Segment and Geographic Information

3 Months Ended

Mar. 31, 2012

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-month periods ended March 31, 2012 and 2011:

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
March 31, 2012
Net sales	$	256,326	$	92,233	$	84,568	$	140,866	$	—		$	573,993
Segment income (loss)	55,276		17,877		23,308		28,095		(10,247		)	114,309
Interest expense, net												(4,371		)
Income before income taxes												109,938
Depreciation and amortization	7,862		5,067		3,143		3,988		617			20,677
Capital expenditures	1,345		954		826		1,747		462			5,334
March 31, 2011
Net sales	$	250,230	$	99,706	$	79,339	$	135,467	$	—		$	564,742
Segment income (loss)	65,120		17,330		22,750		25,918		(14,399		)	116,719
Interest expense, net												(6,101		)
Income before income taxes												110,618
Depreciation and amortization	8,437		5,442		3,492		4,532		569			22,472
Capital expenditures	3,275		544		473		994		232			5,518

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 March 31,				March 31,
	2012		2011		2012		2011
United States	$	253,778	$	220,280	$	101,357	$	106,198
China	38,285		73,097		19,168		11,810
Germany	49,167		51,473		51,814		58,245
Italy	25,728		29,605		9,721		12,122
Denmark (3)	5,742		6,519		93,005		110,398
Other countries	201,293		183,768		146,985		177,604
Total	$	573,993	$	564,742	$	422,050	$	476,377

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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 March 31, 2012 and 2011, respectively.