| Business Segments |
Business Segments
The Company has three reportable business segments based on geographic regions, defined as follows:
| | • | Americas, which includes North and South America, with segment headquarters in Reading, Pennsylvania, USA; |
| | • | EMEA, which includes Europe, the Middle East and Africa, with segment headquarters in Zug, Switzerland; and |
| | • | Asia, which includes Asia, Australia and Oceania, with segment headquarters in Singapore. |
Summarized financial information related to the Company's reportable segments for the second quarter and six months ended October 2, 2016 and September 27, 2015 is shown below:
| | | | | | | | | | | | | | | | | | | | Quarter ended | | Six months ended | | | October 2, 2016 | | September 27, 2015 | | October 2, 2016 | | September 27, 2015 | Net sales by segment to unaffiliated customers | | | | | | | | | Americas | | $ | 324,824 |
| | $ | 322,482 |
| | $ | 654,544 |
| | $ | 639,508 |
| EMEA | | 180,566 |
| | 189,426 |
| | 377,696 |
| | 386,067 |
| Asia | | 70,658 |
| | 57,226 |
| | 144,411 |
| | 105,627 |
| Total net sales | | $ | 576,048 |
| | $ | 569,134 |
| | $ | 1,176,651 |
| | $ | 1,131,202 |
| Net sales by product line | | | | | | | | | Reserve power | | $ | 277,449 |
| | $ | 274,236 |
| | $ | 573,490 |
| | $ | 538,500 |
| Motive power | | 298,599 |
| | 294,898 |
| | 603,161 |
| | 592,702 |
| Total net sales | | $ | 576,048 |
| | $ | 569,134 |
| | $ | 1,176,651 |
| | $ | 1,131,202 |
| Intersegment sales | | | | | | | | | Americas | | $ | 6,981 |
| | $ | 6,667 |
| | $ | 12,985 |
| | $ | 16,707 |
| EMEA | | 21,937 |
| | 23,824 |
| | 44,100 |
| | 42,462 |
| Asia | | 8,088 |
| | 6,346 |
| | 11,785 |
| | 12,732 |
| Total intersegment sales (1) | | $ | 37,006 |
| | $ | 36,837 |
| | $ | 68,870 |
| | $ | 71,901 |
| Operating earnings by segment | | | | | | | | | Americas | | $ | 49,890 |
| | $ | 48,427 |
| | $ | 93,200 |
| | $ | 93,772 |
| EMEA | | 16,997 |
| | 17,141 |
| | 36,833 |
| | 37,693 |
| Asia | | 3,574 |
| | (190 | ) | | 7,757 |
| | (180 | ) | Restructuring charges - Americas | | — |
| | — |
| | (892 | ) | | (570 | ) | Inventory write-off relating to exit activities - EMEA | | (2,659 | ) | | — |
| | (2,659 | ) | | — |
| Restructuring charges - EMEA | | (4,547 | ) | | (1,905 | ) | | (4,816 | ) | | (2,553 | ) | Restructuring charges - Asia | | (346 | ) | | (724 | ) | | (482 | ) | | (724 | ) | Reversal of legal accrual, net of fees - Americas | | — |
| | 799 |
| | — |
| | 799 |
| Legal proceedings charge - EMEA | | — |
| | (4,000 | ) | | — |
| | (4,000 | ) | Gain on sale of facility - Asia | | — |
| | — |
| | — |
| | 4,348 |
| Total operating earnings (2) | | $ | 62,909 |
| | $ | 59,548 |
| | $ | 128,941 |
| | $ | 128,585 |
|
(1) Intersegment sales are presented on a cost-plus basis, which takes into consideration the effect of transfer prices between legal entities. (2) The Company does not allocate interest expense or other (income) expense to the reportable segments.
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