BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Our business is organized in the following two segments:  NobelClad and DynaEnergetics. The NobelClad segment uses explosives to perform metal cladding and shock synthesis of industrial diamonds. The most significant product of this group is clad metal which is used in the fabrication of pressure vessels, heat exchangers, and transition joints for various industries, including upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration, and similar industries.  The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. 

Prior to 2014, we were organized into three segments. At the beginning of 2014 management approved a change in operating structure whereby AMK will operate within and be managed as part of the Oilfield Products business segment. Consequently, we combined AMK and DynaEnergetics into one reportable business segment, Oilfield Products. AMK represented 3% of segment assets, 4% of consolidated sales and 2% of segment operating income as of and for the year then ended December 31, 2013. All prior periods segment disclosures have been restated to conform to the 2014 presentation.

Due to the completed sale of AMK, as of December 31, 2014 the operating results of AMK have been classified as discontinued operations in all periods presented. All prior periods segment disclosures have been restated to conform to the 2014 presentation. Refer to Note 11 "Discontinued Operations" for further details. 

The accounting policies of all the segments are the same as those described in the summary of significant accounting policies.  Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies.

Beginning in 2011, we changed our methodology of allocating corporate overhead to our business segments. In connection with this change, we no longer allocate certain corporate expenses that do not directly benefit our business segments. DMC corporate and our U.S. NobelClad business fall under the same legal entity and historically their general ledgers have been combined. Beginning January 1, 2013, and in connection with implementing a new ERP system, we have separated DMC corporate and NobelClad U.S. into two general ledgers. Therefore we now have specifically identified corporate property, plant and equipment that are not allocated to our business segments. These assets consist of computer hardware, computer software, leasehold improvements and furniture related to our corporate offices.

Segment information is presented for the years ended December 31, 2014, 2013, and 2012 as follows:

	Year Ended December 31,
	2014		2013		2012
Net sales:
NobelClad	$	97,108	$	118,409	$	115,333
DynaEnergetics	105,453		83,651		77,404
Consolidated net sales	$	202,561	$	202,060	$	192,737

	Year Ended December 31,
	2014			2013			2012
Income before income taxes:
NobelClad	$	2,155		$	17,090		$	17,439
DynaEnergetics	14,479			4,506			6,568
Segment operating income	16,634			21,596			24,007
Unallocated corporate expenses	(6,381		)	(7,217		)	(3,565		)
Stock-based compensation	(3,588		)	(3,401		)	(4,443		)
Other income (expense)	(313		)	(528		)	(32		)
Interest expense	(551		)	(648		)	(832		)
Interest income	38			7			13
Consolidated income before income taxes	$	5,839		$	9,809		$	15,148

	Year Ended December 31,
	2014		2013		2012
Depreciation and Amortization:
NobelClad	$	6,482	$	6,118	$	5,580
DynaEnergetics	6,672		6,150		5,648
Segment depreciation and amortization	$	13,154	$	12,268	$	11,228

	Year Ended December 31,
	2014		2013		2012
Capital Expenditures:
NobelClad	$	13,696	$	2,425	$	4,747
DynaEnergetics	7,366		13,022		10,386
Segment capital expenditures	21,062		15,447		15,133
Corporate and other	341		776		—
Consolidated capital expenditures	$	21,403	$	16,223	$	15,133

	Year Ended December 31,
	2014		2013
Assets:
NobelClad	$	93,383	$	99,115
DynaEnergetics	103,914		112,919
Segment assets	197,297		212,034
Cash and cash equivalents	9,400		10,598
Prepaid expenses and other assets	6,438		6,170
Deferred tax assets	4,558		3,859
Corporate property, plant and equipment	1,636		1,585
Assets held for sale	—		6,299
Consolidated assets	$	219,329	$	240,545

The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows:

	As of December 31,
	2014		2013
United States	$	26,291	$	28,501
Germany	21,210		12,703
Russia	9,556		10,152
France	4,440		5,801
Canada	1,655		2,230
Kazakhstan	461		438
Rest of the world	222		390
Total	$	63,835	$	60,215

All of our sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, France, Canada, Russia and Kazakhstan. The following represents our net sales based on the geographic location of the customer: 

	For the Years Ended December 31,
	2014		2013		2012
United States	$	91,009	$	88,532	$	71,155
Canada	23,532		18,142		21,083
Iraq	11,348		4,243		1,756
Russia	7,992		5,992		6,472
Germany	7,721		9,208		13,992
India	7,617		8,888		3,874
South Korea	7,362		11,642		9,469
France	5,478		3,756		6,249
China	1,800		606		7,986
Kazakhstan	1,551		2,513		2,359
Rest of the world	37,151		48,538		48,342
Total	$	202,561	$	202,060	$	192,737

During the years ended December 31, 2014, 2013 and 2012, no one customer accounted for more than 10% of total net sales.