Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

15. Segment Reporting:

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 June 30, 2012. The United States segment, excluding All Points and TagWorks, is the only segment considered material by Company management as of June 30, 2012. 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.

The table below presents revenues and income from operations for our reportable segments for the three and six months ended June 30, 2012 and 2011.

	Three Months Ended June  30, 2012			Three Months Ended June 30, 2011			Six Months Ended June 30, 2012			Six Months Ended June 30, 2011
Revenues
United States, excluding All Points and TagWorks	$	132,841		$	122,846		$	248,169		$	226,708
All Points		5,115			4,163			9,624			6,995
TagWorks		3,747			3,835			8,180			4,486
Canada		3,889			3,155			6,297			5,534
Mexico		1,454			1,397			3,011			2,967
Australia		195			—			333			—
Total revenues	$	147,241		$	135,396		$	275,614		$	246,690
Segment Income (Loss) from Operations
United States, excluding All Points and Tagworks	$	14,405		$	14,227		$	22,000		$	17,043
All Points		321			321			413			182
TagWorks		549			717			1,682			881
Canada		(214	)		156			(433	)		(119	)
Mexico		38			347			389			860
Australia		(146	)		(64	)		(250	)		(109	)
Total segment income from operations	$	14,953		$	15,704		$	23,801		$	18,738
Reconciliation (1)
Total segment income from operations	$	14,953		$	15,704		$	23,801		$	18,738
Elimination of intercompany profit (loss)		(12	)		(9	)		(25	)		44
Total income from operations	$	14,941		$	15,695		$	23,776		$	18,782

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

Assets by segment as of June 30, 2012 and December 31, 2011 were as follows:

	June 30, 2012		December 31, 2011
Assets
United States, excluding All Points and Tagworks	$	1,034,654	$	1,025,334
All Points		9,271		8,052
TagWorks		61,266		62,912
Canada		16,271		13,269
Mexico		17,302		17,097
Australia		1,348		1,187
Total Assets	$	1,140,112	$	1,127,851