Operating Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Operating Segment Information

17.Operating Segment Information

The Company has two reportable operating segments: firearms and castings. The firearms segment manufactures and sells rifles, pistols, and revolvers principally to a number of federally-licensed, independent wholesale distributors primarily located in the United States. The castings segment manufactures and sells steel investment castings and metal injection molding parts.

Corporate segment income relates to interest income, the sale of non-operating assets, and other non-operating activities. Corporate segment assets consist of cash and other non-operating assets.

The Company evaluates performance and allocates resources, in part, based on income (loss) before taxes. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies (see Note 1). Intersegment sales are recorded at the Company’s cost plus a fixed profit percentage.

Year ended December 31,	2021			2020			2019
Net Sales
Firearms	$	728,141		$	565,863		$	406,326
Castings
Unaffiliated		2,595			3,005			4,180
Intersegment		24,711			22,254			18,425
		27,306			25,259			22,605
Eliminations		(24,711	)		(22,254	)		(18,425	)
	$	730,736		$	568,868		$	410,506
Income (Loss) Before Income Taxes
Firearms	$	207,657		$	120,732		$	40,814
Castings		(2,732	)		(1,000	)		(797	)
Corporate		1,669			1,249			3,010
	$	206,594		$	120,981		$	43,027
Identifiable Assets
Firearms	$	188,290		$	174,500		$	163,792
Castings		13,889			11,959			11,332
Corporate		240,164			161,799			173,837
	$	442,343		$	348,258		$	348,961
Goodwill
Firearms	$	3,055		$	616		$	-
Castings		209			209			209
	$	3,264		$	825		$	209
Depreciation
Firearms	$	22,842		$	25,126		$	27,149
Castings		2,959			2,158			1,875
	$	25,801		$	27,284		$	29,024
Capital Expenditures
Firearms	$	25,239		$	19,253		$	19,570
Castings		3,537			4,976			726
	$	28,776		$	24,229		$	20,296

In 2021, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 21%; Sports South - 19%; and Davidson’s - 19%.

71

In 2020, the Company’s largest customers and the percent of firearms sales they represented were as follows: Sports South - 22%; Lipsey’s - 22%; and Davidson’s - 18%.

In 2019, the Company’s largest customers and the percent of firearms sales they represented were as follows: Lipsey’s - 26%; Sports South - 22%; and Davidson’s - 15%.

The Company’s assets are located entirely in the United States and domestic sales represented at least 95% of total sales in 2021, 2020, and 2019.