Segment Reporting

The Company's reportable segments are mobile connectivity and inertial navigation. The financial results of each segment are based on revenues from external customers, cost of revenue and operating expenses that are directly attributable to the segment and an allocation of costs from shared functions. These shared functions include, but are not limited to, facilities, human resources, information technology, and engineering. Allocations are made based on management’s judgment of the most relevant factors, such as head count, number of customer sites, or other operational data that contribute to the shared costs. Certain corporate-level costs have not been allocated as they are not directly attributable to either segment. These costs primarily consist of broad corporate functions, including executive, legal, finance, and costs associated with corporate actions. Segment-level asset information has not been provided as such information is not reviewed by the chief operating decision-maker for purposes of assessing segment performance and allocating resources. There are no inter-segment sales or transactions. As discussed in Note 1, the Company’s Videotel business, which had previously been included in the mobile connectivity segment, has been classified as discontinued operations and therefore excluded from the segment information below.

The Company's performance is impacted by the levels of activity in the marine and land mobile markets and defense sectors, among others. Performance in any particular period could be impacted by the timing of sales to certain large customers.

The mobile connectivity segment primarily manufactures and distributes a comprehensive family of mobile satellite antenna products and services that provide access to television, the Internet and voice services while on the move. Product sales within the mobile connectivity segment accounted for approximately 20% of our consolidated net sales for both 2019 and 2018. Sales of mini-VSAT Broadband airtime service accounted for approximately 48% and 46% of our consolidated net sales for 2019 and 2018, respectively.

The inertial navigation segment manufactures and distributes a portfolio of digital compass and fiber optic gyro (FOG)-based systems that address the rigorous requirements of military and commercial customers and provide reliable, easy-to-use and continuously available navigation and pointing data. The principal product categories in this segment include the FOG-based inertial measurement units (IMUs) for precision guidance, FOGs for tactical navigation as well as pointing and stabilization systems, and digital compasses that provide accurate heading information for demanding applications, security, automation and access control equipment and systems. Sales of FOG-based guidance and navigation systems within the inertial navigation segment accounted for approximately 16% and 17% of consolidated net sales for 2019 and 2018, respectively.

No other single product class accounts for 10% or more of consolidated net sales.

The Company operates in a number of major geographic areas, including internationally. Revenues from international locations, primarily consisting of Canada, European countries, both inside and outside the European Union, as well as Africa, Asia/Pacific, the Middle East, and India. Revenues are based upon customer location and internationally represented 54% and 57% of consolidated net sales for 2019 and 2018, respectively. No individual foreign country represented 10% or more of the Company's consolidated net sales for 2019 or 2018.

As of December 31, 2019 and 2018, the long-lived tangible assets related to the Company’s international subsidiaries were less than 10% of the Company’s long-lived tangible assets and were deemed not material.

Net sales and operating (loss) income for the Company's reporting segments and the Company's loss from continuing operations before income tax (benefit) expense for the years ended December 31, 2019 and 2018 were as follows:



	For the year ended December 31,
	2019			2018
Net sales:
Mobile connectivity	$	122,015		$	115,926
Inertial navigation	35,878			37,103
Consolidated net sales	$	157,893		$	153,029

Operating (loss) income:
Mobile connectivity	$	(5,569	)	$	681
Inertial navigation	2,961			4,917
Subtotal	(2,608		)	5,598
Unallocated, net	(18,488		)	(16,244		)
Loss from operations	(21,096		)	(10,646		)
Net interest and other income (expense)	1,084			(452		)
Loss from continuing operations before income tax (benefit) expense	$	(20,012	)	$	(11,098	)

Depreciation expense and amortization expense for the Company's segments are presented in the table that follows for the periods presented:



	For the year ended December 31,
	2019		2018
Depreciation expense:
Mobile connectivity	$	7,084	$	5,440
Inertial navigation	1,155		1,048
Unallocated	559		538
Total consolidated depreciation expense	$	8,798	$	7,026

Amortization expense:
Mobile connectivity	$	980	$	1,008
Inertial navigation	—		—
Unallocated	—		—
Total consolidated amortization expense	$	980	$	1,008