13. SEGMENTS

The Company operates in one industry with three reportable operating segments, which are geographic in nature. The segments consist of North America, Asia and Europe. The primary criteria by which financial performance is evaluated and resources are allocated are net sales and income from operations. The following is a summary of key financial data:

	Three Months Ended							Six Months Ended
	June 30,							June 30,
	2016			2015				2016			2015
Net Sales to External Customers:
North America	$	67,349			$	76,504		$	133,650		$	153,264
Asia		43,724				48,610			79,485			94,131
Europe		20,549				20,544			39,670			40,278
	$	131,622			$	145,658		$	252,805		$	287,673

Net Sales:
North America	$	70,475			$	84,491		$	139,730		$	171,508
Asia		66,969				80,189			126,617			153,338
Europe		23,432				41,967			45,805			83,504
Less intercompany net sales		(29,254	)			(60,989	)		(59,347	)		(120,677	)
	$	131,622			$	145,658		$	252,805		$	287,673

Income (Loss) from Operations:
North America	$	1,392			$	(1,215	)	$	(41,796	)	$	2,255
Asia		5,451				5,161			(33,358	)		5,713
Europe		3,121				3,506			(18,290	)		8,530
	$	9,964			$	7,452		$	(93,444	)	$	16,498


	June 30,			December 31,
		2016				2015
Total Assets:
North America	$	185,376			$	238,930
Asia		170,161				231,063
Europe		89,956				108,512
	$	445,493			$	578,505

Net Sales – Segment net sales are attributed to individual segments based on the geographic source of the billing for such customer sales. Intercompany sales include finished products manufactured in foreign countries which are then transferred to the United States and Europe for sale; finished goods manufactured in the United States which are transferred to Europe and Asia for sale; and semi-finished components manufactured in the United States which are sold to Asia for further processing.

Income from operations represents net sales less operating costs and expenses and does not include any amounts related to intercompany transactions.

The following items are included in the segment data presented above:

Impairment Charges – As discussed in Note 4, Goodwill and Other Intangible Assets, the Company recorded a $106.0 million non-cash impairment charge related to its goodwill and trademarks during the first half of 2016 ($108.6 million recorded during the first quarter of 2016, offset by a $2.6 million reduction upon finalization of the impairment charge during the second quarter of 2016). Of this charge, $44.0 million was recorded in the Company's North America operating segment, $41.7 million was recorded in its Asia operating segment and $20.3 million was recorded in its Europe operating segment. These charges impacted the Company's income from operations for the six months ended June 30, 2016 and the reduction in goodwill accounted for the majority of the decline in total assets from December 31, 2015 noted above.