Note 12 - Business Unit Segment Information

9 Months Ended

Sep. 28, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

12. 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 and nine months ended September 28, 2013 and September 29, 2012 are summarized as follows (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 28, 2013			September 29, 2012			September 28, 2013			September 29, 2012
Net sales
Electronics	$	101,013		$	87,779		$	271,878		$	254,342
Automotive		70,386			51,878			194,319			155,954
Electrical		29,641			33,031			93,527			98,823
Total net sales	$	201,040		$	172,688		$	559,724		$	509,119
Depreciation and amortization
Electronics	$	5,784		$	5,115		$	15,776		$	15,713
Automotive		2,880			1,911			7,183			4,862
Electrical		937			943			2,893			2,911
Total depreciation and amortization	$	9,601		$	7,969		$	25,852		$	23,486
Operating income (loss)
Electronics	$	20,362		$	17,186		$	52,284		$	43,075
Automotive		11,135			7,018			29,531			23,489
Electrical		6,687			8,235			18,801			23,795
Other(1)		(625	)		(1,508	)		(3,558	)		(1,508	)
Total operating income		37,559			30,931			97,058			88,851
Interest expense		939			454			1,959			1,298
Impairment, loan loss and equity in net loss or unconsolidated affiliate (2)		—			1,965			10,678			3,523
Foreign exchange (gain) loss		1,476			834			(1,929	)		1,903
Other (income) expense, net		(1,380	)		(1,350	)		(3,543	)		(3,025	)
Income before income taxes(3)	$	36,524		$	29,028		$	89,893		$	85,202

(1) “Other” consists of acquisition related costs. (2) 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). (3) 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 and nine months ended September 28, 2013 and September 29, 2012 are summarized as follows (in thousands):

	For the Three Months Ended(a)				For the Nine Months Ended(a)
	September 28, 2013		September 29, 2012		September 28, 2013		September 29, 2012
United States	$	76,183	$	56,043	$	202,731	$	170,653
China		43,644		39,282		114,952		107,409
Other countries		81,213		77,363		242,041		231,057
Total	$	201,040	$	172,688	$	559,724	$	509,119

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

The company’s significant long-lived assets by country as of September 28, 2013 and December 29, 2012 are summarized as follows (in thousands):

	Long-lived assets(b)
	September 28, 2013		December 29, 2012
United States	$	28,445	$	14,433
China		42,787		41,504
Canada		14,962		13,839
Other countries		59,906		51,135
Total	$	146,100	$	120,911

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