	$	33,358	$	460,730
Long-lived assets	$	60,490	$	1,812	$	4,808	$	5,152	$	72,262
2011
Sales	$	323,561	$	29,217	$	74,121	$	28,394	$	455,293
Long-lived assets	$	53,779	$	2,335	$	5,008	$	5,463	$	66,585
2010
Sales	$	333,833	$	34,790	$	65,209	$	26,794	$	460,626
Long-lived assets	$	42,176	$	2,982	$	4,308	$	5,629	$	55,095

Sales are attributed to countries based on the point of origin of the sale. Approximately 7.8 percent of total revenues came from the Company's largest single client for the year ended December 31, 2012.

Long-lived assets include property, plant and equipment assets stated at net book value and other non-current assets that are identified with the operations in each country.