SEGMENT REPORTING

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

SEGMENT REPORTING

7. SEGMENT REPORTING

Operating segments are defined in accordance with ASC 280-10 as components of an enterprise for which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources and in assessing performance. The measurement basis of segment profit or loss is income (loss) from operations.

Management has identified six operating segments based on the activities of the Company in accordance with the ASC 280-10. These operating segments have been aggregated into two reportable segments, and an Other category. The two reportable segments are Power and Electromechanical and Energy. The Power and Electromechanical segment is focused on the operations of CUI, CUI-Canada and CUI Japan for the sale of internal and external power supplies and related components, industrial controls and test and measurement devices. The Power and Electromechanical segment also includes CUI Properties, LLC that owns the Company's Tualatin, Oregon facility. The Energy segment is focused on the operations of Orbital Gas Systems Ltd. and Orbital Gas Systems, North America, Inc. which includes gas related test and measurement systems, including the GasPT. The Other category represents the remaining activities that are not included as part of the other reportable segments and represents primarily corporate activity.

During the three months ended March 31, 2017, the Company’s total revenues consisted of 77% from the Power and Electromechanical segment and 23% from the Energy segment. During the three months ended March 31, 2016, the Company's total revenues consisted of 63% from the Power and Electromechanical segment and 37% from the Energy segment.

The following information represents segment activity for the three months ended March 31, 2017 and selected balance sheet items as of March 31, 2017:

	Power and
	Electro-
(in thousands)	Mechanical		Energy		Other		Total
Revenues from external customers	$	13,662	$	4,182	$	—	$	17,844
Depreciation and amortization(1)		381		319		—		700
Interest expense		54		—		62		116
Loss from operations		(534)		(2,264)		(1,212)		(4,010)
Segment assets		49,414		29,180		309		78,903
Other intangible assets, net		9,082		6,785		—		15,867
Goodwill		13,089		7,128		—		20,217
Expenditures for long-lived assets (2)		204		65		—		269

⁽¹⁾ For the Power and Electromechanical segment, depreciation and amortization include $148 thousand which were included in cost of revenues in the Condensed Consolidated Statements of Operations.

⁽²⁾ Includes purchases of property, plant and equipment and the investment in other intangible assets.

The following information represents segment activity for the three months ended March 31, 2016 and selected balance sheet items as of March 31, 2016:

	Power and Electro -
(in thousands)	Mechanical		Energy		Other		Total
Revenues from external customers	$	13,052	$	7,609	$	—	$	20,661
Depreciation and amortization (1)		335		371		1		707
Interest expense		55		2		66		123
Loss from operations		(337)		(95)		(1,892)		(2,324)
Segment assets		49,810		37,075		475		87,360
Other intangibles assets, net		9,521		8,620		1		18,142
Goodwill		13,089		8,202		—		21,291
Expenditures for long-lived assets (2)		274		110		—		384

⁽¹⁾ For the Power and Electromechanical segment, depreciation and amortization totals for the three months ended March 31, 2016, include $99 thousand, which were classified as cost of revenues in the Condensed Consolidated Statements of Operations.

⁽²⁾ Includes purchases of property plant and equipment and the investment in other intangible assets.

The following represents revenue by country:

(in thousands)	For the Three Months Ended March 31,
	2017					2016
	Amount		%			Amount		%
USA	$	10,113		57	%	$	10,568		51	%
United Kingdom		3,083		17	%		4,605		22	%
All Others		4,648		26	%		5,488		27	%
Total	$	17,844		100	%	$	20,661		100	%