Reportable Business Segments and International Operations

12 Months Ended

Dec. 31, 2012

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
	2012		2011		2010		2012		2011		2010		2012		2011		2010
Net sales
—external	$	3,987,286	$	3,666,042	$	3,293,119	$	304,779	$	273,744	$	260,982	$	4,292,065	$	3,939,786	$	3,554,101
—intersegment	4,928		5,645		3,002		19,557		23,118		19,722		24,485		28,763		22,724
Depreciation and amortization	107,466		107,021		93,641		2,419		3,177		3,493		109,885		110,198		97,134
Segment operating income	858,066		787,323		725,946		41,139		34,813		35,472		899,205		822,136		761,418
Segment assets (excluding goodwill)	2,870,280		2,333,249		2,253,638		134,842		104,163		83,961		3,005,122		2,437,412		2,337,599
Additions to property, plant and equipment	125,527		97,459		106,267		3,353		2,570		3,165		128,880		100,029		109,432

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

	2012			2011			2010
Segment operating income	$	899,205		$	822,136		$	761,418
Interest expense	(59,613		)	(43,029		)	(40,741		)
Interest income	11,512			10,245			5,046
Stock-based compensation expense	(31,412		)	(28,679		)	(25,385		)
Casualty loss related to flood	—			(21,479		)	—
Change in contingent acquisition related obligation	—			17,813			—
Acquisition-related expenses	(2,000		)	(2,000		)	—
Other costs, net	(38,851		)	(38,255		)	(36,650		)
Consolidated income before income taxes	$	778,841		$	716,752		$	663,688

Reconciliation of segment assets to consolidated total assets:

	2012		2011
Segment assets excluding goodwill	$	3,005,122	$	2,437,412
Goodwill	1,932,740		1,746,113
Other assets	277,601		261,700
Consolidated total assets	$	5,215,463	$	4,445,225

Geographic information:

	Net sales						Land and depreciable assets, net
	2012		2011		2010		2012		2011		2010
United States	$	1,379,684	$	1,268,936	$	1,258,167	$	121,823	$	110,042	$	116,591
China	1,065,058		980,239		851,626		138,006		131,001		131,805
Other international locations	1,847,323		1,690,611		1,444,308		157,607		139,458		118,600
Total	$	4,292,065	$	3,939,786	$	3,554,101	$	417,436	$	380,501	$	366,966

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