Reportable Business Segments

9 Months Ended

Sep. 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 September 30, 2011 and 2010 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2011		2010		2011		2010		2011		2010
Net sales
-external	$	957,153	$	881,340	$	75,601	$	67,123	$	1,032,754	$	948,463
-inter-segment	1,818		769		6,039		4,922		7,857		5,691
Segment operating income	205,611		196,107		9,874		9,077		215,485		205,184

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

	Interconnect Products and Assemblies				Cable Products				Total
	2011		2010		2011		2010		2011		2010
Net sales
-external	$	2,778,418	$	2,402,084	$	212,659	$	202,131	$	2,991,077	$	2,604,215
-inter-segment	4,801		2,259		16,799		14,625		21,600		16,884
Segment operating income	603,103		526,589		26,833		28,240		629,936		554,829

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

	Three months endedSeptember 30,						Nine months endedSeptember 30,
	2011			2010			2011			2010
Segment operating income	$	215,485		$	205,184		$	629,936		$	554,829
Interest expense	(10,498		)	(10,568		)	(31,885		)	(30,549		)
Interest income	2,871			1,537			7,000			3,456
Stock-based compensation expense	(7,630		)	(6,965		)	(21,011		)	(18,580		)
Change in contingent acquisition related obligations	—			—			17,813			—
Casualty loss related to flood	(12,831		)	—			(12,831		)	—
Other costs, net	(9,581		)	(9,371		)	(27,800		)	(27,428		)
Income before income taxes	$	177,816		$	179,817		$	561,222		$	481,728