Annual report pursuant to Section 13 and 15(d)

Segments

v3.3.1.900
Segments
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segments
SEGMENTS
Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:
(In thousands)
2015
 
2014
 
2013
Sales:
 
 
 
 
 
Aerospace
$
549,738

 
$
494,747

 
$
330,530

Test Systems
142,596

 
166,769

 
10,103

Less Inter-segment Sales
(55
)
 
(477
)
 
(696
)
 
142,541

 
166,292

 
9,407

Total Consolidated Sales
$
692,279

 
$
661,039

 
$
339,937

Operating Profit (Loss) and Margins:
 
 
 
 
 
Aerospace
$
85,103

 
$
79,753

 
$
55,200

 
15.5
%
 
16.1
%
 
16.7
 %
Test Systems
25,529

 
12,401

 
(3,756
)
 
17.9
%
 
7.4
%
 
(37.2
)%
Total Operating Profit
110,632

 
92,154

 
51,444

 
16.0
%
 
13.9
%
 
15.1
 %
Deductions from Operating Profit:
 
 
 
 
 
Interest Expense, Net of Interest Income
(4,751
)
 
(8,255
)
 
(4,094
)
Corporate and Other Expenses, Net
(11,831
)
 
(4,792
)
 
(9,139
)
Income before Income Taxes
$
94,050

 
$
79,107

 
$
38,211

Depreciation and Amortization:
 
 
 
 
 
Aerospace
$
19,377

 
$
17,847

 
$
10,058

Test Systems
5,209

 
8,786

 
590

Corporate
723

 
621

 
411

Total Depreciation and Amortization
$
25,309

 
$
27,254

 
$
11,059

Identifiable Assets:
 
 
 
 
 
Aerospace
$
510,884

 
$
468,481

 
$
428,619

Test Systems
64,934

 
69,247

 
11,035

Corporate
33,425

 
25,182

 
51,617

Total Assets
$
609,243

 
$
562,910

 
$
491,271

Capital Expenditures:
 
 
 
 
 
Aerospace
$
16,503

 
$
35,650

 
$
6,711

Test Systems
2,103

 
3,472

 
61

Corporate
35

 
1,760

 
96

Total Capital Expenditures
$
18,641

 
$
40,882

 
$
6,868


Operating profit is sales less cost of products sold and other operating expenses, excluding interest expense and other corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment.
For the years ended December 31, 2015, 2014 and 2013, there was no goodwill or purchased intangible asset impairment losses in either the Aerospace or Test System segment. In the Aerospace segment, goodwill amounted to $115.4 million and $100.2 million at December 31, 2015 and 2014, respectively. In the Test Systems segment, there was no goodwill as of December 31, 2015 and 2014.
The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:
 
2015
 
2014
 
2013
(In thousands)
 
 
 
 
 
North America
$
521,768

 
$
452,994

 
$
300,368

Asia
108,967

 
141,247

 
15,570

Europe
57,936

 
64,742

 
21,190

South America
1,112

 
1,192

 
1,851

Other
2,496

 
864

 
958

 
$
692,279

 
$
661,039

 
$
339,937

The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:
 
2015
 
2014
 
2013
(In thousands)
 
 
 
 
 
United States
$
115,117

 
$
105,698

 
$
59,803

France
9,092

 
10,347

 
10,771

Canada
533

 
271

 
326

 
$
124,742

 
$
116,316

 
$
70,900


Sales recorded by the Company’s foreign operations were $50.8 million, $64.5 million and $16.5 million in 2015, 2014 and 2013, respectively. Net income from these locations was $3.4 million, $4.1 million and $0.2 million in 2015, 2014 and 2013, respectively. Net assets held outside of the U.S. total $36.1 million and $38.0 million at December 31, 2015 and 2014, respectively. The exchange gain included in determining net income was $1.0 million in 2015 and was insignificant in 2014 and 2013. Cumulative translation adjustments amounted to $(8.0) million and $(3.4) million at December 31, 2015 and 2014, respectively.
The Company has a significant concentration of business with three major customers; Panasonic Aviation Corporation (“Panasonic”), Apple Inc. (“Apple”), and The Boeing Company (“Boeing”). The following is information relating to the activity with those customers:
 
2015

2014
 
2013
Percent of Consolidated Revenue
 
 
 
 
 
Panasonic
21.0
%
 
17.7
%
 
29.6
%
Apple
13.1
%
 
17.9
%
 
—

Boeing
13.0
%
 
14.1
%
 
14.5
%
(In thousands)
2015

2014
Accounts Receivable at December 31,
 
 
 
Panasonic
$
14,433

 
$
21,808

Apple
$
—

 
$
4,342

Boeing
$
9,598

 
$
6,874


Sales to Apple are in the Test Systems segment. Sales to Panasonic are in the Aerospace segment. Sales to Boeing occur in both segments.