Business Segments

12 Months Ended

Sep. 30, 2011

Business Segments [Abstract]

Business Segments

12. Business Segments

The Company identifies reportable segments based upon distinct products manufactured and services performed. The Forged Components Group ("Forge Group") consists of the production, heat-treatment, surface-treatment, non-destructive testing, and some machining of forged components in various steel alloys utilizing a variety of processes for application principally in the aerospace and power generation industries. The Turbine Component Services and Repair Group consists primarily of the repair and remanufacture of small aerospace and industrial turbine engine components and is also involved in providing precision component machining and industrial coatings for turbine engine applications. The Applied Surface Concepts Group is a provider of specialized selective plating processes and services used to apply metal coatings to a selective area of a component. The Company's reportable segments are separately managed.

One customer of all three of the Company's segments accounted for 19% and 20% of the Company's consolidated net sales in fiscal 2011 and 2010, respectively. A second customer of all three of the Company's segments accounted for 10% and 15% of the Company's consolidated net sales in fiscal 2011 and 2010, respectively. One customer of the Forge Group accounted for 12% and 0% of the Company's consolidated net sales in fiscal 2011 and 2010, respectively. The combined net sales to these three customers, and to the direct subcontractors to these three customers, accounted for 59% of the Company's consolidated net sales in both 2011 and 2010.

Geographic net sales are based on location of customer. The United States of America is the single largest country for unaffiliated customer sales, accounting for 80% and 75% of consolidated net sales in fiscal 2011 and 2010, respectively. No other single country represents greater than 10% of consolidated net sales in 2011 and 2010. Net sales to unaffiliated customers located in various European countries accounted for 8% and 10% of consolidated net sales in 2011 and 2010, respectively. Net sales to unaffiliated customers located in various Asian countries accounted for 6% and 9% of consolidated net sales in 2011 and 2010, respectively.

Corporate unallocated expenses represent expenses that are not of a business segment operating nature and, therefore, are not allocated to the business segments for reporting purposes. Corporate identifiable assets consist primarily of cash and cash equivalents, short-term investments and the Company's Cork, Ireland facility.

The following table summarizes certain information regarding segments of the Company:

	Years Ended September 30,
	2011			2010
Net sales:
Forged Components Group	$	84,145		$	62,098
Turbine Component Services and Repair Group		9,047			8,933
Applied Surface Concepts Group		14,165			12,239
Consolidated net sales	$	107,357		$	83,270
Operating income (loss):
Forged Components Group	$	13,000		$	9,855
Turbine Component Services and Repair Group		(277	)		(36	)
Applied Surface Concepts Group		1,025			249
Corporate unallocated expenses		(2,893	)		(2,153	)
Consolidated operating income		10,855			7,915
Interest expense, net		82			14
Foreign currency exchange loss (gain), net		5			(23	)
Other income, net		(470	)		(470	)
Consolidated income before income tax provision	$	11,238		$	8,394
Depreciation and amortization expense:
Forged Components Group	$	3,542		$	1,047
Turbine Component Services and Repair Group		308			335
Applied Surface Concepts Group		426			403
Corporate unallocated expenses		110			110
Consolidated depreciation and amortization expense	$	4,386		$	1,895
LIFO expense for the Forged Components Group	$	479		$	175
Capital expenditures:
Forged Components Group	$	2,798		$	6,094
Turbine Component Services and Repair Group		219			174
Applied Surface Concepts Group		276			479
Consolidated capital expenditures	$	3,293		$	6,747
Identifiable assets:
Forged Components Group	$	58,361		$	31,617
Turbine Component Services and Repair Group		3,758			4,642
Applied Surface Concepts Group		6,217			6,037
Corporate		11,675			27,354
Consolidated total assets	$	80,011		$	69,650
Non-U.S. operations:
Net sales	$	5,010		$	4,560
Operating income (loss)		369			(162	)
Identifiable assets (excluding cash)		4,422			4,286