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Segment Reporting
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Reporting

(13) 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 third quarter of 2014 the Company sold its Wiring business segment, which designed and manufactured wiring harness products and assembled instrument panels for sale principally to the commercial, agricultural and off-highway vehicle markets.  As such, for all periods presented the Company reported this business as discontinued operations in the Company’s condensed consolidated financial statements and therefore 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 represent 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.

 

Also, during the first half of 2014 the Company 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 used 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

 

Nine months ended

 

 

September 30,

 

September 30,

 

 
2014 

 
2013 

 
2014 

 
2013 

Net Sales:

 

 

 

 

 

 

 

 

Control Devices

$
78,358 

$
73,061 

$
232,095 

$
219,408 

Inter-segment sales

 
640 

 
775 

 
2,133 

 
2,345 

Control Devices net sales

 
78,998 

 
73,836 

 
234,228 

 
221,753 

 

 

 

 

 

 

 

 

 

Electronics

 
54,951 

 
44,869 

 
157,808 

 
138,073 

Inter-segment sales

 
7,223 

 
10,333 

 
30,554 

 
32,048 

Electronics net sales

 
62,174 

 
55,202 

 
188,362 

 
170,121 

 

 

 

 

 

 

 

 

 

PST

 
37,029 

 
43,626 

 
103,865 

 
132,770 

Inter-segment sales

 

 -

 

 -

 

 -

 

 -

PST net sales

 
37,029 

 
43,626 

 
103,865 

 
132,770 

 

 

 

 

 

 

 

 

 

Eliminations

 
(7,863)

 
(11,108)

 
(32,687)

 
(34,393)

Total net sales

$
170,338 

$
161,556 

$
493,768 

$
490,251 

Operating Income (Loss):

 

 

 

 

 

 

 

 

Control Devices

$
10,000 

$
8,362 

$
27,152 

$
24,981 

Electronics

 
4,370 

 
5,563 

 
14,038 

 
16,092 

PST (A)

 
4,467 

 
2,497 

 
(30,057)

 
5,771 

Unallocated Corporate (B)

 
(5,078)

 
(3,820)

 
(14,161)

 
(13,999)

Total operating income (loss)

$
13,759 

$
12,602 

$
(3,028)

$
32,845 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

Control Devices

$
2,412 

$
2,429 

$
7,165 

$
7,434 

Electronics

 
1,064 

 
1,145 

 
3,302 

 
3,666 

PST

 
3,501 

 
3,409 

 
10,123 

 
10,895 

Corporate

 
47 

 
44 

 
126 

 
138 

Total depreciation and amortization (C)

$
7,024 

$
7,027 

$
20,716 

$
22,133 

Interest Expense, net:

 

 

 

 

 

 

 

 

Control Devices

$
83 

$
58 

$
216 

$
137 

Electronics

 
199 

 
197 

 
632 

 
570 

PST

 
731 

 
277 

 
2,191 

 
836 

Corporate

 
4,044 

 
3,963 

 
12,020 

 
11,906 

Total interest expense, net

$
5,057 

$
4,495 

$
15,059 

$
13,449 

Capital Expenditures:

 

 

 

 

 

 

 

 

Control Devices

$
4,094 

$
3,164 

$
9,356 

$
8,061 

Electronics

 
1,345 

 
1,381 

 
4,011 

 
2,369 

PST

 
1,306 

 
1,908 

 
5,035 

 
5,000 

Corporate

 
25 

 
107 

 
132 

 
327 

Total capital expenditures

$
6,770 

$
6,560 

$
18,534 

$
15,757 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 
2014 

 
2013 

Total Assets:

 

 

 

 

Control Devices

$
119,633 

$
105,730 

Electronics

 
98,878 

 
105,352 

PST

 
203,692 

 
237,649 

Corporate (D)

 
341,125 

 
301,889 

Eliminations

 
(251,592)

 
(259,267)

Total assets

$
511,736 

$
491,353 

 

 

 

 

 

 

(A) The PST operating loss for the three and nine months ended September 30, 2014 includes a goodwill impairment charge (benefit) of ($5,802) and $23,498, respectively.

(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 for each of the geographic areas in which the Company operates: 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

Nine months ended

 

 

September 30,

 

September 30,

 

 
2014 

 
2013 

 
2014 

 
2013 

 

 

 

 

 

 

 

 

 

Net Sales:

 

 

 

 

 

 

 

 

North America

$
86,744 

$
76,251 

$
246,260 

$
227,843 

South America

 
37,029 

 
43,626 

 
103,865 

 
132,770 

Europe and Other

 
46,565 

 
41,679 

 
143,643 

 
129,638 

Total net sales

$
170,338 

$
161,556 

$
493,768 

$
490,251 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 
2014 

 
2013 

 

 

 

 

 

Long-term Assets:

 

 

 

 

North America

$
52,950 

$
49,853 

South America

 
121,380 

 
154,226 

Europe and Other

 
15,564 

 
14,641 

Total long-term assets

$
189,894 

$
218,720