Reportable Business Segments

9 Months Ended

Sep. 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 September 30, 2013 and 2012 are as follows:

	Interconnect Products and Assemblies				Cable Products				Total
	2013		2012		2013		2012		2013		2012
Net sales
-external	$	1,063,179	$	1,033,309	$	89,883	$	70,067	$	1,153,062	$	1,103,376
-inter-segment	1,309		1,434		5,308		4,063		6,617		5,497
Segment operating income	233,435		224,517		12,389		8,697		245,824		233,214

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

	Interconnect Products and Assemblies				Cable Products				Total
	2013		2012		2013		2012		2013		2012
Net sales
-external	$	3,104,856	$	2,926,834	$	264,078	$	219,253	$	3,368,934	$	3,146,087
-inter-segment	4,064		3,429		15,118		14,504		19,182		17,933
Segment operating income	676,818		627,962		36,432		29,831		713,250		657,793

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

	Three months endedSeptember 30,						Nine months endedSeptember 30,
	2013			2012			2013			2012
Segment operating income	$	245,824		$	233,214		$	713,250		$	657,793
Interest expense	(16,048		)	(15,166		)	(47,126		)	(44,014		)
Interest income	4,142			2,954			10,628			8,484
Stock-based compensation expense	(9,413		)	(8,066		)	(26,584		)	(23,167		)
Acquisition-related expenses	(2,537		)	—			(2,537		)	—
Other costs, net	(9,908		)	(9,796		)	(29,861		)	(28,528		)
Income before income taxes	$	212,060		$	203,140		$	617,770		$	570,568