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Segment Reporting
 3 Months Ended
Mar. 31, 2012
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 3. Due to the acquisition, effective December 31, 2011, PST is now a separate reportable segment. PST’s results of operations are consolidated and included throughout the Company’s condensed consolidated statement of operations for the three months ended March 31, 2012, while the results of operations are included all in equity in earnings of investees for the three months ended March 31, 2011. See Note 13 for summarized operations information of PST for the three months ended March 31, 2011.

 

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 security 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, “Summary of Significant Accounting Policies” of the Company’s December 31, 2011 Form 10-K. The Company’s management evaluates the performance of its reportable segments based primarily on revenues 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.

 

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

 

Three months ended March 31   2012     2011  
                 
Net Sales:                
Electronics   $ 138,180     $ 124,817  
Inter-segment sales     6,570       6,466  
Electronics net sales     144,750       131,283  
                 
Control Devices     70,396       68,227  
Inter-segment sales     1,125       973  
Control Devices net sales     71,521       69,200  
                 
PST (A)     53,691       -  
Inter-segment sales     -       -  
PST net sales (A)     53,691       -  
                 
Eliminations     (7,695 )     (7,439 )
Total net sales   $ 262,267     $ 193,044  
                 
Income (Loss) Before Income Taxes:                
Electronics   $ 6,690     $ 669  
Control Devices     4,072       5,683  
PST (A)     (332 )     1,509  
Other corporate activities     498       (668 )
Corporate interest expense     (3,964 )     (3,842 )
Total income before income taxes   $ 6,964     $ 3,351  
                 
Depreciation and Amortization:                
Electronics   $ 2,338     $ 2,462  
Control Devices     2,430       2,464  
PST (A)     3,953       -  
Corporate     47       50  
Total depreciation and amortization (B)   $ 8,768     $ 4,976  
                 
Interest Expense, net:                
Electronics   $ 422     $ 403  
Control Devices     57       21  
PST (A)     912       -  
Corporate     3,964       3,842  
Total interest expense, net   $ 5,355     $ 4,266  
                 
Capital Expenditures:                
Electronics   $ 1,549     $ 2,397  
Control Devices     2,070       1,943  
PST (A)     2,421       -  
Corporate     808       2  
Total capital expenditures   $ 6,848     $ 4,342  

 

 

(A) The acquisition of a controlling interest in PST occurred on December 31, 2011. See Note 3 to the condensed consolidated financial statements included in this report. PST’s results of operations are consolidated and included in the Company’s statement of operations for the three months ended March 31, 2012, while PST’s results of operations for the three months ended March 31, 2011 are included in equity earnings of investees.

 

(B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets.

 

 

    March 31,     December 31,  
    2012     2011  
                 
Total Assets:                
Electronics   $ 230,765     $ 211,790  
Control Devices     108,587       98,636  
PST (A)     325,317       326,910  
Corporate (C)     313,390       341,602  
Eliminations     (286,161 )     (281,281 )
Total assets   $ 691,898     $ 697,657  

 

(C) Assets located at Corporate consist primarily of cash, intercompany loan receivables 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 March 31   2012     2011  
                 
Net Sales:                
North America   $ 170,123     $ 152,771  
South America     53,691       -  
Europe and Other     38,453       40,273  
Total net sales   $ 262,267     $ 193,044  
                 

 

    March 31,     December 31,  
    2012     2011  
                 
Non-Current Assets:                
North America   $ 84,267     $ 83,460  
South America     215,559       210,028  
Europe and Other     13,963       14,046  
Total non-current assets   $ 313,789     $ 307,534