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Segment Reporting
 12 Months Ended
Dec. 31, 2011
Segment Reporting

12. 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 chief executive officer.

 

On December 31, 2011, the Company acquired a controlling interest in PST, see Note 2. Due to the acquisition, PST is now a separate reportable segment. PST results of operations are included in the Company’s statement of operations as equity earnings of investees for the year ended December 31, 2011. See Note 3 for summarized operating information of PST.

 

The Company has three reportable segments: Electronics, Control Devices and PST. The Company’s operating segments in the Electronics and Control Devices 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 PST reportable segment, which is also an operating segment, specializes in the design, manufacture and sale of electronic vehicle alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices.

 

The accounting policies of the Company’s reportable segments are the same as those described in Note 2. The Company’s management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and income (loss) before income taxes. Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation.

 

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

  

 

Years ended December 31   2011 (A)     2010     2009  
          As adjusted     As adjusted  
Net Sales:                        
Electronics   $ 506,057     $ 397,630     $ 301,424  
Inter-segment sales     24,249       16,707       9,845  
Electronics net sales     530,306       414,337       311,269  
                         
Control Devices     259,316       237,596       173,728  
Inter-segment sales     3,619       3,298       3,087  
Control Devices net sales     262,935       240,894       176,815  
                         
Eliminations     (27,868 )     (20,005 )     (12,932 )
Total net sales   $ 765,373     $ 635,226     $ 475,152  
                         
Income (loss) before income taxes:                        
Electronics (B)   $ (2,376 )   $ 41,984     $ (13,911 )
Control Devices (B)     17,145       15,877       (6,463 )
Other corporate activities (B)     72,266       (25,674 )     8,577  
Corporate interest expense     (15,393 )     (20,163 )     (21,782 )
Total income (loss) before income taxes   $ 71,642     $ 12,024     $ (33,579 )
                         
Depreciation and Amortization:                        
Electronics   $ 9,616     $ 9,044     $ 9,061  
Control Devices     9,270       9,958       10,591  
Other corporate activities (C)     199       283       287  
Total depreciation and amortization   $ 19,085     $ 19,285     $ 19,939  

 

Interest Expense (Income), net:                        
Electronics   $ 1,697     $ 1,584     $ 187  
Control Devices     144       33       (3 )
Corporate activities     15,393       20,163       21,781  
Total interest expense, net   $ 17,234     $ 21,780     $ 21,965  
                         
Capital Expenditures:                        
Electronics   $ 15,888     $ 11,351     $ 5,139  
Control Devices     10,368       7,267       5,975  
Corporate activities     34       (44 )     884  
Total capital expenditures   $ 26,290     $ 18,574     $ 11,998  

 

As of December 31   2011     2010     2009  
          As adjusted     As adjusted  
Total Assets:                        
Electronics   $ 211,790     $ 191,698     $ 163,414  
Control Devices     98,636       96,977       94,049  
PST     326,910       -       -  
Corporate (D)     341,602       217,414       236,102  
Eliminations     (281,281 )     (119,353 )     (126,557 )
Total assets   $ 697,657     $ 386,736     $ 367,008  

 

  

(A) The acquisition of a controlling interest in PST occurred on December 31, 2011. See Note 2 to the consolidated financial statements included in this report. PST’s balance sheet is reflected in the consolidated balance sheet as of December 31, 2011. The Company recognized a one-time non-cash pre-tax gain of $65,372 related to the acquistion.

 

(B) During year ended December 31, 2010, the Company placed its SPL subsidiary 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 $32,039 and $473, respectively. These results were primarily due to eliminating SPL’s intercompany debt and equity structure.

 

(C) These amounts represent depreciation and amortization on fixed and certain intangible assets.

 

(D) Assets located at Corporate consist primarily of cash, equity investments and intercompany loan receivables.

 

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

 

Years ended December 31   2011     2010     2009  
Net Sales:                        
North America   $ 601,490     $ 513,455     $ 384,467  
Europe and Other     163,883       121,771       90,685  
Total net sales   $ 765,373     $ 635,226     $ 475,152  

 

As of December 31   2011     2010     2009  
Non-Current Assets:                        
North America   $ 83,460     $ 124,851     $ 121,149  
South America     210,028       -       -  
Europe and Other     14,046       11,909       10,706  
Total non-current assets   $ 307,534     $ 136,760     $ 131,855