Reportable Business Segments and International Operations

12 Months Ended

Dec. 31, 2014

Reportable Business Segments

Reportable Business Segments

Note 11—Reportable Business Segments and International Operations

The Company has two reportable business segments: (i) Interconnect Products and Assemblies and (ii) Cable Products and Solutions. The Company aggregates its operating segments into reportable segments based upon similar economic characteristics and business groupings of products, services, and customers. The Interconnect Product and Assemblies segment primarily 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 primarily 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
	2014		2013		2012		2014		2013		2012		2014		2013		2012
Net sales
—external	$	4,992.6	$	4,269.0	$	3,987.3	$	352.9	$	345.7	$	304.8	$	5,345.5	$	4,614.7	$	4,292.1
—intersegment	6.6		5.5		4.9		18.0		19.4		19.6		24.6		24.9		24.5
Depreciation and amortization	160.0		123.4		107.5		3.4		2.9		2.4		163.4		126.3		109.9
Segment operating income	1,088.0		931.0		858.1		43.7		46.3		41.1		1,131.7		977.3		899.2
Segment assets (excluding goodwill)	4,161.7		3,648.0		2,870.3		173.4		165.3		134.8		4,335.1		3,813.3		3,005.1
Additions to property, plant and equipment	203.1		154.7		125.5		4.8		2.0		3.4		207.9		156.7		128.9

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

	2014			2013			2012
Segment operating income	$	1,131.7		$	977.3		$	899.2
Interest expense	(80.4		)	(63.6		)	(59.6		)
Interest income	20.2			15.0			11.5
Stock-based compensation expense	(41.4		)	(36.1		)	(31.4		)
Acquisition-related expenses	(14.1		)	(6.0		)	(2.0		)
Other costs, net	(43.5		)	(40.0		)	(38.9		)
Consolidated income before income taxes	$	972.5		$	846.6		$	778.8

Reconciliation of segment assets to consolidated total assets:

	2014		2013
Segment assets excluding goodwill	$	4,335.1	$	3,813.3
Goodwill	2,616.7		2,289.1
Other assets	75.2		65.6
Consolidated total assets	$	7,027.0	$	6,168.0

Geographic information:

	Net sales						Land and depreciable assets, net
	2014		2013		2012		2014		2013		2012
United States	$	1,673.5	$	1,430.5	$	1,379.7	$	214.8	$	175.4	$	121.8
China	1,440.8		1,243.7		1,065.1		149.2		151.2		138.0
Other international locations	2,231.2		1,940.5		1,847.3		226.7		205.8		157.6
Total	$	5,345.5	$	4,614.7	$	4,292.1	$	590.7	$	532.4	$	417.4

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