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Segments
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
Segments
Segments
On March 23, 2012, the Company completed the acquisition of Fluid Routing Solutions Holding Corp. (“FRS”), a leading manufacturer of automotive and industrial rubber and thermoplastic hose products and fuel filler and hydraulic fluid assemblies for the automotive and industrial industries. FRS expanded the Company’s sales of assembled components.
During the second quarter of 2012, as a result of the FRS acquisition, the Company realigned its segments in order to better align its business with the underlying markets and customers that the Company serves. In so doing, we realigned the following components with FRS to form the Assembly Components operating/reportable segment: Aluminum Products, Rubber Products (previously included in the former Manufactured Products operating/reportable segment) and Delo Screw Products (previously included in the Supply Technologies operating/reportable segment). The former Manufactured Products operating/reportable segment is now referred to as Engineered Products. The results of operations of FRS from the date of the acquisition through December 31, 2013 are included in the Assembly Components operating/reportable segment. The business segment results for the prior years have been reclassified to reflect these changes. The following is a description of our three operating/reportable segments.
The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides our customers with Total Supply Management™ services for a broad range of high-volume, specialty production components. Total Supply Management™ manages the efficiencies of every aspect of supplying production parts and materials to our customers’ manufacturing floor, from strategic planning to program implementation, and includes such services as engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing services and ongoing technical support. Assembly Components manufactures cast aluminum components, automotive and industrial rubber and thermoplastic products, fuel filler and hydraulic assemblies for automotive, agricultural equipment, construction equipment, heavy-duty truck and marine equipment industries. Assembly Components also provides value-added services such as design and engineering, machining and assembly. Engineered Products operates a diverse group of niche manufacturing businesses that design and manufacture a broad range of high quality products engineered for specific customer applications.
The Company primarily evaluates performance and allocates resources based on segment operating income as well as projected future performance. Segment operating income is defined as revenues less expenses identifiable to the product lines included within each segment. Segment operating income reconciles to consolidated income from continuing operations before income taxes by deducting corporate costs and other income or expense items that are not attributed to the segments and net interest expense.
Results by business segment were as follows:
 
Year Ended December 31,
 
 
 
Adjusted (1)
 
Adjusted (1)
 
2013
 
2012
 
2011
 
(In millions)
Net sales:
 
 
 
 
 
Supply Technologies
$
471.9

 
$
483.8

 
$
481.4

Assembly Components
412.8

 
304.0

 
157.8

Engineered Products
318.5

 
340.4

 
322.2

 
$
1,203.2

 
$
1,128.2

 
$
961.4

Segment operating income:
 
 
 
 
 
Supply Technologies
$
35.9

 
$
37.9

 
$
35.1

Assembly Components
31.8

 
19.9

 
1.4

Engineered Products
47.1

 
55.0

 
45.3

Total segment operating income
114.8

 
112.8

 
81.8

Corporate costs
(23.1
)
 
(18.9
)
 
(16.3
)
Restructuring and asset impairment charges
—

 
—

 
(5.4
)
Litigation judgment and settlement costs
(5.2
)
 
(13.0
)
 
—

Gain on acquisition of business
0.6

 
—

 
—

Interest expense
(26.8
)
 
(26.4
)
 
(32.2
)
Income from continuing operations before income taxes
$
60.3

 
$
54.5

 
$
27.9

(1) Adjusted to reflect the discontinued operations.
 
Year Ended December 31,
 
2013
 
2012
 
2011
 
(In millions)
Identifiable assets:
 
 
 
 
 
Supply Technologies
$
241.7

 
$
207.0

 
$
225.3

Assembly Components
276.7

 
230.0

 
73.1

Engineered Products
183.1

 
199.4

 
195.8

General corporate
117.2

 
90.2

 
120.6

 
$
818.7

 
$
726.6

 
$
614.8

Depreciation and amortization expense:
 
 
 
 
 
Supply Technologies
$
3.0

 
$
3.9

 
$
4.6

Assembly Components
11.6

 
9.5

 
7.2

Engineered Products
3.4

 
3.2

 
3.9

General corporate
1.2

 
1.4

 
0.5

 
$
19.2

 
$
18.0

 
$
16.2

Capital expenditures:
 
 
 
 
 
Supply Technologies
$
3.8

 
$
1.6

 
$
1.3

Assembly Components
21.5

 
22.1

 
7.7

Engineered Products
3.6

 
3.1

 
0.9

General corporate
1.2

 
2.8

 
2.8

 
$
30.1

 
$
29.6

 
$
12.7


The percentage of net sales by product line included in each segment was as follows:
 
Year Ended December 31,
 
2013
 
2012
 
2011
Supply Technologies:
 
 
 
 
 
Supply Technologies
87
%
 
88
%
 
89
%
Engineered specialty products
13
%
 
12
%
 
11
%
 
100
%
 
100
%
 
100
%
Assembly Components:
 
 
 
 
 
Fluid routing
54
%
 
50
%
 
—
%
Aluminum products
37
%
 
39
%
 
81
%
Rubber and plastics
7
%
 
9
%
 
15
%
Screw products
2
%
 
2
%
 
4
%
 
100
%
 
100
%
 
100
%
Engineered Products:
 
 
 
 
 
Industrial equipment business
77
%
 
80
%
 
81
%
Forged and machined products
23
%
 
20
%
 
19
%
 
100
%
 
100
%
 
100
%

The Company’s approximate percentage of net sales by geographic region was as follows:
 
Year Ended
December 31,
 
2013
 
2012
 
2011
United States
74
%
 
77
%
 
76
%
Canada
8
%
 
8
%
 
5
%
Mexico
5
%
 
4
%
 
3
%
Asia
6
%
 
6
%
 
9
%
Europe
5
%
 
4
%
 
5
%
Other
2
%
 
1
%
 
2
%
 
100
%
 
100
%
 
100
%

The basis for attributing revenue to individual countries is final shipping destination.
At December 31, 2013, 2012 and 2011, approximately 77%, 81% and 68%, respectively, of the Company’s assets were maintained in the United States.