Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 12: SEGMENT INFORMATION

We are a global industrial company that designs, manufactures, purchases, and markets equipment, replacement and component parts, and accessories to professionals and consumers in select end-markets and to Original Equipment Manufacturers (“OEMs”) for use on original equipment. Our products are sold in over 115 countries and approximately 56% of 2012 sales were shipped to customers outside of the U.S.

The Company identifies operating segments primarily based on organizational structure, reporting structure, and the evaluation of the Chief Operating Decision Maker (Chief Executive Officer). Our organizational structure reflects our view of the end-user market segments we serve, and we currently operate in two primary business segments. The Forestry, Lawn, and Garden (“FLAG”) segment manufactures and markets cutting chain, guide bars, and drive sprockets for chain saw use, and lawnmower and edger blades for outdoor power equipment. The FLAG segment also purchases branded replacement parts and accessories from other manufacturers and markets them to FLAG customers through our global sales and distribution network.

The Farm, Ranch, and Agriculture ("FRAG") segment manufactures and markets attachments for tractors in a variety of mowing, cutting, clearing, material handling, landscaping and grounds maintenance applications, as well as log splitters, post-hole diggers, attachments for off-highway construction equipment applications, and other general purpose tractor attachments. In addition, the FRAG segment manufactures a variety of attachment cutting blade component parts. The FRAG segment also purchases replacement parts and accessories from other manufacturers and markets them to FRAG customers through our sales and distribution network.

The Company also operates a concrete cutting and finishing equipment business that represented 3.1% of consolidated sales for the three months ended March 31, 2013, and is reported within the Corporate and Other category. This business manufactures and markets diamond cutting chain and assembles and markets concrete cutting chain saws for the construction equipment market.

The Corporate and Other category also includes the costs of providing certain centralized administrative functions including accounting, our continuous improvement program, credit management, executive management, finance, human resources, information systems, insurance, legal, our mergers and acquisitions program, treasury, and other functions. Costs of centrally provided shared services are allocated to business units based on various drivers, such as revenues, purchases, headcount, computer software licenses, and other relevant measures of the use of such services. We also include the facility closure and restructuring costs recognized in 2012 within this Corporate and Other category, because we do not consider such events to be ongoing aspects of the business segments’ activities. The accounting policies of the segments are the same as those of the Company, as described in the summary of significant accounting policies included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012.

The following table presents selected financial information by segment.

Segment Information	Three Months Ended March 31,
(Amounts in thousands)	2013			2012
Sales:
FLAG	$	165,143		$	161,619
FRAG	60,249			57,604
Corporate and Other	7,223			7,086
Total sales	$	232,615		$	226,309
Contribution to operating income (loss):
FLAG	$	24,568		$	27,755
FRAG	(1,086		)	(3,738		)
Corporate and Other	(4,339		)	(10,444		)
Operating income	$	19,143		$	13,573
Depreciation and amortization:
FLAG	$	6,985		$	6,634
FRAG	4,298			4,123
Corporate and Other	543			799
Depreciation and amortization	$	11,826		$	11,556

The following table shows the change in goodwill for the three months ended March 31, 2013.

Change in Goodwill	FLAG			FRAG			Corporate and Other		Total
(Amounts in thousands)
December 31, 2012	$	66,297		$	98,865		$	13	$	165,175
Effect of changes in foreign currency translation rates	(171		)	(39		)	—		(210		)
March 31, 2013	$	66,126		$	98,826		$	13	$	164,965