Segment and Geographic Information

9 Months Ended

Sep. 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 nine-month periods ended September 30, 2012 and 2011:

Three months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
September 30, 2012
Net sales	$	204,759	$	67,361	$	69,668	$	68,519	$	—		$	410,307
Segment income (loss)	42,825		8,368		17,538		5,734		(12,153		)	62,312
Interest expense, net												(3,592		)
Loss on early retirement of debt												(1,254		)
Income before income taxes												57,466
Depreciation and amortization	7,610		4,801		3,018		3,524		517			19,470
Capital expenditures	4,552		1,056		1,477		2,871		525			10,481
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

Nine months ended

	Propel		Work Function		Controls		Stand-Alone		Global Services			Total
September 30, 2012
Net sales	$	694,458	$	242,669	$	239,135	$	326,825	$	—		$	1,503,087
Segment income (loss)	147,623		40,018		63,131		56,380		(33,032		)	274,120
Interest expense, net												(12,010		)
Loss on early retirement of debt												(1,254		)
Income before income taxes												260,856
Depreciation and amortization	23,403		14,976		9,409		11,391		1,503			60,682
Capital expenditures	8,060		3,528		3,321		6,683		1,596			23,188
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

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,
	2012		2011		2012		2011		2012		2011
United States	$	172,969	$	175,952	$	663,672	$	605,386	$	97,356	$	100,642
China	29,908		39,452		100,069		172,962		18,485		15,016
Germany	29,473		45,837		122,172		151,404		47,217		52,110
Denmark (3)	5,057		6,413		15,907		18,491		84,865		98,208
Other countries	172,900		215,643		601,267		663,113		142,549		166,832
Total	$	410,307	$	483,297	$	1,503,087	$	1,611,356	$	390,472	$	432,808

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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 nine-month periods ended September 30, 2012. One customer accounted for ten percent of total consolidated net sales for the three months ended September 30, 2011. No customers accounted for ten percent of the total consolidated net sales for the nine months ended September 30, 2011.