Segment Reporting And Geographic Information

12 Months Ended

Dec. 31, 2011

Segment Reporting And Geographic Information [Abstract]

Segment Reporting And Geographic Information

21. Segment Reporting and Geographic Information:

The Company's segment reporting structure uses the Company's management reporting structure as the foundation for how the Company manages its business. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has six reporting units as of December 31, 2011. The United States segment, excluding All Points and Tagworks, is the only segment considered material by Company management as of December 31, 2011. The segments are as follows:

• United States – excluding the All Points and Tagworks divisions

• All Points

• Tagworks

• Canada

• Mexico

• Australia

Our United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States.

Our All Points segment is a Florida based distributor of commercial and residential fasteners catering to the hurricane protection industry in the southern United States. All Points has positioned itself as a major supplier to manufacturers of railings, screen enclosures, windows and hurricane shutters.

Our Tagworks segment provides innovative pet ID tag programs to a leading pet products chain retailer in the United States using a unique, patent-protected / patent-pending technology and product portfolio.

Our Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems and accessories, and identification items, such as tags and letters, numbers and signs to hardware stores, home centers, mass merchants, and other retail outlets in Canada.

Our Mexico segment distributes fasteners and related hardware items to hardware stores, home centers, mass merchants, and other retail outlets in Mexico.

Our Australia segment distributes keys, key duplicating systems and accessories to home centers and other retail outlets in Australia.

The Company uses profit or loss from operations to evaluate the performance of its segments. Profit or loss from operations is defined as income from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. Segment revenue excludes intersegment sales related to the sales or transfer of products between segments which is consistent with the segment revenue information provided to the Company's chief operating decision maker. Segment Income (Loss) from Operations for Mexico and Australia include insignificant costs allocated from the United States, excluding All Points and Tagworks segment, while the remaining operating segments do not include any allocations.

In 2011, the Company concluded that it used a multiple segment operating structure. The Company has updated and expanded its 2010 segment reporting and geographic information to conform to the 2011 presentation.

The table below presents revenues and income from operations for our reportable segments for the year ended December 31, 2011, the seven months ended December 31, 2010, the five months ended May 28, 2010 and the year ended December 31, 2009.

	Successor						Predecessor
	Year Ended December  31, 2011			Seven Months Ended December 31, 2010			Five Months Ended May 28, 2010			Year Ended December  31, 2009
Revenues
United States, excluding All Points and Tagworks	$	459,623		$	258,391		$	175,470		$	433,646
All Points		15,236			10,087			6,244			15,056
TagWorks		13,808			—			—			—
Canada		11,762			5,053			1,759			4,479
Mexico		5,832			3,149			2,243			4,980
Australia		265			—			—			—
Total revenues	$	506,526		$	276,680		$	185,716		$	458,161
Segment Income (Loss) from Operations
United States, excluding All Points and Tagworks	$	34,654		$	16,025		$	(9,288	)	$	48,495
All Points		487			362			122			146
TagWorks		3,343			—			—			—
Canada		(727	)		88			123			536
Mexico		942			269			270			255
Australia		(324	)		—			—			—
Total segment income (loss) from operations	$	38,375		$	16,744		$	(8,773	)	$	49,432
Reconciliation (1)
Total segment income (loss) from operations	$	38,375		$	16,744		$	(8,773	)	$	49,432
Elimination of intercompany profit (loss)		78			(59	)		11			(98	)
Total income (loss) from operations	$	38,453		$	16,685		$	(8,762	)	$	49,334

(1) This table reconciles segment income (loss) from operations to total income (loss) from operations.

Assets by segment as of December 31, 2011 and 2010 were as follows:

	December 31, 2011		December 31, 2010
Assets:
United States, excluding All Points and Tagworks	$	1,025,334	$	1,035,674
All Points		8,052		7,193
TagWorks		62,912		—
Canada		13,269		5,605
Mexico		17,097		4,306
Australia		1,187		—
Total Assets	$	1,127,851	$	1,052,778

	As of December 31, 2011		As of December 31, 2010
Cash & cash equivalents
United States	$	9,400	$	6,286
Canada		968		1,027
Mexico		1,560		272
Australia		99		—
Consolidated cash & cash equivalents	$	12,027	$	7,585

Following is revenue based on products for the Company's significant product categories:

	Successor				Predecessor
	Year Ended December  31, 2011		Seven Months Ended December 31, 2010		Five Months Ended May 28, 2010		Year Ended December  31, 2009
Net sales
Keys	$	85,410	$	48,897	$	32,716	$	78,012
Engraving		41,734		17,038		12,242		35,518
Letters, numbers and signs		33,079		22,026		12,859		34,287
Fasteners		279,564		154,319		103,457		253,703
Threaded rod		31,135		17,360		12,471		30,118
Code cutter		3,312		1,844		1,377		3,353
Builders hardware		10,080		3,137		1,753		3,832
Other		22,212		12,059		8,841		19,338
Consolidated net sales	$	506,526	$	276,680	$	185,716	$	458,161