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Segment Reporting
 6 Months Ended
Jun. 30, 2014
Segment Reporting [Abstract]  
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 chief executive officer.

 

During the second quarter of 2014 the Company entered into an asset purchase agreement to sell its Wiring business segment, which designs and manufactures wiring harness products and assembles instrument panels for sale principally to the commercial, agricultural and off-highway vehicle markets.  As such, for all periods presented the Company has reported this business as held for sale and discontinued operations in the Company’s condensed consolidated financial statements and therefore has excluded it from the segment disclosures herein. See Note 3 for additional details.

 

The Company has three reportable segments: Control Devices, Electronics and PST which also represents its operating segments. The Control Devices reportable segment produces sensors, switches, valves and actuators. The Electronics reportable segment produces electronic instrument clusters, electronic control units and driver information systems. The PST reportable segment designs and manufactures electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices.

 

During the second quarter of 2014 the Company also changed its segment operating performance metric in accordance with changes in the financial information reviewed and performance measured by the Company’s chief operating decision maker.  As a result, the Company now uses operating income for financial reporting purposes.  Historically, the Company utilized income before income taxes.  The Company has revised the consolidated segment information for all periods presented to reflect this presentation.

 

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 2013 Form 10-K. The Company's management evaluates the performance of its reportable segments based primarily on revenues from external customers, capital expenditures and operating income. 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

 

Six months ended

 

 

June 30,

 

June 30,

 

 
2014 

 
2013 

 
2014 

 
2013 

Net Sales:

 

 

 

 

 

 

 

 

Control Devices

$
76,413 

$
74,434 

$
153,737 

$
146,347 

Inter-segment sales

 
742 

 
774 

 
1,493 

 
1,570 

Control Devices net sales

 
77,155 

 
75,208 

 
155,230 

 
147,917 

 

 

 

 

 

 

 

 

 

Electronics

 
52,766 

 
48,684 

 
102,857 

 
93,204 

Inter-segment sales

 
11,573 

 
10,849 

 
23,330 

 
21,715 

Electronics net sales

 
64,339 

 
59,533 

 
126,187 

 
114,919 

 

 

 

 

 

 

 

 

 

PST

 
32,920 

 
46,715 

 
66,836 

 
89,144 

Inter-segment sales

 

 -

 

 -

 

 -

 

 -

PST net sales

 
32,920 

 
46,715 

 
66,836 

 
89,144 

 

 

 

 

 

 

 

 

 

Eliminations

 
(12,315)

 
(11,623)

 
(24,823)

 
(23,285)

Total net sales

$
162,099 

$
169,833 

$
323,430 

$
328,695 

Operating Income (Loss):

 

 

 

 

 

 

 

 

Control Devices

$
8,719 

$
8,963 

$
17,152 

$
16,619 

Electronics

 
4,886 

 
5,283 

 
9,668 

 
10,529 

PST (A)

 
(31,982)

 
2,278 

 
(34,524)

 
3,274 

Unallocated Corporate (B)

 
(4,844)

 
(4,772)

 
(9,083)

 
(10,179)

Total operating income (loss)

$
(23,221)

$
11,752 

$
(16,787)

$
20,243 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

Control Devices

$
2,381 

$
2,470 

$
4,752 

$
5,005 

Electronics

 
1,138 

 
1,242 

 
2,239 

 
2,521 

PST

 
3,453 

 
3,654 

 
6,622 

 
7,486 

Corporate

 
35 

 
46 

 
79 

 
94 

Total depreciation and amortization (C)

$
7,007 

$
7,412 

$
13,692 

$
15,106 

Interest Expense, net:

 

 

 

 

 

 

 

 

Control Devices

$
73 

$
32 

$
133 

 
79 

Electronics

 
232 

 
186 

 
432 

$
373 

PST

 
792 

 
282 

 
1,460 

 
559 

Corporate

 
3,975 

 
4,004 

 
7,976 

 
7,943 

Total interest expense, net

$
5,072 

$
4,504 

$
10,001 

$
8,954 

Capital Expenditures:

 

 

 

 

 

 

 

 

Control Devices

$
3,528 

$
1,657 

$
5,262 

 
4,897 

Electronics

 
2,019 

 
519 

 
2,666 

$
988 

PST

 
2,062 

 
1,626 

 
3,729 

 
3,092 

Corporate

 
48 

 
93 

 
107 

 
220 

Total capital expenditures

$
7,657 

$
3,895 

$
11,764 

$
9,197 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 
2014 

 
2013 

Total Assets:

 

 

 

 

Control Devices

$
117,384 

$
105,730 

Electronics

 
111,599 

 
105,352 

PST

 
219,394 

 
237,649 

Corporate (D)

 
292,967 

 
301,889 

Eliminations

 
(264,083)

 
(259,267)

Total assets

$
477,261 

$
491,353 

 

 

 

 

 

 

(A) The PST operating loss for the three and six months ended June 30, 2014 includes a goodwill impairment charge of $29,300.

(B)  Unallocated Corporate expenses include, among other items, accounting, finance, legal, information technology costs as well as share-based compensation.

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

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

 

 

The following table presents net sales and long-term assets from continuing operations for each of the geographic areas in which the Company operates: 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Six months ended

 

 

June 30,

 

June 30,

 

 
2014 

 
2013 

 
2014 

 
2013 

 

 

 

 

 

 

 

 

 

Net Sales:

 

 

 

 

 

 

 

 

North America

$
79,718 

$
76,789 

$
159,516 

$
151,592 

South America

 
32,920 

 
46,715 

 
66,836 

 
89,144 

Europe and Other

 
49,461 

 
46,329 

 
97,078 

 
87,959 

Total net sales

$
162,099 

$
169,833 

$
323,430 

$
328,695 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

December 31,

 

 
2014 

 
2013 

 

 

 

 

 

Long-term Assets:

 

 

 

 

North America

$
50,494 

$
49,853 

South America

 
131,260 

 
154,226 

Europe and Other

 
17,160 

 
14,641 

Total long-term assets

$
198,914 

$
218,720