Reportable Business Segments

6 Months Ended

Jun. 30, 2011

Reportable Business Segments

Reportable Business Segments

Note 5—Reportable Business Segments

The Company has two reportable business segments: (i) Interconnect Products and Assemblies and (ii) Cable Products. The Interconnect Products and Assemblies segment produces connectors and connector assemblies primarily for the communications, aerospace, industrial and automotive markets. The Cable Products segment produces coaxial and flat ribbon cable and related products primarily for the communications markets, including cable television. The accounting policies of the segments are the same as those for the Company as a whole. The Company evaluates the performance of its business segments on, among other things, profit or loss from operations before interest, income taxes and stock-based compensation expense as well as other costs such as headquarters expense allocations, amortization related to certain intangible assets and nonrecurring gains and losses.

The segment results for the three months ended June 30, 2011 and 2010 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2011		2010		2011		2010		2011		2010
Net sales
-external	$	943,752	$	817,146	$	73,986	$	67,652	$	1,017,738	$	884,798
-inter-segment	1,612		839		5,901		4,747		7,513		5,586
Segment operating income	203,380		181,820		9,500		9,120		212,880		190,940

The segment results for the six months ended June 30, 2011 and 2010 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2011		2010		2011		2010		2011		2010
Net sales
-external	$	1,821,268	$	1,520,744	$	137,055	$	135,008	$	1,958,323	$	1,655,752
-inter-segment	2,325		1,490		10,760		9,703		13,085		11,193
Segment operating income	397,492		330,482		16,959		19,163		414,451		349,645

A reconciliation of segment operating income to consolidated income before income taxes for the three and six months ended June 30, 2011 and 2010 is summarized as follows:

	Three months endedJune 30,						Six months endedJune 30,
	2011			2010			2011			2010
Segment operating income	$	212,880		$	190,940		$	414,451		$	349,645
Interest expense	(11,371		)	(9,968		)	(21,387		)	(19,981		)
Interest income	2,311			1,117			4,129			1,919
Stock-based compensation expense	(7,061		)	(6,172		)	(13,381		)	(11,615		)
Change in contingent acquisition related obligations	17,813			—			17,813			—
Other costs, net	(8,939		)	(9,496		)	(18,219		)	(18,057		)
Income before income taxes	$	205,633		$	166,421		$	383,406		$	301,911