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Segment Reporting
 12 Months Ended
Dec. 31, 2017
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.

 

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, driver information systems and camera-based vision systems, monitors and related products. 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 corporate accounting/finance, executive administration, human resources, information technology and legal.

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





 

 

 

 

 

 

Years ended December 31

 

 2017 

 

 2016 

 

 2015 

Net Sales:

 

 

 

 

 

 

Control Devices

$

 447,528 

$

 408,132 

$

 333,010 

Inter-segment sales

 

 5,044 

 

 1,826 

 

 2,055 

Control Devices net sales

 

 452,572 

 

 409,958 

 

 335,065 



 

 

 

 

 

 

Electronics (D)

 

 282,383 

 

 205,256 

 

 216,544 

Inter-segment sales

 

 39,501 

 

 33,361 

 

 22,904 

Electronics net sales

 

 321,884 

 

 238,617 

 

 239,448 



 

 

 

 

 

 

PST

 

 94,533 

 

 82,589 

 

 95,258 

Inter-segment sales

 

 563 

 

 -

 

 -

PST net sales

 

 95,096 

 

 82,589 

 

 95,258 



 

 

 

 

 

 

Eliminations

 

 (45,108)

 

 (35,187)

 

 (24,959)

Total net sales

$

 824,444 

$

 695,977 

$

 644,812 

Operating Income (Loss):

 

 

 

 

 

 

Control Devices

$

 72,555 

$

 61,815 

$

 44,690 

Electronics (D)

 

 18,119 

 

 14,798 

 

 13,784 

PST

 

 2,661 

 

 (3,462)

 

 (7,542)

Unallocated Corporate (A)

 

 (35,965)

 

 (29,069)

 

 (23,117)

Total operating income

$

 57,370 

$

 44,082 

$

 27,815 

Depreciation and Amortization:

 

 

 

 

 

 

Control Devices

$

 10,887 

$

 10,276 

$

 9,260 

Electronics (D)

 

 8,143 

 

 3,971 

 

 3,666 

PST

 

 8,316 

 

 8,559 

 

 9,272 

Unallocated Corporate

 

 584 

 

 452 

 

 211 

Total depreciation and amortization (B)

$

 27,930 

$

 23,258 

$

 22,409 

Interest Expense, net:

 

 

 

 

 

 

Control Devices

$

 103 

$

 226 

$

 326 

Electronics

 

 119 

 

 142 

 

 161 

PST

 

 1,812 

 

 3,396 

 

 2,957 

Unallocated Corporate

 

 3,749 

 

 2,513 

 

 2,921 

Total interest expense, net

$

 5,783 

$

 6,277 

$

 6,365 

Capital Expenditures:

 

 

 

 

 

 

Control Devices

$

 17,484 

$

 13,261 

$

 15,094 

Electronics (D)

 

 8,158 

 

 5,665 

 

 6,538 

PST

 

 3,831 

 

 3,213 

 

 5,889 

Unallocated Corporate(C)

 

 2,697 

 

 2,337 

 

 1,214 

Total capital expenditures

$

 32,170 

$

 24,476 

$

 28,735 









 

 

 

 



December 31,

 

December 31,



 

 2017 

 

 2016 

Total Assets:

 

 

 

 

Control Devices

$

 164,632 

$

 150,623 

Electronics (D)

 

 252,324 

 

 99,964 

PST

 

 100,382 

 

 107,405 

Corporate (C)

 

 377,657 

 

 287,031 

Eliminations

 

 (335,958)

 

 (250,494)

Total assets

$

 559,037 

$

 394,529 



 

 

 

 



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



 

 

 

 

 

 



 

 

 

 



 

 

 

 

Years ended December 31

 

 2017 

 

 2016 

 

 2015 

Net Sales:

 

 

 

 

 

 

North America

$

 471,770 

$

 428,046 

$

 369,032 

South America

 

 94,533 

 

 82,589 

 

 95,258 

Europe and Other (D)

 

 258,141 

 

 185,342 

 

 180,522 

Total net sales

$

 824,444 

$

 695,977 

$

 644,812 





 

 

 

 



December 31,

 

December 31,



 

 2017 

 

 2016 



 

 

 

 

Long-term Assets:

 

 

 

 

North America

$

 89,997 

$

 73,835 

South America

 

 58,989 

 

 63,497 

Europe and Other (D)

 

 106,682 

 

 16,304 

Total long-term assets

$

 255,668 

$

 153,636 



























(A)

     Unallocated Corporate expenses include, among other items, accounting/finance, human resources, information           technology and legal 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 headquarter building and information technology assets, equity investments and investments in subsidiaries.

(D)

     The amounts for 2017 include the Orlaco business which was acquired on January 31, 2017 as disclosed in Note 2.