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Segment Reporting
 9 Months Ended
Sep. 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 a separate reportable segment. PST’s results of operations and cash flows were consolidated and included in the Company’s condensed consolidated statement of operations and cash flows for the three and nine months ended September 30, 2012, while the results of operations and cash flows and were included in equity in earnings of investees for the three and nine months ended September 30, 2011. See Note 13 for summarized operations information of PST for the three and nine months ended September 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     Nine months ended  
    September 30,     September 30,  
    2012     2011     2012     2011  
                         
Net Sales:                                
Electronics   $ 110,679     $ 132,841     $ 376,086     $ 381,743  
Inter-segment sales     5,583       5,535       19,546       18,383  
Electronics net sales     116,262       138,376       395,632       400,126  
                                 
Control Devices     64,803       63,023       203,763       197,582  
Inter-segment sales     1,252       807       3,230       2,741  
Control Devices net sales     66,055       63,830       206,993       200,323  
                                 
PST (A)     43,774       -       135,939       -  
Inter-segment sales     -       -       -       -  
PST net sales (A)     43,774       -       135,939       -  
                                 
Eliminations     (6,835 )     (6,342 )     (22,776 )     (21,124 )
Total net sales   $ 219,256     $ 195,864     $ 715,788     $ 579,325  
                                 
Income Before Income Taxes:                                
Electronics   $ 287     $ 3,728     $ 9,331     $ 4,861  
Control Devices     2,779       3,171       10,680       14,872  
PST - consolidated (A)     1,109       -       (7,347 )     -  
PST - equity in earnings of investee(A)     -       964       -       4,068  
Other corporate activities     715       1,698       954       1,181  
Corporate interest expense     (3,918 )     (3,761 )     (11,864 )     (11,433 )
Total income before income taxes   $ 972     $ 5,800     $ 1,754     $ 13,549  
                                 
Depreciation and Amortization:                                
Electronics   $ 2,393     $ 2,290     $ 7,080     $ 7,386  
Control Devices     2,375       2,488       7,123       7,331  
PST (A)     3,983       -       12,060       -  
Corporate     46       50       141       150  
Total depreciation and amortization (B)   $ 8,797     $ 4,828     $ 26,404     $ 14,867  
                                 
Interest Expense, net:                                
Electronics   $ 389     $ 446     $ 1,248     $ 1,282  
Control Devices     55       40       169       87  
PST (A)     516       -       2,114       -  
Corporate     3,918       3,761       11,864       11,433  
Total interest expense, net   $ 4,878     $ 4,247     $ 15,395     $ 12,802  
                                 
Capital Expenditures:                                
Electronics   $ 1,279     $ 3,255     $ 4,231     $ 13,099  
Control Devices     2,164       3,345       6,196       7,585  
PST (A)     2,203       -       7,609       -  
Corporate     227       1       2,207       34  
Total capital expenditures   $ 5,873     $ 6,601     $ 20,243     $ 20,718  

 

 

    September 30,     December 31,  
    2012     2011  
             
Total Assets:                
Electronics   $ 203,536     $ 211,790  
Control Devices     107,074       98,636  
PST     275,854       326,910  
Corporate (C)     300,237       341,602  
Eliminations     (268,701 )     (281,281 )
Total assets   $ 618,000     $ 697,657  

 

(A) The acquisition of a controlling interest in PST occurred on December 31, 2011, see Note 3. PST’s results of operations were consolidated and included in the Company’s statement of operations for the three and nine month periods ended September 30, 2012, while PST’s results of operations for the three and nine month periods ended September 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     Nine months ended  
    September 30,     September 30,  
    2012     2011     2012     2011  
Net Sales:                                
North America   $ 141,932     $ 154,671     $ 471,270     $ 455,050  
South America     43,774       -       135,939       -  
Europe and Other     33,550       41,193       108,579       124,275  
Total net sales   $ 219,256     $ 195,864     $ 715,788     $ 579,325  

 

    September 30,     December 31,  
    2012     2011  
             
Long-Term Assets:                
North America   $ 84,862     $ 83,460  
South America     190,043       210,028  
Europe and Other     13,601       14,046  
Total long-term assets   $ 288,506     $ 307,534