13. 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:

	Three Months Ended
	March 31,
	2018			2017
Net Sales to External Customers:
North America	$	59,457		$	60,430
Asia		38,620			35,812
Europe		20,174			17,426
	$	118,251		$	113,668

Net Sales:
North America	$	62,570		$	63,155
Asia		56,139			56,411
Europe		24,312			20,385
Less intercompany net sales		(24,770	)		(26,283	)
	$	118,251		$	113,668

Income from Operations:
North America	$	(302	)	$	992
Asia		(85	)		1,036
Europe		824			327
	$	437		$	2,355

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.