Reportable Business Segments

3 Months Ended

Mar. 31, 2012

Reportable Business Segments

Reportable Business Segments

Note 4—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 March 31, 2012 and 2011 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2012		2011		2012		2011		2012		2011
Net sales
-external	$	908,035	$	877,516	$	73,569	$	63,069	$	981,604	$	940,585
-inter-segment	1,016		713		5,633		4,859		6,649		5,572
Segment operating income	190,859		194,112		10,676		7,459		201,535		201,571

A reconciliation of segment operating income to consolidated income before income taxes for the three months ended March 31, 2012 and 2011 is summarized as follows:

	Three months endedMarch 31,
	2012			2011
Segment operating income	$	201,535		$	201,571
Interest expense	(13,749		)	(10,016		)
Interest income	2,540			1,818
Stock-based compensation expense	(7,491		)	(6,320		)
Other costs, net	(9,118		)	(9,280		)
Income before income taxes	$	173,717		$	177,773