(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, 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, “Summary of Significant Accounting Policies” of the Company’s 2018 Form 10‑K. 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:



Three months ended March 31,	2019		2018
Net Sales:
Control Devices	$	110,119	$	115,357
Inter-segment sales		1,861		2,181
Control Devices net sales		111,980		117,538
Electronics		90,846		90,028
Inter-segment sales		8,722		10,472
Electronics net sales		99,568		100,500
PST		17,332		20,545
Inter-segment sales		6		2
PST net sales		17,338		20,547
Eliminations		(10,589)		(12,655)
Total net sales	$	218,297	$	225,930
Operating Income (Loss):
Control Devices	$	11,948	$	17,879
Electronics		9,031		7,880
PST		670		150
Unallocated Corporate (A)		(9,950)		(9,062)
Total operating income	$	11,699	$	16,847
Depreciation and Amortization:
Control Devices	$	3,094	$	2,795
Electronics		2,397		2,291
PST		1,525		2,505
Unallocated Corporate		213		197
Total depreciation and amortization (B)	$	7,229	$	7,788
Interest Expense, net:
Control Devices	$	182	$	19
Electronics		56		34
PST		108		338
Unallocated Corporate		657		963
Total interest expense, net	$	1,003	$	1,354
Capital Expenditures:
Control Devices	$	3,492	$	5,746
Electronics		3,738		2,773
PST		819		1,259
Unallocated Corporate(C)		635		727
Total capital expenditures	$	8,684	$	10,505


	March 31,		December 31,
	2019		2018
Total Assets:
Control Devices	$	191,963	$	175,708
Electronics		255,887		265,838
PST		81,407		81,002
Corporate (C)		368,852		359,837
Eliminations		(315,846)		(322,866)
Total assets	$	582,263	$	559,519

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,	2019		2018
Net Sales:
North America	$	119,367	$	124,429
South America		17,332		20,545
Europe and Other		81,598		80,956
Total net sales	$	218,297	$	225,930


	March 31,		December 31,
	2019		2018
Long-term Assets:
North America	$	92,315	$	86,763
South America		44,996		45,408
Europe and Other		121,536		107,171
Total long-term assets	$	258,847	$	239,342

(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)

Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, information technology assets, equity investments and investments in subsidiaries.