Reportable Segments

12 Months Ended

Dec. 31, 2016

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, Performance Materials, Electrical Products 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 (loss) to evaluate segment performance. Operating income (loss) 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, 2016, 2015 and 2014:

Statement of Operations Data	Year Ended
(in thousands)	December 31,
	2016			2015			2014
Net sales:
Joining Materials	$	175,477		$	182,702		$	207,320
Tubing	77,630			79,539			81,264
Building Materials	284,567			266,859			253,644
Performance Materials	101,567			59,535			—
Electrical Products	128,636			—			—
Kasco	60,466			60,833			58,240
Total net sales	$	828,343		$	649,468		$	600,468
Segment operating income (loss):
Joining Materials (a)	$	14,348		$	19,906		$	19,428
Tubing	13,962			13,081			13,340
Building Materials	44,479			37,480			30,217
Performance Materials (b)	(32,078		)	(2,212		)	—
Electrical Products	(1,804		)	—			—
Kasco (c)	3,040			4,336			3,176
Total segment operating income	41,947			72,591			66,161
Unallocated corporate expenses and non-operating units (d)	(19,379		)	(19,259		)	(16,878		)
Unallocated pension expense	(8,139		)	(7,480		)	(3,739		)
Gain from asset dispositions	620			62			176
Operating income	15,049			45,914			45,720
Interest expense	(7,198		)	(4,598		)	(7,544		)
Realized and unrealized gain on derivatives	148			588			1,307
Other income (expense)	376			(384		)	(181		)
Income from continuing operations before tax and equity investment	$	8,375		$	41,520		$	39,302

(a) The results of the Joining Materials segment in 2016 include non-cash asset impairment charges totaling $2.5 million, primarily due to write-downs of $1.5 million to property, plant and equipment, and $0.5 million to inventories, associated with the planned closure of its Lucas-Milhaupt Gliwice, Poland operating facility as part of its continual focus to optimize infrastructure costs. The results of the Joining Materials segment in 2014 include a non-cash asset impairment charge of $0.6 million related to certain equipment located in Toronto, Canada to be sold or scrapped as part of the Company's integration activities associated with a 2013 acquisition.

(b) The results of the Performance Materials segment in 2016 include a non-cash goodwill impairment charge of $24.3 million, as well as non-cash asset impairment charges totaling $7.9 million associated with its Slater, South Carolina operating facility, including write-downs of $6.6 million to property, plant and equipment, and $0.4 million to intangible assets, as well as a $0.9 million inventory write-down.

(c) The results of the Kasco segment in 2014 include a non-cash asset impairment charge of $0.6 million associated with certain unused, real property located in Atlanta, Georgia.

(d) Unallocated corporate expenses and non-operating units in 2015 includes a non-cash asset impairment charge of $1.4 million related to certain unused, real property located in Norristown, Pennsylvania.

(in thousands)	2016		2015		2014
Capital Expenditures
Joining Materials	$	3,667	$	4,064	$	5,128
Tubing	4,325		3,997		2,835
Building Materials	11,399		4,570		2,661
Performance Materials	1,991		576		—
Electrical Products	2,327		—		—
Kasco	1,913		1,969		1,989
Corporate and other	—		49		45
Total	$	25,622	$	15,225	$	12,658
(in thousands)	2016		2015		2014
Depreciation and Amortization
Joining Materials	$	4,030	$	3,026	$	3,204
Tubing	2,786		2,571		2,401
Building Materials	5,802		5,598		5,217
Performance Materials	9,089		4,885		—
Electrical Products	16,242		—		—
Kasco	1,991		2,147		2,162
Corporate and other	157		153		153
Total	$	40,097	$	18,380	$	13,137
(in thousands)	2016		2015
Total Assets
Joining Materials	$	100,028	$	98,441
Tubing	36,573		35,544
Building Materials	177,393		166,923
Performance Materials	93,413		126,985
Electrical Products	294,901		—
Kasco	22,293		22,878
Corporate and other	111,919		173,902
Total	$	836,520	$	624,673

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 generating the revenue is domiciled. Long-lived assets in 2016 and 2015 consist of property, plant and equipment, plus approximately $6.3 million and $7.3 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 less cost to sell and are included 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)	2016		2015		2014
United States	$	775,982	$	603,079	$	550,071
Foreign	52,361		46,389		50,397
Total	$	828,343	$	649,468	$	600,468
	Long-Lived Assets
(in thousands)	2016		2015
United States	$	130,448	$	111,884
Foreign	7,449		8,130
Total	$	137,897	$	120,014