Operating Segments and Geographic Information

12 Months Ended

Dec. 31, 2011

Operating Segments and Geographic Information [Abstract]

Operating Segments and Geographic Information

Note 5:    Operating Segments and Geographic Information

We have organized the enterprise around geographic areas. We conduct our operations through three reported operating segments — Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific.

The segments design, manufacture, and market a portfolio of cable, connectivity, and networking products in a variety of end markets including industrial, enterprise, broadcast, and consumer electronics. We sell the products manufactured by our segments principally through distributors or directly to systems integrators, original equipment manufacturers (OEMs), end-users, and installers.

We evaluate segment performance based on operating income, working capital, and organic growth. Operating income of the segments includes all the ongoing costs of operations, but excludes interest and income taxes. Transactions between the segments are conducted on an arms-length basis. With the exception of unallocated goodwill and tangible assets located at our corporate headquarters, substantially all of our assets are utilized by the segments.

Beginning on January 1, 2011, we allocate corporate expenses to the segments for purposes of measuring segment operating income. Corporate expenses are allocated on the basis of each segment’s relative operating income prior to the allocation. The prior period presentation of segment operating income has been modified accordingly.

Operating Segment Information

Year Ended December 31, 2011	Americas			EMEA			Asia Pacific			Total Segments
				(In thousands)
External customer revenues	$	1,216,817		$	415,342		$	349,794		$	1,981,953
Affiliate revenues		42,440			117,291			1,178			160,909
Total revenues		1,259,257			532,633			350,972			2,142,862
Depreciation and amortization		(25,479	)		(15,320	)		(9,375	)		(50,174	)
Asset impairment		(1,453	)		(841	)		(255	)		(2,549	)
Operating income		144,820			84,097			25,343			254,260
Total assets		678,589			480,219			300,843			1,459,651
Acquisition of property, plant and equipment		17,195			9,504			2,871			29,570

Year Ended December 31, 2010	Americas			EMEA			Asia Pacific			Total Segments
	(In thousands)
External customer revenues	$	935,819		$	365,796		$	315,475		$	1,617,090
Affiliate revenues		48,899			76,485			62			125,446
Total revenues		984,718			442,281			315,537			1,742,536
Depreciation and amortization		(23,136	)		(16,005	)		(9,651	)		(48,792	)
Asset impairment		(6,921	)		(8,141	)		(1,512	)		(16,574	)
Operating income		98,633			47,091			29,555			175,279
Total assets		620,284			422,990			285,431			1,328,705
Acquisition of property, plant and equipment		13,421			8,482			2,460			24,363

Year Ended December 31, 2009	Americas			EMEA			Asia Pacific			Total Segments
	(In thousands)
External customer revenues	$	766,569		$	345,197		$	250,250		$	1,362,016
Affiliate revenues		43,489			55,256			—			98,745
Total revenues		810,058			400,453			250,250			1,460,761
Depreciation and amortization		(21,534	)		(17,736	)		(9,549	)		(48,819	)
Asset impairment		(3,691	)		(23,020	)		(1,040	)		(27,751	)
Operating income (loss)		72,907			(22,885	)		17,892			67,914
Total assets		516,372			461,503			258,325			1,236,200
Acquisition of property, plant and equipment		14,501			9,364			7,891			31,756

Total segment operating income (loss) differs from net income (loss) reported in the Consolidated Financial Statements as follows:

	Years Ended December 31,
	2011			2010			2009
	(In thousands)
Total segment operating income	$	254,260		$	175,279		$	67,914
Eliminations		(67,254	)		(46,090	)		(31,544	)
Total operating income		187,006			129,189			36,370
Interest expense		(48,126	)		(49,826	)		(41,962	)
Interest income		1,011			1,184			1,043
Other income (expense)		—			1,465			(1,541	)
Income tax expense		(24,638	)		(12,714	)		(1,175	)
Income (loss) from continuing operations		115,253			69,298			(7,265	)
Loss from discontinued operations, net of tax		(908	)		(5,686	)		(17,636	)
Gain from disposal of discontinued operations, net of tax		—			44,847			—
Net income (loss)	$	114,345		$	108,459		$	(24,901	)

Below are reconciliations of other segment measures to the consolidated totals.

	Years Ended December 31,
	2011		2010		2009
	(In thousands)
Total segment assets	$	1,459,651	$	1,328,705	$	1,236,200
Corporate assets		328,469		367,779		251,049
Discontinued operations		—		—		133,329
Total assets	$	1,788,120	$	1,696,484	$	1,620,578
Total segment acquisition of property, plant and equipment	$	29,570	$	24,363	$	31,756
Corporate acquisition of property, plant and equipment		10,483		3,655		8,110
Discontinued operations acquisition of property, plant and equipment		—		176		511
Total acquisition of property, plant and equipment	$	40,053	$	28,194	$	40,377

Product Group Information

Revenues by major product group were as follows:

	Years Ended December 31,
	2011		2010		2009
	(In thousands)
Cable products	$	1,385,867	$	1,213,871	$	1,039,541
Networking products		307,188		214,251		178,714
Connectivity products		288,898		188,968		143,761
Total revenues	$	1,981,953	$	1,617,090	$	1,362,016

The main categories of cable products are (1) copper cables, including shielded and unshielded twisted pair cables, coaxial cables, and stranded cables, (2) fiber optic cables, which transmit light signals through glass or plastic fibers, and (3) composite cables, which are combinations of multiconductor, coaxial, and fiber optic cables jacketed together or otherwise joined together to serve complex applications and provide ease of installation. Networking products include wireless and wired Industrial Ethernet switches and related equipment and security features, fiber optic interfaces and media converters used to bridge fieldbus networks over long distances, and load-moment indicators for mobile cranes and other load-bearing equipment. Connectivity products include both fiber and copper connectors for the enterprise, broadcast, and industrial markets. Connectors are also sold as part of end-to-end structured cabling solutions.

Geographic Information

The following table identifies by region of the world revenues based on the location of the customer and long-lived assets based on physical location.

	United States			Canada & Latin America			Europe, Africa & Middle East			Asia Pacific			Total
	(In thousands)
Year ended December 31, 2011
Revenues	$	908,229		$	277,375		$	413,195		$	383,154		$	1,981,953
Percent of total revenues		46	%		14	%		21	%		19	%		100	%
Long-lived assets	$	142,925		$	20,398		$	126,642		$	60,800		$	350,765
Year ended December 31, 2010
Revenues	$	703,836		$	208,694		$	371,933		$	332,627		$	1,617,090
Percent of total revenues		43	%		13	%		23	%		21	%		100	%
Long-lived assets	$	133,864		$	17,858		$	125,762		$	64,204		$	341,688
Year ended December 31, 2009
Revenues	$	587,580		$	166,907		$	342,045		$	265,484		$	1,362,016
Percent of total revenues		43	%		12	%		26	%		19	%		100	%
Long-lived assets	$	131,098		$	20,121		$	140,430		$	68,564		$	360,213

Major Customer

Revenues generated from sales to the distributor Anixter International Inc., primarily in the Americas segment, were $323.5 million (16% of revenue), $273.2 million (17% of revenue), and $239.7 million (18% of revenues) for 2011, 2010, and 2009 respectively.