Annual report pursuant to Section 13 and 15(d)

Segments

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Segments
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segments SEGMENTS
Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:
(In thousands) 2019 2018 2017
Sales:
Aerospace $ 692,614    $ 675,744    $ 534,724   
Less Inter-segment Sales (5)   (119)   (121)  
Total Aerospace Sales 692,609    675,625    534,603   
Test Systems 80,495    127,679    89,861   
Less Inter-segment Sales (402)   (48)   —   
Test Systems 80,093    127,631    89,861   
Total Consolidated Sales $ 772,702    $ 803,256    $ 624,464   
Operating Profit and Margins:
Aerospace $ 16,657    $ 69,761    $ 38,888   
2.4  % 10.3  % 7.3  %
Test Systems 4,494    10,718    7,359   
5.6  % 8.4  % 8.2  %
Total Operating Profit $ 21,151    $ 80,479    $ 46,247   
2.7  % 10.0  % 7.4  %
Additions to (Deductions from) Operating Profit:
Net Gain on Sale of Businesses $ 78,801    $ —    $ —   
Interest Expense, Net of Interest Income (6,141)   (9,710)   (5,369)  
Corporate and Other Expenses, Net (25,508)   (18,487)   (15,887)  
Income before Income Taxes $ 68,303    $ 52,282    $ 24,991   
Depreciation and Amortization:
Aerospace $ 27,879    $ 29,947    $ 22,111   
Test Systems 4,534    4,500    4,302   
Corporate 636    585    650   
Total Depreciation and Amortization $ 33,049    $ 35,032    $ 27,063   
Assets:
Aerospace $ 629,371    $ 647,870    $ 621,047   
Test Systems 110,994    97,056    90,859   
Corporate 42,351    29,714    24,050   
Total Assets $ 782,716    $ 774,640    $ 735,956   
Capital Expenditures:
Aerospace $ 11,552    $ 14,680    $ 10,656   
Test Systems 380    1,370    2,721   
Corporate 151    267    101   
Total Capital Expenditures $ 12,083    $ 16,317    $ 13,478   
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 year ended December, 31 2019, there was a goodwill impairment loss of $1.6 million and intangible asset impairment of $6.2 million recorded in the Aerospace segment. In 2018, there were no goodwill or purchased intangible asset impairment losses in either the Aerospace or Test System segment. In 2017, there was a goodwill impairment loss of $16.2 million recorded in the Aerospace segment. In the Aerospace segment, goodwill amounted to $123.0 million and $125.0 million at December 31, 2019 and 2018, respectively. In the Test Systems segment, goodwill amounted to $21.9 million as of December 31, 2019. There was no goodwill in the Test Systems segment as of December 31, 2018.
The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:
(In thousands) 2019 2018 2017
United States $ 583,589    $ 575,830    $ 482,219   
North America (excluding United States) 12,585    10,834    6,198   
Asia 40,764    112,135    58,732   
Europe 130,227    98,193    73,677   
South America 862    1,973    1,280   
Other 4,675    4,291    2,358   
Total $ 772,702    $ 803,256    $ 624,464   
The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:
(In thousands) 2019 2018
United States $ 101,169    $ 110,738   
France 8,740    9,241   
India 1,509    —   
Canada 1,081    883   
Total $ 112,499    $ 120,862   
Sales recorded by the Company’s foreign operations were $85.9 million, $70.6 million and $53.9 million in 2019, 2018 and 2017, respectively. Net income from these locations was $8.6 million, $5.5 million and $2.2 million in 2019, 2018 and 2017, respectively. Net assets held outside of the U.S. total $66.4 million and $45.0 million at December 31, 2019 and 2018, respectively. The exchange loss included in determining net income was insignificant in 2019 and 2018. Cumulative translation adjustments amounted to $(7.0) million and $(7.2) million at December 31, 2019 and 2018, respectively.
The Company has a significant concentration of business with two major customers; The Boeing Company (“Boeing”) and Panasonic Aviation Corporation (“Panasonic”). The following is information relating to the activity with those customers:
2019 2018 2017
Percent of Consolidated Sales
Boeing 13.6%    14.3%    16.8%   
Panasonic 13.0%    14.4%    19.1%   

(In thousands) 2019 2018
Accounts Receivable at December 31,
Boeing $ 21,806    $ 24,649   
Panasonic $ 15,831    $ 14,994   
Sales to Boeing and Panasonic are primarily in the Aerospace segment.