12. 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:

	Years Ended December 31,
	2018			2017
Net Sales to External Customers:
North America	$	271,691		$	245,834
Asia		187,203			167,680
Europe		89,290			78,097
	$	548,184		$	491,611

Net Sales:
North America	$	284,245		$	257,541
Asia		279,965			249,506
Europe		103,853			89,765
Less intercompany
net sales		(119,879	)		(105,201	)
	$	548,184		$	491,611

Income from Operations:
North America	$	6,769		$	6,195
Asia		16,621			8,964
Europe		6,221			2,227
	$	29,611		$	17,386

Total Assets:
North America	$	177,902		$	172,674
Asia		175,713			152,447
Europe		89,909			106,144
	$	443,524		$	431,265

Capital Expenditures:
North America	$	4,836		$	1,734
Asia		5,661			2,617
Europe		1,097			2,074
	$	11,594		$	6,425

Depreciation and Amortization Expense:
North America	$	8,906		$	10,641
Asia		5,842			6,728
Europe		3,459			3,349
	$	18,207		$	20,718

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:

Entity-Wide Information

The following is a summary of entity-wide information related to the Company's net sales to external customers by geographic area and by major product line.

	Years Ended December 31,
		2018		2017
Net Sales by Geographic Location:

United States		$	271,691	$	245,834
Macao			187,204		167,681
United Kingdom			26,340		24,110
Slovakia			24,123		14,194
Germany			15,298		13,857
Switzerland			13,279		15,366
All other foreign countries			10,249		10,569
Consolidated net sales		$	548,184	$	491,611

Net Sales by Major Product Line:

Connectivity solutions		$	186,724	$	170,337
Magnetic solutions			185,407		161,011
Power solutions and protection			176,053		160,263
Consolidated net sales		$	548,184	$	491,611

The following is a summary of long-lived assets by geographic area as of December 31, 2018 and 2017:

	December 31,
		2018		2017
Long-lived Assets by Geographic Location:

United States		$	27,505	$	27,594
People's Republic of China (PRC)			29,563		30,151
Slovakia			6,475		7,625
Switzerland			3,023		3,632
United Kingdom			2,330		1,345
All other foreign countries			1,117		1,121
Consolidated long-lived assets		$	70,013	$	71,468

Long-lived assets consist of property, plant and equipment, net and other assets of the Company that are identified with the operations of each geographic area.

The territory of Hong Kong became a Special Administrative Region ("SAR") of the PRC in the middle of 1997. The territory of Macao became a SAR of the PRC at the end of 1999. Management cannot presently predict what future impact this will have on the Company, if any, or how the political climate in the PRC will affect the Company's contractual arrangements in the PRC. A significant portion of the Company's manufacturing operations and approximately 41.3% of its identifiable assets are located in Asia.

Net Sales to Major Customers

The Company had net sales to one customer in excess of ten percent of consolidated net sales in each of 2018 and 2017. The net sales associated with this customer was $67.7 million in 2018 (12.3% of sales) and $57.7 million in 2017 (11.7% of sales). Net sales related to this significant customer were primarily reflected in the Asia operating segment during each of the two years discussed.