Business Segments and Customer Information

12 Months Ended

Dec. 31, 2014

Business Segments and Customer Information [Abstract]

Business Segments and Customer Information

(11)  Business Segments and Customer Information

Segment Information

Management of our business operations is conducted under four reportable operating segments:

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") direct sales to USPS and to other clients.

International Group - Our International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military and other government agencies.

Federal Group - Our Federal Group provides legacy equipment sustainment, engineering, technical, management, integrated logistics support and information technology services to DoD and other government agencies.

IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various civilian government agencies.

These segments operate under separate management teams and financial information is produced for each segment.  The entities within each of the International Group, Federal Group, and IT, Energy and Management Consulting Group reportable segments meet the aggregation of operating segments criteria as defined by the accounting standard for segment reporting.  We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.  Beginning with the second quarter of 2013, we no longer allocate interest to our reportable segments.

Our segment information is as follows (in thousands):

For the years ended December 31,
	2014			2013			2012
Revenues:
Supply Chain Management Group	$	172,482		$	154,702		$	143,014
International Group		106,369			146,908			167,193
Federal Group		84,392			95,435			142,323
IT, Energy and Management Consulting Group		60,828			74,593			94,225
Total revenues	$	424,071		$	471,638		$	546,755
Operating income:
Supply Chain Management Group	$	29,694		$	27,299		$	24,014
International Group		3,795			7,069			6,052
Federal Group		(343	)		2,400			10,418
IT, Energy and Management Consulting Group		6,634			9,061			11,816
Corporate		(2,850	)		(1,726	)		(1,224	)
Operating income	$	36,930		$	44,103		$	51,076
Depreciation and amortization expense:
Supply Chain Management Group	$	5,373		$	4,265		$	9,891
International Group		5,713			7,323			3,035
Federal Group		5,607			6,033			3,116
IT, Energy and Management Consulting Group		2,077			2,387			3,753
Total depreciation and amortization	$	18,770		$	20,008		$	19,795
Capital expenditures:
Supply Chain Management Group	$	2,524		$	895		$	341
International Group		-			236			83
Federal Group		230			1,211			763
IT, Energy and Management Consulting Group		199			71			53
Corporate		461			2,003			19,623
Total capital expenditures	$	3,414		$	4,416		$	20,863

	December 31,
	2014		2013
Total assets:
Supply Chain Management Group	$	192,720	$	185,976
International Group		17,235		33,355
Federal Group		18,990		20,846
IT, Energy and Management Consulting Group		49,790		57,610
Corporate		76,595		82,742
Total assets	$	355,330	$	380,529

Revenues are net of inter-segment eliminations.  Corporate/unallocated expenses are primarily selling, general and administrative expenses not allocated to segments.  Corporate assets are primarily cash and property and equipment.

Customer Information

Our revenues are derived from contract services performed for DoD agencies or federal civilian agencies and from the delivery of products to our clients. The USPS, U.S. Army and Army Reserve, and U.S. Navy are our largest customers. Our customers also include various other government agencies and commercial entities. Our revenue by customer is as follows for the years ended December 31, (in thousands):

Revenues by Customer (dollars in thousands) Years ended December 31,
Customer	2014		%			2013		%			2012		%
U.S. Army/Army Reserve	$	101,714		24.0	%	$	101,736		21.6	%	$	182,412		33.4	%
U.S. Navy		88,007		20.7	%		123,307		26.1	%		120,867		22.1	%
U.S. Air Force		3,323		0.8	%		3,625		0.8	%		6,963		1.3	%
Total - DoD		193,044		45.5	%		228,668		48.5	%		310,242		56.8	%
U.S. Postal Service		167,268		39.4	%		142,203		30.1	%		130,866		23.9	%
Department of Energy		19,000		4.5	%		20,124		4.3	%		20,898		3.8	%
Department of Treasury		10,897		2.6	%		35,929		7.6	%		33,369		6.1	%
Department of Interior		1,431		0.3	%		1,545		0.3	%		16,884		3.1	%
Other government		28,751		6.8	%		40,919		8.7	%		32,231		5.9	%
Total – Federal civilian agencies		227,347		53.6	%		240,720		51.0	%		234,248		42.8	%
Commercial		3,680		0.9	%		2,250		0.5	%		2,265		0.4	%
Total	$	424,071		100.0	%	$	471,638		100.0	%	$	546,755		100.0	%

We do not measure revenue or profit by product or service lines, either for internal management or external financial reporting purposes, because it would be impractical to do so. Products offered and services performed are determined by contract requirements and the types of products and services provided for one contract bear no relation to similar products and services provided on another contract. Products and services provided vary when new contracts begin or current contracts expire. In many cases, more than one product or service is provided under a contract or contract task order. Accordingly, cost and revenue tracking is designed to best serve contract requirements and segregating costs and revenues by product or service lines in situations for which it is not required would be difficult and costly to both us and our customers.