Annual report pursuant to Section 13 and 15(d)

Segments

v3.6.0.2
Segments
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segments
SEGMENTS
Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:
(In thousands)
2016
 
2015
 
2014
Sales:
 
 
 
 
 
Aerospace
$
534,408

 
$
549,738

 
$
494,747

Less Inter-segment Sales
(367
)
 
—

 
—

Total Aerospace Sales
534,041

 
549,738

 
494,747

 
 
 
 
 
 
Test Systems
99,082

 
142,596

 
166,769

Less Inter-segment Sales
—

 
(55
)
 
(477
)
Test Systems
99,082

 
142,541

 
166,292

Total Consolidated Sales
$
633,123

 
$
692,279

 
$
661,039

Operating Profit (Loss) and Margins:
 
 
 
 
 
Aerospace
$
77,966

 
$
85,103

 
$
79,753

 
14.6
%
 
15.5
%
 
16.1
%
Test Systems
8,507

 
25,529

 
12,401

 
8.6
%
 
17.9
%
 
7.4
%
Total Operating Profit
86,473

 
110,632

 
92,154

 
13.7
%
 
16.0
%
 
13.9
%
Deductions from Operating Profit:
 
 
 
 
 
Interest Expense, Net of Interest Income
(4,354
)
 
(4,751
)
 
(8,255
)
Corporate and Other Expenses, Net
(13,334
)
 
(11,831
)
 
(4,792
)
Income before Income Taxes
$
68,785

 
$
94,050

 
$
79,107

Depreciation and Amortization:
 
 
 
 
 
Aerospace
$
19,873

 
$
19,377

 
$
17,847

Test Systems
5,273

 
5,209

 
8,786

Corporate
644

 
723

 
621

Total Depreciation and Amortization
$
25,790

 
$
25,309

 
$
27,254

Identifiable Assets:
 
 
 
 
 
Aerospace
$
500,892

 
$
510,884

 
$
468,481

Test Systems
76,575

 
64,934

 
69,247

Corporate
26,877

 
33,425

 
25,182

Total Assets
$
604,344

 
$
609,243

 
$
562,910

Capital Expenditures:
 
 
 
 
 
Aerospace
$
9,511

 
$
16,503

 
$
35,650

Test Systems
3,345

 
2,103

 
3,472

Corporate
181

 
35

 
1,760

Total Capital Expenditures
$
13,037

 
$
18,641

 
$
40,882


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, 2016, 2015 and 2014, 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 $115.2 million and $115.4 million at December 31, 2016 and 2015, respectively. In the Test Systems segment, there was no goodwill as of December 31, 2016 and 2015.
The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:
 
2016
 
2015
 
2014
(In thousands)
 
 
 
 
 
United States
$
504,270

 
$
508,724

 
$
444,277

North America (excluding United States)
12,331

 
13,044

 
8,717

Asia
52,171

 
108,967

 
141,247

Europe
61,200

 
57,936

 
64,742

South America
577

 
1,112

 
1,192

Other
2,574

 
2,496

 
864

 
$
633,123

 
$
692,279

 
$
661,039

The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:
 
2016
 
2015
 
2014
(In thousands)
 
 
 
 
 
United States
$
114,048

 
$
115,117

 
$
105,698

France
8,216

 
9,092

 
10,347

Canada
548

 
533

 
271

 
$
122,812

 
$
124,742

 
$
116,316


Sales recorded by the Company’s foreign operations were $50.1 million, $50.8 million and $64.5 million in 2016, 2015 and 2014, respectively. Net income from these locations was $1.8 million, $3.4 million and $4.1 million in 2016, 2015 and 2014, respectively. Net assets held outside of the U.S. total $36.8 million and $36.1 million at December 31, 2016 and 2015, respectively. The exchange gain included in determining net income was insignificant in 2016 and 2014 and was $1.0 million in 2015. Cumulative translation adjustments amounted to $(8.6) million and $(8.0) million at December 31, 2016 and 2015, respectively.
The Company has a significant concentration of business with two major customers; Panasonic Aviation Corporation (“Panasonic”) and The Boeing Company (“Boeing”). The following is information relating to the activity with those customers:
 
2016

2015
 
2014
Percent of Consolidated Revenue
 
 
 
 
 
Panasonic
21.6
%
 
21.0
%
 
17.7
%
Boeing
15.2
%
 
13.0
%
 
14.1
%
(In thousands)
2016
 
2015
Accounts Receivable at December 31,
 
 
 
Panasonic
$
17,126

 
$
14,433

Boeing
$
11,737

 
$
9,598


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