BUSINESS SEGMENT INFORMATION

3 Months Ended

Mar. 29, 2014

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.  The Company develops, manufactures and markets its products within three distinct business segments: its Photonics Group, its Lasers Group and its Optics Group.

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, a gain on the sale of assets, interest and other expense, net, and income taxes.

(In thousands)	Photonics		Lasers		Optics		Total
Three months ended March 29, 2014:
Sales to external customers	$	59,470	$	46,474	$	40,946	$	146,890
Segment income	$	13,546	$	5,580	$	4,556	$	23,682
Three months ended March 30, 2013:
Sales to external customers	$	58,367	$	38,885	$	35,355	$	132,607
Segment income	$	12,566	$	3,133	$	700	$	16,399

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

	Three Months Ended
	March 29,		March 30,
(In thousands)	2014		2013
Segment income	$	23,682	$	16,399
Unallocated operating expenses	(11,567)		(11,976)
Gain on sale of assets	411		-
Interest and other expense, net	(976)		(2,137)
	$	11,550	$	2,286