Operating Segment Data | Operating Segment Data At December 31, 2015, the Company had eight reportable operating segments. Each operating segment represents a platform acquisition. The Company’s operating segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. A description of each of the reportable segments and the types of products from which each segment derives its revenues is as follows: • Ergobaby , headquartered in Los Angeles, California, is a designer, marketer and distributor of wearable baby carriers and related baby wearing products, as well as stroller travel systems and accessories. Ergobaby offers a broad range of wearable baby carriers, stroller travel systems and related products that are sold through more than 450 retailers and web shops in the United States and throughout the world. Ergobaby has two main product lines: baby carriers (baby carriers and accessories) and infant travel systems (strollers and accessories). • Liberty Safe is a designer, manufacturer and marketer of premium home and gun safes in North America. From it’s over 314,000 square foot manufacturing facility, Liberty produces a wide range of home and gun safe models in a broad assortment of sizes, features and styles. Liberty is headquartered in Payson, Utah. • Manitoba Harvest is a pioneer and leader in the manufacture and distribution of branded, hemp based food products. Manitoba Harvest’s products, which include Hemp Hearts™, Hemp Heart Bites™, Hemp Heart Bars™, and Hemp protein powders, are currently carried in over 7,000 retail stores across the U.S. and Canada. Manitoba Harvest is headquartered in Winnipeg, Manitoba. • Advanced Circuits , an electronic components manufacturing company, is a provider of small-run, quick-turn and volume production rigid printed circuit boards. ACI manufactures and delivers custom printed circuit boards to customers primarily in North America. ACI is headquartered in Aurora, Colorado. • Arnold Magnetics is a global manufacturer of engineered magnetic solutions for a wide range of specialty applications and end-markets, including energy, medical, aerospace and defense, consumer electronics, general industrial and automotive. Arnold Magnetics produces high performance permanent magnets (PMAG), flexible magnets (FlexMag) and precision foil products (Precision Thin Metals) that are mission critical in motors, generators, sensors and other systems and components. Based on its long-term relationships, the company has built a diverse and blue-chip customer base totaling more than 2,000 clients worldwide. Arnold Magnetics is headquartered in Rochester, New York. • Clean Earth provides environmental services for a variety of contaminated materials including soils dredged materials, hazardous waste and drill cuttings. Clean Earth analyzes, treats, documents and recycles waste streams generated in multiple end markets such as power, construction, oil and gas, infrastructure, industrial and dredging. Clean Earth is headquartered in Hatsboro, Pennsylvania and operates 14 facilities in the eastern United States. • Sterno Products is a manufacturer and marketer of portable food warming fuel and creative table lighting solutions for the food service industry. Sterno's products include wick and gel chafing fuels, butane stoves and accessories, liquid and traditional wax candles, catering equipment and lamps. Sterno Products is headquartered in Corona, California. The tabular information that follows shows data for each of the operating segments reconciled to amounts reflected in the consolidated financial statements. The operations of each of the operating segments are included in consolidated operating results as of their date of acquisition. FOX was an operating segment of the Company until July 10, 2014, when FOX was deconsoldiated and became an equity method investment. The results of operations of FOX are included in the disaggregated revenue and other financial data presented for the year ending December 31, 2014 for the period from January 1, 2014 through July 10, 2014. Segment profit is determined based on internal performance measures used by the Chief Executive Officer to assess the performance of each business. All our operating segments are deemed reporting units for purposes of annual or event-driven goodwill impairment testing, with the exception of Arnold Magnetics which has three reporting units (PMAG, FlexMag and Precision Thin Metals). Segment profit excludes certain charges from the acquisitions of the Company’s initial businesses not pushed down to the segments which are reflected in the Corporate and other line item. There were no significant inter-segment transactions. A disaggregation of the Company’s consolidated revenue and other financial data for the years ended December 31, 2015, 2014 and 2013 is presented below (in thousands) : Year ended December 31, Net sales of operating segments 2015 2014 2013 Ergobaby $ 86,506 $ 82,255 $ 67,340 FOX — 149,995 272,746 Liberty 101,146 90,149 126,541 Manitoba Harvest 17,423 — — ACI 87,532 85,918 87,406 Arnold Magnetics 119,994 123,205 126,606 Clean Earth 175,386 