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Segment Reporting

6 Months Ended

Jun. 30, 2019

(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 10K. 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				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Net Sales:
Control Devices	$	114,067	$	109,956	$	224,186	$	225,313
Inter-segment sales		2,078		2,481		3,939		4,662
Control Devices net sales		116,145		112,437		228,125		229,975
Electronics ^(D)		91,560		90,313		182,406		180,341
Inter-segment sales		10,325		9,771		19,047		20,243
Electronics net sales		101,885		100,084		201,453		200,584
PST		16,614		20,333		33,946		40,878
Inter-segment sales		-		-		6		2
PST net sales		16,614		20,333		33,952		40,880
Eliminations		(12,403)		(12,252)		(22,992)		(24,907)
Total net sales	$	222,241	$	220,602	$	440,538	$	446,532
Operating Income (Loss):
Control Devices	$	44,367	$	17,160	$	56,315	$	35,039
Electronics		7,555		8,276		16,586		16,156
PST		6,414		735		7,084		885
Unallocated Corporate ^(A)		(9,150)		(6,990)		(19,100)		(16,052)
Total operating income	$	49,186	$	19,181	$	60,885	$	36,028
Depreciation and Amortization:
Control Devices	$	3,197	$	2,897	$	6,291	$	5,692
Electronics		2,510		2,252		4,907		4,543
PST		1,695		1,740		3,220		4,245
Unallocated Corporate		216		199		429		396
Total depreciation and amortization^(B)	$	7,618	$	7,088	$	14,847	$	14,876
Interest (Income) Expense, net:
Control Devices	$	195	$	18	$	377	$	37
Electronics		63		23		119		57
PST		(59)		194		49		532
Unallocated Corporate		802		935		1,459		1,898
Total interest expense, net	$	1,001	$	1,170	$	2,004	$	2,524
Capital Expenditures:
Control Devices	$	4,042	$	3,312	$	7,534	$	9,058
Electronics		3,356		1,394		7,094		4,167
PST		805		696		1,624		1,955
Unallocated Corporate^(C)		592		938		1,227		1,665
Total capital expenditures	$	8,795	$	6,340	$	17,479	$	16,845

June 30,

December 31,

2019

2018

Total Assets:

Control Devices

189,725

175,708

Electronics

277,961

265,838

PST

90,707

81,002

Corporate ^(C)

360,870

359,837

Eliminations

(323,216)

(322,866)

Total assets

596,047

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				Six months ended
	June 30,				June 30,
	2019		2018		2019		2018
Net Sales:
North America	$	123,293	$	120,885	$	242,660	$	245,314
South America		16,614		20,333		33,946		40,878
Europe and Other		82,334		79,384		163,932		160,340
Total net sales	$	222,241	$	220,602	$	440,538	$	446,532

June 30,

December 31,

2019

2018

Long-term Assets:

North America

92,596

86,763

South America

44,220

45,408

Europe and Other

123,142

107,171

Total long-term assets

259,958

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.