BUSINESS SEGMENT INFORMATION

9 Months Ended

Sep. 28, 2013

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

NOTE 15      BUSINESS SEGMENT INFORMATION

The operating segments reported below are the segments of the Company for which separate financial information is available and for which operating results are evaluated regularly by the Chief Executive Officer, who is the chief operating decision maker, in deciding how to allocate resources and in assessing performance.  Prior to 2013, the Company developed, manufactured and marketed its products within three distinct business segments: its Lasers Division, its Photonics and Precision Technologies Division and its Ophir Division.  In January 2013, the Company reorganized its operations to create three new operating segments: its Photonics Group, its Lasers Group and its Optics Group.  As a result, the Company has revised its reportable segments to correspond with its new operating segments, reflecting the manner in which it now assesses performance and allocates resources.  The results of operations of the Company’s reportable segments for the three and nine months ended September 29, 2012 reported below have been restated to conform to the new reportable segments.

The Company measured income reported for each operating segment, which included only those costs that were directly attributable to the operations of that segment, and excluded unallocated operating expenses, such as corporate overhead and intangible asset amortization, certain gains and losses, interest and other expense, net, and income taxes.

(In thousands)	Photonics		Lasers		Optics		Total
Three months ended September 28, 2013:
Sales to external customers	$	57,508	$	38,923	$	42,606	$	139,037
Segment income	$	13,213	$	3,432	$	4,421	$	21,066
Three months ended September 29, 2012:
Sales to external customers	$	59,039	$	42,545	$	41,297	$	142,881
Segment income	$	13,333	$	3,971	$	6,021	$	23,325
Nine months ended September 28, 2013:
Sales to external customers	$	171,324	$	117,231	$	117,323	$	405,878
Segment income	$	36,546	$	10,790	$	6,996	$	54,332
Nine months ended September 29, 2012:
Sales to external customers	$	179,668	$	136,506	$	137,529	$	453,703
Segment income	$	39,101	$	13,559	$	19,659	$	72,319

The following table reconciles segment income to consolidated income before income taxes:

	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
(In thousands)	2013		2012		2013		2012
Segment income	$	21,066	$	23,325	$	54,332	$	72,319
Unallocated operating expenses	(10,113)		(10,706)		(33,363)		(38,145		)
Gain (loss) on sale of assets	(4,517)		950		(4,517)		6,248
Loss on extinguishment of debt	(3,355)		-		(3,355)		-
Interest and other expense, net	(1,293)		(2,082)		(5,472)		(7,097		)
	$	1,788	$	11,487	$	7,625	$	33,325