Annual report pursuant to Section 13 and 15(d)

Segments

v3.20.4
Segments
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segments SEGMENTS
Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:
(In thousands) 2020 2019 2018
Sales:
Aerospace $ 418,079  $ 692,614  $ 675,744 
Less Inter-segment Sales (91) (5) (119)
Total Aerospace Sales 417,988  692,609  675,625 
Test Systems 85,589  80,495  127,679 
Less Inter-segment Sales (990) (402) (48)
Test Systems 84,599  80,093  127,631 
Total Consolidated Sales $ 502,587  $ 772,702  $ 803,256 
Operating (Loss) Profit and Margins:
Aerospace $ (89,833) $ 16,657  $ 69,761 
(21.5) % 2.4  % 10.3  %
Test Systems 5,549  4,494  10,718 
6.6  % 5.6  % 8.4  %
Total Operating (Loss) Profit $ (84,284) $ 21,151  $ 80,479 
(16.8) % 2.7  % 10.0  %
Additions to (Deductions from) Operating Profit:
Net Gain on Sale of Businesses $ —  $ 78,801  $ — 
Interest Expense, Net of Interest Income (6,741) (6,141) (9,710)
Corporate and Other Expenses, Net (21,385) (25,508) (18,487)
(Loss) Income before Income Taxes $ (112,410) $ 68,303  $ 52,282 
Depreciation and Amortization:
Aerospace $ 25,624  $ 27,879  $ 29,947 
Test Systems 5,577  4,534  4,500 
Corporate 653  636  585 
Total Depreciation and Amortization $ 31,854  $ 33,049  $ 35,032 
Assets:
Aerospace $ 484,885  $ 629,371  $ 647,870 
Test Systems 105,079  110,994  97,056 
Corporate 29,781  42,351  29,714 
Total Assets $ 619,745  $ 782,716  $ 774,640 
Capital Expenditures:
Aerospace $ 6,494  $ 11,552  $ 14,680 
Test Systems 952  380  1,370 
Corporate 13  151  267 
Total Capital Expenditures $ 7,459  $ 12,083  $ 16,317 
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 2020, there was a goodwill impairment loss of $86.3 million recorded in the Aerospace 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 the Aerospace segment, goodwill amounted to $36.6 million and $123.0 million at December 31, 2020 and 2019, respectively. In the Test Systems segment, goodwill amounted to $21.6 million and $21.9 million as of December 31, 2020 and 2019, respectively.
The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:
(In thousands) 2020 2019 2018
United States $ 377,218  $ 583,589  $ 575,830 
North America (excluding United States) 7,656  12,585  10,834 
Asia 27,579  40,764  112,135 
Europe 85,306  130,227  98,193 
South America 1,788  862  1,973 
Other 3,040  4,675  4,291 
Total $ 502,587  $ 772,702  $ 803,256 
The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:
(In thousands) 2020 2019
United States $ 95,281  $ 101,169 
France 9,109  8,740 
India 1,223  1,509 
Canada 1,065  1,081 
Total $ 106,678  $ 112,499 
Sales recorded by the Company’s foreign operations were $52.3 million, $85.9 million and $70.6 million in 2020, 2019 and 2018, respectively. Net loss from these locations in 2020 was $6.6 million, and net income of $8.6 million and $5.5 million in 2019 and 2018, respectively. Net assets held outside of the U.S. total $63.3 million and $66.4 million at December 31, 2020 and 2019, respectively. The exchange gain included in determining net income was insignificant in 2020 and 2018, and the exchange loss was insignificant in 2019. Cumulative translation adjustments amounted to $(4.5) million and $(7.0) million at December 31, 2020 and 2019, 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:
2020 2019 2018
Percent of Consolidated Sales
Boeing 9.5% 13.6% 14.3%
Panasonic 11.1% 13.0% 14.4%

(In thousands) 2020 2019
Accounts Receivable at December 31,
Boeing $ 6,490  $ 21,806 
Panasonic $ 4,083  $ 15,831 
Sales to Boeing and Panasonic are primarily in the Aerospace segment.