| Segment Information |
NOTE 15. SEGMENT INFORMATION
We operate our business structure within two segments. 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 including non-cash stock compensation expense. Each segment is described below:
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Our Black Diamond segment, which includes Black Diamond Equipment, PIEPS, and SKINourishment, is a global leader in designing, manufacturing, and marketing innovative outdoor engineered equipment and apparel for climbing, mountaineering, trail running, backpacking, skiing, and a wide range of other year-round outdoor recreation activities. Our Black Diamond segment offers a broad range of products including: high-performance, activity-based apparel (such as shells, insulation, midlayers, pants and logowear); rock-climbing footwear and equipment (such as carabiners, protection devices, harnesses, belay devices, helmets, and ice-climbing gear); technical backpacks and high-end day packs; trekking poles; headlamps and lanterns; gloves and mittens; and skincare and other sport-enhancing products. We also offer advanced skis, ski poles, ski skins, and snow safety products, including avalanche airbag systems, avalanche transceivers, shovels, and probes.
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Our Sierra segment, which includes Sierra, is an iconic American manufacturer of a wide range of high-performance bullets and ammunition for both rifles and pistols. These bullets are used for precision target shooting, hunting and military and law enforcement purposes.
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As noted above, the Company has a wide variety of technical outdoor equipment and lifestyle products focused on the climb, ski, mountain and sport product categories that are sold to a variety of customers in multiple end markets. While there are multiple products sold, the terms and nature of revenue recognition policy is similar for all segments. The sport product category represents the Sierra segment revenue.
We divide our product offerings into four primary categories of climb, mountain, ski and sport. During the year ended December 31, 2019, revenue for the categories of climb, mountain, ski and sport was 31%, 34%, 22% and 13%, respectively. During the year ended December 31, 2018, revenue for the categories of climb, mountain, ski and sport was 30%, 34%, 19% and 17%, respectively.
Financial information for our segments is as follows:
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Year Ended December 31,
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2019
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2018
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2017
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Sales to external customers:
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Black Diamond
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Domestic sales
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$
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100,294
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$
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86,432
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$
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81,166
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International sales
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99,652
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90,314
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79,165
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Total Black Diamond
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199,946
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176,746
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160,331
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Sierra
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Domestic sales
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21,457
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26,105
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7,437
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International sales
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8,034
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9,290
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2,919
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Total Sierra
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29,491
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35,395
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10,356
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Total sales to external customers
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229,437
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212,141
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170,687
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Segment operating income:
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Black Diamond
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15,553
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11,102
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4,215
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Sierra
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4,008
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5,808
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(344)
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Total segment operating income
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19,561
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16,910
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3,871
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Restructuring charge
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(13)
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(137)
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(160)
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Merger and integration
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-
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-
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(82)
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Transaction costs
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(166)
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(503)
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(2,088)
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Corporate and other expenses
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(8,043)
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(8,458)
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(6,013)
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Interest expense, net
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(1,358)
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(1,339)
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(1,288)
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Income (loss) before income tax
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$
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9,981
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$
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6,473
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$
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(5,760)
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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.
Total assets by segment, as of December 31, 2019 and 2018, were as follows:
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December 31,
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2019
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2018
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Black Diamond
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$
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147,261
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$
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138,029
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Sierra
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72,104
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72,796
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Corporate
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10,900
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2,303
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$
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230,265
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$
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213,128
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Capital expenditures, depreciation and amortization by segment is as follows.
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Year Ended December 31,
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2019
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2018
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2017
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Capital expenditures:
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Black Diamond
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$
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2,636
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$
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2,560
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$
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2,699
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Sierra
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1,480
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805
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148
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Total capital expenditures
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$
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4,116
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$
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3,365
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$
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2,847
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Depreciation:
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Black Diamond
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$
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2,645
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$
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2,469
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$
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2,254
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Sierra
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1,905
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1,954
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629
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Total depreciation
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$
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4,550
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$
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4,423
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$
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2,883
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Amortization:
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Black Diamond
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$
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1,111
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$
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1,099
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$
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1,081
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Sierra
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2,441
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2,774
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1,295
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Total amortization
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$
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3,552
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$
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3,873
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$
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2,376
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