the Company requires cash to pay its operating expenses, purchase capital equipment, and to service the obligations listed above.  the Company’s principal sources of funds are its operations and its revolving credit facility. Although the Company generated cash  from operations in the year ended December 31, 2014, it cannot guarantee that its operations will generate cash in future periods.  subject to the Risk Factors set forth in part I, Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended  December 31, 2014 (the “10-K”) and the general disclaimers set forth in our special note Regarding Forward-Looking statements at  the outset of the 10-K (and at the end of this report), we believe that cash flow from operations will provide us with sufficient funds in  order to fund our expected operations over the next twelve months. the Company does not believe inflation has had a material impact on its results of operations in the last three years. the Company had no off-balance-sheet arrangements in 2014, other than operating leases. the preparation of consolidated financial statements requires the Company to make estimates and judgments that affect the  reported amounts of assets, liabilities, revenues, and expenses, and related disclosure of contingent assets and liabilities. On an  ongoing basis, the Company evaluates its estimates, including those related to product returns, bad debts, inventories, intangible  assets, income taxes, warranty obligations, restructuring charges, contingencies, and litigation. the Company bases its estimates on  historical experience and on various other assumptions believed to be reasonable under the circumstances, including current and  anticipated worldwide economic conditions, both in general and specifically in relation to the packaging and component product  industries, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not  readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. the Company’s significant accounting policies are described in note 1 to the consolidated financial statements included in this  Report. the Company believes the following critical accounting policies necessitated that significant judgments and estimates be  used in the preparation of its consolidated financial statements.  the Company has reviewed these policies with its Audit Committee. oFF-baLance-SHeet arranGeMentS  criticaL accountinG PoLicieS • revenue recognition  the Company recognizes revenue at the time of shipment when title and risk of loss have passed  to the customer, persuasive evidence of an arrangement exists, performance of its obligation is complete, its price to  the buyer is fixed or determinable, and the Company is reasonably assured of collection. If a loss is anticipated on any  contract, a provision for the entire loss is made immediately. Determination of these criteria, in some cases, requires  management’s judgment. should changes in conditions cause management to determine that these criteria are not met  for certain future transactions, revenue for any reporting period could be adversely affected.  • Goodwill Goodwill is tested for impairment annually, and will be tested for impairment between annual tests if an event  occurs or circumstances change that would indicate that the carrying amount may be impaired. Impairment testing for  goodwill is done at a reporting unit level. Reporting units are one level below the business segment level, but can be  combined when reporting units within the same segment have similar economic characteris-tics. An impairment loss  generally would be recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair  value of the reporting unit. As of september 30, 2014, the Company consists of a single reporting unit. In conjunction with  a reassessment of our reportable segments (see note 19 to the consolidated financial statements), we performed step 1 of  the goodwill impairment test as of september 30, 2014. We utilized the guideline public company (“GpC”) method under  the market approach and the discounted cash flows method (“DCF”) under the income approach to determine the fair  value of the reporting unit for purposes of testing the reporting unit’s carrying value of goodwill for impairment. the GpC  method derives a value by generating a multiple of eBItDA through the comparison of the Company to similar publicly  traded companies. the DCF approach derives a value based on the present value of a series of estimated future cash  flows at the valuation date by the application of a discount rate, one that a prudent investor would require before making  an investment in our equity securities. the key assumptions used in our approach included:  •the reporting unit’s 2014 estimated financials and five-year projections of financial results, which were based  on our strategic plans and long-range forecasts. sales growth rates represent estimates based on current and  forecasted sales mix and market conditions. the profit margins were projected based on historical margins,  projected sales mix, current expense structure and anticipated expense modifications.  •the projected terminal value which reflects the total present value of projected cash flows beyond the last period  in the DCF. this value reflects a growth rate for the reporting unit, which is approximately the same growth rate  of expected inflation into perpetuity.  •the discount rate determined using a Weighted Average Cost of Capital method (“WACC”), which considered  market and industry data as well as Company-specific risk factors.  •selection of guideline public companies which are similar to each other and to the Company. 13