Reportable Business Segments

6 Months Ended

Jun. 30, 2013

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 antennas, connectors and interconnect assemblies primarily for the communications, defense, commercial 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. 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.

The segment results for the three months ended June 30, 2013 and 2012 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2013		2012		2013		2012		2013		2012
Net sales
-external	$	1,045,751	$	985,490	$	90,316	$	75,617	$	1,136,067	$	1,061,107
-inter-segment	1,461		979		4,543		4,808		6,004		5,787
Segment operating income	230,082		212,586		12,443		10,458		242,525		223,044

The segment results for the six months ended June 30, 2013 and 2012 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2013		2012		2013		2012		2013		2012
Net sales
-external	$	2,041,677	$	1,893,525	$	174,195	$	149,186	$	2,215,872	$	2,042,711
-inter-segment	2,755		1,995		9,810		10,441		12,565		12,436
Segment operating income	443,383		403,445		24,043		21,134		467,426		424,579

A reconciliation of segment operating income to consolidated income before income taxes for the three and six months ended June 30, 2013 and 2012 is summarized as follows:

	Three months endedJune 30,						Six months endedJune 30,
	2013			2012			2013			2012
Segment operating income	$	242,525		$	223,044		$	467,426		$	424,579
Interest expense	(15,621		)	(15,099		)	(31,078		)	(28,848		)
Interest income	3,391			2,990			6,486			5,530
Stock-based compensation expense	(8,890		)	(7,610		)	(17,175		)	(15,101		)
Other costs, net	(9,980		)	(9,614		)	(19,949		)	(18,732		)
Income before income taxes	$	211,425		$	193,711		$	405,710		$	367,428