Note 10 - Business Unit Segment Information

9 Months Ended

Sep. 26, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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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”).

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Notes to

CONDENSED

Consolidated Financial Statements (Unaudited)

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Business Unit Segment Information

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Business unit segment information for the three and nine months ended September 26, 2014 and September 27, 2014 are summarized as follows (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	September 26 , 2015			September 27, 2014			September 26, 2015			September 27, 2014
Net sales
Electronics	$	102,616		$	107,754		$	307,549		$	313,726
Automotive		81,475			80,639			251,464			245,083
Electrical		31,419			29,215			88,831			86,566
Total net sales	$	215,510		$	217,608		$	647,844		$	645,375
Depreciation and amortization
Electronics	$	5,811		$	5,582		$	17,384		$	16,482
Automotive		3,244			3,435			9,883			10,609
Electrical		1,260			1,414			3,839			4,096
Total depreciation and amortization	$	10,315		$	10,431		$	31,106		$	31,187
Operating income (loss)
Electronics	$	20,923		$	25,800		$	61,755		$	70,805
Automotive		15,253			12,227			39,123			35,158
Electrical		5,781			3,224			13,220			7,541
Other (1)		(33,373	)		(1,121	)		(39,795	)		(6,065	)
Total operating income		8,584			40,130			74,303			107,439
Interest expense		922			1,292			3,021			3,736
Foreign exchange (gain) loss		(3,549	)		(101	)		(1,724	)		2,022
Other (income) expense, net		(1,430	)		(2,261	)		(3,758	)		(4,893	)
Income before income taxes	$	12,641		$	41,200		$	76,764		$	106,574

(1) For the three months ended September 26, 2015, “Other” consists of restructuring costs ($2.1 million), acquisition expenses ($0.3 million), pension settlement and wind-up costs ($30.9 million), and other ($0.1 million). For the nine months ended September 26, 2015, “Other” consist of restructuring costs ($6.8 million), acquisition expenses ($0.7 million), pension settlement and wind-up costs ($32.2 million) and other ($0.1 million).

The company’s significant net sales by country for the three and nine months ended September 26, 2015 and September 27, 2014 are summarized as follows (in thousands):

	For the Three Months Ended (a)				For the Nine Months Ended (a)
	September 26, 2015		September 27, 2014		September 26 , 2015		September 27, 2014
United States	$	85,049	$	85,326	$	258,030	$	243,979
China		49,345		45,905		143,694		134,166
Other countries		81,116		86,377		246,120		267,230
Total	$	215,510	$	217,608	$	647,844	$	645,375

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

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Notes to

CONDENSED

Consolidated Financial Statements (Unaudited)

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Business Unit Segment Information, continued

The company’s significant long-lived assets and additions to long-lived assets by country as of September 26, 2015 and December 27, 2014 are summarized as follows (in thousands):

	Long-lived assets (b)
	September 26, 2015		December 27, 2014
United States	$	27,250	$	34,179
Mexico		13,613		47,936
China		37,900		40,981
Other countries		84,002		35,544
Total	$	162,765	$	158,640

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

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The company’s additions to long-lived assets for the nine months ended September 26, 2015 and September 27, 2014 are summarized as follows (in thousands):

	Additions to long-lived assets
	September 26, 2015		September 27, 2014
United States	$	8,367	$	5,215
Mexico		6,518		5,784
China		5,159		3,461
Other countries		15,082		4,962
Total	$	35,126	$	19,422