(

)

Segment Information

The Company is organized into

two

business segments, Sypris Technologies and Sypris Electronics. The segments are each managed separately because of the distinctions between the products, markets, customers, technologies, and workforce skills of the segments. Sypris Technologies generates revenue primarily from the sale of forged, machined, welded and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. Sypris Electronics provides circuit card and box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work to customers in the market for aerospace and defense electronics. There was

intersegment net revenue recognized for any year presented.

The Company includes the unallocated costs of its corporate office, including the employment costs of its senior management team and other corporate personnel, administrative costs and net corporate interest expense incurred at the corporate level under the caption “General, corporate and other” in the table below. Such unallocated costs include those for centralized information technology, finance, legal and human resources support teams, certain professional fees, director fees, corporate office rent, certain self-insurance costs and recoveries, software license fees and various other administrative expenses that are

not

allocated to our reportable segments. The unallocated assets include cash and cash equivalents maintained in its domestic treasury accounts and the net book value of corporate facilities and related information systems. The unallocated liabilities consist primarily of the related party notes payable. Domestic income taxes are calculated at an entity level and are

not

allocated to our reportable segments. Corporate capital expenditures and depreciation and amortization include items attributable to the unallocated fixed assets of the corporate office and related information systems.

The following table presents financial information for the reportable segments of the Company (in thousands):

	Year ended December 31,
	2019			2018
Net revenue from unaffiliated customers:
Sypris Technologies	$	61,683		$	59,816
Sypris Electronics		26,208			28,153
	$	87,891		$	87,969
Gross profit:
Sypris Technologies	$	9,785		$	7,523
Sypris Electronics		98			49
	$	9,883		$	7,572
Operating income (loss):
Sypris Technologies	$	4,257		$	3,207
Sypris Electronics		(2,999	)		(2,555	)
General, corporate and other		(5,564	)		(4,948	)
	$	(4,306	)	$	(4,296	)
Interest expense, net:
Sypris Technologies	$	377		$	293
Sypris Electronics		63			117
General, corporate and other		463			440
	$	903		$	850
Other (income) expense, net:
Sypris Technologies	$	272		$	(1,434	)
Sypris Electronics		(33	)		0
General, corporate and other		(1,495	)		(2	)
	$	(1,256	)	$	(1,436	)
Income (loss) before income taxes:
Sypris Technologies	$	3,609		$	4,349
Sypris Electronics		(3,029	)		(2,672	)
General, corporate and other		(4,533	)		(5,387	)
	$	(3,953	)	$	(3,710	)
Income tax expense (benefit), net:
Sypris Technologies	$	250		$	5
Sypris Electronics		0			0
General, corporate and other		(254	)		(210	)
	$	(4	)	$	(205	)

	Year ended December 31,
	2019		2018
Depreciation and amortization:
Sypris Technologies	$	1,927	$	2,029
Sypris Electronics		506		515
General, corporate and other		238		104
	$	2,671	$	2,648
Capital expenditures:
Sypris Technologies	$	693	$	1,311
Sypris Electronics		97		173
General, corporate and other		69		567
	$	859	$	2,051

	December 31,
	2019		2018
Total assets:
Sypris Technologies	$	29,694	$	31,312
Sypris Electronics		24,985		19,208
General, corporate and other		5,377		11,048
	$	60,056	$	61,568
Total liabilities:
Sypris Technologies	$	19,989	$	23,644
Sypris Electronics		17,416		15,180
General, corporate and other		9,220		7,910
	$	46,625	$	46,734

The Company’s export sales from the U.S. totaled

$7,239,000

and

$4,155,000

2019

and

2018,

respectively. Approximately

$40,536,000

and

$39,744,000

of net revenue in

2019

and

2018,

respectively, and

$6,669,000

and

$7,162,000

of long lived assets at

December

31,

2019

and

2018,

respectively, and net assets of

$9,899,000

and

$6,495,000

December

31,

2019

and

2018

relate to the Company’s international operations.