Reportable Business Segments and International Operations

12 Months Ended

Dec. 31, 2011

Reportable Business Segments and International Operations

Reportable Business Segments and International Operations

Note 13—Reportable Business Segments and International Operations

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 communication markets, including cable television. The accounting policies of the segments are the same as those for the Company as a whole and are described in Note 1 herein. The Company evaluates the performance of business units on, among other things, profit or loss from operations before interest, headquarters’ expense allocations, stock-based compensation expense, income taxes, amortization related to certain intangible assets and nonrecurring gains and losses.

	Interconnect Products and Assemblies						Cable Products						Total
	2011		2010		2009		2011		2010		2009		2011		2010		2009
Net sales
—external	$	3,666,042	$	3,293,119	$	2,566,578	$	273,744	$	260,982	$	253,487	$	3,939,786	$	3,554,101	$	2,820,065
—intersegment	5,645		3,002		3,158		23,118		19,722		12,041		28,763		22,724		15,199
Depreciation and amortization	107,021		93,641		88,027		3,177		3,493		3,714		110,198		97,134		91,741
Segment operating income	787,323		725,946		505,772		34,813		35,472		38,751		822,136		761,418		544,523
Segment assets	2,333,249		2,253,638		1,623,556		104,163		83,961		77,319		2,437.412		2,337,599		1,700,875
Additions to property, plant and equipment	97,459		106,267		61,001		2,570		3,165		1,851		100,029		109,432		62,852

Reconciliation of segment operating income to consolidated income before income taxes:

	2011			2010			2009
Segment operating income	$	822,136		$	761,418		$	544,523
Interest expense	(43,029		)	(40,741		)	(36,586		)
Interest income	10,245			5,046			2,154
Early extinguishment of interest rate swaps	—			—			(4,575		)
Stock-based compensation expense	(28,679		)	(25,385		)	(20,240		)
Casualty loss related to flood	(21,479		)	—			—
Change in contingent acquisition related obligation	17,813			—			—
Acquisition-related expenses	(2,000		)	—			—
Other costs, net	(38,255		)	(36,650		)	(38,749		)
Consolidated income before income taxes	$	716,752		$	663,688		$	446,527

Reconciliation of segment assets to consolidated total assets:

	2011		2010
Segment assets excluding goodwill	$	2,437,412	$	2,337,599
Goodwill	1,746,113		1,533,299
Other assets	261,700		144,959
Consolidated total assets	$	4,445,225	$	4,015,857

Geographic information:

	Net sales						Land and depreciable assets, net
	2011		2010		2009		2011		2010
United States	$	1,268,936	$	1,258,167	$	1,001,742	$	110,042	$	116,591
China	980,239		851,626		611,877		131,001		131,805
Other international locations	1,690,611		1,444,308		1,206,446		139,458		118,600
Total	$	3,939,786	$	3,554,101	$	2,820,065	$	380,501	$	366,966

Revenues by geographic area are based on the customer location to which the product is shipped.