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						Nine Months Ended
	September 30,						September 30,
	2016			2015			2016			2015
Net Sales to External Customers:
North America	$	63,305		$	77,912		$	196,955		$	231,176
Asia		47,188			48,320			126,673			142,451
Europe		18,316			17,929			57,986			58,207
	$	128,809		$	144,161		$	381,614		$	431,834

Net Sales:
North America	$	66,503		$	81,483		$	206,232		$	252,991
Asia		71,334			74,235			197,952			227,574
Europe		21,417			38,479			67,222			121,983
Less intercompany net sales		(30,445	)		(50,036	)		(89,792	)		(170,714	)
	$	128,809		$	144,161		$	381,614		$	431,834

Income (Loss) from Operations:
North America	$	693		$	5,777		$	(41,103	)	$	8,031
Asia		8,332			1,441			(25,026	)		7,154
Europe		284			89			(18,006	)		8,620
	$	9,309		$	7,307		$	(84,135	)	$	23,805


	September 30,			December 31,
		2016			2015
Total Assets:
North America	$	171,706		$	238,930
Asia		169,968			231,063
Europe		97,949			108,512
	$	439,623		$	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. 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 nine months ended September 30, 2016 and the reduction in goodwill accounted for the majority of the decline in total assets from December 31, 2015 noted above.