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Segment Reporting
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
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.

 

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 consolidated financial statements and therefore excluded it from the segment disclosures herein. See Note 2 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.  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:

 

 

 

 

 

 

 

 

 

Years ended December 31

 
2014 

 
2013 

 
2012 

Net Sales:

 

 

 

 

 

 

Control Devices

$
306,658 

$
291,145 

$
267,860 

Inter-segment sales

 
3,080 

 
2,875 

 
3,905 

Control Devices net sales

 
309,738 

 
294,020 

 
271,765 

 

 

 

 

 

 

 

Electronics

 
214,141 

 
189,809 

 
164,196 

Inter-segment sales

 
35,163 

 
41,137 

 
51,857 

Electronics net sales

 
249,304 

 
230,946 

 
216,053 

 

 

 

 

 

 

 

PST

 
139,780 

 
178,532 

 
180,410 

Inter-segment sales

 

 -

 

 -

 

 -

PST net sales

 
139,780 

 
178,532 

 
180,410 

 

 

 

 

 

 

 

Eliminations

 
(38,243)

 
(44,012)

 
(55,762)

Total net sales

$
660,579 

$
659,486 

$
612,466 

Operating Income (Loss):

 

 

 

 

 

 

Control Devices

$
35,387 

$
32,331 

$
20,945 

Electronics

 
17,444 

 
20,732 

 
15,851 

PST (A)

 
(59,587)

 
7,211 

 
583 

Unallocated Corporate (B)

 
(19,067)

 
(17,871)

 
(17,474)

Total operating income (loss)

$
(25,823)

$
42,403 

$
19,905 

Depreciation and Amortization:

 

 

 

 

 

 

Control Devices

$
9,545 

$
9,877 

$
9,119 

Electronics

 
4,432 

 
4,800 

 
4,485 

PST

 
12,998 

 
14,426 

 
15,613 

Corporate

 
130 

 
183 

 
188 

Total depreciation and amortization (C)

$
27,105 

$
29,286 

$
29,405 

Interest Expense, net:

 

 

 

 

 

 

Control Devices

$
303 

$
182 

$
254 

Electronics

 
695 

 
760 

 
1,342 

PST

 
2,764 

 
1,174 

 
2,375 

Corporate

 
13,118 

 
15,980 

 
15,898 

Total interest expense, net

$
16,880 

$
18,096 

$
19,869 

Capital Expenditures:

 

 

 

 

 

 

Control Devices

$
13,658 

$
9,906 

$
8,788 

Electronics

 
3,541 

 
4,667 

 
3,435 

PST

 
6,161 

 
6,663 

 
9,102 

Corporate

 
156 

 
340 

 
1,584 

Total capital expenditures

$
23,516 

$
21,576 

$
22,909 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31

 
2014 

 
2013 

Total Assets:

 

 

 

 

Control Devices

$
115,703 

$
105,730 

Electronics

 
95,140 

 
105,352 

PST

 
159,980 

 
237,649 

Corporate (D)

 
279,013 

 
301,889 

Eliminations

 
(251,085)

 
(259,267)

Total assets

$
398,751 

$
491,353 

 

 

 

 

 

 

 

 

 

 

 

 

(A)

The PST operating loss for the year ended December 31, 2014 includes a goodwill impairment charge of $51,458.

 

(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 the geographic areas in which the Company operates:

 

 

 

 

 

 

 

 

 

 

Years ended December 31

 
2014 

 
2013 

 
2012 

 

 

 

 

 

 

 

Net Sales:

 

 

 

 

 

 

North America

$
330,516 

$
301,592 

$
277,850 

South America

 
139,780 

 
178,532 

 
180,410 

Europe and Other

 
190,283 

 
179,362 

 
154,206 

Total net sales

$
660,579 

$
659,486 

$
612,466 

 

 

 

 

 

 

 

 

 

 

 

As of December 31

 
2014 

 
2013 

 

 

 

 

 

Long-term Assets:

 

 

 

 

North America

$
53,406 

$
49,853 

South America

 
85,433 

 
154,226 

Europe and Other

 
14,401 

 
14,641 

Total long-term assets

$
153,240 

$
218,720