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Note 12 - Segment Information | 3 Months Ended
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Mar. 31, 2018
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 1 2 . Segment Information The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. 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”). The CODM 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. Manufacturing, purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM 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.
| ● | Electronics Segment : Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, gas discharge tubes; semiconductor and power semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon carbide, metal-oxide-semiconductor field-effect transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including consumer electronics, automotive electronics, IT and telecommunications equipment, medical devices, lighting products, and white goods.
| ● | Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in the automotive, commercial vehicle, and agricultural and construction equipment industries. Passenger car fuse products include fuses and fuse accessories, including blade fuses, battery cable protectors, varistors, high-current fuses, and high-voltage fuses for hybrid and electric vehicles. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle sensors designed to monitor the passenger compartment occupants and environment as well as the vehicle’s powertrain, emissions, speed and suspension.
| ● | Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in heavy industrial applications such as mining, oil and gas, energy storage, construction, HVAC systems, elevator and other industrial equipment.
Segment information is summarized as follows:
|  | For the Three Months Ended |
(in thousands ) |  | March 31 , 201 8 |  |  | April 1 , 201 7 |
Net sales |  |  |  |  |  |  |  |
Electronics |  | $ | 264,411 |  |  | $ | 153,767 |
Automotive |  |  | 126,131 |  |  |  | 107,839 |
Industrial |  |  | 27,271 |  |  |  | 23,835 |
Total net sales |  | $ | 417,813 |  |  | $ | 285,441 |
Depreciation and amortization |  |  |  |  |  |  |  |
Electronics |  | $ | 13,678 |  |  | $ | 8,387 |
Automotive |  |  | 5,970 |  |  |  | 5,371 |
Industrial |  |  | 1,460 |  |  |  | 1,314 |
Other |  |  | 2,504 |  |  |  | — |
Total depreciation and amortization |  | $ | 23,612 |  |  | $ | 15,072 |
Operating income (loss) |  |  |  |  |  |  |  |
Electronics |  | $ | 53,964 |  |  | $ | 35,206 |
Automotive |  |  | 18,390 |  |  |  | 15,065 |
Industrial |  |  | 4,709 |  |  |  | 106 |
Other (a) |  |  | (39,492 | ) |  |  | (1,525 | )
Total operating income |  |  | 37,571 |  |  |  | 48,852 |
Interest expense |  |  | 5,423 |  |  |  | 3,120 |
Foreign exchange loss (gain) |  |  | (10,555 | ) |  |  | (1,557 | )
Other income, net |  |  | (1,943 | ) |  |  | (139 | )
Income before income taxes |  | $ | 44,646 |  |  | $ | 47,428 |
(a) For the first quarter of 2018, “Other” Operating income (loss) of $39.5 million consists of $38.6 million in acquisition and integration costs associated with the Company’s 2018 acquisition of IXYS ( $18.4 million included in Cost of sales (“COS”), of which $17.9 million relates to fair value inventory adjustments, $16.1 million included in Selling, general, and administrative expenses (“SG&A), $1.6 million in Research and development (“R&D”) $2.5 million in backlog amortization expense), $0.8 million in restructuring costs ( $0.5 million included in COS and $0.3 million in SG&A) and $0.1 million in year acquisition and integration costs associated with the Company’s 2017 acquisitions in SG&A. For the first quarter of 2017, “Other” Operating income (loss) of $1.5 million consists of acquisition and integration costs associated with the Company’s 2016 acquisitions (included in COS and SG&A). The Company’s net sales by country were as follows:
|  | For the Three Months Ended |
(in thousands ) |  | March 31, 2018 |  |  | April 1, 2017 |
Net sales |  |  |  |  |  |  |  |
United States |  | $ | 123,877 |  |  | $ | 86,658 |
China (a) |  |  | 106,508 |  |  |  | 78,219 |
Other countries ( b ) |  |  | 187,428 |  |  |  | 120,564 |
Total net sales |  | $ | 417,813 |  |  | $ | 285,441 |
(a) Includes mainland China, Taiwan, and Hong Kong. (b) Each country included in Other countries are less than 10% of net sales. The Company’s long-lived assets by country, as of March 31, 2018 and April 1, 2017, were as follows:
(in thousands ) |  | March 31, 2018 |  |  | December 30, 2017 |
Long-lived assets |  |  |  |  |  |  |  |
United States |  | $ | 49,132 |  |  | $ | 23,490 |
China (a) |  |  | 91,676 |  |  |  | 86,866 |
Mexico |  |  | 64,176 |  |  |  | 62,510 |
Germany |  |  | 36,232 |  |  |  | 1,082 |
Philippines |  |  | 30,734 |  |  |  | 31,129 |
Other countries |  |  | 65,255 |  |  |  | 45,500 |
Total long-lived assets |  | $ | 337,205 |  |  | $ | 250,577 |
(a) Includes mainland China, Taiwan, and Hong Kong. The Company’s additions to long-lived assets by country were as follows:
|  | For the Three Months Ended |
(in thousands ) |  | March 31, 2018 |  |  | April 1, 2017 |
Additions to long-lived assets |  |  |  |  |  |  |  |
United States |  | $ | 2,909 |  |  | $ | 332 |
China (a) |  |  | 5,144 |  |  |  | 2,392 |
Mexico |  |  | 3,310 |  |  |  | 6,978 |
Germany |  |  | 3,038 |  |  |  | 45 |
Philippines |  |  | 2,162 |  |  |  | 855 |
Other countries |  |  | 1,346 |  |  |  | 1,775 |
Total additions to long-lived assets |  | $ | 17,909 |  |  | $ | 12,377 |
(a) Includes mainland China, Taiwan, and Hong Kong.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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