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Segment Information | 6 Months Ended
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Jun. 30, 2020
Segment Information [Abstract] |
Segment Information | NOTE 13. SEGMENT INFORMATION We operate our business structure within two segments. These segments are defined based on the internal financial reporting used by management. Certain significant selling and general and administrative expenses are not allocated to the segments including non-cash stock compensation expense. Each segment is described below: Our Black Diamond segment, which includes Black Diamond Equipment, PIEPS, and SKINourishment, is a global leader in designing, manufacturing, and marketing innovative outdoor engineered equipment and apparel for climbing, mountaineering, trail running, backpacking, skiing, and a wide range of other year-round outdoor recreation activities. Our Black Diamond segment offers a broad range of products including: high-performance, activity-based apparel (such as shells, insulation, midlayers, pants and logowear); rock-climbing footwear and equipment (such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear); technical backpacks and high-end day packs; trekking poles; headlamps and lanterns; gloves and mittens; and skincare and other sport-enhancing products. We also offer advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes. Our Sierra segment, which includes Sierra, is an iconic American manufacturer of a wide range of high-performance bullets and ammunition for both rifles and pistols. These bullets and ammunition are used for precision target shooting, hunting and military and law enforcement purposes. As noted above, the Company has a wide variety of technical outdoor equipment and lifestyle products focused on the climb, ski, mountain and sport product categories that are sold to a variety of customers in multiple end markets. While there are multiple products sold, the terms and nature of revenue recognition policy is similar for all segments. The sport product category represents the Sierra segment revenue. We divide our product offerings into four primary categories of climb, mountain, ski and sport. Revenue by category as a percentage of total consolidated revenues is as follows:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
Climb |  | 38 | % |  | 37 | % |  | 38 | % |  | 36 | %
Mountain |  | 22 | % |  | 36 | % |  | 27 | % |  | 32 | %
Ski |  | 7 | % |  | 8 | % |  | 14 | % |  | 15 | %
Sport |  | 33 | % |  | 19 | % |  | 21 | % |  | 17 | %
Contract liabilities are recorded as a component of accounts payable and accrued liabilities when customers remit contractual cash payments in advance of us satisfying performance obligations which are satisfied at a future point of time. Contract liabilities were not material at June 30, 2020 and December 31, 2019. Contract liabilities are derecognized when the performance obligation is satisfied. Revenue recognized from satisfaction of performance obligations relating to the advanced payments during the three and six months ended June 30, 2020 and 2019 were not material. No other material remaining performance obligations exist at June 30, 2020. Financial information for our segments is as follows:
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
Sales to external customers: |  |  |  |  |  |  |  |  |  |  |  |
Black Diamond |  |  |  |  |  |  |  |  |  |  |  |
Domestic sales |  | $ | 11,740 |  | $ | 22,149 |  | $ | 34,428 |  | $ | 46,681
International sales |  |  | 8,462 |  |  | 15,696 |  |  | 31,569 |  |  | 43,565
Total Black Diamond |  |  | 20,202 |  |  | 37,845 |  |  | 65,997 |  |  | 90,246
Sierra |  |  |  |  |  |  |  |  |  |  |  |
Domestic sales |  |  | 8,519 |  |  | 6,273 |  |  | 14,379 |  |  | 12,330
International sales |  |  | 1,293 |  |  | 2,876 |  |  | 3,193 |  |  | 5,636
Total Sierra |  |  | 9,812 |  |  | 9,149 |  |  | 17,572 |  |  | 17,966
Total sales to external customers |  |  | 30,014 |  |  | 46,994 |  |  | 83,569 |  |  | 108,212
Segment operating (loss) income: |  |  |  |  |  |  |  |  |  |  |  |
Black Diamond |  |  | (4,000) |  |  | (468) |  |  | (2,326) |  |  | 4,708
Sierra |  |  | 2,346 |  |  | 1,418 |  |  | 3,818 |  |  | 3,079
Total segment operating (loss) income |  |  | (1,654) |  |  | 950 |  |  | 1,492 |  |  | 7,787
Restructuring charge |  |  | - |  |  | - |  |  | - |  |  | (13)
Transaction costs |  |  | (180) |  |  | (41) |  |  | (430) |  |  | (87)
Corporate and other expenses |  |  | (1,797) |  |  | (1,967) |  |  | (4,332) |  |  | (4,351)
Interest expense, net |  |  | (257) |  |  | (315) |  |  | (568) |  |  | (625)
(Loss) income before income tax |  | $ | (3,888) |  | $ | (1,373) |  | $ | (3,838) |  | $ | 2,711
There were no intercompany sales between the Black Diamond and Sierra segments for the periods presented. Restructuring charges for the periods presented relate to the Black Diamond segment. Total assets by segment, as of June 30, 2020 and December 31, 2019, were as follows:
|  |  |  |  |  |  |  | June 30, 2020 |  | December 31, 2019
Black Diamond |  |  |  |  |  |  |  | $ | 129,863 |  | $ | 147,261
Sierra |  |  |  |  |  |  |  |  | 74,282 |  |  | 72,104
Corporate |  |  |  |  |  |  |  |  | 26,588 |  |  | 10,900
|  |  |  |  |  |  |  | $ | 230,733 |  | $ | 230,265
Capital expenditures, depreciation and amortization by segment is as follows.
|  | Three Months Ended |  | Six Months Ended
|  | June 30, 2020 |  | June 30, 2019 |  | June 30, 2020 |  | June 30, 2019
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Black Diamond |  | $ | 316 |  | $ | 426 |  | $ | 1,305 |  | $ | 1,190
Sierra |  |  | 403 |  |  | 522 |  |  | 716 |  |  | 804
Total capital expenditures |  | $ | 719 |  | $ | 948 |  | $ | 2,021 |  | $ | 1,994
Depreciation: |  |  |  |  |  |  |  |  |  |  |  |
Black Diamond |  | $ | 703 |  | $ | 631 |  | $ | 1,388 |  | $ | 1,242
Sierra |  |  | 445 |  |  | 508 |  |  | 877 |  |  | 1,000
Total depreciation |  | $ | 1,148 |  | $ | 1,139 |  | $ | 2,265 |  | $ | 2,242
Amortization: |  |  |  |  |  |  |  |  |  |  |  |
Black Diamond |  | $ | 269 |  | $ | 277 |  | $ | 545 |  | $ | 556
Sierra |  |  | 496 |  |  | 611 |  |  | 992 |  |  | 1,221
Total amortization |  | $ | 765 |  | $ | 888 |  | $ | 1,537 |  | $ | 1,777

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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