Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

18. Segment Reporting

        The Company has two division segments based on the products it delivers:

Heavy Duty Diesel Systems division — The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions.  This division offers a full range of products for the verified retrofit and OEM markets through its distributor/dealer network and direct sales. These products are used to reduce exhaust emissions created by on-road, off-road and stationary diesel and alternative fuel engines including propane and natural gas. The retrofit market in the U.S. is driven in particular by state and municipal environmental regulations and incentive funding for voluntary early compliance. The Heavy Duty Diesel Systems division derives significant revenues from retrofit with a portfolio of solutions verified by the California Air Resources Board and the United States Environmental Protection Agency.

Catalyst division — The Catalyst division produces catalyst formulations to reduce emissions from gasoline, diesel and natural gas combustion engines that are offered for multiple markets and a wide range of applications.  A family of unique high-performance catalysts has been developed — with base-metals or low platinum group metal and zero platinum group metal content — to provide increased catalytic function and value for technology-driven automotive industry customers. The Catalyst division’s technical and manufacturing competence in the light duty vehicle market is aimed at meeting auto makers’ most stringent requirements, and it has supplied over ten million parts to light duty vehicle customers since 1996. The Catalyst division also provides catalyst formulations for the Company’s Heavy Duty Diesel Systems division. Intersegment revenues are based on market prices.

Corporate  — Corporate includes cost for personnel, insurance and public company expenses such as legal, audit and taxes that are not allocated down to the operating divisions.

Discontinued operations — In 2006, the Company purchased AUS, a provider of cost-effective, engineered solutions for the clean and efficient utilization of fossil fuels. AUS, referred to as the Company’s Energy Systems division, provided emissions control and energy systems solutions for industrial and utility boilers, process heaters, gas turbines and generation sets used largely by major utilities, industrial process plants, OEMs, refineries, food processors, product manufacturers and universities. The Energy Systems division delivered integrated systems built for customers’ specific combustion processes. As discussed in Note 15, this division was sold on October 1, 2009.

        Summarized financial information for the Company’s reportable segments is as follows (in thousands):

	Years Ended December 31,
	2012	2011
Net sales
Heavy Duty Diesel Systems	$ 40,666	$ 47,460
Catalyst	24,322	20,789
Corporate	─	─
Eliminations (1)	(4,451)	(6,642)
Total	$ 60,537	$ 61,607
Income (loss) from operations
Heavy Duty Diesel Systems	$ (602)	$ 1,449
Catalyst	(1,816)	(970)
Corporate	(5,469)	(6,677)
Eliminations	50	(325)
Total	$ (7,837)	$ (6,523)
Depreciation and amortization
Heavy Duty Diesel Systems	$ 1,238	$ 1,536
Catalyst	192	212
Corporate	─	─
Total	$ 1,430	$ 1,748
Capital expenditures
Heavy Duty Diesel Systems	$ 135	$ 435
Catalyst	101	184
Corporate	─	─
Total	$ 236	$ 619

	December 31,
	2012	2011
Total assets
Heavy Duty Diesel Systems	$ 40,182	$ 45,660
Catalyst	37,637	35,626
Discontinued operations	1,172	1,177
Eliminations	(43,550)	(41,348)
Total	$ 35,441	$ 41,115

(1) Elimination of Catalyst revenue related to sales to Heavy Duty diesel Systems.

        Net sales by geographic region based on location of sales organization is as follows (in thousands):

	Years Ended December 31,
	2012	2011
United States	$ 25,895	$ 20,960
Canada	22,152	25,328
United Kingdom	6,691	8,172
Sweden	5,799	7,147
Total	$ 60,537	$ 61,607

        Net fixed assets and total assets by geographic region as of December 31, 2012 and 2011 is as follows (in thousands):

	Fixed Assets		Total Assets
	2012	2011	2012	2011
United States	$ 616	$ 960	$ 15,353	$ 12,409
Canada	1,278	1,438	15,681	17,808
United Kingdom	─	95	1,392	8,014
Sweden	106	156	3,015	2,884
Total	$ 2,000	$ 2,649	$ 35,441	$ 41,115