Business Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

We supply products and services primarily to the aerospace and defense industries. Our subsidiaries are organized into two strategic businesses, SS and ES, each of which is an operating segment as well as a reportable segment.

Financial information by reportable segment was as follows:

	(In thousands) Years Ended December 31,
	2015			2014			2013
Net Revenues
SS	$	273,319		$	319,956		$	315,232
ES	392,692			422,089			421,418
Total Net Revenues	$	666,011		$	742,045		$	736,650
Segment Operating (Loss) Income (1)
SS (2)(3)	$	(53,010	)	$	34,949		$	19,008
ES (4)	(4,472		)	34,599			37,030
	(57,482		)	69,548			56,038
Corporate General and Administrative Expenses (1)(5)	(17,827		)	(17,781		)	(16,735		)
Operating (Loss) Income	$	(75,309	)	$	51,767		$	39,303
Depreciation and Amortization Expenses
SS	$	9,417		$	10,959		$	12,406
ES	17,267			17,928			18,346
Corporate Administration	162			137			174
Total Depreciation and Amortization Expenses	$	26,846		$	29,024		$	30,926
Capital Expenditures
SS	$	11,559		$	12,742		$	8,287
ES	4,419			5,782			5,000
Corporate Administration	10			30			116
Total Capital Expenditures	$	15,988		$	18,554		$	13,403

(1) Includes cost not allocated to either the SS or ES operating segments.

(2) The results for 2015 includes approximately $57.2 million of goodwill impairment charge.

(3) The results for 2013 includes approximately $14.1 million in charges related to fourth quarter asset impairment charges of $5.7 million on the Embraer Legacy 450/500 contracts and $1.3 million on the Boeing 777 wing tip contract; forward loss reserves of $3.9 million on the Embraer Legacy 450/500 contracts and $1.3 million on the Boeing 777 wing tip contract; and inventory write-offs of $1.9 million on the Embraer Legacy 450/500 contracts.

(4) The results for 2015 includes approximately $32.9 million of an intangible asset impairment charge.

(5) The results for 2015, 2014 and 2013 include approximately zero, $1.2 million and $0.6 million, respectively, of workers’ compensation insurance expenses included in gross profit and not allocated to the operating segments.

Segment assets include assets directly identifiable with each segment. Corporate assets include assets not specifically identified with a business segment, including cash. The following table summarizes our segment assets for 2015 and 2014:

	(In thousands) December 31,
	2015		2014
Total Assets
SS	$	179,134	$	245,925
ES	363,227		427,719
Corporate Administration	19,059		73,955
Total Assets	$	561,420	$	747,599
Goodwill and Intangibles
SS	$	4,866	$	63,497
ES	207,595		249,176
Total Goodwill and Intangibles	$	212,461	$	312,673

Subsequent to our year ended December 31, 2015, we entered into an agreement to sell our operation located in Pittsburgh, Pennsylvania, which is part of our ES operating segment, for a preliminary sales price of approximately $38.5 million in cash, subject to finalization of the working capital amount. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. We completed the sale on January 22, 2016.

Also subsequent to our year ended December 31, 2015, we entered into an agreement to sell our Miltec operation, which is part of our ES operating segment, for a preliminary sales price of approximately $14.6 million in cash, subject to post-closing adjustments. We divested this facility as part of our overall strategy to streamline operations, which includes consolidating our footprint. We expect to complete the sale by the end of the second fiscal quarter of 2016.