Segments

12 Months Ended

Dec. 31, 2018

SEGMENTS

Segment information and reconciliations to consolidated amounts for the years ended December 31 are as follows:


(In thousands)	2018			2017			2016
Sales:
Aerospace	$	675,744		$	534,724		$	534,408
Less Inter-segment Sales	(119)			(121)			(367)
Total Aerospace Sales	675,625			534,603			534,041

Test Systems	127,679			89,861			99,082
Less Inter-segment Sales	(48)			—			—
Test Systems	127,631			89,861			99,082
Total Consolidated Sales	$	803,256		$	624,464		$	633,123
Operating Profit and Margins:
Aerospace	$	69,761		$	38,888		$	77,966
	10.3		%	7.3		%	14.6		%
Test Systems	10,718			7,359			8,507
	8.4		%	8.2		%	8.6		%
Total Operating Profit	$	80,479		$	46,247		$	86,473
	10.0		%	7.4		%	13.7		%
Deductions from Operating Profit:
Interest Expense, Net of Interest Income	$	(9,710)		$	(5,369)		$	(4,354)
Corporate and Other Expenses, Net	(18,487)			(15,887)			(13,334)
Income before Income Taxes	$	52,282		$	24,991		$	68,785
Depreciation and Amortization:
Aerospace	$	29,947		$	22,111		$	19,873
Test Systems	4,500			4,302			5,273
Corporate	585			650			644
Total Depreciation and Amortization	$	35,032		$	27,063		$	25,790
Assets:
Aerospace	$	647,870		$	621,047		$	500,892
Test Systems	97,056			90,859			76,575
Corporate	29,714			24,050			26,877
Total Assets	$	774,640		$	735,956		$	604,344
Capital Expenditures:
Aerospace	$	14,680		$	10,656		$	9,511
Test Systems	1,370			2,721			3,345
Corporate	267			101			181
Total Capital Expenditures	$	16,317		$	13,478		$	13,037

Operating profit is sales less cost of products sold and other operating expenses, excluding interest expense and other corporate expenses. Cost of products sold and other operating expenses are directly identifiable to the respective segment.

For the years ended December 31, 2018 and December, 31 2016, there were no goodwill or purchased intangible asset impairment losses in either the Aerospace or Test System segment. In 2017, there was a goodwill impairment loss of $16.2

million recorded in the Aerospace segment. In the Aerospace segment, goodwill amounted to $125.0 million and $125.6 million at December 31, 2018 and 2017, respectively. In the Test Systems segment, there was no goodwill as of December 31, 2018 and 2017.

The following table summarizes the Company’s sales into the following geographic regions for the years ended December 31:


(In thousands)	2018		2017		2016
United States	$	575,830	$	482,219	$	504,270
North America (excluding United States)	10,834		6,198		12,331
Asia	112,135		58,732		52,171
Europe	98,193		73,677		61,200
South America	1,973		1,280		577
Other	4,291		2,358		2,574
Total	$	803,256	$	624,464	$	633,123

The following table summarizes the Company’s property, plant and equipment by country for the years ended December 31:


(In thousands)	2018		2017
United States	$	110,738	$	116,026
France	9,241		9,094
Canada	883		710
Total	$	120,862	$	125,830

Sales recorded by the Company’s foreign operations were $70.6 million, $53.9 million and $50.1 million in 2018, 2017 and 2016, respectively. Net income from these locations was $5.5 million, $2.2 million and $1.8 million in 2018, 2017 and 2016, respectively. Net assets held outside of the U.S. total $45.0 million and $47.4 million at December 31, 2018 and 2017, respectively. The exchange loss included in determining net income was $0.3 million in 2018 and an insignificant gain in 2017. Cumulative translation adjustments amounted to $(7.2) million and $(4.5) million at December 31, 2018 and 2017, respectively.

The Company has a significant concentration of business with two major customers; Panasonic Aviation Corporation (“Panasonic”) and The Boeing Company (“Boeing”). The following is information relating to the activity with those customers:


	2018	2017	2016
Percent of Consolidated Sales
Panasonic	14.4%	19.1%	21.6%
Boeing	14.3%	16.8%	15.2%


(In thousands)	2018		2017
Accounts Receivable at December 31,
Panasonic	$	14,994	$	10,200
Boeing	$	24,649	$	12,969

Sales to Panasonic are in the Aerospace segment. Sales to Boeing occur in both segments.