SEGMENT REPORTING

12 Months Ended

Dec. 29, 2013

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

We determine our reportable segments based upon our management structure, our internal reporting, and how our chief operating decision maker evaluates performance and allocates resources. As a result, we determined that the Company manages and reports its businesses in the following two reportable segments:

Healthcare - The Healthcare segment serves hospitals and other providers of healthcare and related services. The solutions portfolio includes marketing communications, patient information management, patient identification & safety, and document management solutions.

Business Solutions - The Business Solutions segment primarily serves customers in the financial services, manufacturing, retail, business services, and transportation markets. The solutions portfolio includes customer communications, marketing communications, product marking & labeling, and document management solutions.

Under our current operating model, the majority of our manufacturing, printing, warehousing, and distribution functions are managed under a shared-services model and are therefore not specific to a particular reportable segment. Each business unit is supported by our shared services group comprised of manufacturing, supply chain, and client satisfaction, as well as finance, technology, and other corporate functions. The profitability measure we use to assess segment performance is segment operating income and excludes items listed in the following reconciliation that are not allocated to segment operating income.

Production costs for our manufacturing and supply chain shared services functions are accumulated on a customer basis and reported in the applicable business unit's cost of sales. Our business units incur a portion of SG&A directly. Each business unit also receives an allocation of SG&A expense as follows:

• Each business unit has its own sales regions. Selling expense incurred by each sales region is allocated to other business units based on the percentage of revenue generated for the other business unit. We use a combination of activity-based method and percentage of revenue to allocate expense associated with our client satisfaction function to business units.

• Finance, technology, and other corporate general and administrative expenses are allocated based on the business unit's budgeted revenue as a percentage of actual consolidated revenue.

• General and administrative expense of our remaining shared services is allocated based on a percentage of actual revenue.

As a result of our shared-services model, our segments do not have separately identified assets and depreciation expense is part of the allocations. Asset information is not provided as part of the business unit's discrete financial information. The accounting policies of the segments are the same as those described in Note 1. No single customer provided more than 10% of the Company's consolidated revenue in any of the years presented.

Information about our operations by reportable segment is as follows:

		Healthcare		Business Solutions		Total
Revenue from external customers	2013	$	230,120	$	489,663	$	719,783
	2012	215,883		386,105		601,988
	2011	236,772		411,337		648,109
Operating income	2013	$	13,026	$	10,400	$	23,426
	2012	12,704		8,077		20,781
	2011	14,475		3,483		17,958
Depreciation and amortization	2013	$	9,921	$	17,143	$	27,064
	2012	8,285		13,722		22,007
	2011	8,011		13,798		21,809

Reconciling information between reportable segments and our consolidated financial statements is as follows:

	2013			2012			2011
Segment operating income	$	23,426		$	20,781		$	17,958
Restructuring and other exit costs	(14,460		)	(4,278		)	(5,198		)
Net pension periodic benefit cost	(64		)	(41,471		)	(60,934		)
Acquisition and integration costs	(10,776		)	—			—
Asset impairment	(1,262		)	—			—
Unallocated portion of postretirement credit	—			—			15,164
Other unallocated	170			(324		)	1,106
Total other expense	(9,796		)	(2,650		)	(1,834		)
Loss before income taxes	$	(12,762	)	$	(27,942	)	$	(33,738	)

Our operations are conducted primarily in the United States.  Revenue and long-lived assets for our operations in Mexico are not material.  Revenue by the products and services we provide is as follows:

	2013		2012		2011
Print	$	417,151	$	366,127	$	391,486
Labels	119,664		105,680		108,547
Software	10,480		8,924		9,487
Services	100,613		73,177		87,466
Promotional products	23,033		2,007		1,965
Other	48,842		46,073		49,158
Total consolidated revenue	$	719,783	$	601,988	$	648,109