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Segment Reporting
 6 Months Ended
Jun. 30, 2012
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

(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 and six months ended June 30, 2012, while the results of operations are included in equity in earnings of investees for the three and six months ended June 30, 2011. See Note 13 for summarized operations information of PST for the three and six months ended June 30, 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
June 30,		     Six months ended
June 30,		  
    2012     2011     2012     2011  
                         
Net Sales:                                
Electronics   $ 127,227     $ 124,085     $ 265,407     $ 248,902  
Inter-segment sales     7,393       6,382       13,963       12,848  
Electronics net sales     134,620       130,467       279,370       261,750  
                                 
Control Devices     68,564       66,332       138,960       134,559  
Inter-segment sales     853       961       1,978       1,934  
Control Devices net sales     69,417       67,293       140,938       136,493  
                                 
PST (A)     38,474       -       92,165       -  
Inter-segment sales     -       -       -       -  
PST net sales (A)     38,474       -       92,165       -  
                                 
Eliminations     (8,246 )     (7,343 )     (15,941 )     (14,782 )
Total net sales   $ 234,265     $ 190,417     $ 496,532     $ 383,461  
                                 
Income (Loss) Before Income Taxes:                                
Electronics   $ 2,354     $ 464     $ 9,044     $ 1,133  
Control Devices     3,829       6,018       7,901       11,701  
PST (A)     (8,124 )     1,595       (8,456 )     3,104  
Other corporate activities     (259 )     151       239       (517 )
Corporate interest expense     (3,982 )     (3,830 )     (7,946 )     (7,672 )
Total income (loss) before income taxes   $ (6,182 )   $ 4,398     $ 782     $ 7,749  
                                 
Depreciation and Amortization:                                
Electronics   $ 2,349     $ 2,634     $ 4,687     $ 5,096  
Control Devices     2,317       2,379       4,748       4,843  
PST (A)     4,124       -       8,077       -  
Corporate     47       50       95       100  
Total depreciation and amortization (B)   $ 8,837     $ 5,063     $ 17,607     $ 10,039  
                                 
Interest Expense, net:                                
Electronics   $ 437     $ 433     $ 859     $ 836  
Control Devices     57       26       114       47  
PST (A)     686       -       1,598       -  
Corporate     3,982       3,830       7,946       7,672  
Total interest expense, net   $ 5,162     $ 4,289     $ 10,517     $ 8,555  
                                 
Capital Expenditures:                                
Electronics   $ 1,403     $ 7,447     $ 2,952     $ 9,844  
Control Devices     1,962       2,297       4,032       4,240  
PST (A)     2,985       -       5,406       -  
Corporate     1,172       31       1,980       33  
Total capital expenditures   $ 7,522     $ 9,775     $ 14,370     $ 14,117  

 

 

    June 30,
2012		     December 31,
2011		  
Total Assets:                
Electronics   $ 221,569     $ 211,790  
Control Devices     108,372       98,636  
PST (A)     286,338       326,910  
Corporate (C)     303,333       341,602  
Eliminations     (279,092 )     (281,281 )
Total assets   $ 640,520     $ 697,657  

 

(A) The acquisition of a controlling interest in PST occurred on December 31, 2011, see Note 3. PST’s results of operations are consolidated and included in the Company’s statement of operations for the three and six month periods ended June 30, 2012, while PST’s results of operations for the three and six month periods ended June 30, 2011 were included in equity earnings of investees.

 

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

 

(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
June 30,		     Six months ended
June 30,		  
    2012     2011     2012     2011  
Net Sales:                                
North America   $ 159,216     $ 147,608     $ 329,339     $ 300,379  
South America     38,474       -       92,165       -  
Europe and Other     36,575       42,809       75,028       83,082  
Total net sales   $ 234,265     $ 190,417     $ 496,532     $ 383,461  

 

    June 30,
2012		     December 31,
2011		  
             
Long-term Assets:                
North America   $ 84,477     $ 83,460  
South America     193,002       210,028  
Europe and Other     13,329       14,046  
Total long-term assets   $ 290,808     $ 307,534