Note 10. Segment and Geographic Information Level 1 (Notes)

6 Months Ended

Jun. 30, 2011

Segment and Geographic Information [Abstract]

Segment and Geographic Information [Text Block]

Segment and Geographic Information —

The Company's reportable segments are organized around its various product lines of Propel, Work Function, Controls and Stand-Alone Businesses. Propel products include hydrostatic transmissions and related products that transmit the power from the engine to the wheel to propel a vehicle. Work Function products include steering motors and motors that transmit power for the work functions of the vehicle. Controls products include electrohydraulic controls, microprocessors, and valves that control and direct the power of a vehicle. Stand-Alone Businesses, an aggregation of two operating segments, includes open circuit gear pumps and motors, cartridge valves and hydraulic integrated circuits, directional control valves, inverters, and light duty hydrostatic transmissions that transmit, control and direct the power of a vehicle and are marketed under their own names and operate as stand-alone businesses. Costs in Global Services relate to internal global service departments and include costs such as consulting for special projects, tax and accounting fees paid to outside third parties, certain insurance premiums, and amortization of intangible assets from certain business combinations.

The following table presents the significant items by operating segment for the results of operations for the three and six-month periods ended June 30, 2011 and 2010:

Three months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
June 30, 2011
Net sales	$	249,960	$	105,776	$	88,663	$	118,918	$	—		$	563,317
Segment income (loss)	61,531		19,409		25,576		20,495		(9,333		)	117,678
Interest expense, net												(5,774		)
Loss on early retirement of debt												(899		)
Income before income taxes												111,005
Depreciation and amortization	8,542		5,688		3,547		4,503		560			22,840
Capital expenditures	4,246		371		1,239		1,957		721			8,534
June 30, 2010
Net sales	$	181,443	$	80,271	$	64,606	$	105,906	$	—		$	432,226
Segment income (loss)	40,997		7,299		10,905		16,700		(7,020		)	68,881
Interest expense, net												(15,064		)
Income before income taxes												53,817
Depreciation and amortization	8,923		5,574		3,643		5,677		570			24,387
Capital expenditures	758		2,320		221		1,609		730			5,638

Six months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
June 30, 2011
Net sales	$	500,190	$	205,482	$	168,002	$	254,385	$	—		$	1,128,059
Segment income (loss)	126,651		36,739		48,326		46,413		(23,732		)	234,397
Interest expense, net												(11,875		)
Loss on early retirement of debt												(899		)
Income before income taxes												221,623
Depreciation and amortization	16,980		11,130		7,039		9,035		1,128			45,312
Capital expenditures	7,520		915		1,712		2,952		953			14,052
June 30, 2010
Net sales	$	330,321	$	155,630	$	120,737	$	212,308	$	—		$	818,996
Segment income (loss)	67,980		12,374		22,829		31,823		(16,709		)	118,297
Interest expense, net												(31,617		)
Income before income taxes												86,680
Depreciation and amortization	18,049		11,289		7,550		11,806		1,131			49,825
Capital expenditures	1,749		2,796		1,113		2,291		753			8,702

A summary of the Company's net sales and long-lived assets by geographic area is presented below:

	Net Sales (1)								Long-Lived Assets (2)
	Three Months Ended June 30,				Six Months Ended June 30,				June 30,
	2011		2010		2011		2010		2011		2010
United States	$	209,154	$	169,451	$	429,434	$	328,776	$	103,179	$	114,879
China	60,413		47,363		133,510		76,801		14,187		8,987
Germany	54,094		37,814		105,567		73,136		56,632		57,016
Italy	29,291		22,453		58,896		43,148		11,885		12,330
Denmark (3)	5,559		4,874		12,078		9,788		106,798		116,315
Other countries	204,806		150,271		388,574		287,347		173,228		164,794
Total	$	563,317	$	432,226	$	1,128,059	$	818,996	$	465,909	$	474,321

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(1)    Net sales are attributed to countries based on location of customer.

(2)    Long-lived assets include property, plant and equipment net of accumulated depreciation, goodwill, intangible assets net of accumulated amortization, and certain other long-lived assets.

(3)    Majority of this country's sales are shipped outside of the home country where the product is produced.

No single customer accounted for 10 percent or more of total consolidated sales in any period presented