Segments

12 Months Ended

Dec. 31, 2019

SEGMENTS

Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:


(In thousands)	2019			2018			2017
Sales:
Aerospace	$	692,614		$	675,744		$	534,724
Less Inter-segment Sales	(5)			(119)			(121)
Total Aerospace Sales	692,609			675,625			534,603

Test Systems	80,495			127,679			89,861
Less Inter-segment Sales	(402)			(48)			—
Test Systems	80,093			127,631			89,861
Total Consolidated Sales	$	772,702		$	803,256		$	624,464
Operating Profit and Margins:
Aerospace	$	16,657		$	69,761		$	38,888
	2.4		%	10.3		%	7.3		%
Test Systems	4,494			10,718			7,359
	5.6		%	8.4		%	8.2		%
Total Operating Profit	$	21,151		$	80,479		$	46,247
	2.7		%	10.0		%	7.4		%
Additions to (Deductions from) Operating Profit:
Net Gain on Sale of Businesses	$	78,801		$	—		$	—
Interest Expense, Net of Interest Income	(6,141)			(9,710)			(5,369)
Corporate and Other Expenses, Net	(25,508)			(18,487)			(15,887)
Income before Income Taxes	$	68,303		$	52,282		$	24,991
Depreciation and Amortization:
Aerospace	$	27,879		$	29,947		$	22,111
Test Systems	4,534			4,500			4,302
Corporate	636			585			650
Total Depreciation and Amortization	$	33,049		$	35,032		$	27,063
Assets:
Aerospace	$	629,371		$	647,870		$	621,047
Test Systems	110,994			97,056			90,859
Corporate	42,351			29,714			24,050
Total Assets	$	782,716		$	774,640		$	735,956
Capital Expenditures:
Aerospace	$	11,552		$	14,680		$	10,656
Test Systems	380			1,370			2,721
Corporate	151			267			101
Total Capital Expenditures	$	12,083		$	16,317		$	13,478

Operating profit is sales less cost of products sold and other operating expenses, excluding interest expense and other corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment.

For the year ended December, 31 2019, there was a goodwill impairment loss of $1.6 million and intangible asset impairment of $6.2 million recorded in the Aerospace segment. In 2018, there were no goodwill or purchased intangible asset impairment losses in either the Aerospace or Test System segment. In 2017, there was a goodwill impairment loss of $16.2 million recorded in the Aerospace segment. In the Aerospace segment, goodwill amounted to $123.0 million and $125.0 million at December 31, 2019 and 2018, respectively. In the Test Systems segment, goodwill amounted to $21.9 million as of December 31, 2019. There was no goodwill in the Test Systems segment as of December 31, 2018.

The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:


(In thousands)	2019		2018		2017
United States	$	583,589	$	575,830	$	482,219
North America (excluding United States)	12,585		10,834		6,198
Asia	40,764		112,135		58,732
Europe	130,227		98,193		73,677
South America	862		1,973		1,280
Other	4,675		4,291		2,358
Total	$	772,702	$	803,256	$	624,464

The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:


(In thousands)	2019		2018
United States	$	101,169	$	110,738
France	8,740		9,241
India	1,509		—
Canada	1,081		883
Total	$	112,499	$	120,862

Sales recorded by the Company’s foreign operations were $85.9 million, $70.6 million and $53.9 million in 2019, 2018 and 2017, respectively. Net income from these locations was $8.6 million, $5.5 million and $2.2 million in 2019, 2018 and 2017, respectively. Net assets held outside of the U.S. total $66.4 million and $45.0 million at December 31, 2019 and 2018, respectively. The exchange loss included in determining net income was insignificant in 2019 and 2018. Cumulative translation adjustments amounted to $(7.0) million and $(7.2) million at December 31, 2019 and 2018, respectively.

The Company has a significant concentration of business with two major customers; The Boeing Company (“Boeing”) and Panasonic Aviation Corporation (“Panasonic”). The following is information relating to the activity with those customers:


	2019	2018	2017
Percent of Consolidated Sales
Boeing	13.6%	14.3%	16.8%
Panasonic	13.0%	14.4%	19.1%


(In thousands)	2019		2018
Accounts Receivable at December 31,
Boeing	$	21,806	$	24,649
Panasonic	$	15,831	$	14,994

Sales to Boeing and Panasonic are primarily in the Aerospace segment.