Segment Information

12 Months Ended

Dec. 31, 2013

Segment Information

Segment Information

14.          Segment Information

The Company is organized into three reporting segments. The segments are defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The three regional segments are the North America segment, comprising primarily the United States and Canada, the Europe segment and the Asia/Pacific segment, comprising the Company’s operations in China, Hong Kong, the South Pacific and the Middle East. These segments are similar in several ways, including the types of materials, the production processes, the distribution channels and the product applications.

The Administrative & All Other column primarily includes expenses such as self-insured workers compensation claims for employees of the Company’s venting business, which was sold in 2010, stock-based compensation for certain members of management, interest expense, foreign exchange gains or losses and income tax expense, as well as revenues and expenses related to real estate activities, such as rental income and depreciation expense on the Company’s property in Vacaville, California, which the Company has leased to a third party for a 10-year term expiring in August 2020.

The following table shows certain measurements used by management to assess the performance of the segments described above as of December 31, 2013, 2012 and 2011, or for the years then ended:

(in thousands)

	North				Asia/			Administrative
2013	America		Europe		Pacific			& All Other			Total
Net sales	$	572,789	$	117,799	$	14,793		$	948		$	706,329
Sales to other segments *	4,735		352		16,334			—			21,421
Income (loss) from operations	84,885		1,258		(2,202		)	(2,463		)	81,478
Depreciation and amortization	17,707		7,019		1,499			1,293			27,518
Impairment of long-lived asset	—		1,025		—			—			1,025
Significant non-cash charges	8,867		1,561		142			2,177			12,747
Provision for (benefit from) income taxes	26,372		2,906		(101		)	1,416			30,593
Capital expenditures and asset acquisitions, net of cash acquired	19,424		2,244		1,620			9			23,297
Total assets	627,196		201,384		31,560			93,473			953,613

	North					Asia/			Administrative
2012	America		Europe			Pacific			& All Other		Total
Net sales	$	522,895	$	122,549		$	10,843		$	949	$	657,236
Sales to other segments *	5,121		430			15,721			—		21,272
Income (loss) from operations	71,586		(8,095		)	(2,799		)	1,017		61,709
Depreciation and amortization	16,317		7,744			1,330			1,466		26,857
Impairment of goodwill	—		2,346			—			—		2,346
Impairment of long-lived asset	461		342			—			—		803
Significant non-cash charges	7,369		1,053			194			2,051		10,667
Provision for income taxes	15,037		3,544			323			1,099		20,003
Capital expenditures and asset acquisitions, net of cash acquired	23,014		63,156			916			—		87,086
Total assets	583,501		194,000			30,455			82,366		890,322

	North				Asia/			Administrative
2011	America		Europe		Pacific			& All Other			Total
Net sales	$	474,722	$	118,246	$	9,528		$	950		$	603,446
Sales to other segments *	4,805		575		11,359			—			16,739
Income (loss) from operations	75,350		1,296		(1,471		)	(1,118		)	74,057
Depreciation and amortization	13,194		4,849		1,211			1,497			20,751
Impairment of goodwill	—		1,282		—			—			1,282
Impairment of long-lived asset	1,094		—		—			—			1,094
Significant non-cash charges	4,464		966		129			1,278			6,837
Provision for (benefit from) income taxes	25,348		2,588		(805		)	755			27,886
Capital expenditures and asset acquisitions, net of cash acquired	72,291		5,062		544			19			77,916
Total assets	540,082		180,016		29,306			86,683			836,087

* Sales to other segments are eliminated on consolidation.

Cash collected by the Company’s United States subsidiaries is routinely transferred into the Company’s cash management accounts, and therefore has been included in the total assets of “Administrative & All Other.” Cash and short-term investment balances in “Administrative & All Other” were $156.0 million, $91.9 million and $68.5 million as of December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, the Company had $96.4 million or 38.4% of its cash and cash equivalents held outside the United States in accounts belonging to the Company’s various foreign operating entities. The majority of this balance is held in foreign currencies and could be subject to additional taxation if it were repatriated to the United States. The Company has no plans to repatriate cash and cash equivalents held outside the United States as the Company expects to use such funds for future international growth and acquisitions.

The significant non-cash charges comprise compensation related to the awards under the stock-based incentive plans and the stock bonus plan. The Company’s measure of profit or loss for its reportable segments is income (loss) from operations. The reconciling amounts between consolidated income before tax and consolidated income from operations are net interest income, which is primarily attributed to “Administrative & All Other” and loss from equity method investment, which is attributed to the North America segment.

The following table shows the geographic distribution of how the Company’s net sales and long-lived assets as of December 31, 2013, 2012 and 2011, or for the years then ended:

(in thousands)

	2013				2012				2011
	Net		Long-Lived		Net		Long-Lived		Net		Long-Lived
	Sales		Assets		Sales		Assets		Sales		Assets
United States	$	531,968	$	152,644	$	479,390	$	152,456	$	433,242	$	165,363
Canada	41,626		5,763		44,359		6,182		42,350		5,964
Denmark	14,993		1,907		15,096		2,252		17,158		2,607
United Kingdom	21,852		1,249		23,504		1,232		23,598		1,370
France	36,708		9,302		37,826		10,036		43,319		10,530
Germany	26,058		17,446		27,919		17,651		27,237		4,957
Switzerland	6,019		11,649		6,653		11,628		—		—
Poland	5,982		692		4,847		795		3,004		224
The Netherlands	4,306		63		3,336		92		—		—
Portugal	804		688		1,437		734		—		—
Ireland	31		—		791		2,757		2,720		3,075
China/Hong Kong	9,802		9,499		6,054		9,675		4,754		10,022
Australia	3,289		356		3,386		441		4,586		369
New Zealand	1,701		125		1,404		154		188		138
Other countries	1,190		739		1,234		577		1,290		560
	$	706,329	$	212,122	$	657,236	$	216,662	$	603,446	$	205,179

Net sales and long-lived assets, net of intangible assets, are attributable to the country where the operations are located.

The following table show the distribution of the Company’s net sales by product as of December 31, 2013, 2012 and 2011, or for the years then ended:

(in thousands)

	2013		2012		2011
Wood Construction	$	596,849	$	558,113	$	536,131
Concrete Construction	108,341		97,967		66,031
Other	1,139		1,156		1,284
Total	$	706,329	$	657,236	$	603,446

Wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls and are used for connecting and strengthening wood-based construction primarily in the residential construction market. Concrete construction products include adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools and reinforcing fiber materials and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction.

The Company’s largest customer, attributable mostly to the North America segment, accounted for 10% of net sales for each of the years ended December 31, 2012 and 2011. No customer accounted for as much as 10% of net sales for the year ended December 31, 2013.