Reportable Business Segments and International Operations

12 Months Ended

Dec. 31, 2015

Reportable Business Segments and International Operations

Reportable Business Segments and International Operations

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 Products and Assemblies segment primarily designs, manufactures 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, 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 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
	2015		2014		2013		2015		2014		2013		2015		2014		2013
Net sales
External	$	5,239.1	$	4,992.6	$	4,269.0	$	329.6	$	352.9	$	345.7	$	5,568.7	$	5,345.5	$	4,614.7
Intersegment	7.2		6.6		5.5		21.6		18.0		19.4		28.8		24.6		24.9
Depreciation and amortization	162.3		160.0		123.4		3.0		3.4		2.9		165.3		163.4		126.3
Segment operating income	1,158.3		1,088.0		931.0		40.3		43.7		46.3		1,198.6		1,131.7		977.3
Segment assets (excluding goodwill)	4,580.4		4,161.7		3,648.0		163.5		173.4		165.3		4,743.9		4,335.1		3,813.3
Purchases of land and depreciable assets	167.1		203.1		154.7		4.5		4.8		2.0		171.6		207.9		156.7

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

	2015			2014			2013
Segment operating income	$	1,198.6		$	1,131.7		$	977.3
Interest expense	(68.3		)	(80.4		)	(63.6		)
Interest income	18.4			20.2			15.0
Stock-based compensation expense	(44.2		)	(41.4		)	(36.1		)
Acquisition-related expenses	(5.7		)	(14.1		)	(6.0		)
Other costs, net	(46.0		)	(43.5		)	(40.0		)
Consolidated income before income taxes	$	1,052.8		$	972.5		$	846.6

Reconciliation of segment assets to consolidated total assets:

	2015		2014
Segment assets excluding goodwill	$	4,743.9	$	4,335.1
Goodwill	2,692.9		2,616.7
Other assets	21.6		34.1
Consolidated total assets	$	7,458.4	$	6,985.9

Geographic information:

	Net sales						Land and depreciable assets, net
	2015		2014		2013		2015		2014		2013
United States	$	1,696.3	$	1,673.5	$	1,430.5	$	214.4	$	214.8	$	175.4
China	1,675.5		1,440.8		1,243.7		151.4		149.2		151.2
Other international locations	2,196.9		2,231.2		1,940.5		243.7		226.7		205.8
Total	$	5,568.7	$	5,345.5	$	4,614.7	$	609.5	$	590.7	$	532.4

Net sales by geographic area are based on the customer location to which the product is shipped.  During the year ended December 31, 2015, aggregate sales to the Company’s largest customer, including sales of products to EMS companies and subcontractors that the Company believes are manufacturing products on their behalf, represented approximately 11% of the Company’s net sales, all of which are included within the Interconnect Products and Assemblies segment. No single customer represented 10% or more of the Company’s net sales for the years ended December 31, 2014 or 2013.  It is impracticable to disclose net sales by product or group of products.