SEGMENT REPORTING

6 Months Ended

Jul. 01, 2012

SEGMENT REPORTING

NOTE 10 – SEGMENT REPORTING

Since the January 2012 restructuring announcement, we spent significant time analyzing our operations, organizational structure, and portfolio of products and services.  As a result, in the second quarter of 2012, we combined the Commercial Markets, Financial Services, and Industrial business units into one consolidated business unit, Business Solutions.

We re-evaluated our reportable segments based upon the new management structure, our internal reporting, and how our chief operating decision maker evaluates performance and allocate resources.  As a result, we determined that the Company now 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 is categorized under marketing communication solutions, patient information solutions, and patient identification & safety solutions.  Legacy products are dominated by clinical documents and administrative forms.

Business Solutions – The Business Solutions segment serves customers in the financial services, commercial, and industrial markets.  The solutions portfolio is categorized under customer communications, marketing communications, on-demand publishing, and product marking & labeling.  Legacy products are dominated by traditional business documents and transactional labels.

We have revised our segment information for prior periods to conform to the current period presentation.

Information about our operations by reportable segment for the 13-week periods ended July 1, 2012 and July 3, 2011 is as follows:

		Healthcare		Business Solutions		Total
Revenue from external customers	2012	$	54,763	$	100,304	$	155,067
	2011		59,051		105,234		164,285
Operating income (loss)	2012	$	3,774	$	2,613	$	6,387
	2011		3,824		628		4,452

Information about our operations by reportable segment for the 26-week periods ended July 1, 2012 and July 3, 2011 is as follows:

		Healthcare		Business Solutions		Total
Revenue from external customers	2012	$	111,813	$	200,903	$	312,716
	2011		119,723		209,451		329,174
Operating income (loss)	2012	$	6,342	$	3,285	$	9,627
	2011		8,507		2,815		11,322

In addition, we are presenting revised information about our operations by reportable segment for the 13-week periods ended April 1, 2012 and April 3, 2011 as follows:

		Healthcare		Business Solutions		Total
Revenue from external customers	2012	$	57,050	$	100,599	$	157,649
	2011		60,672		104,217		164,889
Operating income (loss)	2012	$	2,568	$	672	$	3,240
	2011		4,683		2,187		6,870

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

	13 Weeks Ended						26 Weeks Ended
	July 1,			July 3,			July 1,			July 3,
	2012			2011			2012			2011
Segment operating income (loss)	$	6,387		$	4,452		$	9,627		$	11,322
Restructuring and other exit costs		(1,490	)		251			(2,612	)		177
Net pension periodic benefit cost		(5,176	)		(6,120	)		(11,360	)		(11,799	)
Other unallocated		3			(54	)		(50	)		(94	)
Total other income (expense)		(662	)		(79	)		(1,350	)		(646	)
Income (loss) before income taxes	$	(938	)	$	(1,550	)	$	(5,745	)	$	(1,040	)