Annual report pursuant to Section 13 and 15(d)

Segments

v3.10.0.1
Segments
 12 Months Ended
Dec. 31, 2018
Segment Reporting [Abstract]  
Segments SEGMENTS
Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:
(In thousands) 2018 2017 2016
Sales:
Aerospace $ 675,744  $ 534,724  $ 534,408 
Less Inter-segment Sales (119) (121) (367)
Total Aerospace Sales 675,625  534,603  534,041 
Test Systems 127,679  89,861  99,082 
Less Inter-segment Sales (48) —  — 
Test Systems 127,631  89,861  99,082 
Total Consolidated Sales $ 803,256  $ 624,464  $ 633,123 
Operating Profit and Margins:
Aerospace $ 69,761  $ 38,888  $ 77,966 
10.3  % 7.3  % 14.6  %
Test Systems 10,718  7,359  8,507 
8.4  % 8.2  % 8.6  %
Total Operating Profit $ 80,479  $ 46,247  $ 86,473 
10.0  % 7.4  % 13.7  %
Deductions from Operating Profit:
Interest Expense, Net of Interest Income $ (9,710) $ (5,369) $ (4,354)
Corporate and Other Expenses, Net (18,487) (15,887) (13,334)
Income before Income Taxes $ 52,282  $ 24,991  $ 68,785 
Depreciation and Amortization:
Aerospace $ 29,947  $ 22,111  $ 19,873 
Test Systems 4,500  4,302  5,273 
Corporate 585  650  644 
Total Depreciation and Amortization $ 35,032  $ 27,063  $ 25,790 
Assets:
Aerospace $ 647,870  $ 621,047  $ 500,892 
Test Systems 97,056  90,859  76,575 
Corporate 29,714  24,050  26,877 
Total Assets $ 774,640  $ 735,956  $ 604,344 
Capital Expenditures:
Aerospace $ 14,680  $ 10,656  $ 9,511 
Test Systems 1,370  2,721  3,345 
Corporate 267  101  181 
Total Capital Expenditures $ 16,317  $ 13,478  $ 13,037 
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, 2018 and December, 31 2016, 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 $125.0 million and $125.6 million at December 31, 2018 and 2017, respectively. In the Test Systems segment, there was no goodwill as of December 31, 2018 and 2017.
The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:
(In thousands) 2018 2017 2016
United States $ 575,830  $ 482,219  $ 504,270 
North America (excluding United States) 10,834  6,198  12,331 
Asia 112,135  58,732  52,171 
Europe 98,193  73,677  61,200 
South America 1,973  1,280  577 
Other 4,291  2,358  2,574 
Total $ 803,256  $ 624,464  $ 633,123 
The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:
(In thousands) 2018 2017
United States $ 110,738  $ 116,026 
France 9,241  9,094 
Canada 883  710 
Total $ 120,862  $ 125,830 
Sales recorded by the Company’s foreign operations were $70.6 million, $53.9 million and $50.1 million in 2018, 2017 and 2016, respectively. Net income from these locations was $5.5 million, $2.2 million and $1.8 million in 2018, 2017 and 2016, respectively. Net assets held outside of the U.S. total $45.0 million and $47.4 million at December 31, 2018 and 2017, respectively. The exchange loss included in determining net income was $0.3 million in 2018 and an insignificant gain in 2017. Cumulative translation adjustments amounted to $(7.2) million and $(4.5) million at December 31, 2018 and 2017, 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:
2018 2017 2016
Percent of Consolidated Sales
Panasonic 14.4%    19.1%    21.6%   
Boeing 14.3%    16.8%    15.2%   

(In thousands) 2018 2017
Accounts Receivable at December 31,
Panasonic $ 14,994  $ 10,200 
Boeing $ 24,649  $ 12,969 
Sales to Panasonic are in the Aerospace segment. Sales to Boeing occur in both segments.