Note 13 - Business Unit Segment Information

3 Months Ended

Mar. 30, 2013

Segment Reporting Disclosure [Text Block]

13. Business Unit Segment Information

The company and its subsidiaries design, manufacture and sell circuit protection devices throughout the world. The company reports its operations by the following business unit segments: Electronics, Automotive, and Electrical. Each operating segment is directly responsible for sales, marketing and research and development. Manufacturing, purchasing, logistics, customer service, finance, information technology and human resources are shared functions that are allocated back to the three operating segments. The CEO allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing and research and development expenses are charged directly into each operating segment. All other functions are shared by the operating segments and expenses for these shared functions are allocated to the operating segments and included in the operating results reported below. The company does not report inter-segment revenue because the operating segments do not record it. The company does not allocate interest and other income, interest expense, or taxes to operating segments. Although the CEO uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the company as a whole.

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the company’s President and Chief Executive Officer (“CEO”).

Business unit segment information for the three months ended March 30, 2013 and March 31, 2012 are summarized as follows (in thousands):

	March 30, 2013			March 31, 2012
Net sales
Electronics	$	79,415		$	77,055
Automotive		59,385			52,626
Electrical		32,118			30,897
Total net sales	$	170,918		$	160,578
Depreciation and amortization
Electronics	$	4,861		$	5,486
Automotive		1,984			1,449
Electrical		959			1,014
Total depreciation and amortization	$	7,804		$	7,949
Operating income
Electronics	$	12,143		$	10,112
Automotive		9,483			9,505
Electrical		6,491			6,207
Total operating income		28,117			25,824
Interest expense		376			423
Impairment, loan loss and equity in net loss of unconsolidated affiliate (1)		10,678			525
Other (income) expense, net		(909	)		101
Income before income taxes	$	17,972		$	24,775

(1) During the first quarter of 2013, the company recorded approximately $10.7 million related to the impairment of its investment in Shocking Technologies. (See note 6). 2012 Income before income taxes has been restated to reflect the company’s retroactive equity losses from Shocking Technologies. (See note 2).

The company’s significant net sales by country for the three months ended March 30, 2013 and March 31, 2012 are summarized as follows (in thousands):

	Net sales(a)
	March 30, 2013		March 31, 2012
United States	$	57,914	$	55,253
China		33,614		30,444
Other countries		79,390		74,881
Total	$	170,918	$	160,578

(a) Sales by country represent sales to customer or distributor locations.

The company’s significant long-lived assets by country as of March 30, 2013 and December 29, 2012 are summarized as follows (in thousands):

	Long-lived assets(b)
	March 30, 2013		December 29, 2012
United States	$	13,963	$	14,433
China		40,157		41,504
Canada		13,907		13,839
Other countries		52,273		51,135
Total	$	120,300	$	120,911

(b) Long-lived assets consists of net property, plant and equipment.