|
7. Segment Information
The Company operates in three geographic segments: North America, Europe, and China. Each of these segments is managed separately and has separate financial results that are reviewed by the Company’s chief operating decision-maker. All intercompany sales transactions have been eliminated. Sales by region are based upon location of the entity recording the sale. The accounting policies for each segment are the same as those described in the summary of significant accounting policies.
The following is a summary of the Company’s significant accounts and balances by segment, reconciled to the consolidated totals:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
October 2,
2011 |
|
October 3,
2010 |
|
October 2,
2011 |
|
October 3,
2010 |
|
|
|
|
(in millions) |
|
|
Net Sales |
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
205.6 |
|
$ |
191.8 |
|
$ |
619.7 |
|
$ |
596.6 |
|
|
Europe |
|
159.3 |
|
117.8 |
|
441.1 |
|
346.4 |
|
|
China |
|
5.9 |
|
5.0 |
|
15.6 |
|
14.9 |
|
|
Consolidated net sales |
|
$ |
370.8 |
|
$ |
314.6 |
|
$ |
1,076.4 |
|
$ |
957.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
31.4 |
|
$ |
25.6 |
|
$ |
84.4 |
|
$ |
82.2 |
|
|
Europe |
|
14.6 |
|
15.0 |
|
31.2 |
|
37.2 |
|
|
China |
|
1.0 |
|
(0.9 |
) |
2.7 |
|
(1.2 |
) |
|
Subtotal reportable segments |
|
47.0 |
|
39.7 |
|
118.3 |
|
118.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate (*) |
|
(5.8 |
) |
(8.2 |
) |
(27.6 |
) |
(27.4 |
) |
|
Consolidated operating income |
|
41.2 |
|
31.5 |
|
90.7 |
|
90.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
0.2 |
|
0.2 |
|
0.7 |
|
0.7 |
|
|
Interest expense |
|
(6.5 |
) |
(6.1 |
) |
(19.1 |
) |
(16.7 |
) |
|
Other |
|
0.3 |
|
0.5 |
|
(0.4 |
) |
1.3 |
|
|
Income from continuing operations before income taxes |
|
$ |
35.2 |
|
$ |
26.1 |
|
$ |
71.9 |
|
$ |
76.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures |
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
2.0 |
|
$ |
2.4 |
|
$ |
7.3 |
|
$ |
7.7 |
|
|
Europe |
|
2.3 |
|
3.9 |
|
8.6 |
|
10.3 |
|
|
China |
|
0.1 |
|
0.1 |
|
0.5 |
|
0.4 |
|
|
Consolidated capital expenditures |
|
$ |
4.4 |
|
$ |
6.4 |
|
$ |
16.4 |
|
$ |
18.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and Amortization |
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
4.7 |
|
$ |
4.4 |
|
$ |
14.3 |
|
$ |
13.2 |
|
|
Europe |
|
7.5 |
|
5.6 |
|
22.3 |
|
18.3 |
|
|
China |
|
0.5 |
|
0.5 |
|
1.5 |
|
1.5 |
|
|
Consolidated depreciation and amortization |
|
$ |
12.7 |
|
$ |
10.5 |
|
$ |
38.1 |
|
$ |
33.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Identifiable Assets (at end of period) |
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
$ |
822.5 |
|
$ |
868.8 |
|
|
Europe |
|
|
|
|
|
876.5 |
|
707.4 |
|
|
China |
|
|
|
|
|
92.4 |
|
84.1 |
|
|
Discontinued operations |
|
|
|
|
|
1.4 |
|
10.4 |
|
|
Consolidated identifiable assets |
|
|
|
|
|
$ |
1,792.8 |
|
$ |
1,670.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment (at end of period) |
|
|
|
|
|
|
|
|
|
|
North America |
|
|
|
|
|
$ |
80.9 |
|
$ |
79.4 |
|
|
Europe |
|
|
|
|
|
140.9 |
|
106.3 |
|
|
China |
|
|
|
|
|
15.2 |
|
15.6 |
|
|
Consolidated long-lived assets |
|
|
|
|
|
$ |
237.0 |
|
$ |
201.3 |
|
* Corporate expenses are primarily for administrative compensation expense, internal controls costs, professional fees, including legal and audit expenses, shareholder services and benefit administration costs. These costs are not allocated to the geographic segments as they are viewed as corporate functions that support all activities.
The above operating segments are presented on a basis consistent with the presentation included in the Company’s December 31, 2010 consolidated financial statements included in its Annual Report on Form 10-K.
The following includes U.S. net sales and U.S. property, plant and equipment of the Company’s North American segment:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
October 2,
2011 |
|
October 3,
2010 |
|
October 2,
2011 |
|
October 3,
2010 |
|
|
|
|
(in millions) |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. net sales |
|
$ |
185.1 |
|
$ |
172.7 |
|
$ |
560.6 |
|
$ |
541.3 |
|
|
U.S. property, plant and equipment (at end of period) |
|
$ |
76.0 |
|
$ |
74.4 |
|
$ |
76.0 |
|
$ |
74.4 |
|
The following includes intersegment sales for North America, Europe and China:
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
October 2,
2011 |
|
October 3,
2010 |
|
October 2,
2011 |
|
October 3,
2010 |
|
|
|
|
(in millions) |
|
|
Intersegment Sales |
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
0.9 |
|
$ |
1.0 |
|
$ |
2.6 |
|
$ |
2.9 |
|
|
Europe |
|
2.2 |
|
2.3 |
|
6.4 |
|
6.2 |
|
|
China |
|
29.1 |
|
25.8 |
|
97.0 |
|
85.5 |
|
|
Intersegment sales |
|
$ |
32.2 |
|
$ |
29.1 |
|
$ |
106.0 |
|
$ |
94.6 |
|
The North American segment and the China segment include $4.6 million and $6.4 million, respectively, in assets held for sale at October 2, 2011. The North American segment and the China segment includes $4.8 million and $6.1 million, respectively, in assets held for sale at October 3, 2010. |