Reportable Business Segments

3 Months Ended

Mar. 31, 2014

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 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, manufactures and markets a broad range of connector and connector systems, value-added 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, manufactures 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 of the notes to the consolidated financial statements in the Company’s 2013 Annual Report. 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 March 31, 2014 and 2013 are as follows:

	Interconnect Products and Assemblies				Cable Products and Solutions				Total
	2014		2013		2014		2013		2014		2013
Net sales:
-External	$	1,159,110	$	995,926	$	86,964	$	83,879	$	1,246,074	$	1,079,805
-Inter-segment	1,114		1,294		5,339		5,267		6,453		6,561
Segment operating income	242,836		213,301		10,581		11,600		253,417		224,901

A reconciliation of segment operating income to consolidated income before income taxes for the three months ended March 31, 2014 and 2013 is summarized as follows:

	Three months endedMarch 31,
	2014			2013
Segment operating income	$	253,417		$	224,901
Interest expense	(19,071		)	(15,457		)
Interest income	4,445			3,095
Stock-based compensation expense	(9,276		)	(8,283		)
Acquisition-related expenses	(2,020		)	—
Other costs, net	(10,366		)	(9,971		)
Income before income taxes	$	217,129		$	194,285