68,440 — Sterno Products 139,991 36,713 — Total 727,978 636,675 680,639 Reconciliation of segment revenues to consolidated revenues: Corporate and other — — — Total consolidated revenues $ 727,978 $ 636,675 $ 680,639 Geographic Information International Revenues Revenues from geographic locations outside the United States were material for the following segments: Ergobaby, Manitoba Harvest, Arnold and Sterno Products, in each of the periods presented. Revenue attributable to Canada represented approximately 14.6% of total international revenue in 2015. Revenue attributable to any other individual foreign country is not material in 2015. Revenue attributable to any individual foreign countries was not material in 2014 or 2013. The international revenues from FOX in 2014 are for the period from January 1, 2014 through July 10, 2014, the date of deconsolidation. There were no significant inter-segment transactions. Year ended December 31, International revenues 2015 2014 2013 Ergobaby $ 48,237 $ 46,702 $ 40,322 FOX — 79,306 176,633 Manitoba Harvest 8,733 — — Arnold Magnetics 44,187 55,591 61,406 Sterno Products 3,575 2,137 — Total international revenues $ 104,732 $ 183,736 $ 278,361 Identifiable Assets The acquisition of Manitoba Harvest in July 2015 and HOCI in December 2015 resulted in identifiable assets located internationally in Canada. At December 31, 2015, Manitoba Harvest had $148.1 million in total assets, including $17.6 million of property, plant and equipment. Year ended December 31, Profit (loss) of operating segments (1) 2015 2014 2013 Ergobaby $ 22,157 $ 18,147 $ 12,616 FOX — 17,292 38,781 Liberty 11,858 (2,717 ) 12,458 Manitoba Harvest (2) (6,150 ) — — ACI 24,144 22,455 22,945 Arnold Magnetics 7,584 7,095 8,914 Clean Earth (3) 11,013 2,737 — Sterno Products (4) 13,200 (1,810 ) — Total 83,806 63,199 95,714 Reconciliation of segment profit to consolidated income (loss) from continuing operations before income taxes: Interest expense, net (25,924 ) (27,060 ) (19,378 ) Other income (expense), net (2,323 ) (593 ) (123 ) Gain on equity method investment 4,533 11,029 — Corporate and other (5) (36,100 ) 228,548 15,430 Total consolidated income (loss) from continuing operations before income taxes $ 23,992 $ 275,123 $ 91,643 (1) Segment profit (loss) represents operating income (loss). (2) Results from the year ended December 31, 2015 include $1.1 million of acquisition related costs in connection with the acquisition of Manitoba Harvest, $0.4 million acquisition related costs in connection with Manitoba Harvest's acquisition of HOCI, $3.1 million of cost of goods sold expense related to the amortization of the step-up in inventory basis resulting from the purchase price allocation of Manitoba Harvest, and $0.5 million in integration service fees paid to CGM. (3) The year ended December 31, 2014 includes $1.9 million of acquisition related costs incurred in connection with the acquisition of Clean Earth, and $0.6 million in integration service fees paid to CGM. The year ended December 31, 2015 includes $1.9 million in integration service fees paid to CGM. (4) The year ended December 31, 2014 includes $2.8 million of acquisition related costs incurred in connection with the acquisition of Sterno, $2.0 million of cost of goods sold expense related to the amortization of the step-up in inventory basis resulting from the purchase price allocation of Sterno, and $0.4 million in integration service fees paid to CGM. The year ended December 31, 2015 includes $1.1 million in integration service fees paid to CGM. (5) Primarily relates to the gain on the deconsolidation of FOX during 2014, the supplemental put reversal as a result of termination of the MSA during 2013, and management fees expensed and payable to CGM. Accounts receivable December 31, 2015 December 31, 2014 Ergobaby $ 8,076 $ 9,671 Liberty 12,941 11,376 Manitoba Harvest 5,512 — ACI 5,946 5,730 Arnold Magnetics 15,083 15,664 Clean Earth 42,291 52,059 Sterno Products 19,508 21,113 Total 109,357 115,613 Reconciliation of segment to consolidated totals: Corporate and other — — Total 109,357 115,613 Allowance for doubtful accounts (3,447 ) (3,756 ) Total consolidated net accounts receivable $ 105,910 $ 111,857 Identifiable Assets Depreciation and Amortization December 31 Year ended December 31, 2015 (1) 2014 (1) 2015 2014 2013 Ergobaby $ 62,436 $ 65,309 $ 3,475 $ 3,832 $ 3,686 FOX — — — 4,785 7,759 Liberty 31,395 34,139 3,518 6,250 6,173 Manitoba Harvest 88,541 — 5,192 — — ACI 17,275 19,334 2,996 4,606 4,930 Arnold Magnetics 72,310 77,610 8,766 8,528 8,135 Clean Earth 185,087 203,939 20,410 6,605 — Sterno Products 121,910 126,301 7,963 4,643 — Total 578,954 526,632 52,320 39,249 30,683 Reconciliation of segment to consolidated total: Corporate and other identifiable assets 318,534 255,538 755 501 253 Assets of discontinued operations 31,595 316,531 — — — Amortization of debt issuance costs and original issue discount — — 2,883 3,125 3,366 Total $ 929,083 $ 1,098,701 $ 55,958 $ 42,875 $ 34,302 (1) Does not include accounts receivable balances per schedule above or goodwill balances. |