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Segment Reporting

9 Months Ended

Sep. 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 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				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
Net Sales:
Control Devices	$	108,690	$	108,402	$	332,876	$	333,715
Inter-segment sales		1,185		1,556		5,124		6,218
Control Devices net sales		109,875		109,958		338,000		339,933
Electronics		78,154		81,587		260,560		261,928
Inter-segment sales		8,867		9,067		27,914		29,310
Electronics net sales		87,021		90,654		288,474		291,238
PST		16,542		18,864		50,488		59,742
Inter-segment sales		-		-		6		2
PST net sales		16,542		18,864		50,494		59,744
Eliminations		(10,052)		(10,623)		(33,044)		(35,530)
Total net sales	$	203,386	$	208,853	$	643,924	$	655,385
Operating Income (Loss):
Control Devices	$	9,767	$	16,297	$	66,082	$	51,336
Electronics		7,661		8,951		24,247		25,107
PST		(451)		668		6,633		1,553
Unallocated Corporate ^(A)		(7,654)		(7,604)		(26,754)		(23,656)
Total operating income	$	9,323	$	18,312	$	70,208	$	54,340
Depreciation and Amortization:
Control Devices	$	3,310	$	3,070	$	9,601	$	8,762
Electronics		2,708		2,213		7,615		6,756
PST		1,571		1,583		4,791		5,828
Unallocated Corporate		297		200		726		596
Total depreciation and amortization^(B)	$	7,886	$	7,066	$	22,733	$	21,942
Interest (Income) Expense, net:
Control Devices	$	189	$	19	$	566	$	56
Electronics		79		32		198		89
PST		69		230		118		762
Unallocated Corporate		812		874		2,271		2,772
Total interest expense, net	$	1,149	$	1,155	$	3,153	$	3,679
Capital Expenditures:
Control Devices	$	3,175	$	3,938	$	10,709	$	12,996
Electronics		5,473		725		12,567		4,892
PST		1,243		522		2,867		2,477
Unallocated Corporate^(C)		683		786		1,910		2,451
Total capital expenditures	$	10,574	$	5,971	$	28,053	$	22,816

September 30,

December 31,

2019

2018

Total Assets:

Control Devices

194,016

175,708

Electronics

276,763

265,838

PST

85,739

81,002

Corporate ^(C)

359,351

359,837

Eliminations

(321,865)

(322,866)

Total assets

594,004

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				Nine months ended
	September 30,				September 30,
	2019		2018		2019		2018
Net Sales:
North America	$	115,816	$	119,475	$	358,476	$	364,789
South America		16,542		18,864		50,488		59,742
Europe and Other		71,028		70,514		234,960		230,854
Total net sales	$	203,386	$	208,853	$	643,924	$	655,385

September 30,

December 31,

2019

2018

Long-term Assets:

North America

92,575

86,763

South America

48,174

45,408

Europe and Other

122,013

107,171

Total long-term assets

262,762

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, leased assets, information technology assets, equity investments and investments in subsidiaries.