Segment Information

12 Months Ended

Dec. 31, 2018

17. Segment Information

In January 2017, the Company changed its allocation of resources and internal reporting structure to facilitate delivering growth in its core business. The Company’s operating segments engage in business activities from which they earn revenues and incur expenses, have discrete financial information available, and whose financial results are regularly reviewed and used by the chief operating decision maker to evaluate segment performance, allocate resources, and determine management incentive compensation. The Audio segment aggregates two operating segments into one reportable segment based on similar product applications serving our key end markets. The PD segment has one operating segment, which equals its reportable segment. The realignment did not change the composition of the Company’s reporting units for goodwill impairment testing purposes. Following these changes, the Company's two reportable segments are as follows:

• Audio Segment

Our Audio group designs and manufactures innovative audio products, including microphones and balanced armature speakers, audio processors, and software and algorithms used in applications that serve the mobile, ear, and IoT markets. Locations include the sales, support, and engineering facilities in North America, Europe, and Asia, as well as the manufacturing facilities in Asia.

• PD Segment

Our PD group specializes in the design and delivery of highly engineered capacitors and radio frequency devices for technically demanding applications. Our devices are used in applications including power supplies, radar, medical implants, and satellites, serving the industrial, defense, aerospace, medical, telecommunications, and automotive markets. Locations include sales, support, engineering, and manufacturing facilities in North America, Europe, and Asia.

The Company organizes its reportable segments based on how management analyzes performance, allocates capital, and makes strategic and operational decisions. These segments were determined in accordance with ASC 280, Segment Reporting. The segments are aligned around similar product applications serving our key end markets, to enhance focus on end market growth strategies.

Information regarding the Company's reportable segments is as follows:



	Years Ended December 31,
(in millions)	2018			2017		2016
Revenues:
Audio	$	682.2		$	637.4	$	661.9
Precision Devices	144.7			106.8		93.8
Total revenues	$	826.9		$	744.2	$	755.7

Earnings from continuing operations before interest and income taxes:
Audio	$	105.7		$	76.1	$	88.8
Precision Devices	27.5			19.2		12.4
Total segments	133.2			95.3		101.2
Corporate expense / other	56.1			55.3		52.7
Interest expense, net	16.0			20.6		20.4
Earnings before income taxes and discontinued operations	61.1			19.4		28.1
(Benefit from) provision for income taxes	(4.5		)	12.9		8.3
Earnings from continuing operations	$	65.6		$	6.5	$	19.8

Depreciation and amortization:
Audio	$	41.5		$	45.2	$	61.4
Precision Devices	7.8			5.6		4.3
Corporate	3.1			3.0		3.3
Total	$	52.4		$	53.8	$	69.0

Capital expenditures:
Audio	$	68.2		$	43.6	$	27.8
Precision Devices	10.8			5.4		3.1
Corporate	1.1			0.5		1.3
Total	$	80.1		$	49.5	$	32.2

Research and development:
Audio	$	94.5		$	89.0	$	89.2
Precision Devices	5.8			4.2		2.7
Corporate	0.3			0.2		0.1
Total	$	100.6		$	93.4	$	92.0

Information regarding assets of the Company's reportable segments:



	Total Assets
	December 31,
(in millions)	2018		2017
Audio	$	1,409.1	$	1,430.9
Precision Devices	136.9		103.4
Corporate / eliminations	1.9		13.8
Discontinued operations	—		1.7
Total	$	1,547.9	$	1,549.8

The following table details revenues by geographic location. Revenues are 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.



	Revenues						Long-Lived Assets
	Years Ended December 31,						December 31,
(in millions)	2018		2017		2016		2018		2017
Asia	$	605.4	$	560.8	$	578.7	$	160.9	$	144.9
United States	126.6		101.3		93.3		49.8		37.2
Europe	85.8		72.3		75.1		0.9		0.9
Other Americas	3.6		4.4		3.1		0.1		—
Other	5.5		5.4		5.5		—		—
Total	$	826.9	$	744.2	$	755.7	$	211.7	$	183.0

The Company's customers that accounted for 10% or more of total revenues were as follows:



	Revenues
	Years Ended December 31,
	2018		2017		2016
Apple Inc.	19	%	19	%	20	%
Samsung Electronics Co., Ltd.	*		10	%	12	%

* Less than 10% of total revenues.