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SEGMENT INFORMATION
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Mar. 31, 2014
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| SEGMENT INFORMATION | 11. SEGMENT INFORMATION
ASC Topic “Segment Reporting” requires disclosure of operating segments, which as defined, are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.
The Company operates in one segment for the manufacture and marketing of motion control products for original equipment manufacturers and end user applications. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision maker has been identified as the Chief Executive Officer and President, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing and distribution processes. Since the Company operates in one segment, all financial information required by “Segment Reporting” can be found in the accompanying condensed consolidated financial statements and within this note.
The Company’s wholly owned foreign subsidiaries, located in The Netherlands, Sweden, Canada, Asia, Portugal and Mexico are included in the accompanying condensed consolidated financial statements.
Financial information related to the foreign subsidiaries is summarized below (in thousands):
Sales to customers outside of the United States by all subsidiaries were $21,891 and $12,305 during the quarters ended March 31, 2014 and 2013, respectively.
During the three months ended March 31, 2014, three customers accounted for 33% of total revenues and 43% of trade receivables. During the three months ended March 31, 2013, no single customer accounted for more than 10% of total revenues or trade receivables. |
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