(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 other driver information systems and includes the 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 2017 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 March 31,		2018		2017
Net Sales:
Control Devices	$	115,357	$	118,873
Inter-segment sales		2,181		783
Control Devices net sales		117,538		119,656
Electronics (D)		90,028		63,805
Inter-segment sales		10,472		11,356
Electronics net sales		100,500		75,161
PST		20,545		21,633
Inter-segment sales		2		-
PST net sales		20,547		21,633

Eliminations		(12,655)		(12,139)
Total net sales	$	225,930	$	204,311
Operating Income (Loss):
Control Devices	$	17,879	$	19,084
Electronics (D)		7,880		5,557
PST		150		579
Unallocated Corporate (A)		(9,062)		(10,056)
Total operating income	$	16,847	$	15,164
Depreciation and Amortization:
Control Devices	$	2,795	$	2,699
Electronics (D)		2,291		1,572
PST		2,505		2,088
Unallocated Corporate		197		99
Total depreciation and amortization (B)	$	7,788	$	6,458
Interest Expense, net:
Control Devices	$	19	$	54
Electronics		34		38
PST		338		572
Unallocated Corporate		963		746
Total interest expense, net	$	1,354	$	1,410
Capital Expenditures:
Control Devices	$	5,746	$	3,447
Electronics (D)		2,773		2,351
PST		1,259		884
Unallocated Corporate(C)		727		583
Total capital expenditures	$	10,505	$	7,265


		March 31,		December 31,
		2018		2017
Total Assets:
Control Devices	$	174,608	$	164,632
Electronics		276,252		252,324
PST		99,102		100,382
Corporate (C)		366,349		377,657
Eliminations		(336,109)		(335,958)
Total assets	$	580,202	$	559,037

(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 March 31		2018		2017
Net Sales:
North America	$	124,429	$	123,386
South America		20,545		21,633
Europe and Other (D)		80,956		59,292
Total net sales	$	225,930	$	204,311


		March 31,		December 31,
		2018		2017

Long-term Assets:
North America	$	93,615	$	89,997
South America		57,430		58,989
Europe and Other		110,464		106,682
Total long-term assets	$	261,509	$	255,668

(D) The amount for 2017 includes two months of net sales from the acquisition date of January 31, 2017 related to Orlaco which is disclosed in Note 4.