Note 7 – Business Segments

As a result of the Acquisition, the company expanded into the European market and extended its customer base to include the principal European OEMs. As a consequence, we have realigned our executive management structure, organization and operations to focus on our performance in our North American and European regions. In accordance with the requirements of ASC Topic 280, “Segment Reporting,” we have concluded that our North American and European businesses represent separate operating segments in view of significantly different markets, customers and products within each of these regions. Each operating segment has discrete financial information which is evaluated regularly by the company’s CEO in determining resource allocation and assessing performance. Within each of these regions, the company’s markets, customers, products and production processes are similar and production can be readily transferred between production facilities. Moreover, our business within each region leverages common systems, processes and infrastructure.

Accordingly, North America and Europe comprise the company’s operating segments for purposes of segment reporting.


(Dollars in thousands)
	Net Sales				Income from Operations
Three months ended	June 30, 2018		June 25, 2017		June 30, 2018		June 25, 2017
North America	$	204,758	$	186,898	$	9,676	$	(1,098	)
Europe		184,186		53,730		21,594		(900	)

	$	388,944	$	240,628	$	31,270	$	(1,998	)


(Dollars in thousands)
	Depreciation and Amortization				Capital Expenditures
Three months ended	June 30, 2018		June 25, 2017		June 30, 2018		June 25, 2017
North America	$	8,603	$	9,073	$	8,565	$	11,037
Europe		15,384		4,217		6,781		2,122

	$	23,987	$	13,290	$	15,346	$	13,159


(Dollars in thousands)
	Net Sales				Income from Operations
Six months ended	June 30, 2018		June 25, 2017		June 30, 2018		June 25, 2017
North America	$	408,908	$	361,118	$	23,461	$	2,846
Europe		366,484		53,730		35,443		(900	)

	$	775,392	$	414,848	$	58,904	$	1,946


(Dollars in thousands)
	Depreciation and Amortization				Capital Expenditures
Six months ended	June 30, 2018		June 25, 2017		June 30, 2018		June 25, 2017
North America	$	17,401	$	17,443	$	18,593	$	27,860
Europe		30,939		4,217		19,427		2,122

	$	48,340	$	21,660	$	38,020	$	29,982


(Dollars in thousands)
	Property, Plant and Equipment, net				Goodwill and Intangibles
	June 30, 2018		December 31, 2017		June 30, 2018		December 31, 2017
North America	$	244,813	$	245,178	$	—	$	—
Europe		286,532		291,508		480,817		508,278

	$	531,345	$	536,686	$	480,817	$	508,278


(Dollars in thousands)
	Total Assets
	June 30, 2018		December 31, 2017
North America	$	539,003	$	519,192
Europe		990,871		1,032,060

	$	1,529,874	$	1,551,252

Geographic information

Net sales by geographic location is as follows:


	Three Months Ended				Six Months Ended
	June 30, 2018		June 25, 2017		June 30, 2018		June 25, 2017
(Dollars in thousands)
Net sales:
U.S.	$	30,527	$	34,435	$	61,010	$	66,223
Mexico		174,231		152,463		347,898		294,895
Germany		70,968		19,913		142,193		19,913
Poland		113,218		33,817		224,291		33,817

Consolidated net sales	$	388,944	$	240,628	$	775,392	$	414,848