Note 11 - Business Unit Segment Information

6 Months Ended

Jun. 28, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

11. 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 six months ended June 28, 2014 and June 29, 2013 are summarized as follows (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 28, 2014			June 29, 2013			June 28, 2014			June 29, 2013
Net sales
Electronics	$	109,947		$	91,450		$	205,972		$	170,865
Automotive		82,042			64,548			164,444			123,933
Electrical		28,919			31,768			57,351			63,886
Total net sales	$	220,908		$	187,766		$	427,767		$	358,684
Depreciation and amortization
Electronics	$	5,530		$	5,131		$	10,900		$	9,992
Automotive		3,646			2,319			7,174			4,303
Electrical		1,414			997			2,682			1,955
Total depreciation and amortization	$	10,590		$	8,447		$	20,756		$	16,250
Operating income (loss)
Electronics	$	26,210		$	19,779		$	45,581		$	31,922
Automotive		10,472			8,913			22,354			18,396
Electrical		571			5,623			4,317			12,114
Other(1)		(3,534	)		(2,933	)		(4,943	)		(2,933	)
Total operating income		33,719			31,382			67,309			59,499
Interest expense		1,228			644			2,444			1,020
Impairment, loan loss and equity in net loss or unconsolidated affiliate (2)		—			—			—			10,678
Foreign exchange (gain) loss		2,375			(3,724	)		2,123			(3,405	)
Other (income) expense, net		(1,446	)		(935	)		(2,632	)		(2,163	)
Income before income taxes	$	31,562		$	35,397		$	65,374		$	53,369

(1) “Other” consists of acquisition related costs and severance charges. (2) During the first quarter of 2013, the company recorded an impairment of its investment in Shocking Technologies. (See Note 5).

The company’s significant net sales by country for the three and six months ended June 28, 2014 and June 29, 2013 are summarized as follows (in thousands):

	For the Three Months Ended(a)				For the Six Months Ended(a)
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
United States	$	80,492	$	68,633	$	152,366	$	126,547
China		39,987		37,694		77,200		71,308
Other countries		100,429		81,439		198,201		160,829
Total	$	220,908	$	187,766	$	427,767	$	358,684

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

The company’s significant long-lived assets by country as of June 28, 2014 and December 28, 2013 are summarized as follows (in thousands):

	Long-lived assets(b)
	June 28, 2014		December 28, 2013
United States	$	38,620	$	27,294
China		42,096		45,843
Canada		14,275		14,429
Other countries		63,668		62,607
Total	$	158,659	$	150,173

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