12. SEGMENTS

The Company operates in one industry with three reportable operating segments, which are geographic in nature. The segments consist of North America, Asia and Europe. The primary criteria by which financial performance is evaluated and resources are allocated are net sales and income from operations. The following is a summary of key financial data:

	2017			2016			2015
Net Sales to External Customers:							(Revised)
North America	$	245,834		$	256,760		$	304,328
Asia		167,680			168,458			188,146
Europe		78,097			74,935			74,606
	$	491,611		$	500,153		$	567,080

Net Sales:
North America	$	257,541		$	268,935		$	329,304
Asia		249,506			256,202			295,751
Europe		89,765			86,750			148,735
Less intercompany
net sales		(105,201	)		(111,734	)		(206,710	)
	$	491,611		$	500,153		$	567,080

Income (Loss) from Operations:
North America	$	5,147		$	(35,722	)	$	11,012
Asia		8,964			(24,360	)		8,175
Europe		2,227			(16,430	)		9,413
	$	16,338		$	(76,512	)	$	28,600

Total Assets:
North America	$	172,674		$	168,061		$	238,930
Asia		152,447			166,028			231,063
Europe		106,144			92,651			108,512
	$	431,265		$	426,740		$	578,505

Capital Expenditures:
North America	$	1,734		$	2,641		$	2,425
Asia		2,617			4,329			4,888
Europe		2,074			1,253			2,578
	$	6,425		$	8,223		$	9,891

Depreciation and Amortization Expense:
North America	$	10,641		$	10,522		$	10,841
Asia		6,728			7,976			8,706
Europe		3,349			3,280			3,462
	$	20,718		$	21,778		$	23,009

Net Sales – Segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales. Intercompany sales include finished products manufactured in foreign countries which are then transferred to the United States and Europe for sale; finished goods manufactured in the United States which are transferred to Europe and Asia for sale; and semi-finished components manufactured in the United States which are sold to Asia for further processing. Income from operations represents net sales less operating costs and expenses and does not include any amounts related to intercompany transactions.

The following items are included in the segment data presented above:

Restructuring Charges – The following restructuring charges are included in income (loss) from operations by segment. See Note 3, "Restructuring Activities," for further information on the Company's restructuring efforts.

	2017		2016		2015
North America	$	4	$	692	$	1,452
Asia		167		1,305		352
Europe		137		90		310
	$	308	$	2,087	$	2,114

Impairment Charges – As discussed in Note 4, Goodwill and Other Intangible Assets, the Company recorded a $106.0 million non-cash impairment charge related to its goodwill and trademarks in 2016. Of this charge, $44.0 million was recorded in the Company's North America segment, $41.7 million was recorded in its Asia segment and $20.3 million was recorded in its Europe segment. These charges impacted the Company's income from operations for 2016 and the reduction in goodwill accounted for the majority of the decline in total assets from December 31, 2015 noted above.

Entity-Wide Information

The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line.

	2017		2016		2015
Net Sales by Geographic Location:

United States	$	245,834	$	256,760	$	304,328
Macao		167,681		163,971		182,248
United Kingdom		24,110		21,953		27,552
Switzerland		15,366		14,048		18,050
Slovakia		14,194		17,622		2,807
Germany		13,857		14,104		16,314
All other foreign countries		10,569		11,695		15,781
Consolidated net sales	$	491,611	$	500,153	$	567,080

Net Sales by Major Product Line:

Connectivity solutions	$	170,337	$	168,845	$	181,697
Magnetic solutions		161,011		155,232		166,182
Power solutions and protection		160,263		176,076		219,201
Consolidated net sales	$	491,611	$	500,153	$	567,080

The following is a summary of long-lived assets by geographic area as of December 31, 2017 and 2016:

	2017		2016
Long-lived Assets by Geographic Location:

United States	$	27,594	$	29,740
People's Republic of China (PRC)		30,151		32,666
Slovakia		7,625		6,574
Switzerland		3,632		3,593
United Kingdom		1,345		1,419
All other foreign countries		1,121		1,117
Consolidated long-lived assets	$	71,468	$	75,109

Long-lived assets consist of property, plant and equipment, net and other assets of the Company that are identified with the operations of each geographic area.

The territory of Hong Kong became a Special Administrative Region ("SAR") of the PRC in the middle of 1997. The territory of Macao became a SAR of the PRC at the end of 1999. Management cannot presently predict what future impact this will have on the Company, if any, or how the political climate in the PRC will affect the Company's contractual arrangements in the PRC. A significant portion of the Company's manufacturing operations and approximately 36.9% of its identifiable assets are located in Asia.

Net Sales to Major Customers

The Company had net sales to one customer in excess of ten percent of consolidated net sales in each of 2017, 2016 and 2015. The net sales associated with this customer was $57.7 million in 2017 (11.7% of sales), $59.8 million in 2016 (12.0% of sales) and $74.8 million in 2015 (13.2% of sales). Net sales related to this significant customer were primarily reflected in the Asia operating segment during each of the three years discussed.