Annual report pursuant to Section 13 and 15(d)

Business Segments and Customer Information

v2.4.0.8
Business Segments and Customer Information
 12 Months Ended
Dec. 31, 2013
Business Segments and Customer Information [Abstract]  
Business Segments and Customer Information
(12)  Business Segments and Customer Information

Segment Information

Management of our business operations is conducted under four reportable operating segments:

Supply Chain Management Group – Our Supply Chain Management Group supplies vehicle parts primarily through a Managed Inventory Program ("MIP") to USPS and direct sales to other clients.

Federal Group - Our Federal Group provides legacy equipment sustainment, engineering, technical, management, integrated logistics support and information technology services to DoD and other government agencies.

International Group - Our International Group provides engineering, industrial, logistics and foreign military sales services to the U.S. military and other government agencies.

IT, Energy and Management Consulting Group – Our IT, Energy and Management Consulting Group provides technical and consulting services primarily to various civilian government agencies.

These segments operate under separate management teams and financial information is produced for each segment.  The entities within each of the Federal Group, International Group, and IT, Energy and Management Consulting Group reportable segments meet the aggregation of operating segments criteria as defined by the accounting standard for segment reporting.  We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation.  Beginning with the second quarter of 2013, we no longer allocate interest to our reportable segments.


 
Our segment information is as follows (in thousands):

For the years ended December 31,
 
 
 
 
 
 
 
 
2013
 
 
2012
 
 
2011
 
Revenues:
 
 
 
 
 
 
  Supply Chain Management Group
 
$
154,702
 
 
$
143,014
 
 
$
83,052
 
  International Group
 
 
146,908
 
 
 
167,193
 
 
 
206,746
 
  Federal Group
 
 
95,435
 
 
 
142,323
 
 
 
184,147
 
  IT, Energy and Management Consulting Group
 
 
74,593
 
 
 
94,225
 
 
 
106,817
 
    Total revenues
 
$
471,638
 
 
$
546,755
 
 
$
580,762
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
 
 
 
 
 
  Supply Chain Management Group
 
$
27,299
 
 
$
24,014
 
 
$
16,315
 
  International Group
 
 
7,069
 
 
 
6,052
 
 
 
5,321
 
  Federal Group
 
 
2,400
 
 
 
10,418
 
 
 
6,024
 
  IT, Energy and Management Consulting Group
 
 
9,061
 
 
 
11,816
 
 
 
12,367
 
  Corporate
 
 
(1,726
)
 
 
(1,224
)
 
 
(3,950
)
    Operating income
 
$
44,103
 
 
$
51,076
 
 
$
36,077
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization expense:
 
 
 
 
 
 
 
 
 
 
 
 
  Supply Chain Management Group
 
$
4,265
 
 
$
9,891
 
 
$
5,402
 
  International Group
 
 
7,323
 
 
 
3,035
 
 
 
1,903
 
  Federal Group
 
 
6,033
 
 
 
3,116
 
 
 
2,906
 
  IT, Energy and Management Consulting Group
 
 
2,387
 
 
 
3,753
 
 
 
3,256
 
    Total depreciation and amortization
 
$
20,008
 
 
$
19,795
 
 
$
13,467
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
 
 
 
 
 
 
 
  Supply Chain Management Group
 
$
895
 
 
$
341
 
 
$
113
 
  International Group
 
 
236
 
 
 
83
 
 
 
573
 
  Federal Group
 
 
1,211
 
 
 
763
 
 
 
547
 
  IT, Energy and Management Consulting Group
 
 
71
 
 
 
53
 
 
 
236
 
  Corporate
 
 
2,003
 
 
 
19,623
 
 
 
5,166
 
    Total capital expenditures
 
$
4,416
 
 
$
20,863
 
 
$
6,635
 


 
 
December 31,
 
 
 
2013
 
 
2012
 
Total assets:
 
 
 
 
  Supply Chain Management Group
 
$
185,976
 
 
$
192,892
 
  International Group
 
 
33,355
 
 
 
