Segment and Geographic Information

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2011 and 2010:

Three months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
September 30, 2011
Net sales	$	235,123	$	89,328	$	82,703	$	76,143	$	—		$	483,297
Segment income (loss)	51,513		13,379		23,303		5,322		(8,310		)	85,207
Interest expense, net												(5,479		)
Loss on early retirement of debt												(277		)
Income before income taxes												79,451
Depreciation and amortization	7,945		5,468		3,397		4,424		560			21,794
Capital expenditures	1,962		880		1,298		2,786		1,861			8,787
September 30, 2010
Net sales	$	184,394	$	80,796	$	60,279	$	67,180	$	—		$	392,649
Segment income (loss)	43,222		9,813		14,091		1,299		(8,735		)	59,690
Interest expense, net												(11,659		)
Loss on early retirement of debt												(2,147		)
Income before income taxes												45,884
Depreciation and amortization	9,147		5,511		3,433		5,041		486			23,618
Capital expenditures	2,005		580		471		1,587		229			4,872

Nine months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
September 30, 2011
Net sales	$	735,313	$	294,810	$	250,705	$	330,528	$	—		$	1,611,356
Segment income (loss)	178,164		50,118		71,629		51,735		(32,042		)	319,604
Interest expense, net												(17,354		)
Loss on early retirement of debt												(1,176		)
Income before income taxes												301,074
Depreciation and amortization	24,925		16,598		10,436		13,459		1,688			67,106
Capital expenditures	9,482		1,795		3,010		5,738		2,814			22,839
September 30, 2010
Net sales	$	514,715	$	236,426	$	181,016	$	279,488	$	—		$	1,211,645
Segment income (loss)	111,202		22,187		36,920		33,122		(25,445		)	177,986
Interest expense, net												(43,001		)
Loss on early retirement of debt												(2,421		)
Income before income taxes												132,564
Depreciation and amortization	27,196		16,800		10,983		16,847		1,617			73,443
Capital expenditures	3,754		2,529		1,584		3,878		983			12,728

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 September 30,				Nine Months Ended September 30,				September 30,
	2011		2010		2011		2010		2011		2010
United States	$	175,952	$	135,730	$	605,386	$	464,506	$	100,642	$	112,441
China	39,452		52,634		172,962		129,435		15,016		9,275
Germany	45,837		33,149		151,404		106,285		52,110		60,540
Italy	27,737		16,850		86,633		59,997		10,555		12,979
Denmark (3)	6,413		5,129		18,491		14,917		98,208		118,203
Other countries	187,906		149,157		576,480		436,505		156,277		172,937
Total	$	483,297	$	392,649	$	1,611,356	$	1,211,645	$	432,808	$	486,375

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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.

One customer accounted for ten percent of total consolidated net sales in the three months ended September 30, 2011. No other customers accounted for ten percent or more of total consolidated net sales in the three months ended September 30, 2011. No single customer accounted for ten percent or more of total consolidated net sales in the nine months ended September 30, 2011 or in any period presented for 2010.