Segment Information

9 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

SEGMENT INFORMATION

8. SEGMENT INFORMATION

We report our business in four operating segments: Fine Chemicals, Specialty Chemicals, Aerospace Equipment and Other Businesses. These segments are based upon business units that offer distinct products and services, are operationally managed separately and produce products using different production methods. Segment operating income or loss includes all sales and expenses directly associated with each segment. Environmental remediation charges, corporate general and administrative costs, which consist primarily of executive, investor relations, accounting, human resources and information technology expenses, and interest, are not allocated to segment operating results.

Fine Chemicals. Our Fine Chemicals segment includes the operating results of our wholly-owned subsidiaries Ampac Fine Chemicals LLC and AMPAC Fine Chemicals Texas, LLC (collectively, “AFC”). AFC is a custom manufacturer of active pharmaceutical ingredients and registered intermediates for commercial customers in the pharmaceutical industry. AFC operates in compliance with the U.S. Food and Drug Administration’s current Good Manufacturing Practices and the requirements of certain other regulatory agencies such as the European Union’s European Medicines Agency and Japan’s Pharmaceuticals and Medical Devices Agency. AFC has distinctive competencies and specialized engineering capabilities in performing chiral separations, manufacturing chemical compounds that require high containment and performing energetic chemistries at commercial scale.

Specialty Chemicals. Our Specialty Chemicals segment manufactures and sells: (i) perchlorate chemicals, principally ammonium perchlorate, which is the predominant oxidizing agent for solid propellant rockets, booster motors and missiles used in space exploration, commercial satellite transportation and national defense programs, (ii) sodium azide, a chemical used in pharmaceutical manufacturing, and (iii) Halotronâ, a series of clean fire extinguishing agents used in fire extinguishing products ranging from portable fire extinguishers to total flooding systems.

Aerospace Equipment. Our Aerospace Equipment segment includes the operating results of our wholly-owned subsidiary Ampac-ISP Corp. and its wholly-owned subsidiaries (collectively, “AMPAC ISP”). AMPAC ISP manufactures monopropellant and bipropellant liquid propulsion systems and thrusters for satellites, launch vehicles, and interceptors. In addition, AMPAC ISP designs, develops and manufactures liquid propulsion thrusters, high performance valves, pressure regulators, cold-gas propulsion systems, and precision structures for space applications, especially in the European space market.

Other Businesses. Our Other Businesses segment contains our water treatment equipment division and real estate activities. Our water treatment equipment business markets, designs, and manufactures electrochemical On Site Hypochlorite Generation, or OSHG, systems. These systems are used in the disinfection of drinking water, control of noxious odors, and the treatment of seawater to prevent the growth of marine organisms in cooling systems. We supply our equipment to municipal, industrial and offshore customers. Our real estate activities are not material.

Our revenues are characterized by individually significant orders and relatively few customers. As a result, in any given reporting period, certain customers may account for more than ten percent of our consolidated revenues. The following table provides disclosure of the percentage of our consolidated revenues attributed to customers that exceed ten percent of the total in each of the given periods.

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Fine chemicals customer		25	%		17	%		17	%		24	%
Fine chemicals customer					11	%
Fine chemicals customer					11	%
Fine chemicals customer					13	%
Specialty chemicals customer											12	%

The following provides financial information about our segment operations:

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Revenues:
Fine Chemicals	$	30,838		$	19,951		$	60,792		$	63,128
Specialty Chemicals		10,931			8,168			30,800			35,057
Aerospace Equipment		10,105			8,647			35,929			27,140
Other Businesses		43			481			1,434			5,381
Total Revenues	$	51,917		$	37,247		$	128,955		$	130,706
Segment Operating Income (Loss):
Fine Chemicals	$	(452	)	$	(2,458	)	$	(4,923	)	$	(698	)
Specialty Chemicals		4,849			2,796			11,948			15,140
Aerospace Equipment		699			(120	)		2,784			(457	)
Other Businesses		(539	)		(286	)		(1,041	)		(234	)
Total Segment Operating Income (Loss)		4,557			(68	)		8,768			13,751
Corporate Expenses		(2,827	)		(3,551	)		(10,569	)		(11,796	)
Environmental Remediation Charge		(6,000	)		—			(6,000	)		—
Operating Income (Loss)	$	(4,270	)	$	(3,619	)	$	(7,801	)	$	1,955
Depreciation and Amortization:
Fine Chemicals	$	3,114		$	3,200		$	9,391		$	9,722
Specialty Chemicals		146			14			495			591
Aerospace Equipment		300			424			845			1,239
Other Businesses		4			4			13			12
Corporate		105			162			336			416
Total Depreciation and Amortization	$	3,669		$	3,804		$	11,080		$	11,980