Notes to Consolidated Financial Statements

14. SEGMENT AND GEOGRAPHIC INFORMATION

The Company has two business segments. Each segment has separate management teams that report operating results regularly which are reviewed by the chief executive officer of the Company. Certain businesses have been aggregated into the same reportable segment because they have similar products and services, production processes, types of customers and distribution methods and their long-term financial performance is affected by similar ecomonic conditions.

The Company develops, manufactures and sells a wide range of products in two industry segments, Specialty Fastener Products and Aerospace Products. The Company has manufacturing facilities located in the United States, Canada, Germany, the United Kingdom and Brazil. The Specialty Fastener Products Segment produces highly engineered precision metal retaining rings, gear driven band fasteners, circlips, custom cold-formed parts, head light adjusters, rivets and other threaded and non-threaded assembly fasteners primarily for the automotive, heavy truck, industrial, aerospace and consumer/durables markets and accounted for approximately 79% of the Company's consolidated 2001 net sales. Through its Aerospace Products Segment, the Company develops, manufactures, sells and services a complete line of sophisticated lifting and restraining products, principally performance critical helicopter rescue hoist and cargo hook systems, winches and hoists for aircraft and weapons systems and aircraft engine compartment hold open rods, actuators and other motion control devices. This segment accounted for approximately 21% of the Company's consolidated 2001 net sales.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on operating profit of the respective segments. Operating profit is net sales less operating expenses. General corporate expenses, interest and income taxes have not been deducted in determining operating profit. Assets, depreciation and amortization and capital expenditures are those identifiable to a particular segment by their use. Approximately 9%, 8% and 10% of sales from continuing operations in 2001, 2000 and 1999, respectively, were derived from sales to the United States Government and its prime contractors which are attributable primarily to Aerospace Products. No single customer accounted for 10% or more of the Company's net sales in 2001 or 2000.

Long-lived assets, other than goodwill, trademarks, patents and deferred taxes in the U.S. and foreign countries, are as follows (in thousands):

March 31, 2001   March 31, 2000  

United States $  69,586     $  81,649    
Outside the United States 24,766     43,468    

Total $  94,352     $ 125,117    

(In thousands) Fiscal
Year		 Net
Sales		 Operating
Profit(1)
(Loss)		 Capital
Expenditures		 Depreciation/
Amortization
Expense		 Identifiable
Assets

Specialty Fastener 2001 $ 257,589      $(45,444 ) (2) $ 5,373     $ 15,004     $ 298,427    
  Products 2000 238,416      24,615 (3) 9,589     14,310     406,476    
1999 177,837      26,284 13,652     8,812     205,206    

Aerospace
  Products		 2001 70,482      18,211 227     1,156     51,523    
2000 60,836      15,377 435     1,062     49,163    
1999 50,169      12,080 728     991     51,883    

Total segments 2001 328,071      (27,233 ) 5,600     16,160     349,950    
2000 299,252      39,992 10,024     15,372     455,639    
1999 228,006      38,364 14,380     9,803     257,089    

Corporate 2001 -      (22,479 ) 71     3,472     43,299    
2000 -      (9,131 ) 13     2,245     27,116    
1999 -      (13,243 ) (4) 379     999     22,631    

Corporate interest
  and other
  income-net		 2001 -      310 -     -     -    
2000 -      592 -     -     -    
1999 -      6,111 (5) -     -     -    

Interest expense 2001 -      (34,420 ) -     -     -    
2000 -      (19,945 ) -     -     -    
1999 -      (6,938 ) -     -     -    

Consolidated 2001 328,071      (83,822 ) 5,671     19,632     393,249    
2000 299,252      11,508 10,037     17,617     482,755    
1999 228,006      24,294 14,759     10,802     279,720    

 
(1)   Operating profit represents net sales less operating expenses which include all costs and expenses related to the Company's operations in each segment. General corporate expenses and other income earned at the corporate level are included in the corporate section. Interest expense is separately reported. The amount of the "Consolidated" line represents "Income before income taxes."
(2)   Specialty Fastener operating loss for 2001 includes an impairment charge of $67.9 million related to the expected sale of Aerospace Rivet Manufacturers Corp., TCR and the rings businesses.
(3)   Specialty Fastener operating income for 2000 includes charges of $5.5 million relating to the consolidation of two manufacturing facilities in the UK.
(4)   Corporate expense for 1999 includes a $0.9 million pretax charge to the allowance for notes receivable, and a $1.5 million pretax incentive compensation award.
(5)   Corporate interest and other income for 1999 includes a pretax net gain of $5.1 million for settlement of litigation claims against its insurance carriers for environmental matters and a $1.1 million gain on sale of marketable securities.

(In thousands)
Export sales are defined as sales to customers in foreign countries by the Company's U.S. based operations. Export sales amounted to the following:

Location 2001   2000   1999  
Europe $ 23,097   $ 18,144   $ 15,680  
Canada 8,377   10,788   9,170  
Pacific and Far East 5,573   7,083   3,344  
Mexico, Central and
  South America		 3,559   4,348   2,267  
Middle East 287   1,336   415  
Other 304   1,627   275  

Total $ 41,197   $ 43,326   $ 31,151  

Net sales below show the geographic location of customers:

Location 2001   2000   1999  
United States $ 214,259   $ 191,206   $ 137,836  
Germany 38,804   34,957   28,032  
Other non-U.S. 75,008   73,089   62,138  

Total $ 328,071   $ 299,252   $ 228,006  

Results set forth below for international operations represent sales and operating income of domestic and foreign based subsidiaries based on the location the product was shipped from (in thousands):

2001      2000      1999     
Net sales:
  Domestic operations		 $ 228,689 $ 233,038 $ 171,302
  International
    operations(1)		 99,382 66,214 56,704

    Net sales $ 328,071 $ 299,252 $ 228,006

Operating (loss) income:
  Domestic operations		 $ (10,886 )   $  42,711 $  34,621
  International
    operations(1)		 (16,347 )   (2,719 )   3,743   

    Operating (loss)
      income		 (27,233 ) 39,992 38,364
Interest expense (34,420 ) (19,945 ) (6,938 )
Corporate expense and
  other		 (22,169 ) (8,539 ) (7,132 )

(Loss) income before
  taxes		 $ (83,822 ) $  11,508 $  24,294

Identifiable assets:
  Domestic operations		 $ 288,009    $ 358,218 $ 193,690
  International
    operations(1)		 60,635    97,421 63,399
  Corporate 44,605    27,116 22,631

Total assets $ 393,249 ) $ 482,755 $ 279,720


(1)   International operations are primarily located in Germany, the UK, Canada and Brazil.