Reportable Segments

12 Months Ended

Dec. 31, 2014

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 and Kasco. 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 measures 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, 2014, 2013 and 2012:

Income Statement Data	Year Ended
(in thousands)	December 31,
	2014			2013			2012
Net sales:
Joining Materials	$	207,320		$	195,187		$	174,621
Tubing	81,264			91,002			80,849
Building Materials	253,644			226,806			189,106
Kasco	58,240			58,169			54,137
Total net sales	$	600,468		$	571,164		$	498,713
Segment operating income:
Joining Materials (a)	$	19,428		$	16,624		$	23,942
Tubing	13,340			17,434			14,258
Building Materials	30,217			27,789			22,172
Kasco (b)	3,176			4,496			4,431
Total segment operating income	66,161			66,343			64,803
Unallocated corporate expenses and non-operating units	(16,878		)	(21,009		)	(23,301		)
Unallocated pension expense	(3,739		)	(5,206		)	(3,194		)
Gain from asset dispositions	176			75			93
Operating income	45,720			40,203			38,401
Interest expense	(7,544		)	(13,662		)	(16,688		)
Realized and unrealized gain on derivatives	1,307			1,195			2,582
Other expense	(181		)	(240		)	(434		)
Income from continuing operations before tax and equity investment	$	39,302		$	27,496		$	23,861

a) The results of the Joining Materials segment in 2014 include an non-cash impairment charge of $0.6 million related to certain equipment located in Toronto, Canada, which will either be sold or scrapped as part of the Company's continued integration activities associated with the Wolverine Joining acquisition. The results of the Joining Materials segment in 2012 include a gain of $0.6 million, resulting from the liquidation of precious metal inventory valued at LIFO cost. No similar gain was recorded in 2014 or 2013 due to an increase in ending inventory quantities.

b) The results of the Kasco segment in 2014 include an non-cash impairment charge of $0.6 million related to certain unused, real property located in Atlanta, Georgia.

(in thousands)	2014		2013		2012
Capital Expenditures
Joining Materials	$	5,128	$	3,135	$	2,951
Tubing	2,835		3,679		5,157
Building Materials	2,661		3,424		4,776
Kasco	1,989		1,339		2,236
Corporate and other	45		167		62
Total	$	12,658	$	11,744	$	15,182
(in thousands)	2014		2013		2012
Depreciation and Amortization
Joining Materials	$	3,204	$	2,682	$	1,110
Tubing	2,401		2,399		2,250
Building Materials	5,217		4,600		4,132
Kasco	2,162		2,095		1,920
Corporate and other	153		151		104
Total	$	13,137	$	11,927	$	9,516
(in thousands)	2014		2013
Total Assets
Joining Materials	$	107,387	$	108,621
Tubing	36,160		37,550
Building Materials	137,270		134,320
Kasco	22,599		23,612
Corporate and other	165,670		137,476
Discontinued operations	69,673		68,144
Total	$	538,759	$	509,723

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 2014 and 2013 consist of property, plant and equipment, plus approximately $8.4 million and $9.1 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
	Net Sales
(in thousands)	2014		2013		2012
United States	$	550,071	$	518,631	$	446,387
Foreign	50,397		52,533		52,326
Total	$	600,468	$	571,164	$	498,713
	Long-Lived Assets
(in thousands)	2014		2013
United States	$	67,574	$	66,065
Foreign	8,483		9,489
Total	$	76,057	$	75,554