Reportable Business Segments

6 Months Ended

Jun. 30, 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 June 30, 2012 and 2011 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2012		2011		2012		2011		2012		2011
Net sales
-external	$	985,490	$	943,752	$	75,617	$	73,986	$	1,061,107	$	1,017,738
-inter-segment	979		1,612		4,808		5,901		5,787		7,513
Segment operating income	212,586		203,380		10,458		9,500		223,044		212,880

The segment results for the six months ended June 30, 2012 and 2011 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2012		2011		2012		2011		2012		2011
Net sales
-external	$	1,893,525	$	1,821,268	$	149,186	$	137,055	$	2,042,711	$	1,958,323
-inter-segment	1,995		2,325		10,441		10,760		12,436		13,085
Segment operating income	403,445		397,492		21,134		16,959		424,579		414,451

A reconciliation of segment operating income to consolidated income before income taxes for the three and six months ended June 30, 2012 and 2011 is summarized as follows:

	Three months endedJune 30,						Six months endedJune 30,
	2012			2011			2012			2011
Segment operating income	$	223,044		$	212,880		$	424,579		$	414,451
Interest expense	(15,099		)	(11,371		)	(28,848		)	(21,387		)
Interest income	2,990			2,311			5,530			4,129
Stock-based compensation expense	(7,610		)	(7,061		)	(15,101		)	(13,381		)
Change in contingent acquisition related obligations	—			17,813			—			17,813
Other costs, net	(9,614		)	(8,939		)	(18,732		)	(18,219		)
Income before income taxes	$	193,711		$	205,633		$	367,428		$	383,406