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Business and geographic segments
 12 Months Ended
Dec. 31, 2012
Business and geographic segments

Note 3—Business and geographic segments:

Our operating segments are defined as components of our continuing operations about which separate financial information is available that is regularly evaluated by our chief operating decision maker in determining how to allocate resources and in assessing performance. At December 31, 2012, we had two operating segments – Security Products and Marine Components. In December 2012, we sold our Furniture Components segment. See Note 2.

The Security Products segment, with a facility in South Carolina and a facility shared with Marine Components in Illinois, manufactures locking mechanisms and other security products for sale to the transportation, postal, office furniture, cabinetry, tool storage, vending and other industries.

 

Our Marine Components segment, with a facility in Wisconsin and a facility shared with Security Products in Illinois, manufactures and distributes stainless steel exhaust systems, gauges and throttle controls primarily for recreational boats.

The chief operating decision maker evaluates segment performance based on segment operating income, which is defined as income before income taxes and interest expense, exclusive of certain general corporate income and expense items (primarily interest income) and certain non-recurring items (such as gains or losses on the disposition of business units and other long-lived assets outside the ordinary course of business). The accounting policies of the reportable operating segments are the same as those described in Note 1. Capital expenditures include additions to property and equipment, but exclude amounts attributable to business combinations.

Segment assets are comprised of all assets attributable to the reportable segments. Corporate assets are not attributable to the operating segments and consist primarily of cash, cash equivalents, notes receivable and assets held for sale. See Note 11. For geographic information, the point of origin (place of manufacture) for all net sales is the U.S., the point of destination for net sales is based on the location of the customer, and property and equipment are attributable to their physical location. At December 31, 2011 and 2012, the net assets of non-U.S. subsidiaries included in consolidated net assets approximated $36.8 million and $3.1 million, respectively. Intersegment sales are not material.

 

     Years ended December 31,  
     2010     2011     2012  
     (In thousands)  

Net sales:

       

Security Products

    $ 68,005      $ 71,397      $ 73,715   

Marine Components

      8,133        8,418        9,481   
  

 

 

    

 

 

    

 

 

  

Total

    $ 76,138      $ 79,815      $ 83,196   
  

 

 

    

 

 

    

 

 

  

Operating income (loss):

       

Security Products

    $ 13,066      $ 14,361      $ 14,143   

Marine Components

      (1,432 )      (1,223 )      (819 ) 

Corporate

      (5,750 )(a)      (6,726 )(a)      (7,906 )(a) 
  

 

 

    

 

 

    

 

 

  

Total operating income

      5,884        6,412        5,418   

Other non-operating income, net

      336        358        —    

Interest expense

      (914 )      (722 )      (479 ) 
  

 

 

    

 

 

    

 

 

  

Income from continuing operations before income taxes

    $ 5,306      $ 6,048      $ 4,939   
  

 

 

    

 

 

    

 

 

  

 

(a) Corporate operating expenses include write-downs and loss on the disposal of certain assets held for sale of $500,000 in 2010, $1.1 million in 2011 and $1.2 million in 2012. See Note 11.

 

     Years ended December 31,  
     2010      2011      2012  
     (In thousands)  

Depreciation and amortization:

         

Security Products

    $ 3,383       $ 2,976       $ 2,618   

Furniture Components**

      3,191         2,853         2,404   

Marine Components

      1,099         907         687   

Corporate

      3         42         63   
  

 

 

     

 

 

     

 

 

  

Total

    $ 7,676       $ 6,778       $ 5,772   
  

 

 

     

 

 

     

 

 

  

Capital expenditures:

         

Security Products

    $ 692       $ 1,714       $ 2,029   

Furniture Components**

      1,023         1,333         1,721   

Marine Components

      264         112         713   

Corporate

      141         36         14   
  

 

 

     

 

 

     

 

 

  

Total

    $ 2,120       $ 3,195       $ 4,477   
  

 

 

     

 

 

     

 

 

  
     Years ended December 31,  
     2010      2011      2012  
     (In thousands)  

Net sales point of destination:

         

United States

    $ 71,993       $ 75,594       $ 78,268   

Canada

      1,940         1,982         2,194   

Mexico

      904         1,060         1,249   

Other

      1,301         1,179         1,485   
  

 

 

     

 

 

     

 

 

  

Total

    $ 76,138       $ 79,815       $ 83,196   
  

 

 

     

 

 

     

 

 

  

Total assets:

         

Security Products

    $ 68,929       $ 69,185       $ 69,143   

Furniture Components**

      52,761         50,174         —    

Marine Components

      11,337         10,531         9,689   

Corporate and eliminations

      27,045         11,636         71,351 * 
  

 

 

     

 

 

     

 

 

  

Total

    $ 160,072       $ 141,526       $ 150,183   
  

 

 

     

 

 

     

 

 

  

Net property and equipment:

         

United States

    $ 42,570       $ 33,704       $ 33,727   

Canada**

      9,444         9,681         —    

Taiwan**

      7,889         7,742         —    
  

 

 

     

 

 

     

 

 

  

Total

    $ 59,903       $ 51,127       $ 33,727   
  

 

 

     

 

 

     

 

 

  

 

* Includes cash proceeds from sale of Furniture Components segment of approximately $58.0 million. See Note 2.
** Denotes disposed operations. See Note 2.