Note 7 – Business Segments

As a result of the Acquisition, the company expanded into the European market and extended its customer base to include the principal European OEMs. As a consequence, we have realigned our executive management structure, organization and operations to focus on our performance in our North American and European regions. In accordance with the requirements of ASC Topic 280, “Segment Reporting,” we have concluded that our North American and European businesses represent separate operating segments in view of significantly different markets, customers and products within each of these regions. Each operating segment has discrete financial information which is evaluated regularly by the company’s CEO in determining resource allocation and assessing performance. Within each of these regions, the company’s markets, customers, products and production processes are similar and production can be readily transferred between production facilities. Moreover, our business within each region leverages common systems, processes and infrastructure.

Accordingly, North America and Europe comprise the company’s operating segments for purposes of segment reporting.


(Dollars in thousands)	Net Sales				Income from Operations
Three months ended	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
North America	$	197,776	$	180,100	$	2,901	$	1,413
Europe		149,836		151,304		4,787		4,345

	$	347,612	$	331,404	$	7,688	$	5,758


(Dollars in thousands)	Depreciation and Amortization				Capital Expenditures
Three months ended	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
North America	$	8,300	$	9,637	$	11,197	$	10,680
Europe		15,292		14,450		6,249		16,164

	$	23,592	$	24,087	$	17,446	$	26,844


(Dollars in thousands)	Net Sales				Income from Operations
Nine months ended	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
North America	$	606,684	$	541,218	$	26,362	$	4,260
Europe		516,320		205,034		40,230		3,444

	$	1,123,004	$	746,252	$	66,592	$	7,704


(Dollars in thousands)	Depreciation and Amortization				Capital Expenditures
Nine months ended	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
North America	$	25,701	$	27,080	$	29,790	$	38,540
Europe		46,231		18,667		25,676		18,286

	$	71,932	$	45,747	$	55,466	$	56,826


(Dollars in thousands)	Property, Plant and Equipment, net				Goodwill and Intangibles
	September 30, 2018		December 31, 2017		September 30, 2018		December 31, 2017
North America	$	252,522	$	245,178	$	—	$	—
Europe		289,164		291,508		474,295		508,278

	$	541,686	$	536,686	$	474,295	$	508,278


(Dollars in thousands)	Total Assets
	September 30, 2018		December 31, 2017
North America	$	534,841	$	519,192
Europe		995,299		1,032,060

	$	1,530,140	$	1,551,252

Geographic information

Net sales by geographic location is as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2018		October 1, 2017		September 30, 2018		October 1, 2017
(Dollars in thousands)
Net sales:
U.S.	$	27,653	$	30,231	$	88,663	$	96,454
Mexico		170,123		149,869		518,021		444,764
Germany		57,205		58,195		199,398		78,108
Poland		92,631		93,109		316,922		126,926

Consolidated net sales	$	347,612	$	331,404	$	1,123,004	$	746,252