Segment and Geographic Information

6 Months Ended

Jun. 30, 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 reportable segment for the results of operations for the three and six-month periods ended June 30, 2012 and 2011:

Three months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
June 30, 2012
Net sales	$	233,373	$	83,075	$	84,899	$	117,440	$	—		$	518,787
Segment income (loss)	49,522		13,773		22,285		22,551		(10,632		)	97,499
Interest expense, net												(4,047		)
Income before income taxes												93,452
Depreciation and amortization	7,931		5,108		3,248		3,879		369			20,535
Capital expenditures	2,163		1,518		1,018		2,065		609			7,373
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	8,543		5,688		3,547		4,503		559			22,840
Capital expenditures	4,245		371		1,239		1,958		721			8,534

Six months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
June 30, 2012
Net sales	$	489,699	$	175,308	$	169,467	$	258,306	$	—		$	1,092,780
Segment income (loss)	104,798		31,650		45,593		50,646		(20,879		)	211,808
Interest expense, net												(8,418		)
Income before income taxes												203,390
Depreciation and amortization	15,793		10,175		6,391		7,867		986			41,212
Capital expenditures	3,508		2,472		1,844		3,812		1,071			12,707
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

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,
	2012		2011		2012		2011		2012		2011
United States	$	236,925	$	209,154	$	490,703	$	429,434	$	98,375	$	103,179
China	31,876		60,413		70,161		133,510		17,784		14,187
Germany	43,532		54,094		92,699		105,567		47,054		56,632
Denmark (3)	5,108		5,559		10,850		12,078		85,715		106,798
Other countries	201,346		234,097		428,367		447,470		141,807		185,113
Total	$	518,787	$	563,317	$	1,092,780	$	1,128,059	$	390,735	$	465,909

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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 for the three and six-month periods ended June 30, 2012. No customer accounted for ten percent of total consolidated net sales for the three and six month periods ended June 30, 2011