XML 20 R19.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Segment Reporting
 6 Months Ended
Jun. 30, 2011
Segment Reporting
(14)  Segment Reporting

Operating segments are defined as components of an enterprise that are evaluated regularly by the Company’s chief operating decision maker in deciding how to allocate resources and in assessing performance.  The Company’s chief operating decision maker is the president and chief executive officer.

The Company has two reportable segments: Electronics and Control Devices.  The Company’s operating segments are aggregated based on sharing similar economic characteristics.  Other aggregation factors include the nature of the products offered and management and oversight responsibilities.  The Electronics reportable segment produces electronic instrument clusters, electronic control units, driver information systems and electrical distribution systems, primarily wiring harnesses and connectors for electrical power and signal distribution.  The Control Devices reportable segment produces electronic and electromechanical switches and control actuation devices and sensors.

The accounting policies of the Company’s reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company’s December 31, 2010 Form 10-K.  The Company’s management evaluates the performance of its reportable segments based primarily on net sales from external customers, capital expenditures and income before income taxes.  Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

As discussed in Note 2, effective January 1, 2011, the Company elected to change its method of valuing inventories for certain U.S. businesses to the FIFO method, while in prior years, these inventories were valued using LIFO.  As a result of this change, all inventories are valued using the FIFO method.  Segment information has been retrospectively adjusted for prior periods to reflect the change in accounting principle.

A summary of financial information by reportable segment is as follows:

   
Three months ended
    
Six months ended
  
         
June 30,
          
June 30,
  
   
2011
    
2010
    
2011
    
2010
  
         
As adjusted
          
As adjusted
  
                         
Net Sales:
                        
Electronics
   $ 124,085     $ 104,927     $ 248,902     $ 196,565  
Inter-segment sales
     6,382       3,353       12,848       6,464  
Electronics net sales
     130,467       108,280       261,750       203,029  
                                 
Control Devices
     66,332       61,335       134,559       117,771  
Inter-segment sales
     961       936       1,934       1,784  
Control Devices net sales
     67,293       62,271       136,493       119,555  
                                 
Eliminations
     (7,343 )     (4,289 )     (14,782 )     (8,248 )
Total net sales
   $ 190,417     $ 166,262     $ 383,461     $ 314,336  
                                 
Income (Loss) Before Income Taxes:
                                
Electronics (A)
   $ 464     $ 4,404     $ 1,133     $ 38,753  
Control Devices (A)
     6,018       5,144       11,701       8,651  
Other corporate activities (A)
     1,746       247       2,587       (32,049 )
Corporate interest expense
     (3,830 )     (5,248 )     (7,672 )     (10,409 )
Total income before income taxes
   $ 4,398     $ 4,547     $ 7,749     $ 4,946  
                                 
Depreciation and Amortization:
                                
Electronics
   $ 2,634     $ 2,283     $ 5,096     $ 4,525  
Control Devices
     2,379       2,561       4,843       5,026  
Corporate
     50       85       100       172  
Total depreciation and amortization (B)
   $ 5,063     $ 4,929     $ 10,039     $ 9,723  
                                 
Interest Expense, net:
                                
Electronics
   $ 433     $ 376     $ 836     $ 821  
Control Devices
     26       6       47       6  
Corporate
     3,830       5,248       7,672       10,409  
Total interest expense, net
   $ 4,289     $ 5,630     $ 8,555     $ 11,236  
                                 
Capital Expenditures:
                                
Electronics
   $ 7,447     $ 2,323     $ 9,844     $ 4,786  
Control Devices
     2,297       1,040       4,240       2,324  
Corporate
     31       81       33       (47 )
Total capital expenditures
   $ 9,775     $ 3,444     $ 14,117     $ 7,063  

(A)
During the six months ended June 30, 2010, the Company placed SPL into administration.  As a result of placing SPL into administration the Company recognized a gain within the Electronics reportable segment of $32,512 and losses within other corporate activities and within the Control Devices reportable segment of approximately $32,039 and $473, respectively.  These results were primarily due to eliminating SPL’s intercompany debt and equity structure.
(B)
These amounts represent depreciation and amortization on fixed and certain intangible assets.

   
June 30,
    
December 31,
  
   
2011
    
2010
  
         
As adjusted
  
Total Assets:
            
Electronics
   $ 241,715     $ 191,698  
Control Devices
     104,996       96,977  
Corporate (C)
     189,138       217,414  
Eliminations
     (127,043 )     (119,353 )
Total assets
   $ 408,806     $ 386,736  

(C)
Assets located at Corporate consist primarily of cash and equity investments.

The following table presents net sales and non-current assets for each of the geographic areas in which the Company operates:

   
Three months ended
    
Six months ended
  
   
June 30,
          
June 30,
  
   
2011
    
2010
    
2011
    
2010
  
                         
Net Sales:
                        
North America
   $ 147,608     $ 135,749     $ 300,379     $ 256,492  
Europe and Other
     42,809       30,513       83,082       57,844  
Total net sales
   $ 190,417     $ 166,262     $ 383,461     $ 314,336  
                                 
   
June 30,
    
December 31,
                  
      2011       2010                  
                                 
Non-Current Assets:
                                
North America
   $ 133,817     $ 124,851                  
Europe and Other
     15,330       11,909                  
Total non-current assets
   $ 149,147     $ 136,760