(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				Nine months ended
		September 30,				September 30,
		2018		2017		2018		2017
Net Sales:
Control Devices	$	108,402	$	106,842	$	333,715	$	339,716
Inter-segment sales		1,556		1,118		6,218		3,269
Control Devices net sales		109,958		107,960		339,933		342,985
Electronics (D)		81,587		71,354		261,928		206,769
Inter-segment sales		9,067		8,959		29,310		30,538
Electronics net sales		90,654		80,313		291,238		237,307
PST		18,864		25,386		59,742		70,519
Inter-segment sales		-		145		2		145
PST net sales		18,864		25,531		59,744		70,664

Eliminations		(10,623)		(10,222)		(35,530)		(33,952)
Total net sales	$	208,853	$	203,582	$	655,385	$	617,004
Operating Income (Loss):
Control Devices	$	16,297	$	16,249	$	51,336	$	55,257
Electronics (D)		8,951		4,896		25,107		13,267
PST		668		1,018		1,553		2,720
Unallocated Corporate (A)		(7,604)		(8,867)		(23,656)		(27,108)
Total operating income	$	18,312	$	13,296	$	54,340	$	44,136
Depreciation and Amortization:
Control Devices	$	3,070	$	2,664	$	8,762	$	8,050
Electronics (D)		2,213		2,136		6,756		5,947
PST		1,583		2,115		5,828		6,299
Unallocated Corporate		200		181		596		376
Total depreciation and amortization (B)	$	7,066	$	7,096	$	21,942	$	20,672
Interest Expense, net:
Control Devices	$	19	$	19	$	56	$	84
Electronics		32		24		89		68
PST		230		378		762		1,482
Unallocated Corporate		874		1,087		2,772		2,802
Total interest expense, net	$	1,155	$	1,508	$	3,679	$	4,436
Capital Expenditures:
Control Devices	$	3,938	$	5,523	$	12,996	$	13,318
Electronics (D)		725		2,417		4,892		6,451
PST		522		974		2,477		2,899
Unallocated Corporate(C)		786		811		2,451		2,224
Total capital expenditures	$	5,971	$	9,725	$	22,816	$	24,892


	September 30,			December 31,
			2018		2017
Total Assets:
Control Devices		$	183,221	$	164,632
Electronics			265,908		252,324
PST			81,267		100,382
Corporate (C)			346,842		377,657
Eliminations			(317,986)		(335,958)
Total assets		$	559,252	$	559,037

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,
		2018		2017		2018		2017
Net Sales:
North America	$	119,475	$	113,402	$	364,789	$	358,275
South America		18,864		25,386		59,742		70,519
Europe and Other (D)		70,514		64,794		230,854		188,210
Total net sales	$	208,853	$	203,582	$	655,385	$	617,004


	September 30,			December 31,
			2018		2017

Long-term Assets:
North America		$	86,895	$	89,997
South America			44,728		58,989
Europe and Other			107,719		106,682
Total long-term assets		$	239,342	$	255,668

(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.

(D) The amount for the nine months ended September 30, 2017 includes eight months of activity from the acquisition date of January 31, 2017 related to Orlaco which is disclosed in Note 4.