Annual report pursuant to Section 13 and 15(d)

Segment Reporting and Geographic Information

v3.20.1
Segment Reporting and Geographic Information
12 Months Ended
Dec. 28, 2019
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 28, 2019.
The segments are as follows:
Fastening, Hardware, and Personal Protective Solutions
Consumer Connected Solutions
Canada
The Fastening, Hardware, and Personal Protective Solutions segment distributes fasteners and related hardware items, threaded rod, personal protective equipment, and letters, numbers, and signs to hardware stores, home centers, mass merchants, and other retail outlets primarily in the United States and Mexico.
The Consumer Connected Solutions segment consists of key duplication and engraving kiosks that can be operated directly by the consumer. The kiosks operate in retail and other high-traffic locations offering customized licensed and unlicensed products targeted to consumers in the respective locations. It also includes our associate-assisted key duplication systems and key accessories.
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. Segment revenue excludes sales between segments, which is consistent with the segment revenue information provided to the Company's chief operating decision maker ("CODM").
In the year ended December 29, 2018 the Company acquired Minute Key and Big Time (see Note 5 - Acquisitions of the Notes to Consolidated Financial Statements for additional information). Minute Key is included in our Consumer Connected Solutions segment while Big Time is included in our Fastening, Hardware, and Personal Protective Solutions segment. In the year ended December 30, 2017 the Company acquired STFS which is included in our Fastening, Hardware, and Personal Protective Solutions segment.
The table below presents revenues and income (loss) from operations for the reportable segments for the years ended December 28, 2019, December 29, 2018, and December 30, 2017.
 
 
Year Ended
December 28, 2019
 
Year Ended
December 29, 2018
 
Year Ended December 30, 2017
Revenues
 
 
 
 
 
 
Fastening, Hardware, and Personal Protective Solutions
 
$
853,016

 
$
636,717

 
$
528,969

Consumer Connected Solutions
 
236,086

 
196,043

 
171,598

Canada
 
125,260

 
141,415

 
137,801

Total revenues
 
$
1,214,362

 
$
974,175

 
$
838,368

Segment Income (Loss) from Operations
 
 
 
 
 
 
Fastening, Hardware, and Personal Protective Solutions
 
$
14,204

 
$
18,555

 
$
7,765

Consumer Connected Solutions
 
3,385

 
17,705

 
24,800

Canada
 
(9,894
)
 
(8,817
)
 
2,939

Total segment income from operations
 
$
7,695

 
$
27,443

 
$
35,504