Operating Segments

6 Months Ended

Jul. 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 July 1, 2012
External customer revenues	$	308,775	$	93,401	$	81,866	$	484,042
Affiliate revenues		9,936		29,960		1,400		41,296
Operating income		44,698		21,089		9,409		75,196
For the three months ended July 3, 2011
External customer revenues		325,732		115,498		95,021		536,251
Affiliate revenues		11,475		27,482		398		39,355
Operating income		40,001		20,079		9,138		69,218
For the six months ended July 1, 2012
External customer revenues		608,397		187,530		152,406		948,333
Affiliate revenues		20,022		57,448		2,006		79,476
Operating income		80,976		38,504		14,078		133,558
For the six months ended July 3, 2011
External customer revenues		602,730		219,188		175,961		997,879
Affiliate revenues		23,543		50,148		499		74,190
Operating income		71,118		33,848		15,421		120,387

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						Six Months Ended
	July 1, 2012			July 3, 2011			July 1, 2012			July 3, 2011
				(In thousands)
Segment operating income	$	75,196		$	69,218		$	133,558		$	120,387
Income from equity method investment		1,960			3,855			4,701			7,717
Eliminations		(18,805	)		(14,861	)		(35,943	)		(27,819	)
Total operating income		58,351			58,212			102,316			100,285
Interest expense		(12,502	)		(12,748	)		(24,423	)		(24,556	)
Interest income		211			156			562			315
Income from continuing operations before taxes	$	46,060		$	45,620		$	78,455		$	76,044

Revenues by major product group were as follows:

	Three Months Ended				Six Months Ended
	July 1, 2012		July 3, 2011		July 1, 2012		July 3, 2011
			(In thousands)
Cable products	$	345,415	$	378,497	$	674,680	$	697,625
Networking products		71,785		81,534		137,095		152,789
Connectivity products		66,842		76,220		136,558		147,465
Total revenues	$	484,042	$	536,251	$	948,333	$	997,879

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.