Segment Information

6 Months Ended

Jan. 31, 2013

Text Block [Abstract]

Segment Information

Segment Information

The Company evaluates short-term segment performance based on segment profit or loss and customer sales. Segment profit or loss does not include certain administrative costs, such as the cost of finance, information technology, human resources, and executive leadership, which are managed as global functions. Restructuring charges, impairment charges, equity compensation costs, interest expense, investment and other income (expense) and income taxes are also excluded when evaluating performance. Intersegment sales and transfers are recorded at cost plus a standard percentage markup.

The Company is organized and managed on a geographic basis by region. Each of these regions, Americas, EMEA and Asia-Pacific, has a President that reports directly to the Company’s chief operating decision maker, its Chief Executive Officer. Each region has its own distinct operations, is managed locally by its own management team, maintains its own financial reports and is evaluated based on regional segment profit. The Company has determined that these regions comprise its operating and reportable segments based on the information used by the Chief Executive Officer to allocate resources and assess performance.

Following is a summary of segment information for the three and six months ended January 31, 2013 and 2012:

	Americas		EMEA		Asia-Pacific		Total Region		Corporate and Eliminations			Totals
Three months ended January 31, 2013
Revenues from external customers	$	147,716	$	94,395	$	82,071	$	324,182	$	—		$	324,182
Intersegment revenues	8,339		778		6,099		15,216		(15,216		)	—
Segment profit	32,336		23,723		5,514		61,573		(1,794		)	59,779
Three months ended January 31, 2012
Revenues from external customers	$	138,405	$	95,593	$	86,586	$	320,584	$	—		$	320,584
Intersegment revenues	9,992		1,270		7,321		18,583		(18,583		)	—
Segment profit	35,798		26,562		7,733		70,093		(2,359		)	67,734
Six months ended January 31, 2013
Revenues from external customers	$	296,408	$	187,628	$	177,792	$	661,828	$	—		$	661,828
Intersegment revenues	18,420		1,701		12,506		32,627		(32,627		)	—
Segment profit	76,969		47,290		17,569		141,828		(3,767		)	138,061
Six months ended January 31, 2012
Revenues from external customers	$	292,267	$	192,949	$	184,876	$	670,092	$	—		$	670,092
Intersegment revenues	20,216		2,032		14,763		37,011		(37,011		)	—
Segment profit	79,028		52,861		21,037		152,926		(5,622		)	147,304

Following is a reconciliation of segment profit to net (loss) income for the three and six months ended January 31, 2013 and 2012:

	Three months ended January 31,						Six Months Ended January 31,
	2013			2012			2013			2012
Total profit from reportable segments	$	61,573		$	70,093		$	141,828		$	152,926
Corporate and eliminations	(1,794		)	(2,359		)	(3,767		)	(5,622		)
Unallocated amounts:
Administrative costs	(35,518		)	(29,244		)	(65,926		)	(59,724		)
Restructuring charges	(4,031		)	—			(4,031		)	—
Impairment charge	—			(115,688		)	—			(115,688		)
Non-routine items (1)	5,220			—			1,782			—
Investment and other income	897			812			1,294			610
Interest expense	(4,406		)	(4,933		)	(8,569		)	(9,980		)
Income (loss) before income taxes	21,941			(81,319		)	62,611			(37,478		)
Income taxes	(30,625		)	(8,635		)	(44,107		)	(19,744		)
Net (loss) income	$	(8,684	)	$	(89,954	)	$	18,504		$	(57,222	)

(1) - Non-routine items for the three months ended January 31, 2013, consist of the gain on the Thailand flood insurance settlement of $5,220 recognized within the Asia-Pacific reporting segment. Non-routine items for the six months ended January 31, 2013, consist of the gain on the Thailand flood insurance settlement of $5,220 recognized within the Asia-Pacific segment, partially offset by the net loss on the sales of businesses of $3,438 recognized within the Americas segment.

Following is a summary of sales by business platform for the three and six months ended January 31, 2013 and 2012:

	Three months ended January 31,				Six Months Ended January 31,
	2013		2012		2013		2012
Identification Solutions (1)	$	185,218	$	172,425	$	371,519	$	366,760
Direct Marketing	87,477		88,425		178,105		177,258
Die-Cut	51,487		59,734		112,204		126,074
Total	$	324,182	$	320,584	$	661,828	$	670,092

(1) - The Company acquired PDC during the three months ended January 31, 2013, which is included in the ID Solutions business platform.