| Segment Information |
NOTE 16. SEGMENT INFORMATION
As a result of our August 21, 2017 acquisition of Sierra, we now operate our business structure within two segments which are grouped into what we refer to as the Outdoor Group. These segments are defined based on the internal financial reporting used by management. Certain significant selling and general and administrative expenses are not allocated to the segments. Each segment is described below:
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Black Diamond segment, which includes Black Diamond Equipment and PIEPS, is a global leader in designing, manufacturing, and marketing innovative outdoor engineered equipment and apparel for climbing, mountaineering, backpacking, skiing, and a wide range of other year-round outdoor recreation activities. Black Diamond segment offers a broad range of products including: high performance apparel (such as jackets, shells, pants and bibs); rock-climbing equipment (such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear); technical backpacks and high-end day packs; tents; trekking poles; headlamps and lanterns; and gloves and mittens. It also offers advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes.
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Sierra segment, which includes Sierra, is an American manufacturer of bullets intended for firearms. Sierra segment manufactures a wide range of high performance bullets for both rifles and pistols. These bullets are used for precision target shooting, hunting and military and law enforcement purposes.
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Financial information for our segments is as follows:
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Three Months Ended
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Nine Months Ended
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September 30, 2017
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September 30, 2016
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September 30, 2017
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September 30, 2016
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Sales to external customers:
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Black Diamond
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$
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42,242
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$
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39,441
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$
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114,478
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$
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106,790
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Sierra
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3,532
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-
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3,532
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-
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Sales to external customers
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$
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45,774
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$
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39,441
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$
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118,010
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$
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106,790
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Segment operating income (expense):
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Black Diamond
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$
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2,085
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$
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1,821
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$
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1,098
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$
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(225)
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Sierra
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416
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-
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416
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-
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Segment operating income (expense)
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2,501
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1,821
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1,514
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(225)
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Restructuring charge
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(33)
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(282)
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(116)
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(1,275)
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Transaction costs
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(1,869)
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-
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(1,869)
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(269)
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Corporate and other expenses
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(1,435)
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(546)
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(4,283)
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(2,658)
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Interest expense, net
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(71)
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(719)
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(948)
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(2,142)
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(Loss) income before income tax
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$
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(907)
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$
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274
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$
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(5,702)
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$
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(6,569)
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There were no intercompany sales between the Black Diamond and Sierra segments for the periods presented. Restructuring charges for the periods presented relate to the Black Diamond segment.
On August 21, 2017, the Company purchased Sierra. Total preliminary assets of Sierra as of August 21, 2017 were $80,566. Depreciation and amortization by segment is as follows.
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Three Months Ended
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Nine Months Ended
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September 30, 2017
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September 30, 2016
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September 30, 2017
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September 30, 2016
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Outdoor group depreciation:
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Black Diamond
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$
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569
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$
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529
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$
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1,674
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$
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1,705
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Sierra
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156
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-
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156
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-
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Total outdoor group depreciation
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$
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725
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$
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529
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$
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1,830
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$
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1,705
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Outdoor group amortization:
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Black Diamond
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$
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273
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$
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269
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$
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808
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$
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808
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Sierra
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375
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-
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375
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-
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Total outdoor group amortization
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$
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648
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$
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269
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$
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1,183
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$
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808
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