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Segment Information
12 Months Ended
Dec. 30, 2013
Segment Information
(20) Segment Information

The operating segments reported below are the Company’s segments for which separate financial information is available and upon which operating results are evaluated by the chief operating decision maker to assess performance and to allocate resources. The Company manages its worldwide operations based on two geographic operating segments: 1) Asia Pacific, which consists of five PCB fabrication plants and one drilling facility, and 2) North America, which consists of seven domestic PCB fabrication plants, including a facility that provides follow-on value-added services primarily for one of the PCB fabrication plants, and one backplane assembly plant in Shanghai, China, which is managed in conjunction with the Company’s U.S. operations. Each segment operates predominantly in the same industry with production facilities that produce similar customized products for its customers and use similar means of product distribution.

 

The Company evaluates segment performance based on operating segment income, which is operating income before amortization of intangibles. Interest expense and interest income are not presented by segment since they are not included in the measure of segment profitability reviewed by the chief operating decision maker. All inter-segment transactions have been eliminated. Reportable segment assets exclude short-term investments, which are managed centrally.

 

     For the Year Ended  
     December 30,
2013
    December 31,
2012
    December 31,
2011
 
     (In thousands)  

Net Sales:

      

Asia Pacific

   $ 850,322      $ 842,443      $ 869,400   

North America

     520,802        509,426        565,929   
  

 

 

   

 

 

   

 

 

 

Total sales

     1,371,124        1,351,869        1,435,329   

Inter-segment sales

     (2,909     (3,201     (6,690
  

 

 

   

 

 

   

 

 

 

Total net sales

   $ 1,368,215      $ 1,348,668      $ 1,428,639   
  

 

 

   

 

 

   

 

 

 

Operating Segment Income (Loss):

      

Asia Pacific

   $ 53,317      $ (165,183   $ 63,010   

North America

     25,143        37,803        45,421   
  

 

 

   

 

 

   

 

 

 

Total operating segment income (loss)

     78,460        (127,380     108,431   

Amortization of definite-lived intangibles

     (9,332     (14,637     (17,311
  

 

 

   

 

 

   

 

 

 

Total operating income (loss)

     69,128        (142,017     91,120   

Total other expense, net

     (29,356     (26,355     (17,888
  

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

   $ 39,772      $ (168,372   $ 73,232   
  

 

 

   

 

 

   

 

 

 

Depreciation Expense:

      

Asia Pacific

   $ 75,374      $ 67,790      $ 54,324   

North America

     16,746        16,496        15,374   
  

 

 

   

 

 

   

 

 

 

Total depreciation expense

   $ 92,120      $ 84,286      $ 69,698   
  

 

 

   

 

 

   

 

 

 

Capital Expenditures:

      

Asia Pacific

   $ 106,300      $ 142,424      $ 104,544   

North America

     21,971        18,130        16,546   
  

 

 

   

 

 

   

 

 

 

Total capital expenditures

   $ 128,271      $ 160,554      $ 121,090   
  

 

 

   

 

 

   

 

 

 

 

     As of  
     December 30,
2013
     December 31,
2012
     December 31,
2011
 
     (In thousands)  

Segment Assets:

        

Asia Pacific

   $ 1,134,325       $ 1,207,206       $ 1,323,932   

North America

     539,102         469,366         421,571   

Unallocated corporate assets

     148         390         3,566   
  

 

 

    

 

 

    

 

 

 

Total assets

   $ 1,673,575       $ 1,676,962       $ 1,749,069   
  

 

 

    

 

 

    

 

 

 

 

The Company accounts for inter-segment sales and transfers as if the sale or transfer were to third parties: at arms length and consistent with the Company’s revenue recognition policy. The inter-segment sales are sales from the Asia Pacific operating segment to the North America operating segment.

During the years ended 2013, 2012 and 2011, the Company recorded impairment charges of $10,782, $18,082 and $48,125, respectively, for the impairment of long-lived assets related to its Asia Pacific operating segment. During the year ended December 31, 2012, the Company recorded an impairment charge for goodwill and definite-lived intangibles of $200,335 related to its Asia Pacific operating segment. During the year ended December 31, 2011, the Company recorded a charge for goodwill of $15,184 related to its North America operating segment.

See Note 6 for additional information regarding the impairment of goodwill and definite-lived intangibles and Note 7 for additional information regarding the impairment of long-lived assets.

The Company markets and sells its products in approximately 41 countries. Other than in the United States and China, the Company does not conduct business in any country in which its net sales in that country exceed 10% of net sales. Net sales and long-lived assets are as follows:

 

     2013      2012      2011  
     Net Sales      Long-Lived
Assets
     Net Sales      Long-Lived
Assets
     Net Sales      Long-Lived
Assets
 
     (In thousands)  

United States

   $ 571,046       $ 95,672       $ 489,566       $ 93,080       $ 529,142       $ 94,213   

China

     391,905         754,781         431,157         789,702         554,747         936,415   

Other

     405,264                 427,945                 344,750           
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 1,368,215       $ 850,453       $ 1,348,668       $ 882,782       $ 1,428,639       $ 1,030,628