Segment Reporting and Geographic Information
|12 Months Ended
Dec. 29, 2018
|Segment Reporting [Abstract]
|Segment Reporting and Geographic Information
The Company's segment reporting structure uses the Company's management reporting structure as the foundation for how the Company manages its business. The Company periodically evaluates its segment reporting structure in accordance with ASC 350-20-55 and has concluded that it has three reportable segments as of December 29, 2018. The United States segment and the Canada segment are considered material by Company's management as of December 29, 2018. The Company's other segments have been combined in the "Other" category.
The segments are as follows:
The United States segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, personal protective equipment, 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. The United States 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. This segment also provides sales of keys and identification tags through self service key duplication and engraving kiosks.
The Canada segment distributes fasteners and related hardware items, threaded rod, keys, key duplicating systems, accessories, personal protective equipment, 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 Company uses profit or loss from operations to evaluate the performance of its segments, and does not include segment assets or non-operating 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.
In the year ended December 29, 2018 the Company acquired Minute Key and Big Time Products (see Note 5 - Acquisitions of the Notes to Consolidated Financial Statements for additional information). Both Minute Key and Big Time Products have significant operations in the United States. Minute Key has a smaller operating presence in Canada and Big Time has smaller operations in Canada as well as Mexico. Accordingly, the result of the operations of Minute Key will be included in United States and Canada segments and the results of Big Time Products will be included in the United States, Canada and Other segments.
In the year ended December 31, 2016, the Company decided to exit the Australia market following the withdrawal from the Australia market of a key customer and recorded charges of $1,047 in the Other segment related to the write-off of inventory and other assets. In the year ended December 30, 2017, the Company fully liquidated its Australian subsidiary and reclassified the cumulative translation adjustment to income. The $638 gain was recorded as other income on the Consolidated Statement of Comprehensive Income (Loss).
The table below presents revenues and income (loss) from operations for the reportable segments for the years ended December 29, 2018, December 30, 2017, and December 31, 2016.