SEGMENT REPORTING

9 Months Ended

Sep. 30, 2012

SEGMENT REPORTING

NOTE 11 – 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 allocates 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 includes marketing communications, patient information, 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 includes 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 September 30, 2012 and    October 2, 2011 is as follows:

		Healthcare		Business Solutions		Total
Revenue from external customers	2012	$	51,535	$	94,187	$	145,722
	2011		57,717		99,826		157,543
Operating income (loss)	2012	$	2,222	$	2,365	$	4,587
	2011		3,858		1,993		5,851

Information about our operations by reportable segment for the 39-week periods ended September 30, 2012 and    October 2, 2011 is as follows:

		Healthcare		Business Solutions		Total
Revenue from external customers	2012	$	163,348	$	295,090	$	458,438
	2011		177,440		309,277		486,717
Operating income (loss)	2012	$	8,564	$	5,650	$	14,214
	2011		12,365		4,808		17,173

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						39 Weeks Ended
	September 30,			October 2,			September 30,			October 2,
	2012			2011			2012			2011
Segment operating income (loss)	$	4,587		$	5,851		$	14,214		$	17,173
Restructuring and other exit costs		(733	)		(112	)		(3,345	)		65
Net pension periodic benefit cost		(5,176	)		(5,667	)		(16,536	)		(17,466	)
Unallocated portion of postretirement credit		-			15,164			-			15,164
Other unallocated		(432	)		(98	)		(482	)		(192	)
Total other income (expense)		(660	)		(570	)		(2,010	)		(1,216	)
Income (loss) before income taxes	$	(2,414	)	$	14,568		$	(8,159	)	$	13,528