Segment Information

3 Months Ended

Oct. 31, 2012

Segment Information

NOTE D — 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 months ended October 31, 2012 and 2011:

									Corporate
									and
	Americas		EMEA		Asia-Pacific		Total Region		Eliminations			Totals
Three months ended October 31, 2012:
Revenues from external customers	$	148,692	$	93,233	$	95,721	$	337,646	$	—		$	337,646
Intersegment revenues		10,082		924		6,407		17,413		(17,413	)		—
Segment profit		44,633		23,567		12,055		80,255		(1,973	)		78,282
Three months ended October 31, 2011:
Revenues from external customers	$	153,863	$	97,356	$	98,289	$	349,508	$	—		$	349,508
Intersegment revenues		10,225		762		7,442		18,429		(18,429	)		—
Segment profit		43,230		26,299		13,304		82,833		(3,263	)		79,570

Following is a reconciliation of segment profit to net income for the three months ended October 31, 2012 and 2011:

	Three months ended:
	October 31,
	2012			2011
Total profit from reportable segments	$	80,255		$	82,833
Corporate and eliminations		(1,973	)		(3,263	)
Unallocated amounts:
Administrative costs		(30,408	)		(30,480	)
Loss (gain) on sales of businesses (1)		(3,438	)		—
Investment and other income (expense)		397			(202	)
Interest expense		(4,163	)		(5,047	)
Income before income taxes		40,670			43,841
Income taxes		(13,482	)		(11,109	)
Net income	$	27,188		$	32,732

(1) Losses on sales of businesses relate to the Americas segment during the three months ended October 31, 2012.

Following is a summary of sales by business platform for the three months ended October 31, 2012 and 2011:

	Three months ended
	October 31,
	2012		2011
ID Solutions	$	186,302	$	194,334
Direct Marketing		90,627		88,833
Die-Cut		60,717		66,341
Total		337,646		349,508