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Segment Reporting
 12 Months Ended
Dec. 31, 2016
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 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.



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.



The financial information presented below is for our three reportable operating segments and includes adjustments for unallocated corporate costs and intercompany eliminations, where applicable.  Such costs and eliminations do not meet the requirements for being classified as an operating segment. Corporate costs include various support functions, such as information technology, corporate finance, legal, executive administration and human resources.

A summary of financial information by reportable segment is as follows:





 

 

 

 

 

 

Years ended December 31

 

 2016 

 

 2015 

 

 2014 

Net Sales:

 

 

 

 

 

 

Control Devices

$

 408,132 

$

 333,010 

$

 306,658 

Inter-segment sales

 

 1,826 

 

 2,055 

 

 3,080 

Control Devices net sales

 

 409,958 

 

 335,065 

 

 309,738 



 

 

 

 

 

 

Electronics

 

 205,256 

 

 216,544 

 

 214,141 

Inter-segment sales

 

 33,361 

 

 22,904 

 

 35,163 

Electronics net sales

 

 238,617 

 

 239,448 

 

 249,304 



 

 

 

 

 

 

PST

 

 82,589 

 

 95,258 

 

 139,780 

Inter-segment sales

 

 -

 

 -

 

 -

PST net sales

 

 82,589 

 

 95,258 

 

 139,780 



 

 

 

 

 

 

Eliminations

 

 (35,187)

 

 (24,959)

 

 (38,243)

Total net sales

$

 695,977 

$

 644,812 

$

 660,579 

Operating Income (Loss):

 

 

 

 

 

 

Control Devices

$

 61,815 

$

 44,690 

$

 35,387 

Electronics

 

 14,798 

 

 13,784 

 

 17,444 

PST

 

 (3,462)

 

 (7,542)

 

 (59,587)

Unallocated Corporate (A)

 

 (29,069)

 

 (23,117)

 

 (19,067)

Total operating income (loss)

$

 44,082 

$

 27,815 

$

 (25,823)

Depreciation and Amortization:

 

 

 

 

 

 

Control Devices

$

 10,276 

$

 9,260 

$

 9,545 

Electronics

 

 3,971 

 

 3,666 

 

 4,432 

PST

 

 8,559 

 

 9,272 

 

 12,998 

Unallocated Corporate

 

 452 

 

 211 

 

 130 

Total depreciation and amortization (B)

$

 23,258 

$

 22,409 

$

 27,105 

Interest Expense, net:

 

 

 

 

 

 

Control Devices

$

 226 

$

 326 

$

 303 

Electronics

 

 142 

 

 161 

 

 695 

PST

 

 3,396 

 

 2,957 

 

 2,764 

Unallocated Corporate

 

 2,513 

 

 2,921 

 

 13,118 

Total interest expense, net

$

 6,277 

$

 6,365 

$

 16,880 

Capital Expenditures:

 

 

 

 

 

 

Control Devices

$

 13,261 

$

 15,094 

$

 13,658 

Electronics

 

 5,665 

 

 6,538 

 

 3,541 

PST

 

 3,213 

 

 5,889 

 

 6,161 

Unallocated Corporate (C)

 

 2,337 

 

 1,214 

 

 156 

Total capital expenditures

$

 24,476 

$

 28,735 

$

 23,516 









 

 

 

 



 

December 31,

 

December 31,



 

 2016 

 

 2015 

Total Assets:

 

 

 

 

Control Devices

$

 150,623 

$

 127,649 

Electronics

 

 99,964 

 

 97,443 

PST

 

 107,405 

 

 100,143 

Corporate (C)

 

 287,031 

 

 288,806 

Eliminations

 

 (250,494)

 

 (249,789)

Total assets

$

 394,529 

$

 364,252 



 

 

 

 





 

 

 

 



(A)

     Unallocated Corporate expenses include, among other items, accounting, finance, legal, information technology costs as

     well as share-based compensation.

 



(B)

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



(C)

     Corporate assets consist primarily of cash, intercompany loan receivables, capital expenditures for the new headquarter building, 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:



 

 

 

 

 

 



 

 2016 

 

 2015 

 

 2014 



 

 

 

 

 

 

Net Sales:

 

 

 

 

 

 

North America

$

 428,046 

$

 369,032 

$

 330,516 

South America

 

 82,589 

 

 95,258 

 

 139,780 

Europe and Other

 

 185,342 

 

 180,522 

 

 190,283 

Total net sales

$

 695,977 

$

 644,812 

$

 660,579 





 

 

 

 



 

December 31,

 

December 31,



 

 2016 

 

 2015 



 

 

 

 

Long-term Assets:

 

 

 

 

North America

$

 73,835 

$

 60,099 

South America

 

 63,497 

 

 56,943 

Europe and Other

 

 16,304 

 

 15,301 

Total long-term assets

$

 153,636 

$

 132,343