Note 11 - Business Unit Segment Information

9 Months Ended

Sep. 27, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

11. 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 nine months ended September 27, 2014 and September 28, 2013 are summarized as follows (in thousands):

	For the Three Months Ended						For the Nine Months Ended
	Sept. 27, 2014			Sept. 28, 2013			Sept. 27, 2014			Sept. 28, 2013
Net sales
Electronics	$	107,754		$	101,013		$	313,726		$	271,878
Automotive		80,639			70,386			245,083			194,319
Electrical		29,215			29,641			86,566			93,527
Total net sales	$	217,608		$	201,040		$	645,375		$	559,724
Depreciation and amortization
Electronics	$	5,582		$	5,784		$	16,482		$	15,776
Automotive		3,435			2,880			10,609			7,183
Electrical		1,414			937			4,096			2,893
Total depreciation and amortization	$	10,431		$	9,601		$	31,187		$	25,852
Operating income (loss)
Electronics	$	25,800		$	20,362		$	70,805		$	52,284
Automotive		12,227			11,135			35,158			29,531
Electrical		3,224			6,687			7,541			18,801
Other(1)		(1,121	)		(625	)		(6,065	)		(3,558	)
Total operating income		40,130			37,559			107,439			97,058
Interest expense		1,292			939			3,736			1,959
Impairment, loan loss and equity in net loss of unconsolidated affiliate (2)		—			—			—			10,678
Foreign exchange (gain) loss		(101	)		1,476			2,022			(1,929	)
Other (income) expense, net		(2,261	)		(1,380	)		(4,893	)		(3,543	)
Income before income taxes	$	41,200		$	36,524		$	106,574		$	89,893

(1) “Other” consists of acquisition related costs, severance charges and restructuring costs. (2) During the first quarter of 2013, the company recorded an impairment of its investment in Shocking Technologies. (See Note 5).

The company’s significant net sales by country for the three and nine months ended September 27, 2014 and September 28, 2013 are summarized as follows (in thousands):

	For the Three Months Ended(a)				For the Nine Months Ended(a)
	Sept. 27, 2014		Sept. 28, 2013		Sept. 27, 2014		Sept. 28, 2013
United States	$	85,326	$	76,183	$	243,979	$	202,731
China		45,905		43,644		134,166		114,952
Other countries		86,377		81,213		267,230		242,041
Total	$	217,608	$	201,040	$	645,375	$	559,724

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

The company’s significant long-lived assets by country as of September 27, 2014 and December 28, 2013 are summarized as follows (in thousands):

	Long-lived assets(b)
	September 27, 2014		December 28, 2013
United States	$	38,964	$	27,294
China		40,015		45,843
Canada		13,621		14,429
Other countries		64,660		62,607
Total	$	157,260	$	150,173

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