Business Segments and Customer Information

12 Months Ended

Dec. 31, 2015

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 four reportable operating segments:

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") and direct sales to the United States Postal Service ("USPS") and to other customers.

Aviation Group - Our Aviation Group, formed in January 2015 when we completed the Aviation Acquisition, provides MRO services, parts supply and distribution, and supply chain solutions for general aviation jet aircraft engines and engine accessories.

Federal Services Group - Our Federal Services Group provides engineering, industrial, logistics, foreign military sales, and legacy equipment sustainment services to the United States Department of Defense ("DoD") and other government agencies.

IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various DoD and civilian government agencies.

These segments operate under separate management teams and financial information is produced for each segment.  The entities within the IT, Energy and Management Consulting Group reportable segment 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 operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.

Our segment information is as follows (in thousands):

For the years ended December 31,
	2015			2014			2013
Revenues
Supply Chain Management Group	$	196,772		$	172,482		$	154,702
Aviation Group		119,729			-			-
Federal Services Group		166,973			190,761			242,343
IT, Energy and Management Consulting Group		50,508			60,828			74,593
Total revenues	$	533,982		$	424,071		$	471,638
Operating income:
Supply Chain Management Group	$	35,453		$	29,694		$	27,299
Aviation Group		10,635			-			-
Federal Services Group		2,071			3,452			9,469
IT, Energy and Management Consulting Group		4,731			6,634			9,061
Corporate		(2,351	)		(2,850	)		(1,726	)
Operating income	$	50,539		$	36,930		$	44,103
Depreciation and amortization expense:
Supply Chain Management Group	$	7,074		$	5,373		$	4,265
Aviation Group		5,865			-			-
Federal Services Group		10,635			11,320			13,356
IT, Energy and Management Consulting Group		1,967			2,077			2,387
Total depreciation and amortization	$	25,541		$	18,770		$	20,008
Capital expenditures:
Supply Chain Management Group	$	7,544		$	2,524		$	895
Aviation Group		959			-			-
Federal Services Group		78			230			1,447
IT, Energy and Management Consulting Group		16			199			71
Corporate		1,965			461			2,003
Total capital expenditures	$	10,562		$	3,414		$	4,416

	December 31,
	2015		2014
Total assets:
Supply Chain Management Group	$	189,654	$	192,720
Aviation Group		264,160		-
Federal Services Group		38,626		36,225
IT, Energy and Management Consulting Group		47,107		49,790
Corporate		82,587		76,595
Total assets	$	622,134	$	355,330

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

Our revenues are derived from contract services performed for DoD agencies or federal civilian agencies and from the delivery of products to our clients. The USPS, U.S. Army and Army Reserve, and U.S. Navy are our largest customers. Our customers also include various other government agencies and commercial entities. 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	2015		%		2014		%		2013		%
U. S. Postal Service	$	184,876		34.6	$	167,268		39.4	$	142,203		30.1
U.S. Army		80,086		15.0		101,714		24.0		101,736		21.6
U.S. Navy		98,887		18.5		88,007		20.7		123,307		26.1
U.S. Air Force		3,558		0.7		3,323		0.8		3,625		0.8
Total - DoD		182,531		34.2		193,044		45.5		228,668		48.5
Commercial Aviation		119,729		22.4		-		-		-		-
Other Commercial		4,653		0.9		3,680		0.9		2,250		0.5
Total - Commercial		124,382		23.3		3,680		0.9		2,250		0.5
Department of Energy		16,020		3.0		19,000		4.5		20,124		4.3
Social Security Administration		9,666		1.8		10,153		2.4		12,981		2.8
Department of Treasury		1,405		0.3		10,897		2.6		35,929		7.6
Other Government		15,102		2.8		20,029		4.7		29,483		6.2
Total - Other Civilian Agencies		42,193		7.9		60,079		14.2		98,517		20.9
Total	$	533,982		100.0	$	424,071		100.0	$	471,638		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.