Industry Segments

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Industry Segments

Note L – Industry Segments

Description of Products and Services

The Company has three segments for financial reporting purposes: the tape division, jewelry and a Canadian division. The tape division segment manufactures paper, film, HVAC, electrical, shoe and other tape products for use in industrial and automotive markets in two production facilities in the United States, and in finishing and sales facilities in Belgium and Singapore. The jewelry segment consists of the Company's subsidiary K&M Associates L.P., a national costume jewelry supplier to mass merchandisers and department stores. The Company's Canadian division produces flooring, rubber and other industrial products.

Prior to July 1, 2010, the Company had a flooring segment, which consisted of Congoleum, a manufacturer of resilient floor coverings. On July 1, 2010, Congoleum’s plan of reorganization became effective and, consequently, ABI’s ownership interest in Congoleum was cancelled by operation of that plan (see Notes A and I). In the accompanying unaudited consolidated condensed financial statements, the historical results of Congoleum have been reported as a discontinued operation. Net sales and segment profit provided below relate to the segments of the continuing operations. Intersegment net sales recorded in 2010 and reported below were sales made by the Tape and Canadian divisions to Congoleum for periods through June 30, 2010. Subsequent to June 30, 2010, the Tape and Canadian divisions continued to sell products to reorganized Congoleum. Net sales made by ABI to reorganized Congoleum for the nine months ended September 30, 2011 totaled $2.0 million and have been included in net sales to external customers.

Net sales by segment for the three ended September 30, 2011 and 2010 were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Net sales to external customers:
Tape division	$	24,266	$	25,765	$	76,755	$	73,295
Jewelry		13,503		13,486		33,618		36,438
Canadian division		14,755		14,507		47,265		40,816
Total net sales to external customers		52,524		53,758		157,638		150,549
Intersegment net sales:
Tape division		—		—		—		1,248
Jewelry		—		—		—		—
Canadian division		—		—		—		1,520
Total intersegment net sales		—		—		—		2,768
Intersegment net sales		—		—		—		(2,768	)
Total consolidated net sales	$	52,524	$	53,758	$	157,638	$	150,549

Segment profit or loss is before income tax expense or benefit and noncontrolling interests. Profit (loss) by segment for the three and nine months ended September 30, 2011 and 2010 was as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Segment (loss) profit
Tape products	$	(1,437	)	$	535		$	(2,458	)	$	(757	)
Jewelry		124			1,754			61			2,357
Canadian division		473			586			1,847			1,230
Total segment (loss) profit		(840	)		2,875			(550	)		2,830
Reconciling items
Corporate expenses		274			(111	)		25			230
Intercompany profit		—			1			—			(70	)
Total consolidated (loss) income before income taxes and other items	$	(566	)	$	2,765		$	(525	)	$	2,990

During the nine months ended September 30, 2010, intercompany profits for sales made to Congoleum through June 30, 2010 were eliminated. Subsequent to the deconsolidation of Congoleum in July 2010 (see Notes A and I), the Company did not eliminate profits from sales made to Congoleum in accordance with U.S. GAAP.

Assets by segment as of September 30, 2011 and December 31, 2010 were as follows (in thousands):

	September 30, 2011			December 31, 2010
Segment assets
Tape products	$	46,419		$	43,894
Jewelry		22,757			17,914
Canadian division		35,667			34,290
Total segment assets		104,843			96,098
Reconciling items
Corporate items		32,940			30,652
Intersegment accounts receivable		(4,772	)		(3,520	)
Consolidated assets	$	133,011		$	123,230