Business and Geographic Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business and Geographic Segments

Note 2 – Business and geographic segments:

Our operating segments are defined as components of our operations about which separate financial information is available that is regularly evaluated by our chief operating decision maker in determining how to allocate resources and in assessing performance.  At December 31, 2016, we had two operating segments – Security Products and Marine Components.

The Security Products segment, with a facility in South Carolina and a facility shared with Marine Components in Illinois, manufactures locking mechanisms and other security products for sale to the transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare and other industries.

Our Marine Components segment, with a facility in Wisconsin and a facility shared with Security Products in Illinois, manufactures and distributes stainless steel exhaust systems, gauges and throttle controls primarily for recreational boats.

The chief operating decision maker evaluates segment performance based on segment operating income, which is defined as income before income taxes and interest expense (if any), exclusive of certain general corporate income and expense items (primarily interest income) and certain non-recurring items (such as gains or losses on the disposition of business units and other long-lived assets outside the ordinary course of business).  The accounting policies of the reportable operating segments are the same as those described in Note 1. Capital expenditures include additions to property and equipment, but exclude amounts attributable to business combinations.

Segment assets are comprised of all assets attributable to the reportable segments.  Corporate assets are not attributable to the operating segments and consist primarily of cash and cash equivalents.  For geographic information, the point of origin (place of manufacture) for all net sales is the U.S., the point of destination for net sales is based on the location of the customer, and property and equipment are attributable to their physical location. Intersegment sales are not material.

	Years ended December 31,
	2014			2015			2016
	(In thousands)
Net sales:
Security Products	$	91,470		$	95,614		$	94,693
Marine Components		12,376			13,380			14,227
Total	$	103,846		$	108,994		$	108,920
Operating income (loss):
Security Products	$	18,740		$	18,585		$	19,981
Marine Components		705			1,433			1,707
Corporate		(5,838	)		(6,047	)		(6,114	)
Total operating income		13,607			13,971			15,574
Interest income		66			50			390
Income before income taxes	$	13,673		$	14,021		$	15,964

Depreciation and amortization:
Security Products	$	2,771	$	2,831	$	3,025
Marine Components		732		695		663
Corporate		30		10		10
Total	$	3,533	$	3,536	$	3,698
Capital expenditures:
Security Products	$	2,571	$	3,805	$	3,017
Marine Components		250		408		153
Corporate		4		5		5
Total	$	2,825	$	4,218	$	3,175

Net sales point of destination:
United States	$	98,994	$	103,737	$	98,526
Canada		1,927		2,352		7,515
Mexico		1,124		1,334		1,315
Other		1,801		1,571		1,564
Total	$	103,846	$	108,994	$	108,920

	December 31,
	2014		2015		2016
	(In thousands)
Total assets:
Security Products	$	70,244	$	72,561	$	73,345
Marine Components		9,951		12,761		12,209
Corporate and eliminations		48,896		49,470		58,426
Total	$	129,091	$	134,792	$	143,980

Net property and equipment for 2014, 2015 and 2016 is entirely located in the United States.