Segment Reporting

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting:

The Company’s segment reporting structure uses the Company’s management reporting structure as the foundation for how the Company manages our business. The Company periodically evaluates our segment reporting structure in accordance with ASC 350-20-55 and we have concluded that we have five reportable segments as of September 30, 2015. The United States segment, excluding All Points, and the Canada segment are considered material by the Company’s management as of September 30, 2015. The segments are as follows:

• United States – excluding the All Points division

• All Points

• Canada

• Mexico

• Australia

The United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, 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. This segment also provides innovative pet identification tag programs to a leading pet products retail chain using a unique, patent-protected/patent-pending technology and product portfolio.

The 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.

The Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, industrial distributors, automotive aftermarket distributors, and other retail outlets, and industrial Original Equipment Manufacturers (“OEMs”) in Canada. The Canada segment also produces fasteners, stampings, fittings, and processes threaded parts for automotive suppliers and industrial OEMs.

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

The 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 our segments. Profit or loss from operations is defined as income (loss) from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, at current market prices. Segment revenue excludes sales 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 segment, while the remaining operating segments do not include any allocations.

The transaction expenses incurred in connection with the Merger Transaction were recorded in the United States, excluding All Points segment. For further information, see Note 13, Transaction, Acquisition, and Integration Expenses.

14.    Segment Reporting (continued):

The table below presents revenues and income (loss) from operations for our reportable segments for the three and nine months ended September 30, 2015 and 2014.

	Successor
	Three Months Ended September 30, 2015			Three Months Ended September 30, 2014 Adjusted
Revenues
United States, excluding All Points	$	167,260		$	151,167
All Points	5,116			5,233
Canada	35,645			37,576
Mexico	1,646			1,775
Australia	266			205
Total revenues	$	209,933		$	195,956
Segment income (loss) from operations
United States, excluding All Points	$	12,672		$	16,709
All Points	465			445
Canada	(2,191		)	3,719
Mexico	(38		)	88
Australia	(475		)	(398		)
Total income from operations	$	10,433		$	20,563

	Successor						Predecessor
	Nine Months Ended September 30, 2015			Period from June 30, 2014 through September 30, 2014 Adjusted			Six Months Ended June 29, 2014
Revenues
United States, excluding All Points	$	479,202		$	151,167		$	269,009
All Points	15,857			5,233			10,238
Canada	106,194			37,576			73,867
Mexico	5,201			1,775			3,620
Australia	993			205			643
Total revenues	$	607,447		$	195,956		$	357,377
Segment income (loss) from operations
United States, excluding All Points	$	25,628		$	(5,309	)	$	(44,830	)
All Points	1,280			445			896
Canada	(1,400		)	3,719			4,214
Mexico	225			88			446
Australia	(1,034		)	(398		)	(114		)
Total income (loss) from operations	$	24,699		$	(1,455	)	$	(39,388	)

14.    Segment Reporting (continued):

The tables below present assets and cash equivalents as of September 30, 2015 and December 31, 2014.

	As of		As of
	September 30, 2015		December 31, 2014
Assets
United States, excluding All Points	$	1,560,934	$	1,522,371
All Points	15,423		16,108
Canada	326,392		346,691
Mexico	15,103		15,886
Australia	1,810		1,957
Total Assets	$	1,919,662	$	1,903,013

	As of		As of
	September 30, 2015		December 31, 2014
Cash and cash equivalents
United States, excluding All Points	$	2,847	$	13,192
All Points	693		696
Canada	3,122		3,186
Mexico	1,799		1,396
Australia	224		15
Total Cash and cash equivalents	$	8,685	$	18,485