Segments

12 Months Ended

Dec. 31, 2011

Segments [Abstract]

Segments

NOTE L — Segments

CTS reportable segments are grouped by entities that exhibit similar economic characteristics. The segment’s reporting results are regularly reviewed by CTS’ chief operating decision maker to make decisions about resources to be allocated to these segments and to evaluate the segment’s performance. CTS has two reportable segments: 1) Components and Sensors and 2) Electronics Manufacturing Services (“EMS”).

Components and sensors are products which perform specific electronic functions for a given product family and are intended for use in customer assemblies. Components and sensors consist principally of automotive sensors and actuators used in commercial or consumer vehicles; electronic components used in communications infrastructure and computer markets; terminators, including ClearONE™ terminators, used in computer and other high speed applications, switches, resistor networks and potentiometers used to serve multiple markets; and fabricated piezo-electric materials and substrates used primarily in medical, computer and industrial markets.

EMS includes the higher level assembly of electronic and mechanical components into a finished subassembly or assembly performed under a contract manufacturing agreement with an OEM or other contract manufacturer. Additionally, for some customers, CTS provides full turnkey manufacturing and completion including design, bill-of-material management, logistics, and repair.

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Management evaluates performance based upon segment operating earnings before interest expense, interest income, non-operating income/(expense), and income tax expense.

In the third quarter of 2011, CTS expanded the presentation of segment operating earnings to currently include both segment operating earnings before corporate and shared services charges and segment operating earnings after corporate and shared services charges as shown in the table below. These charges primarily include Company headquarters’ support services such as information technology, accounting, treasury, legal and other support services which are not part of any business segment. Prior to this change, these charges were included within these operating segments. This presentation reflects the current fact that CTS’ chief operating decision-maker excludes these charges from the review of the results of the operating segments for purposes of measuring segment profitability and allocating resources. Results from prior periods here are presented on the same basis.

Summarized financial information concerning CTS’ reportable segments for the years ended December 31, 2011, 2010, and 2009 is shown in the following table:

($ in thousands)	Components and Sensors			EMS			Total
2011
Net sales to external customers	$	279,857			308,649			588,506
Segment operating earnings before corporate and shared services charges	$	36,595		$	13,682		$	50,277
Corporate and shared services charges		(15,239	)		(6,660	)		(21,899	)
Segment operating earnings(1)	$	21,356		$	7,022		$	28,378
Total assets	$	329,624		$	151,191		$	480,815
Depreciation and amortization		12,077			5,471			17,548
Capital expenditures		9,919			5,655			15,574
Capital expenditure to replace property damaged in casualties		—			4,733			4,733
2010
Net sales to external customers	$	282,860			269,781			552,641
Segment operating earnings before corporate and shared services charges	$	48,014			5,929			53,943
Corporate and shared services charges		(16,661	)		(7,742	)		(24,403	)
Segment operating (loss)/earnings	$	31,353			(1,813	)		29,540
Total assets	$	335,719			146,865			482,584
Depreciation and amortization	$	11,633		$	5,932		$	17,565
Capital expenditures	$	11,091		$	2,180		$	13,271
2009
Net sales to external customers	$	213,184			285,798			498,982
Segment operating earnings before corporate and shared services charges	$	24,314			15,319			39,633
Corporate and shared services charges		(14,019	)		(8,047	)		(22,066	)
Segment operating earnings	$	10,295			7,272			17,567
Total assets	$	295,132			112,525			407,657
Depreciation and amortization	$	12,744		$	6,787		$	19,531
Capital expenditures	$	5,081		$	1,456		$	6,537

(1) EMS segment’s operating earnings of $7,022 include $6,067 of insurance recovery for property damage related to the fire at CTS Scotland’s manufacturing facility.

Reconciling information between reportable segments’ operating earnings and CTS’ consolidated earnings before income taxes is shown in the following table:

	Year ended December 31,
($ in thousands)	2011			2010			2009
Total segment operating earnings	$	28,378		$	29,540		$	17,567
Restructuring and restructuring-related charges — Components and Sensors		(2,649	)		(1,010	)		(2,096	)
Restructuring and restructuring-related charges — EMS		(489	)		(687	)		(147	)
Goodwill impairment — Components and Sensors		—			—			(2,373	)
Goodwill impairment — EMS		—			—			(30,780	)
Interest expense		(2,119	)		(1,074	)		(1,878	)
Interest income		1,257			385			156
Other income/(expense)		1,959			872			(863	)
Earnings before income taxes	$	26,337		$	28,026		$	(20,414	)

Financial information relating to CTS’ operations by geographic area was as follows:

	Year ended December 31,
($ in thousands)	2011		2010		2009
Net Sales
United States	$	367,971	$	310,569	$	274,398
Singapore		15,195		19,365		51,863
United Kingdom		43,688		38,707		32,268
China		79,663		86,487		67,994
Canada		34,094		45,097		31,117
Czech Republic		26,014		28,743		28,193
Other non-U.S.		21,881		23,673		13,149
Consolidated net sales	$	588,506	$	552,641	$	498,982

Sales are attributed to countries based upon the origin of the sale.

	Year ended December 31,
($ in thousands)	2011		2010		2009
Long-Lived Assets
United States	$	30,363	$	28,838	$	26,903
China		34,904		34,832		32,441
United Kingdom		7,153		5,028		6,250
Singapore		3,877		3,630		4,523
Canada		605		948		1,914
Taiwan		2,105		2,339		5,588
Thailand		3,625		2,219		3,038
Switzerland		1,721		—		—
Other non-U.S		507		379		463
Consolidated long-lived assets	$	84,860	$	78,213	$	81,120