Goodwill and Other Intangible Assets

9 Months Ended

Sep. 28, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets [Text Block]

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill as of September 28, 2013 by reportable segment are as follows (in thousands):



	Print and Envelope			Label and Packaging		Total
Balance as of December 29, 2012	$	75,450		$	111,965	$	187,415
Acquisitions, net	—			92		92
Foreign currency translation	(948		)	—		(948		)
Balance as of September 28, 2013	$	74,502		$	112,057	$	186,559

Other intangible assets are as follows (in thousands):



		September 28, 2013										December 29, 2012
	Weighted Average Remaining Amortization Period (Years)	Gross Carrying Amount		Accumulated Impairment Charges			Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Impairment Charges			Accumulated Amortization			Net Carrying Amount
Intangible assets with definite lives:
Customer relationships	9	$	161,919	$	(27,234	)	$	(68,561	)	$	66,124	$	159,296	$	(27,234	)	$	(62,055	)	$	70,007
Trademarks and trade names	23	20,914		—			(6,579		)	14,335		20,701		—			(5,938		)	14,763
Leasehold interest	20	3,728		—			—			3,728		—		—			—			—
Patents	10	3,528		—			(2,989		)	539		3,528		—			(2,839		)	689
Non-compete agreements		140		—			(140		)	—		510		—			(510		)	—
Subtotal	12	190,229		(27,234		)	(78,269		)	84,726		184,035		(27,234		)	(71,342		)	85,459

Intangible assets with indefinite lives:
Trademarks		141,740		(22,000		)	—			119,740		141,740		(22,000		)	—			119,740
Total		$	331,969	$	(49,234	)	$	(78,269	)	$	204,466	$	325,775	$	(49,234	)	$	(71,342	)	$	205,199

Annual amortization expense of intangible assets for the next five years is estimated to be as follows (in thousands):



	Annual Estimated Expense
2013	$	9,755
2014	9,818
2015	8,373
2016	7,262
2017	7,203

Sale of Intangible Asset

During the second quarter of 2012, the Company received proceeds of $1.7 million related to the buyout of a royalty agreement by a third party. The royalty agreement was recorded as an intangible asset. As a result of this transaction, the Company recorded a gain of $1.3 million in other income, net in its condensed consolidated statements of operations.

Asset Impairments

There were no goodwill or intangible asset impairments recorded in the three and nine months ended September 28, 2013 and September 29, 2012. Continued performance by the Company's Print reporting unit that is consistent with its year-to-date performance may result in an impairment charge on both goodwill and indefinite-lived intangible assets at the time of the annual test at the beginning of December. As of September 28, 2013, goodwill and indefinite-lived intangible asset carrying values for the Print reporting unit were $51.1 million and $44.8 million, respectively.

The Company also continues to monitor the recoverability of its deferred tax assets. Based on the outcome of the items mentioned above, an adjustment to the amount of valuation allowance recorded against its deferred tax assets may be necessary.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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