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Segment Information
12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Information
17. Segment Information

Knowles is organized into two reportable segments based on how management analyzes performance, allocates capital and makes strategic and operational decisions. These segments were determined in accordance with FASB ASC Topic 280 - Segment Reporting and include (i) MCE and (ii) SC. The segments are aligned around similar product applications serving Knowles' key end markets to enhance focus on end market growth strategies.

MCE designs and manufactures innovative acoustic products, including microphones, speakers, receivers, integrated modules and audio processing technologies used in several applications that serve the handset, tablet and other consumer electronic markets.

SC specializes in the design and manufacture of specialized electronic components used in medical and life science applications, as well as high-performance solutions and components used in communications infrastructure and a wide variety of other markets. SC's transducer products are used principally in hearing aid applications within the commercial audiology markets, while its oscillator products predominantly serve the telecom infrastructure market and its capacitor products are used in applications including radio, radar, satellite, power supplies, transceivers and medical implants serving the defense, aerospace, telecommunication and life sciences markets.

The Company sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers and to a lesser extent through distributors worldwide.

Information regarding the Company's reportable segments is as follows (in millions):
 
Years Ended December 31,
 
2015
 
2014
 
2013
Revenue:
 
 
 
 
 
Mobile Consumer Electronics
$
656.7

 
$
684.1

 
$
777.2

Specialty Components
427.9

 
457.2

 
437.7

Intra-segment eliminations

 

 
(0.1
)
Total consolidated revenue
$
1,084.6

 
$
1,141.3

 
$
1,214.8

 
 
 
 
 
 
(Loss) earnings before interest and income taxes:
 
 
 
 
 
Mobile Consumer Electronics
$
(240.8
)
 
$
(74.6
)
 
$
122.0

Specialty Components
61.0

 
69.5

 
65.0

Total segments
(179.8
)
 
(5.1
)
 
187.0

Corporate expense / other
56.4

 
43.4

 
43.5

Interest expense, net
12.7

 
6.6

 
42.0

(Loss) earnings before income taxes
(248.9
)
 
(55.1
)
 
101.5

(Benefit from) provision for income taxes
(15.1
)
 
31.9

 
(4.3
)
Net (loss) earnings
$
(233.8
)
 
$
(87.0
)
 
$
105.8

 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
Mobile Consumer Electronics
$
107.9

 
$
143.0

 
$
100.3

Specialty Components
25.1

 
24.8

 
28.8

Corporate
2.7

 
2.1

 
1.8

Total
$
135.7

 
$
169.9

 
$
130.9

 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
Mobile Consumer Electronics
$
43.5

 
$
71.0

 
$
66.4

Specialty Components
19.9

 
16.6

 
21.7

Corporate
5.6

 
4.7

 
3.2

Total
$
69.0

 
$
92.3

 
$
91.3

 
 
 
 
 
 
Research and development:
 
 
 
 
 
Mobile Consumer Electronics
$
83.9

 
$
55.1

 
$
53.5

Specialty Components
28.2

 
27.9

 
29.1

Total
$
112.1

 
$
83.0

 
$
82.6



Information regarding the Company's reportable segments (continued, in millions):
 
Total Assets
 
As of December 31,
 
2015
 
2014
Mobile Consumer Electronics
$
1,153.2

 
$
1,474.1

Specialty Components
542.7

 
525.8

Corporate / eliminations
1.8

 
(1.4
)
Total
$
1,697.7

 
$
1,998.5



The following table details revenue by geographic location (in millions). Revenue is attributed to regions based on the location of the Company's direct customer, which in some instances is an intermediary and not necessarily the end user. Long-lived assets are comprised of net property, plant and equipment. These assets have been classified based on the geographic location of where they reside. The Company's businesses are based primarily in Asia, North America and Europe.
 
Revenue
 
Long-Lived Assets
 
Years Ended December 31,
 
At December 31,
 
2015
 
2014
 
2013
 
2015
 
2014
Asia
$
781.0

 
$
879.0

 
$
950.4

 
$
159.0

 
$
219.3

United States
186.2

 
124.4

 
123.1

 
51.5

 
70.9

Europe
102.3

 
120.4

 
120.8

 
14.3

 
25.7

Other Americas
8.0

 
12.4

 
14.5

 

 

Other
7.1

 
5.1

 
6.0

 

 

Total
$
1,084.6

 
$
1,141.3

 
$
1,214.8

 
$
224.8

 
$
315.9



For the year ended December 31, 2015, revenues from two customers of the MCE segment represented approximately 41% and 13%, respectively, of total segment revenues. For the year ended December 31, 2014, revenues from three customers of the MCE segment represented approximately 34%, 20% and 10%, respectively, of total segment revenues. For the year ended December 31, 2013, revenues from three customers of the MCE segment represented approximately 38%, 23% and 11%, respectively, of total segment revenues.

For the years ended December 31, 2015 and 2014, no single customer represented 10% or more of SC segment revenues. For the year ended December 31, 2013, revenues from one customer of the SC segment represented approximately 10% of total segment revenues for both years.