Foreign Operations

In conjunction with the Company's acquisition of certain assets of Airshield Corporation on October 16, 2001, the Company established manufacturing operations in Mexico (under the Maquiladora program). The Mexican operation is a captive manufacturing facility of the Company and the functional currency is United States dollars. Essentially all sales of the Mexican operations are made in United States dollars, which totaled $61,313,000, $61,612,000 and $74,667,000 in 2014, 2013 and 2012, respectively. Expenses are incurred in the United States dollar and the Mexican peso. Expenses incurred in pesos include labor, utilities, supplies and materials, and amounted to approximately 22%, 23% and 20% of sales produced at the Matamoros operations in 2014, 2013 and 2012, respectively. The Company's manufacturing operation in Mexico is subject to various political, economic, and other risks and uncertainties including safety and security concerns inherent to Mexico. Among other risks, the Company's Mexican operations are subject to domestic and international customs and tariffs, changing taxation policies, and governmental regulations.

All of the Company's product is sold to U.S. based customers in U.S. dollars. The following table provides information related to sales by country, based on the ship to location of customers' production facilities, for the years ended December 31:



	2014		2013		2012
United States	$	123,317,000	$	95,063,000	$	115,226,000
Mexico	47,772,000		45,069,000		43,358,000
Canada	4,115,000		3,993,000		3,866,000
Total	$	175,204,000	$	144,125,000	$	162,450,000

The following table provides information related to the location of property, plant and equipment, net, as of December 31:



	2014		2013
United States	$	31,674,000	$	24,285,000
Mexico	30,321,000		32,193,000
Total	$	61,995,000	$	56,478,000