XML 60 R1.htm IDEA: XBRL DOCUMENT v3.3.0.814
Document And Entity Information - shares
3 Months Ended
Mar. 29, 2015
May. 01, 2015
Document And Entity Information [Abstract]    
Document Type 10-Q/A  
Amendment Flag true  
Amendment Description EXPLANATORY NOTE Checkpoint Systems, Inc. is filing this Amendment No. 1 (this Form 10-Q/A) to our Quarterly Report on Form 10-Q for the quarter ended March 29, 2015, which was originally filed on May 6, 2015 (the Original Form 10-Q), to restate our unaudited consolidated financial statements at, and for the quarter ended March 28, 2015, which were included in the Original Form 10-Q, and to amend certain related disclosure, including disclosure relating to our evaluation of our disclosure controls and procedures. On November 2, 2015, our Audit Committee of the Board of Directors concluded, in consultation with management and after discussion with our independent registered public accounting firm (PricewaterhouseCoopers LLP), that, due to the effect of a material error in the accounting for our quarterly income tax provision, our interim unaudited consolidated financial statements for the quarterly period ended March 29, 2015 contained in the Original Form 10-Q and our interim unaudited consolidated financial statements for the quarterly period ended June 28, 2015 and the year-to-date period ended June 28, 2015 contained in our Quarterly Report on Form 10-Q for the quarter ended June 28, 2015, should no longer be relied upon. We assessed the effect of this error on our prior interim financial statements and concluded that the effect of this error was material to the unaudited consolidated financial statements for each of the quarters ended March 29, 2015 and June 28, 2015 and the year-to-date period ended June 28, 2015. We concluded that the effect of the error on interim periods within our 2014 fiscal year was not material. There is no effect of the error on our consolidated financial statements for the year ended December 28, 2014 or any prior period. As a result of the determination to restate these previously-issued financial statements, management re-evaluated the effectiveness of the design and operation of our internal control over financial reporting and disclosure controls and procedures and has concluded that we did not maintain effective controls over the period end financial reporting process for the quarterly periods ended March 29, 2015 and June 28, 2015. Specifically, effective controls were not maintained over the accounting for our quarterly income tax calculation surrounding the inclusion or exclusion of entities with valuation allowances. Additionally, we incorrectly calculated the valuation allowance related to a non U.S. entity with a deferred tax liability related to an indefinite lived intangible. Because of this material weakness, management, including the Chief Executive Officer and Acting Chief Financial Officer, concluded that our disclosure controls and procedures were not effective as of March 29, 2015 and June 28, 2015. The control deficiency constituted a material weakness, but did not result in a material misstatement to our audited consolidated financial statements for the year ended December 28, 2014, or any of the interim unaudited consolidated financial statements for the quarters included therein. However, the control deficiency could have resulted in a material misstatement to the annual or interim consolidated financial statements that would not have been prevented or detected. Our Annual Report on Form 10-K for the year ended December 28, 2014 will be amended to reflect the conclusion by management that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 28, 2014. As a result of the restatement of our unaudited consolidated financial statements for the quarterly period ended March 29, 2015, we also recorded an adjustment to the valuation allowance recorded against German deferred tax assets relating to the third quarter ended September 28, 2014. This adjustment was not material to any previously issued interim or annual financial statements or to the 2015 interim consolidated financial statements. We are re-assessing the design of the controls and modifying processes related to the calculation of our interim effective tax rate as well as enhancing monitoring and oversight controls in the application of applicable accounting guidance related to the tax treatment of jurisdictions with valuation allowances. We believe that these initiatives will remediate the material weakness in internal control over financial reporting described above. We will test the ongoing operating effectiveness of the revised controls in future periods. The material weakness cannot be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. This Form 10-Q/A sets forth the Original Form 10-Q in its entirety; however, pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended, this Form 10-Q/A amends and restates only the following Items of the Original Form 10-Q and only with respect to matters affected by the restatement and the material weakness discussed above: PART I Item 1. Consolidated Financial Statements (Unaudited) Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Item 4. Controls and Procedures PART II Item 6. Exhibits We are also filing certifications from our Chief Executive Officer and Acting Chief Financial Officer (Exhibits 31.1, 31.2, and 32.1) and various exhibits related to XBRL. This Form 10-Q/A does not modify or update other disclosures presented in the Original Form 10-Q, including the exhibits to the Original Form 10-Q, except as identified above. As such, except for the items identified above, this Form 10-Q/A speaks as of May 6, 2015, the original filing date, and any forward-looking statements represent management's views as of that date and should not be assumed to be accurate as of any date thereafter. This Form 10-Q/A should be read in conjunction with our other filings made with the Securities and Exchange Commission subsequent to May 6, 2015.  
Document Period End Date Mar. 29, 2015  
Entity Registrant Name CHECKPOINT SYSTEMS INC  
Entity Central Index Key 0000215419  
Current Fiscal Year End Date --12-27  
Entity Filer Category Accelerated Filer  
Entity Common Stock, Shares Outstanding   42,068,671
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus Q1