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Nature of Operations, Segment Reporting and Geographical Information

12 Months Ended

Jan. 31, 2020

Nature of Operations, Segment Reporting and Geographical Information

Note 15—Nature of Operations, Segment Reporting and Geographical Information

The Company’s operations consist of the design, development, manufacture and sale of specialty printers and data acquisition and analysis systems, including both hardware and software and related consumable supplies. The Company organizes and manages its business as a portfolio of products and services designed around a common theme of data acquisition and information output. The Company has two reporting segments consistent with its revenue product groups: Product Identification (“PI”) and Test & Measurement (“T&M”).

The PI segment produces an array of high-technology digital color and monochrome label printers and mini presses, labeling software and supplies for a variety of commercial industries worldwide. AstroNova’s T&M segment produces data acquisition systems used worldwide for a variety of recording, monitoring and troubleshooting applications for many industries including aerospace, automotive, defense, rail, energy, industrial and general manufacturing. The T&M segment also includes the Company’s line of aerospace flight deck and cockpit printers.

Business is conducted in the United States and through foreign branch offices and subsidiaries in Canada, Europe, China, Southeast Asia and Mexico. Manufacturing activities are primarily conducted in the United States. Revenue and service activities outside the United States are conducted through wholly-owned entities and, to a lesser extent, through authorized distributors and agents. Transfer prices are intended to produce gross profit margins as would be associated with an arms-length transaction.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies herein. The Company evaluates segment performance based on the segment profit before corporate and financial administration expenses.

Summarized below are the revenue and segment operating profit (both in dollars and as a percentage of revenue) for each reporting segment:


($ in thousands)	Revenue						Segment Operating Profit							Segment Operating Profit as a % of Revenue
	2020		2019		2018		2020			2019		2018		2020			2019			2018
Product Identification	$	88,116	$	86,786	$	81,681	$	7,509		$	7,910	$	10,561		8.5	%		9.1	%		12.9	%
T&M		45,330		49,871		31,720		6,281			11,933		3,754		13.9	%		23.9	%		11.8	%

Total	$	133,446	$	136,657	$	113,401		13,790			19,843		14,315		10.3	%		14.5	%		12.6	%

Corporate Expenses								11,357			11,123		8,903

Operating Income								2,433			8,720		5,412
Other Expense, Net								(1,063)			(1,412)		(255)

Income Before Income Taxes								1,370			7,308		5,157
Income Tax Provision (Benefit)								(389	)		1,578		1,871

Net Income							$	1,759		$	5,730	$	3,286

No customer accounted for greater than 10% of net revenue in fiscal 2020, 2019 or 2018.

Other information by segment is presented below:


(In thousands)	Assets
	2020		2019
Product Identification	$	55,427	$	51,639
T&M		56,988		59,702
Corporate*		4,249		7,642

Total	$	116,664	$	118,983

*	Corporate assets consist principally of cash, cash equivalents and securities available for sale.


(In thousands)	Depreciation and Amortization						Capital Expenditures
	2020		2019		2018		2020		2019		2018
Product Identification	$	1,928	$	1,888	$	1,536	$	2,001	$	1,935	$	1,497
T&M		4,356		4,264		2,458		905		710		707

Total	$	6,284	$	6,152	$	3,994	$	2,906	$	2,645	$	2,204

Geographical Data

Presented below is selected financial information by geographic area:


(In thousands)	Revenue						Long-Lived Assets*
	2020		2019		2018		2020		2019
United States	$	83,671	$	83,668	$	69,795	$	34,072	$	36,750
Europe		29,617		31,574		29,948		2,544		3,223
Asia		8,316		8,207		3,808		—		—
Canada		5,719		6,692		5,373		35		81
Central and South America		4,145		4,147		3,402		—		—
Other		1,978		2,369		1,075		—		—

Total	$	133,446	$	136,657	$	113,401	$	36,651	$	40,054

*	Long-lived assets exclude goodwill assigned to the T&M segment of $4.5 million at both January 31, 2020 and 2019 and $7.5 million and $7.8 million assigned to the PI segment at January 31, 2020 and 2019, respectively.