Business Segments

12 Months Ended

Dec. 31, 2014

Business Segments [Abstract]

Business Segments

L.   BUSINESS SEGMENTS:

The Company operates in three business segments.  The Company identifies its segments based on the Company's organization structure, which is primarily by principal products.  The principal product groups are Housewares/Small Appliances, Defense Products, and Absorbent Products.  Sales for all three segments are primarily to customers in North America.

The Housewares/Small Appliance segment designs, markets, and distributes housewares and small appliances.  These products are sold primarily in the United States and Canada directly to retail outlets and also through independent distributors.  As more fully described in Note J, the Company primarily sources its Housewares/Small Appliance products from non-affiliated suppliers located in the Orient.  Sales are seasonal, with the normal peak sales period occurring in the fourth quarter of the year prior to the holiday season.

The Defense segment was started in 2001 with the acquisition of AMTEC Corporation, which manufactures precision mechanical and electromechanical assemblies for the U.S. Government and prime contractors.  During 2005, and again during 2010, AMTEC Corporation was one of two prime contractors selected by the Army to supply all requirements for the 40mm family of practice and tactical ammunition cartridges for a period of five years.  AMTEC's manufacturing plant is located in Janesville, Wisconsin.  Since the inception of the Defense segment in 2001, the Company has expanded the segment by making several strategic business acquisitions, and has additional facilities located in East Camden, Arkansas;  Antigo, Wisconsin; Perry, Florida; and Clear Lake, South Dakota.  During 2003, this segment was expanded with the acquisition of Spectra Technologies, LLC of East Camden, Arkansas.  This facility performs Load, Assemble, and Pack (LAP) operations on ordnance-related products for the U.S. Government and prime contractors.  During 2006, the segment was expanded with the acquisition of certain assets of Amron, LLC of Antigo, Wisconsin, which primarily manufactures cartridge cases used in medium caliber (20-40mm) ammunition.  In 2011 the segment was further augmented with the purchase of certain assets of ALS Technologies, Inc. of Bull Shoals, Arkansas, which manufactures less lethal ammunitions.  The Company subsequently relocated this operation to Perry, Florida.  See Note P for further discussion of the relocation. During 2014, the Company continued the expansion of the Defense segment with the purchase of substantially all of the assets of Chemring Energetic Devices, Inc. located in Clear Lake, South Dakota, and all of the real property owned by Technical Ordnance Realty, LLC. The Clear Lake facility manufactures detonators, booster pellets, release cartridges, lead azide, and other military energetic devices and materials.  Also see Note P for further discussion of the Clear Lake acquisition.  The Defense segment’s collection of facilities enables the Company to deliver in virtually all aspects of the manufacture of medium caliber training and tactical rounds and less lethal ammunition.  They include the fuze, the metal parts including the cartridge case, the load, assemble and pack of the final round, and the detonator.     

The Absorbent Products segment was started in 2001 with the Company’s acquisition of certain assets from RMED International, Inc.  The assets were placed in a company called Presto Absorbent Products, Inc, which manufactured diapers. During 2003, this segment was expanded with the purchase of the assets of NCN Hygienic Products, Inc., a Marietta, Georgia manufacturer of adult incontinence products and puppy pads.  Starting in 2004, the company began making adult incontinence products at the Company's facilities in Eau Claire, Wisconsin.  The segment’s products are sold to distributors and other absorbent product manufacturers.  In 2007, the Company completed the closure of the Georgia facility and consolidated its absorbent products manufacturing in the Eau Claire, Wisconsin facility.  It does not currently manufacture puppy pads or baby diapers.

In the following summary, operating profit represents earnings before other income (loss), principally interest income, and income taxes.  The Company's segments operate discretely from each other with no shared manufacturing facilities.  Costs associated with corporate activities (such as cash and marketable securities management) and the assets associated with such activities are included within the Housewares/Small Appliance segment for all periods presented.

	(in thousands)
	Housewares / Small Appliances		Defense Products		Absorbent Products		Total
Year ended December 31, 2014
External net sales	$	125,653	$	221,545	$	65,165	$	412,363
Gross profit		25,373		57,209		(5,381)		77,201
Operating profit		15,449		32,317		(7,835)		39,931
Total assets		166,101		149,466		62,792		378,359
Depreciation and amortization		954		14,555		6,310		21,819
Capital expenditures		571		1,165		9,551		11,287
Year ended December 31, 2013
External net sales	$	137,225	$	206,198	$	76,765	$	420,188
Gross profit		26,850		50,168		2,334		79,352
Operating profit		16,984		40,463		167		57,614
Total assets		171,659		159,775		62,106		393,540
Depreciation and amortization		1,072		2,241		5,631		8,944
Capital expenditures		947		23,728		11,581		36,256
Year ended December 31, 2012
External net sales	$	145,023	$	244,998	$	82,469	$	472,490
Gross profit		27,858		64,095		2,910		94,863
Operating profit		15,714		55,071		(11,066)		59,719
Total assets		194,214		102,406		57,292		353,912
Depreciation and amortization		1,088		4,203		5,894		11,185
Capital expenditures		1,138		2,681		9,765		13,584