Operating Segments

3 Months Ended

Apr. 01, 2012

Operating Segments [Abstract]

Operating Segments

Note 2: Operating Segments

We have organized the enterprise around geographic areas. We conduct our operations through three reported operating segments—Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific.

We allocate corporate expenses to the segments for purposes of measuring segment operating income. Corporate expenses are allocated on the basis of each segment’s relative operating income prior to the allocation. Beginning on January 1, 2012, the results of our equity method investment in Xuzhou Hirschmann Electronics Co. Ltd. (the Hirschmann JV) are no longer included in our EMEA segment due to a change in our organizational reporting structure for the Hirschmann JV. The results of the Hirschmann JV are analyzed separately from the results of our operating segments, and they are not included in the corporate expense allocation. The prior period presentation of segment operating income has been modified accordingly.

	Americas		EMEA		Asia Pacific		Total Segments
	(In thousands)
For the three months ended April 1, 2012
External customer revenues	$	299,622	$	94,129	$	70,540	$	464,291
Affiliate revenues		10,086		27,488		606		38,180
Operating income		36,278		17,415		4,669		58,362
For the three months ended April 3, 2011
External customer revenues	$	276,998	$	103,690	$	80,940	$	461,628
Affiliate revenues		12,068		22,666		101		34,835
Operating income		31,117		13,769		6,283		51,169

The following table is a reconciliation of the total of the reportable segments’ operating income to consolidated income from continuing operations before taxes.

	Three Months Ended
	April 1, 2012			April 3, 2011
	(In thousands)
Segment operating income	$	58,362		$	51,169
Income from equity method investment		2,741			3,862
Eliminations		(17,138	)		(12,958	)
Total operating income		43,965			42,073
Interest expense		(11,921	)		(11,808	)
Interest income		351			159
Income from continuing operations before taxes	$	32,395		$	30,424

Revenues by major product group were as follows:

	Three Months Ended
	April 1, 2012		April 3, 2011
	(In thousands)
Cable products	$	329,265	$	319,128
Networking products		65,310		71,255
Connectivity products		69,716		71,245
Total revenues	$	464,291	$	461,628

The main categories of cable products are (1) copper cables, including shielded and unshielded twisted pair cables, coaxial cables, and stranded cables, (2) fiber optic cables, which transmit light signals through glass or plastic fibers, and (3) composite cables, which are combinations of multiconductor, coaxial, and fiber optic cables jacketed together or otherwise joined together to serve complex applications and provide ease of installation. Networking products include wireless and wired Industrial Ethernet switches and related equipment and security features, fiber optic interfaces and media converters used to bridge fieldbus networks over long distances, and load-moment indicators for mobile cranes and other load-bearing equipment. Connectivity products include both fiber and copper connectors for the enterprise, broadcast, and industrial markets. Connectors are also sold as part of end-to-end structured cabling solutions.