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Segment Reporting
 9 Months Ended
Sep. 30, 2017
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.

 

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 and includes the recently acquired Orlaco business which designs and manufactures camera-based vision systems, monitors and related products using its vision processing technology.  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, “Summary of Significant Accounting Policies” of the Company's 2016 Form 10-K. The Company's management evaluates the performance of its reportable segments based primarily on revenues from external customers 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:





 

 

 

 

 

 

 

 



 

Three months ended

 

Nine months ended



 

September 30,

 

 

September 30,



 

 2017 

 

 2016 

 

 2017 

 

 2016 

Net Sales:

 

 

 

 

 

 

 

 

Control Devices

$

 106,842 

$

 103,700 

$

 339,716 

$

 304,957 

Inter-segment sales

 

 1,118 

 

 430 

 

 3,269 

 

 1,448 

Control Devices net sales

 

 107,960 

 

 104,130 

 

 342,985 

 

 306,405 



 

 

 

 

 

 

 

 

Electronics

 

 71,354 

 

 47,804 

 

 206,769 

 

 158,201 

Inter-segment sales

 

 8,959 

 

 9,495 

 

 30,538 

 

 24,706 

Electronics net sales

 

 80,313 

 

 57,299 

 

 237,307 

 

 182,907 



 

 

 

 

 

 

 

 

PST

 

 25,386 

 

 22,342 

 

 70,519 

 

 60,207 

Inter-segment sales

 

 145 

 

 -

 

 145 

 

 -

PST net sales

 

 25,531 

 

 22,342 

 

 70,664 

 

 60,207 



 

 

 

 

 

 

 

 

Eliminations

 

 (10,222)

 

 (9,925)

 

 (33,952)

 

 (26,154)

Total net sales

$

 203,582 

$

 173,846 

$

 617,004 

$

 523,365 

Operating Income (Loss):

 

 

 

 

 

 

 

 

Control Devices

$

 16,249 

$

 15,319 

$

 55,257 

$

 47,133 

Electronics

 

 4,896 

 

 3,735 

 

 13,267 

 

 12,050 

PST

 

 1,018 

 

 29 

 

 2,720 

 

 (4,179)

Unallocated Corporate (A)

 

 (8,867)

 

 (7,303)

 

 (27,108)

 

 (21,092)

Total operating income

$

 13,296 

$

 11,780 

$

 44,136 

$

 33,912 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

Control Devices

$

 2,664 

$

 2,561 

$

 8,050 

$

 7,345 

Electronics

 

 2,136 

 

 996 

 

 5,947 

 

 3,076 

PST

 

 2,115 

 

 2,307 

 

 6,299 

 

 6,388 

Unallocated Corporate

 

 181 

 

 115 

 

 376 

 

 309 

Total depreciation and amortization (B)

$

 7,096 

$

 5,979 

$

 20,672 

$

 17,118 

Interest Expense, net:

 

 

 

 

 

 

 

 

Control Devices

$

 19 

$

 56 

$

 84 

$

 172 

Electronics

 

 24 

 

 33 

 

 68 

 

 196 

PST

 

 378 

 

 934 

 

 1,482 

 

 2,686 

Unallocated Corporate

 

 1,087 

 

 661 

 

 2,802 

 

 1,984 

Total interest expense, net

$

 1,508 

$

 1,684 

$

 4,436 

$

 5,038 

Capital Expenditures:

 

 

 

 

 

 

 

 

Control Devices

$

 5,523 

$

 3,229 

$

 13,318 

$

 9,260 

Electronics

 

 2,417 

 

 1,244 

 

 6,451 

 

 5,229 

PST

 

 974 

 

 640 

 

 2,899 

 

 2,516 

Unallocated Corporate(C)

 

 811 

 

 1,365 

 

 2,224 

 

 1,479 

Total capital expenditures

$

 9,725 

$

 6,478 

$

 24,892 

$

 18,484 

















 

 

 

 

 

 

 

 



 

 

 

 

September 30,

 

December 31,



 

 

 

 

 

 2017 

 

 2016 

Total Assets:

 

 

 

 

 

 

 

 

Control Devices

 

 

 

 

$

 166,641 

$

 150,623 

Electronics

 

 

 

 

 

 245,568 

 

 99,964 

PST

 

 

 

 

 

 108,162 

 

 107,405 

Corporate (C)

 

 

 

 

 

 356,396 

 

 287,031 

Eliminations

 

 

 

 

 

 (336,498)

 

 (250,494)

Total assets

 

 

 

 

$

 540,269 

$

 394,529 



 

 

 

 

 

 

 

 





(A) Unallocated Corporate expenses include, among other items, finance, legal, human resources and information technology costs and share-based compensation.

(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, fixed assets for the corporate headquarter building, equity investments and investments in subsidiaries.





The following tables present 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,



 

 2017 

 

 2016 

 

 2017 

 

 2016 

Net Sales:

 

 

 

 

 

 

 

 

North America

$

 113,402 

$

 108,605 

$

 358,275 

$

 321,973 

South America

 

 25,386 

 

 22,342 

 

 70,519 

 

 60,207 

Europe and Other (D)

 

 64,794 

 

 42,899 

 

 188,210 

 

 141,185 

Total net sales

$

 203,582 

$

 173,846 

$

 617,004 

$

 523,365 







 



 

 

 

 

 

 

 

 



 

 

 

 

September 30,

 

December 31,



 

 

 

 

 

 2017 

 

 2016 



 

 

 

 

 

 

 

 

Long-term Assets:

 

 

 

 

 

 

 

 

North America

 

 

 

 

$

 76,539 

$

 73,835 

South America

 

 

 

 

 

 62,500 

 

 63,497 

Europe and Other (D)

 

 

 

 

 

 104,057 

 

 16,304 

Total long-term assets

 

 

 

 

$

 243,096 

$

 153,636 





























(D) The amounts for 2017 include net sales and long-term assets related to Orlaco which is disclosed in Note 3.