Segments

12 Months Ended

Dec. 31, 2012

Segments [Abstract]

Segments

NOTE L — Segments

CTS reportable segments are grouped by entities that exhibit similar economic characteristics and 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 that 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 Original Equipment Manufacturer (“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, other non-operating income/(expense), and income tax expense.

Summarized financial information concerning CTS’ reportable segments for the years ended December 31, 2012, 2011, and 2010 is shown in the following table:

($ in thousands)	Components and Sensors			EMS			Total
2012
Net sales to external customers	$	304,481		$	272,437		$	576,918
Segment operating earnings before corporate and shared services charges	$	42,611		$	16,342		$	58,953
Corporate and shared services charges		(16,483	)		(7,246	)		(23,729	)
Segment operating earnings(1)	$	26,128		$	9,096		$	35,224
Total assets	$	443,271		$	117,905		$	561,176
Depreciation and amortization		13,542			6,073			19,615
Capital expenditures		10,884			2,580			13,464
Capital expenditure to replace property damaged in casualties		—			2,859			2,859
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(2)	$	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 earnings/(loss)/	$	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

(1) Components and Sensors segment’s operating earnings of $26,128 includes $10,334 of gain on sale-leaseback recorded at a foreign location. EMS segment’s operating earnings of $9,096 includes $1,769 of insurance recovery for property damage related to the flood at CTS Thailand’s manufacturing facility.

(2) 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)	2012			2011			2010
Total segment operating earnings	$	35,224		$	28,378		$	29,540
Restructuring and restructuring-related charges — Components and Sensors		(4,501	)		(2,649	)		(1,010	)
Restructuring and restructuring-related charges — EMS		(4,035	)		(489	)		(687	)
Interest expense		(2,564	)		(2,119	)		(1,074	)
Interest income		1,725			1,257			385
Other income		1,093			1,959			872
Earnings before income taxes	$	26,942		$	26,337		$	28,026

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

	Year ended December 31,
($ in thousands)	2012		2011		2010
Net Sales
United States	$	361,307	$	367,971	$	310,569
Singapore		14,458		15,195		19,365
United Kingdom		43,268		43,688		38,707
China		74,148		79,663		86,487
Canada		39,186		34,094		45,097
Czech Republic		20,213		26,014		28,743
Other non-U.S.		24,338		21,881		23,673
Consolidated net sales	$	576,918	$	588,506	$	552,641

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

	Year ended December 31,
($ in thousands)	2012		2011		2010
Long-Lived Assets
United States	$	45,957	$	30,363	$	28,838
China		34,615		34,904		34,832
United Kingdom		2,669		7,153		5,028
Singapore		1,111		3,877		3,630
Canada		563		605		948
Taiwan		1,764		2,105		2,339
Thailand		5,839		3,625		2,219
Switzerland		714		1,721		—
Other non-U.S		493		507		379
Consolidated long-lived assets	$	93,725	$	84,860	$	78,213