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Segment Information
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information
18. 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 and audio processing technologies used in mobile handsets, wearables and other consumer electronic devices.

•
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:
 
Years Ended December 31,
(in millions)
2016
 
2015
 
2014
Revenue:
 
 
 
 
 
Mobile Consumer Electronics
$
439.8

 
$
421.7

 
$
457.8

Specialty Components
419.5

 
427.9

 
457.2

Total consolidated revenue
$
859.3

 
$
849.6

 
$
915.0

 
 
 
 
 
 
Earnings from continuing operations before interest and income taxes:
 
 
 
 
 
Mobile Consumer Electronics
$
29.0

 
$
30.6

 
$
113.0

Specialty Components
74.2

 
61.0

 
69.5

Total segments
103.2

 
91.6

 
182.5

Corporate expense / other
52.0

 
56.3

 
43.4

Interest expense, net
20.4

 
12.7

 
6.6

Earnings from continuing operations before interest and income taxes
30.8

 
22.6

 
132.5

Provision for income taxes
11.7

 
6.1

 
12.9

Earnings from continuing operations
$
19.1

 
$
16.5

 
$
119.6

 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
 
Mobile Consumer Electronics
$
48.7

 
$
49.0

 
$
48.5

Specialty Components
21.0

 
25.1

 
24.8

Corporate
3.3

 
2.7

 
2.1

Total
$
73.0

 
$
76.8

 
$
75.4

 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
Mobile Consumer Electronics
$
23.7

 
$
22.9

 
$
39.9

Specialty Components
9.7

 
19.9

 
16.6

Corporate
0.8

 
5.6

 
4.7

Total
$
34.2

 
$
48.4

 
$
61.2

 
 
 
 
 
 
Research and development:
 
 
 
 
 
Mobile Consumer Electronics
$
72.5

 
$
64.6

 
$
36.2

Specialty Components
27.9

 
28.2

 
27.9

Corporate
0.1

 
—

 
—

Total
$
100.5

 
$
92.8

 
$
64.1



Information regarding the Company's reportable segments:
 
Total Assets
 
As of December 31,
(in millions)
2016
 
2015
Mobile Consumer Electronics
$
976.4

 
$
1,059.0

Specialty Components
535.7

 
542.7

Corporate / eliminations
2.1

 
1.8

Discontinued operations
0.9

 
93.0

Total
$
1,515.1

 
$
1,696.5



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,
(in millions)
2016
 
2015
 
2014
 
2016
 
2015
Asia
$
626.1

 
$
602.1

 
$
671.8

 
$
130.6

 
$
150.4

United States
121.8

 
135.9

 
123.9

 
44.4

 
51.2

Europe
96.6

 
97.5

 
105.0

 
11.2

 
13.7

Other Americas
7.1

 
7.6

 
9.6

 
—

 
—

Other
7.7

 
6.5

 
4.7

 
—

 
—

Total
$
859.3

 
$
849.6

 
$
915.0

 
$
186.2

 
$
215.3



For the year ended December 31, 2016, revenues from two customers, Apple and Samsung of the MCE segment represented approximately 33.9% and 20.0%, respectively, of total segment revenues. For the year ended December 31, 2015, revenues from two customers, Apple and Samsung of the MCE segment represented approximately 37.7% and 19.4%, respectively, of total segment revenues. For the year ended December 31, 2014, revenues from two customers, Apple and Samsung of the MCE segment represented approximately 31.3% and 29.7%, respectively, of total segment revenues.

For the years ended December 31, 2016, 2015 and 2014, no single customer represented 10% or more of SC segment revenues.

Prospective Change

In January 2017, the Company changed its internal reporting to facilitate delivering growth in its core business. Given the changes in the allocation of resources and in its internal reporting structure, in January 2017 the Company will report two segments as follows:

•
Audio - Transducer products used in hearing health and premium headset applications will be moved from the SC segment to the new Audio segment which will also include the historical MCE segment.

•
Precision Devices - Oscillator and capacitor products formerly in the SC segment will be included in the Precision Devices segment.

Reporting under this new structure will begin in the first quarter of 2017 with historical financial segment information restated to conform to the new segment presentation.