Note 12 - Business Unit Segment Information

6 Months Ended

Jun. 29, 2013

Segment Reporting Disclosure [Text Block]

Segment Reporting Disclosure [Text Block]

12. Business Unit Segment Information

The company and its subsidiaries design, manufacture and sell circuit protection devices throughout the world. The company reports its operations by the following business unit segments: Electronics, Automotive, and Electrical. Each operating segment is directly responsible for sales, marketing and research and development. Manufacturing, purchasing, logistics, customer service, finance, information technology and human resources are shared functions that are allocated back to the three operating segments. The CEO allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing and research and development expenses are charged directly into each operating segment. All other functions are shared by the operating segments and expenses for these shared functions are allocated to the operating segments and included in the operating results reported below. The company does not report inter-segment revenue because the operating segments do not record it. The company does not allocate interest and other income, interest expense, or taxes to operating segments. Although the CEO uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the company as a whole.

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the company’s President and Chief Executive Officer (“CEO”).

Business unit segment information for the three and six months ended June 29, 2013 and June 30, 2012 are summarized as follows (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Net sales
Electronics	$	91,450		$	89,508		$	170,865		$	166,562
Automotive		64,548			51,450			123,933			104,076
Electrical		31,768			34,895			63,886			65,793
Total net sales	$	187,766		$	175,853		$	358,684		$	336,431
Depreciation and amortization
Electronics	$	5,131		$	5,112		$	9,992		$	10,598
Automotive		2,319			1,502			4,303			2,951
Electrical		997			952			1,956			1,968
Total depreciation and amortization	$	8,447		$	7,566		$	16,251		$	15,517
Operating income (loss)
Electronics	$	19,779		$	15,778		$	31,922		$	25,889
Automotive		8,913			6,965			18,396			16,471
Electrical		5,623			9,353			12,114			15,560
Other(1)		(2,933	)		—			(2,933	)		—
Total operating income		31,382			32,096			59,499			57,920
Interest expense		644			421			1,020			844
Impairment, loan loss and equity in net loss or unconsolidated affiliate (2)		—			1,033			10,678			1,558
Other (income) expense, net		(4,659	)		(757	)		(5,568	)		(656	)
Income before income taxes(3)	$	35,397		$	31,399		$	53,369		$	56,174

(1) “Other” consists of acquisition related costs. (2) During the first quarter of 2013, the company recorded approximately $10.7 million related to the impairment of its investment in Shocking Technologies. (See Note 6). (3) 2012 Income before income taxes has been restated to reflect the company’s retroactive equity losses from Shocking Technologies. (See Note 2).

The company’s significant net sales by country for the three and six months ended June 29, 2013 and June 30, 2012 are summarized as follows (in thousands):

	For the Three Months Ended(a)				For the Six Months Ended(a)
	June 29, 2013		June 30, 2012		June 29, 2013		June 30, 2012
United States	$	68,633	$	59,370	$	126,547	$	114,610
China		37,694		37,677		71,308		68,127
Other countries		81,439		78,806		160,829		153,694
Total	$	187,766	$	175,853	$	358,684	$	336,431

(a) Sales by country represent sales to customer or distributor locations.

The company’s significant long-lived assets by country as of June 29, 2013 and December 29, 2012 are summarized as follows (in thousands):

	Long-lived assets(b)
	June 29, 2013		December 29, 2012
United States	$	28,484	$	14,433
China		42,444		41,504
Canada		14,420		13,839
Other countries		55,785		51,135
Total	$	141,133	$	120,911

(b) Long-lived assets consist of net property, plant and equipment.