Reportable Segments

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

HNH is a diversified holding company whose strategic business units encompass the following segments: Joining Materials, Tubing, Building Materials, Arlon Electronic Materials and Kasco Blades and Route Repair Services. For a more complete description of the Company's segments, see "Item 1 - Business - Products and Product Mix."

Management has determined that certain operating companies should be aggregated and presented within a single segment on the basis that such segments have similar economic characteristics and share other qualitative characteristics. Management reviews net sales, gross profit and operating income to evaluate segment performance. Operating income for the segments generally includes costs directly attributable to the segment and excludes other unallocated general corporate expenses. Interest expense, other income and expense, and income taxes are not presented by segment since they are excluded from the measure of segment profitability reviewed by the Company's management.

The following tables present information about the Company's reportable segments for the years ended December 31, 2013, 2012 and 2011:

Income Statement Data	Year Ended
(in thousands)	December 31,
	2013			2012			2011
Net sales:
Joining Materials	$	195,187		$	174,621		$	190,607
Tubing	91,002			80,849			76,676
Building Materials	226,806			189,106			178,948
Arlon	84,060			80,815			81,282
Kasco	58,169			54,137			52,251
Total net sales	$	655,224		$	579,528		$	579,764
Segment operating income:
Joining Materials (a)	$	16,624		$	23,942		$	24,747
Tubing	17,434			14,258			13,958
Building Materials	27,789			22,172			19,883
Arlon (b)	10,769			11,594			8,348
Kasco	4,496			4,431			4,227
Total segment operating income	77,112			76,397			71,163
Unallocated corporate expenses and non-operating units	(20,895		)	(23,387		)	(19,318		)
Unallocated pension expense	(5,342		)	(3,313		)	(6,357		)
Gain from asset dispositions	75			93			50
Operating income	50,950			49,790			45,538
Interest expense	(13,705		)	(16,719		)	(16,268		)
Realized and unrealized gain on derivatives	1,195			2,582			418
Other expense	(291		)	(439		)	(1,360		)
Income from continuing operations before tax and equity investment	$	38,149		$	35,214		$	28,328

a) The results for the Joining Materials segment for 2012 and 2011 include gains of $0.6 million and $1.9 million, respectively, resulting from the liquidation of precious metal inventory valued at LIFO cost. No similar gain was recorded in 2013 due to an increase in ending inventory quantities.

b) Segment operating income of the Arlon segment for 2011 includes an asset impairment charge of $0.7 million to write-down vacant land located in Rancho Cucamonga, California to fair value.

(in thousands)	2013		2012		2011
Capital Expenditures
Joining Materials	$	3,135	$	2,951	$	1,574
Tubing	3,679		5,157		2,882
Building Materials	3,424		4,776		1,049
Arlon	4,482		5,113		5,055
Kasco	1,339		2,236		1,422
Corporate and other	167		62		64
	$	16,226	$	20,295	$	12,046
(in thousands)	2013		2012		2011
Depreciation and Amortization
Joining Materials	$	2,682	$	1,110	$	1,373
Tubing	2,399		2,250		2,201
Building Materials	4,600		4,132		4,049
Arlon	4,211		3,828		4,041
Kasco	2,095		1,920		2,199
Corporate and other	151		103		285
	$	16,138	$	13,343	$	14,148
(in thousands)	2013		2012
Total Assets
Joining Materials	$	108,621	$	53,088
Tubing	37,550		36,096
Building Materials	134,320		121,392
Arlon	71,046		66,255
Kasco	23,612		25,215
Corporate and other	133,923		178,204
Discontinued operations	651		32,111
	$	509,723	$	512,361

The following table presents revenue and long-lived asset information by geographic area as of and for the years ended December 31. Foreign revenue is based on the country in which the legal subsidiary is domiciled. Long-lived assets in 2013 and 2012 consist of property, plant and equipment, plus approximately $9.4 million and $8.2 million, respectively, of land and buildings from previously operating businesses, and other non-operating assets that are carried at the lower of cost or fair value and are included primarily in other non-current assets on the consolidated balance sheets. Neither net sales nor long-lived assets from any single foreign country was material to the consolidated financial statements of the Company.

Geographic Information
(in thousands)	Net Sales
	2013		2012		2011
United States	$	590,479	$	512,470	$	505,583
Foreign	64,745		67,058		74,181
	$	655,224	$	579,528	$	579,764
(in thousands)	Long-Lived Assets
	2013		2012
United States	$	77,065	$	66,537
Foreign	23,225		23,150
	$	100,290	$	89,687

Some of the Company's raw materials are available from a limited number of suppliers. Several raw materials used in Arlon's products are purchased from chemical companies, and their production is proprietary in nature. Other raw materials are purchased from a single approved vendor on a "sole source" basis. There can be no assurance that the production of these raw materials will be readily available. Although alternative sources could be developed in the future if necessary, the qualification procedure can take several months or longer and could therefore interrupt the production of our products and services if the primary raw material source became unexpectedly unavailable, which may result in increased cost or lost sales in future periods.