31,485
 
  Federal Group
 
 
20,846
 
 
 
30,452
 
  IT, Energy and Management Consulting Group
 
 
57,610
 
 
 
64,502
 
  Corporate
 
 
82,742
 
 
 
90,880
 
    Total assets
 
$
380,529
 
 
$
410,211
 

Revenues are net of inter-segment eliminations.  Corporate/unallocated expenses are primarily selling, general and administrative expenses not allocated to segments.  Corporate assets are primarily cash and property and equipment. Vehicle parts and equipment sold by WBI to DoD clients, which were included in our Federal Group results in our quarterly reports for 2013, are now included in our Supply Chain Management Group results above for all years. Also, certain warehousing operations included in our Federal Group operating results for 2013 were previously included in our Supply Chain Management Group in 2012 and have been reclassified to the Federal Group for comparative purposes.

Customer Information

The majority of our revenues are derived from contract services performed for DoD agencies or federal civilian agencies.  The USPS, U.S. Navy, U.S. Army and U.S. Army Reserve are our largest customers. Other significant customers include the Department of Treasury, the Department of Energy and the Department of Interior. Our customers also include various other government agencies and commercial entities. Our revenue by customer is as follows for the years ended December 31, (in thousands):

Revenues by Customer
 
(dollars in thousands)
 
Years ended December 31,
 
Customer
 
2013
 
 
%
 
 
2012
 
 
%
 
 
2011
 
 
%
 
U.S. Navy
 
$
123,307
 
 
 
26.1
 
 
$
120,867
 
 
 
22.1
 
 
$
140,551
 
 
 
24.2
 
U.S. Army/Army Reserve
 
 
101,736
 
 
 
21.6
 
 
 
182,412
 
 
 
33.4
 
 
 
231,615
 
 
 
39.9
 
U.S. Air Force
 
 
3,625
 
 
 
0.8
 
 
 
6,963
 
 
 
1.3
 
 
 
11,971
 
 
 
2.0
 
Total - DoD
 
 
228,668
 
 
 
48.5
 
 
 
310,242
 
 
 
56.8
 
 
 
384,137
 
 
 
66.1
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Postal Service
 
 
142,203
 
 
 
30.1
 
 
 
130,866
 
 
 
23.9
 
 
 
75,964
 
 
 
13.1
 
Department of Treasury
 
 
35,929
 
 
 
7.6
 
 
 
33,369
 
 
 
6.1
 
 
 
41,434
 
 
 
7.1
 
Department of Energy
 
 
20,124
 
 
 
4.3
 
 
 
20,898
 
 
 
3.8
 
 
 
23,010
 
 
 
4.0
 
Department of Interior
 
 
1,545
 
 
 
0.3
 
 
 
16,884
 
 
 
3.1
 
 
 
24,254
 
 
 
4.2
 
Other government
 
 
40,919
 
 
 
8.7
 
 
 
32,231
 
 
 
5.9
 
 
 
28,160
 
 
 
4.8
 
Total – Federal civilian agencies
 
 
240,720
 
 
 
51.0
 
 
 
234,248
 
 
 
42.8
 
 
 
192,822
 
 
 
33.2
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
2,250
 
 
 
0.5
 
 
 
2,265
 
 
 
0.4
 
 
 
3,803
 
 
 
0.7
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
$
471,638
 
 
 
100.0
 
 
$
546,755
 
 
 
100.0
 
 
$
580,762
 
 
 
100.0
 

We do not measure revenue or profit by product or service lines, either for internal management or external financial reporting purposes, because it would be impractical to do so. Products offered and services performed are determined by contract requirements and the types of products and services provided for one contract bear no relation to similar products and services provided on another contract. Products and services provided vary when new contracts begin or current contracts expire. In many cases, more than one product or service is provided under a contract or contract task order. Accordingly, cost and revenue tracking is designed to best serve contract requirements and segregating costs and revenues by product or service lines in situations for which it is not required would be difficult and costly to both us and our customers.