Note 7 – Acquisitions

Lipson Associates, Inc. and Laga, Inc.

Effective October 19, 2011, the Company acquired substantially all of the domestic assets and assumed certain trade account and business related liabilities of Lipson Associates, Inc. and Laga, Inc., as well as the stock of their foreign operations. Lipson Associates, Inc. and Laga, Inc. does business as Brandimage – Desgrippes & Laga ("Brandimage").

Brandimage is a leading branding and design network specializing in providing services that seek to engage and enhance the brand experience, including brand positioning and strategy, product development and structural design, package design and environmental design. Brandimage has operations in Chicago, Cincinnati, Paris, Brussels, Shanghai, Seoul and Hong Kong. The net assets and results of operations of Brandimage are included in the Consolidated Financial Statements as of October 19, 2011 in all three of the Company's operating segments: Americas, Europe and Asia Pacific. The Brandimage business was acquired to enhance the Company's service offerings related to branding and design and operates in conjunction with Schawk's legacy brand development capabilities, which are performed under its Anthem Worldwide brand.

The purchase price of $24,562 consisted of $27,011 paid in cash at closing, less $2,449 received in 2012 for a net working capital adjustment. The Company recorded a purchase price allocation based on a fair value appraisal performed by an independent consulting company. The goodwill ascribed to this acquisition consists largely of expected profitability from future services and is deductible for tax purposes.

During the first quarter of 2013, the Company made a decision to close the Seoul, Korea office acquired in the Brandimage acquisition and recorded impairment charges of $27 and $9, for customer relationship and trade name assets, respectively. The impairment charges represented the remaining unamortized value of the customer relationship and trade name assets assigned to the Brandimage Korea subsidiary and were charged to the Asia-Pacific operating segment.

Exit Reserves from Prior Acquisitions

The Company recorded exit reserves related to its acquisitions of Weir Holdings Limited and Seven Worldwide Holdings, Inc., which occurred in 2004 and 2005, respectively. The major expenses included in the exit reserves were employee severance and lease termination expenses. The exit reserve balances related to employee severance were paid in prior years. The remaining exit reserve relates to lease termination expenses for a facility with a lease expiring in 2014. The remaining reserve balance of $272 is included on the Consolidated Balance Sheets as of March 31, 2013 as follows: $116 is included in Accrued expenses and $156 is included in Other long-term liabilities.

The following table summarizes the reserve activity from December 31, 2012 through March 31, 2013:

	Beginning of								End of
	Period		Adjustments			Payments			Period

First quarter	$	324	$	(31	)	$	(21	)	$	272