XML 20 R19.htm IDEA: XBRL DOCUMENT v2.3.0.15
Segment Reporting
9 Months Ended
Sep. 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
    
Nine Months Ended
  
         
September 30,
          
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
         
As adjusted
          
As adjusted
  
                         
Net Sales:
                        
Electronics
   $ 132,841     $ 99,912     $ 381,743     $ 296,477  
Inter-segment sales
     5,535       5,023       18,383       11,487  
Electronics net sales
     138,376       104,935       400,126       307,964  
                                 
Control Devices
     63,023       60,524       197,582       178,295  
Inter-segment sales
     807       742       2,741       2,526  
Control Devices net sales
     63,830       61,266       200,323       180,821  
                                 
Eliminations
     (6,342 )     (5,765 )     (21,124 )     (14,013 )
Total net sales
   $ 195,864     $ 160,436     $ 579,325     $ 474,772  
                                 
Income (Loss) Before Income Taxes:
                                
Electronics (A)
   $ 3,728     $ 1,369     $ 4,861     $ 40,122  
Control Devices (A)
     3,171       3,771       14,872       12,422  
Other corporate activities (A)
     2,662       3,385       5,249       (28,663 )
Corporate interest expense
     (3,761 )     (5,333 )     (11,433 )     (15,743 )
Total income before income taxes
   $ 5,800     $ 3,192     $ 13,549     $ 8,138  
                                 
Depreciation and Amortization:
                                
Electronics
   $ 2,290     $ 2,201     $ 7,386     $ 6,726  
Control Devices
     2,488       2,463       7,331       7,489  
Corporate
     50       50       150       222  
Total depreciation and amortization (B)
   $ 4,828     $ 4,714     $ 14,867     $ 14,437  
                                 
Interest Expense, net:
                                
Electronics
   $ 446     $ 376     $ 1,282     $ 1,197  
Control Devices
     40       10       87       16  
Corporate
     3,761       5,334       11,433       15,743  
Total interest expense, net
   $ 4,247     $ 5,720     $ 12,802     $ 16,956  
                                 
Capital Expenditures:
                                
Electronics
   $ 3,255     $ 1,517     $ 13,099     $ 6,303  
Control Devices
     3,345       1,834       7,585       4,158  
Corporate
     1       3       34       (44 )
Total capital expenditures
   $ 6,601     $ 3,354     $ 20,718     $ 10,417  

(A)
During the nine months ended September 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.
 

   
September 30,
    
December 31,
  
   
2011
    
2010
  
         
As adjusted
  
Total Assets:
            
Electronics
   $ 243,202     $ 191,698  
Control Devices
     105,254       96,977  
Corporate (C)
     189,903       217,414  
Eliminations
     (124,997 )     (119,353 )
Total assets
   $ 413,362     $ 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
    
Nine Months Ended
  
   
September 30,
          
September 30,
  
   
2011
    
2010
    
2011
    
2010
  
                         
Net Sales:
                        
North America
   $ 154,671     $ 131,611     $ 455,050     $ 388,103  
Europe and Other
     41,193       28,825       124,275       86,669  
Total net sales
   $ 195,864     $ 160,436     $ 579,325     $ 474,772  

   
September 30,
    
December 31,
  
   
2011
    
2010
  
             
Non-Current Assets:
            
North America
   $ 131,176     $ 124,851  
Europe and Other
     14,026       11,909  
Total non-current assets
   $ 145,202     $ 136,760