Business Segments and Customer Information

12 Months Ended

Dec. 31, 2011

Business Segments and Customer Information [Abstract]

Business Segments and Customer Information

(12)  Business Segments and Customer Information

Segment Information

Management of our business operations is conducted under five reportable operating segments: the Federal Group, the International Group, the IT, Energy and Management Consulting Group, the Infrastructure Group, and the Supply Chain Management Group. These segments operate under separate management teams and financial information is produced for each segment.  The entities within each of the Federal Group, International Group, and IT, Energy and Management Consulting Group reportable segments meet the aggregation of operating segments criteria as defined by the accounting standard for segment reporting.  We evaluate segment performance based on consolidated revenues and profits or losses from operations before income taxes.

Federal Group - Our Federal Group provides legacy equipment sustainment, engineering, technical, management, integrated logistics support and information technology services to DoD and other government agencies. The Federal Group consists of four divisions: CED, ELD, FSS and SED.  

International Group - Our International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military and other government agencies. It consists of two divisions: GLOBAL and FMD.

IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various civilian government agencies. This group consists of Energetics, G&B and Akimeka.

Infrastructure Group – Our Infrastructure Group is engaged principally in providing diversified technical and management services to the government, including transportation infrastructure services, construction management services and aerospace services.  This group consists of ICRC.

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program (“MIP”) to USPS and direct sales to other clients, including DoD.

Our segment information is as follows (in thousands):

For the years ended December 31,
	2011			2010			2009
Revenues
Federal Group	$	184,147		$	454,660		$	585,951
International Group		206,746			261,499			314,134
IT, Energy and Management Consulting Group		106,817			94,796			74,117
Infrastructure Group		37,830			55,081			40,437
Supply Chain Group		83,052			-			-
Total revenues	$	618,592		$	866,036		$	1,014,639
Income before income taxes:
Federal Group	$	6,099		$	20,574		$	21,311
International Group		5,342			9,376			9,569
IT, Energy and Management Consulting Group		12,440			10,275			7,402
Infrastructure Group		580			292			990
Supply Chain		15,965			-			-
Corporate		(7,454	)		(2,484	)		(673	)
Income before income taxes	$	32,972		$	38,033		$	38,599
Interest (income) expense
Federal Group	$	(75	)	$	(31	)	$	(89	)
International Group		(21	)		197			436
IT, Energy and Management Consulting Group		(73	)		(49	)		(35	)
Infrastructure Group		23			(19	)		(14	)
Supply Chain		350			-			-
Corporate		3,504			82			(418	)
Total interest (income) expense	$	3,708		$	180		$	(120	)
Depreciation and amortization expense:
Federal Group	$	2,906		$	4,115		$	4,008
International Group		1,903			1,521			1,211
IT, Energy and Management Consulting Group		3,256			1,953			1,168
Infrastructure Group		1,433			1,348			1,235
Supply Chain Group		5,402			-			-
Total depreciation and       amortization	$	14,900		$	8,937		$	7,622
Capital expenditures:
Federal Group	$	547		$	496		$	2,894
International Group		573			816			423
IT, Energy and Management Consulting Group		236			305			268
Infrastructure Group		170			161			162
Supply Chain Group		113			-			-
Corporate		4,996			3,027			5,028
Total capital expenditures	$	6,635		$	4,805		$	8,775

	December 31,
	2011		2010
Total assets:
Federal Group	$	29,653	$	67,452
International Group		49,734		62,062
IT, Energy and Management Consulting Group		70,108		24,658
Infrastructure Group		27,372		21,239
Supply Chain Group		203,241
Corporate		74,404		113,015
Total assets	$	454,512	$	288,426

Revenues are net of inter-segment eliminations.  Corporate/unallocated expenses are primarily selling, general and administrative expenses not allocated to segments.  Corporate assets are primarily cash and property and equipment.

Customer Information

We are engaged principally in providing diversified logistics, engineering, IT, construction management and consulting services to the government, other government prime contractors, and commercial entities. The largest customer for our services is DoD, including agencies of the U.S. Army, Navy, and Air Force. Our revenue by customer is as follows for the years ended December 31, (in thousands):

	Revenues by Customer
	(Dollars in Thousands)
	Years ended December 31,
Customer	2011		%		2010		%		2009		%
U.S. Army/Army Reserve	$	235,055		38.0	$	463,305		53.5	$	555,238		54.7
U.S. Navy		140,575		22.7		198,833		23.0		271,189		26.7
U.S. Air Force		11,971		1.9		13,303		1.5		13,839		1.4
Total - DoD		387,601		62.6		675,441		78.0		840,266		82.8
U. S. Postal Service		75,964		12.3		-		-		-		-
Department of  U.S. Treasury		41,434		6.7		49,332		5.7		47,676		4.7
Department of Transportation		25,386		4.1		51,497		6.0		35,722		3.5
Department of Interior		24,254		3.9		29,810		3.4		29,275		2.9
Department of Energy		23,005		3.7		21,890		2.5		16,111		1.6
Other government		32,524		5.3		33,055		3.8		42,670		4.2
Total – Federal Civil Agencies		222,567		36.0		185,584		21.4		171,454		16.9
Commercial		8,424		1.4		5,011		0.6		2,919		0.3
Total	$	618,592		100.0	$	866,036		100.0	$	1,014,639		100.0

We do not measure revenue or profit by product or service lines, either for internal management or external financial reporting purposes, because it would be impractical to do so. Products offered and services performed are determined by contract requirements and the types of products and services provided for one contract bear no relation to similar products and services provided on another contract. Products and services provided vary when new contracts begin or current contracts expire. In many cases, more than one product or service is provided under a contract or contract task order. Accordingly, cost and revenue tracking is designed to best serve contract requirements and segregating costs and revenues by product or service lines in situations for which it is not required would be difficult and costly to both us and our customers.