Segment Reporting

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting:

The Company’s segment reporting structure uses the Company’s management reporting structure as the foundation for how the Company manages its business. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has five reportable segments as of June 30, 2016. The United States segment, excluding All Points, and the Canada segment are considered material by the Company’s management as of June 30, 2016. The segments are as follows:

• United States – excluding the All Points division

• All Points

• Canada

• Mexico

• Australia

The United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States. This segment also provides innovative pet identification tag programs to a leading pet products retail chain using a unique, patent-protected/patent-pending technology and product portfolio.

The All Points segment is a Florida-based distributor of commercial and residential fasteners catering to the hurricane protection industry in the southern United States. All Points has positioned itself as a major supplier to manufacturers of railings, screen enclosures, windows, and hurricane shutters.

The Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, industrial distributors, automotive after market distributors, and other retail outlets and industrial Original Equipment Manufacturers (“OEMs”) in Canada. The Canada segment also produces fasteners, stampings, fittings, and processes threaded parts for automotive suppliers and industrial OEMs.

The Mexico segment distributes fasteners and related hardware items to hardware stores, home centers, mass merchants, and other retail outlets in Mexico.

The Australia segment distributes keys, key duplicating systems, and accessories to home centers and other retail outlets in Australia.

The Company uses profit or loss from operations to evaluate the performance of our segments. Profit or loss from operations is defined as income (loss) from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, at current market prices. Segment revenue excludes sales between segments, which is consistent with the segment revenue information provided to the Company’s chief operating decision maker. Segment income (loss) from operations for Mexico and Australia include insignificant costs allocated from the United States, excluding All Points segment, while the remaining operating segments do not include any allocations.

The transaction expenses incurred in connection with the Merger Transaction were recorded in the United States, excluding All Points segment. For further information, see Note 13, Transaction, Acquisition, and Integration Expenses.

14.    Segment Reporting (continued):

The table below presents revenues and income (loss) from operations for our reportable segments for the three and six months ended June 30, 2016 and 2015.

	Three Months Ended June 30, 2016			Three Months Ended June 30, 2015
Revenues
United States, excluding All Points	$	179,864		$	167,821
All Points	5,228			5,628
Canada	40,166			41,133
Mexico	1,514			1,844
Australia	128			392
Total revenues	$	226,900		$	216,818
Segment income (loss) from operations
United States, excluding All Points	$	17,544		$	15,679
All Points	569			481
Canada	2,503			1,062
Mexico	(390		)	127
Australia	(201		)	(133		)
Total income from operations	$	20,025		$	17,216

	Six Months Ended June 30, 2016			Six Months Ended June 30, 2015
Revenues
United States, excluding All Points	$	335,225		$	311,942
All Points	9,450			10,741
Canada	68,299			70,549
Mexico	3,225			3,555
Australia	305			727
Total revenues	$	416,504		$	397,514
Segment income (loss) from operations
United States, excluding All Points	$	20,435		$	12,956
All Points	924			815
Canada	1,763			791
Mexico	(187		)	263
Australia	41			(559		)
Total income from operations	$	22,976		$	14,266

14.    Segment Reporting (continued):

The tables below present assets and cash equivalents as of June 30, 2016 and December 31, 2015.

	As of		As of
	June 30, 2016		December 31, 2015
Assets
United States, excluding All Points	$	1,470,417	$	1,509,039
All Points	14,282		14,836
Canada	324,820		303,795
Mexico	13,337		15,575
Australia	1,833		1,754
Total Assets	$	1,824,689	$	1,844,999

	As of		As of
	June 30, 2016		December 31, 2015
Cash and cash equivalents
United States, excluding All Points	$	4,053	$	3,024
All Points	333		612
Canada	10,180		5,106
Mexico	1,201		2,536
Australia	167		107
Total cash and cash equivalents	$	15,934	$	11,385