Note 11 - Business Unit Segment Information

3 Months Ended

Apr. 02, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11. Segment and Geographic Information

The company and its subsidiaries design, manufacture and sell circuit protection devices throughout the world. The company reports its operations by the following segments: Electronics, Automotive, and Industrial. 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”).

Segment information for the three months ended April 2, 2016 and March 28, 2015 are summarized as follows (in thousands):

	April 2, 2016			March 28, 2015
Net sales
Electronics	$	98,796		$	99,380
Automotive		91,933			84,071
Industrial		28,669			26,862
Total net sales	$	219,398		$	210,313
Depreciation and amortization
Electronics	$	5,372		$	5,798
Automotive		3,266			3,336
Industrial		1,451			1,284
Other (1)		937			—
Total depreciation and amortization	$	11,026		$	10,418
Operating income
Electronics	$	22,416		$	18,665
Automotive		17,491			11,171
Industrial		1,673			2,730
Other (2)		(9,152	)		(3,018	)
Total operating income		32,428			29,548
Interest expense		2,045			1,151
Foreign exchange loss		3,823			3,117
Other (income) expense, net		(517	)		(1,126	)
Income before income taxes	$	27,077		$	26,406

(1) Consists of intangible impairments. (See Note 13).

(2) Consists of internal resorganization costs ($1.4 million), acquisition related expenses ($6.2 million) and impairment and severance costs related to the planned shut-down of the company’s Roskilde, Denmark operations ($1.6 million) (see Note 13).

The company’s significant net sales by country for the three months ended April 2, 2016 and March 28, 2015 are summarized as follows (in thousands):

	Net sales (a)
	April 2, 2016		March 28, 2015
United States	$	85,149	$	83,373
China		48,509		44,429
Other countries		85,740		82,511
Total	$	219,398	$	210,313

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

The company’s significant long-lived assets and additions to long-lived assets by country as of April 2, 2016 and January 2, 2016 are summarized as follows (in thousands):

	Long-lived assets (b)
	April 2, 2016		January 2, 2016
United States	$	24,906	$	23,965
China		78,840		37,241
Canada		11,069		10,488
Other countries		115,050		90,874
Total	$	229,865	$	162,568

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

11. Segment and Geographic Information, continued

	Additions to long-lived assets
	April 2, 2016		March 28, 2015
United States	$	1,618	$	3,187
China		1,046		667
Canada		69		538
Other countries		6,406		7,887
Total	$	9,139	$	12,279