BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Our business is organized in the following two segments:  NobelClad and DynaEnergetics. The NobelClad segment uses explosives to perform metal cladding and shock synthesis of industrial diamonds. The most significant product of this group is clad metal which is used in the fabrication of pressure vessels, heat exchangers, and transition joints for various industries, including upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration, and similar industries.  The DynaEnergetics segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. 

Prior to 2014, we were organized into three segments. At the beginning of 2014 management approved a change in operating structure whereby AMK will operate within and be managed as part of the Oilfield Products business segment. Consequently, we combined AMK and DynaEnergetics into one reportable business segment, Oilfield Products. AMK represented 3% of segment assets, 4% of consolidated sales and 2% of segment operating income as of and for the year ended December 31, 2013. All prior periods segment disclosures have been restated to conform to the 2014 presentation.

Due to the completed sale of AMK, as of December 31, 2014 the operating results of AMK have been classified as discontinued operations in all periods presented. All prior periods segment disclosures have been restated to conform to the 2014 presentation. Refer to Note 9 "Discontinued Operations" for further details. 

The accounting policies of all the segments are the same as those described in the summary of significant accounting policies.  Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies.

Segment information is presented for the years ended December 31, 2015, 2014, and 2013 as follows:

	Year Ended December 31,
	2015		2014		2013
Net sales:
NobelClad	$	89,980	$	97,108	$	118,409
DynaEnergetics	76,938		105,453		83,651
Consolidated net sales	$	166,918	$	202,561	$	202,060

	Year Ended December 31,
	2015			2014			2013
Income (loss) before income taxes:
NobelClad	$	5,819		$	2,155		$	17,090
DynaEnergetics	(19,245		)	14,479			4,506
Segment operating income (loss)	(13,426		)	16,634			21,596
Unallocated corporate expenses	(6,891		)	(6,381		)	(7,217		)
Stock-based compensation	(3,362		)	(3,588		)	(3,401		)
Other income (expense)	(669		)	(313		)	(528		)
Interest expense	(1,745		)	(551		)	(648		)
Interest income	4			38			7
Consolidated income (loss) before income taxes	$	(26,089	)	$	5,839		$	9,809

	Year Ended December 31,
	2015		2014		2013
Depreciation and Amortization:
NobelClad	$	4,158	$	6,482	$	6,118
DynaEnergetics	6,119		6,672		6,150
Segment depreciation and amortization	$	10,277	$	13,154	$	12,268

	Year Ended December 31,
	2015		2014		2013
Capital Expenditures:
NobelClad	$	1,376	$	13,696	$	2,425
DynaEnergetics	3,668		7,366		13,022
Segment capital expenditures	5,044		21,062		15,447
Corporate and other	389		341		776
Consolidated capital expenditures	$	5,433	$	21,403	$	16,223

	Year Ended December 31,
	2015		2014
Assets:
NobelClad	$	85,649	$	93,383
DynaEnergetics	79,884		103,914
Segment assets	165,533		197,297
Cash and cash equivalents	6,291		9,400
Prepaid expenses and other assets	9,722		6,438
Deferred tax assets	—		4,558
Corporate property, plant and equipment	1,320		1,636
Consolidated assets	$	182,866	$	219,329

The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows:

	As of December 31,
	2015		2014
United States	$	26,410	$	26,291
Germany	20,631		21,210
Russia	8,030		9,556
France	2,490		4,440
Kazakhstan	216		461
Canada	185		1,655
Rest of the world	37		222
Total	$	57,999	$	63,835

All of our sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, France, Canada, Russia and Kazakhstan. The following represents our net sales based on the geographic location of the customer: 

	For the Years Ended December 31,
	2015		2014		2013
United States	$	81,634	$	91,009	$	88,532
Canada	13,000		23,532		18,142
United Arab Emirates	7,891		3,694		2,695
France	6,624		5,478		3,756
South Korea	5,709		7,362		11,642
Germany	5,182		7,721		9,208
Russia	4,937		7,992		5,992
India	4,566		7,617		8,888
Egypt	4,080		2,227		2,133
Spain	3,858		892		5,775
Iraq	3,758		11,348		4,243
China	2,426		1,800		606
Italy	2,327		2,350		4,119
Hong Kong	2,207		1,967		1,180
Sweden	1,699		1,227		1,547
Rest of the world	17,020		26,345		33,602
Total	$	166,918	$	202,561	$	202,060

During the years ended December 31, 2015, 2014 and 2013, no one customer accounted for more than 10% of total net sales.