Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v3.7.0.1
Segment Reporting and Geographic Information
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information
e Company's segment reporting structure uses the Company's management reporting structure as the foundation for how the Company manages our business. The Company periodically evaluates our segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has five reportable segments as of December 31, 2016. The United States segment, excluding All Points and the Canada segment are considered material by Company's management as of December 31, 2016. The segments are as follows:
•
United States – excluding the All Points division
•
All Points
•
Canada
•
Mexico
•
Australia
The United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States. This segment also provides innovative pet identification tag programs to a leading pet products retail chain using a unique, patent-protected/patent-pending technology and product portfolio.
The All Points segment is a Florida-based distributor of commercial and residential fasteners catering to the hurricane protection industry in the southern United States. All Points has positioned itself as a major supplier to manufacturers of railings, screen enclosures, windows, and hurricane shutters.
The Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, and identification items, such as tags and letters, numbers, and signs to hardware stores, home centers, mass merchants, industrial distributors, automotive aftermarket distributors, and other retail outlets and industrial Original Equipment Manufacturers (“OEMs”) in Canada. The Canada segment also produces fasteners, stampings, fittings, and processes threaded parts for automotive suppliers and industrial OEMs.
The Mexico segment distributes fasteners and related hardware items to hardware stores, home centers, mass merchants, and other retail outlets in Mexico.
The Australia segment distributed keys, key duplicating systems, and accessories to home centers and other retail outlets in Australia. In the year ended December 31, 2016, the Company decided to exit the Australia market following the withdrawal from Australia of a key customer and recorded charges of $1,047 related to the write-off of inventory and other assets.
The Company uses profit or loss from operations to evaluate the performance of its segments, and does not include segment assets or nonoperating income/expense items for management reporting purposes. Profit or loss from operations is defined as income from operations before interest and tax expenses. Hillman accounts for intersegment sales and transfers as if the sales or transfers were to third parties, at current market prices. Segment revenue excludes sales between segments, which is consistent with the segment revenue information provided to the Company's chief operating decision maker. Segment income (loss) from operations for Mexico and Australia include insignificant costs allocated from the United States, excluding All Points segment, while the remaining operating segments do not include any allocations.
The transactions expenses incurred in connection with the Merger Transaction were recorded in the United States segment. For further information see Note 18 - Transaction, Acquisition, and Integration Expense.
The table below presents revenues and income (loss) from operations for the reportable segments for the years ended December 31, 2016, 2015, and 2014.
 
 
Successor
 
 
Predecessor
 
 
Twelve Months Ended
December 31, 2016
 
Twelve Months Ended
December 31, 2015
 
Period from
June 30, 2014
through
December 31, 2014
 
 
Six months
Ended
June 29,
2014
 
Revenues
 
 
 
 
 
 
 
 
 
 
United States, excluding All Points
 
$
658,742

 
$
626,283

 
$
293,219

 
 
$
269,009

 
All Points
 
18,784

 
19,375

 
9,362

 
 
10,238

 
Canada
 
130,255

 
133,152

 
70,566

 
 
73,867

 
Mexico
 
6,637

 
6,831

 
3,507

 
 
3,620

 
Australia
 
490

 
1,270

 
638

 
 
643

 
Total revenues
 
$
814,908

 
$
786,911

 
$
377,292

 
 
$
357,377

 
Segment Income (Loss) from Operations
 
 
 
 
 
 
 
 
 
 
United States, excluding All Points
 
$
40,409

 
$
32,031

 
$
5,072

 
 
$
(44,830
)
 
All Points
 
1,739

 
1,407

 
655

 
 
896

 
Canada
 
932

 
(5,436
)
 
3,189

 
 
4,214

 
Mexico
 
(400
)
 
403

 
73

 
 
446

 
Australia
 
(1,165
)
 
(1,007
)
 
(748
)
 
 
(114
)
 
Total segment income (loss) from operations
 
$
41,515

 
$
27,398

 
$
8,241

 
 
$
(39,388
)