Reportable Business Segments and International Operations

12 Months Ended

Dec. 31, 2013

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 and Solutions. We aggregate our operating segments into reportable segments based upon similar economic characteristics and business groupings of products, services, and customers. The Interconnect Product and Assemblies segment designs, manufacturers and markets a broad range of connector and connector systems, value-add products and other products, including antennas and sensors, used in a broad range of applications in a diverse set of end markets.  The Cable Products and Solutions segment designs, manufacturers and markets cable, value-added products and components for use primarily in the broadband communications and information technology markets as well as certain applications in other markets.  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 and Solutions						Total
	2013		2012		2011		2013		2012		2011		2013		2012		2011
Net sales
—external	$	4,268,980	$	3,987,286	$	3,666,042	$	345,689	$	304,779	$	273,744	$	4,614,669	$	4,292,065	$	3,939,786
—intersegment	5,460		4,928		5,645		19,451		19,557		23,118		24,911		24,485		28,763
Depreciation and amortization	123,378		107,466		107,021		2,936		2,419		3,177		126,314		109,885		110,198
Segment operating income	931,003		858,066		787,323		46,354		41,139		34,813		977,357		899,205		822,136
Segment assets (excluding goodwill)	3,648,027		2,870,280		2,333,249		165,323		134,842		104,163		3,813,350		3,005,122		2,437,412
Additions to property, plant and equipment	154,773		125,527		97,459		1,967		3,353		2,570		156,740		128,880		100,029

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

	2013			2012			2011
Segment operating income	$	977,357		$	899,205		$	822,136
Interest expense	(63,553		)	(59,613		)	(43,029		)
Interest income	14,972			11,512			10,245
Stock-based compensation expense	(36,070		)	(31,412		)	(28,679		)
Casualty loss related to flood	—			—			(21,479		)
Change in contingent acquisition related obligation	—			—			17,813
Acquisition-related expenses	(5,983		)	(2,000		)	(2,000		)
Other costs, net	(40,078		)	(38,851		)	(38,255		)
Consolidated income before income taxes	$	846,645		$	778,841		$	716,752

Reconciliation of segment assets to consolidated total assets:

	2013		2012
Segment assets excluding goodwill	$	3,813,350	$	3,005,122
Goodwill	2,289,085		1,932,740
Other assets	65,593		277,601
Consolidated total assets	$	6,168,028	$	5,215,463

Geographic information:

	Net sales						Land and depreciable assets, net
	2013		2012		2011		2013		2012		2011
United States	$	1,430,529	$	1,379,684	$	1,268,936	$	175,413	$	121,823	$	110,042
China	1,243,654		1,065,058		980,239		151,234		138,006		131,001
Other international locations	1,940,486		1,847,323		1,690,611		205,778		157,607		139,458
Total	$	4,614,669	$	4,292,065	$	3,939,786	$	532,425	$	417,436	$	380,501

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