Segment and geographical information

12 Months Ended

Dec. 26, 2014

Segment Reporting [Abstract]

Segment and geographical information

Segment and geographical information

 We operate our business in three reportable segments:  Network, Power and Wireless.  Network produces a variety of passive components that manage and regulate electronic signals for use in a variety of devices. These devices are used in local and wide area networks, such as connectors, filters, filtered connectors, transformers, splitters, micro-filters, baluns and chokes.  Power primarily manufactures products that; adjust and ensure proper current and voltage, limit distortion of voltage, sense and report current and voltage and cause mechanical movement or actuation. These products include power transformers, chokes, current and voltage sensors, ignition coils, automotive coils and military and aerospace products.  Wireless manufactures products related to the capture or transmission of wireless communication signals, such as antennas, antenna modules and antenna mounting components.

Selling, general and administrative expenses related to the world-wide operation, primarily related to selling, finance, information technology, human resources and other administrative functions, are allocated to each segment based the ratio of its respective net sales to our consolidated net sales.

Our Chief Operating Decision Maker (“CODM”), which we have identified as our Chief Executive Officer, allocates resources and assesses the performance of each segment based on a review of each segment’s net sales and operating profit (loss) excluding severance, impairment and other associated costs, CEO transition costs, legal entity restructuring costs, and legal reserve costs ("segment operating profit").  Also, the CODM does not review any segment balance sheet information. Many of our long-term assets, including manufacturing facilities and equipment, are shared between our segments; therefore, capital expenditures related to long-term assets cannot be assigned to a specific segment.

Information on reportable segments and reconciliation to consolidated loss before income taxes was as follows (in thousands):

	Years Ended
	December 26, 2014			December 27, 2013
Net sales:
Network	$	152,602		$	150,570
Power	105,936			111,544
Wireless	84,996			93,562
Total net sales	$	343,534		$	355,676
Segment operating profit (loss)
Network	$	7,124		$	4,839
Power	9,029			7,607
Wireless	(6,741		)	(4,673		)
Segment operating profit	9,412			7,773
Severance, impairment and other associated costs	3,937			3,342
CEO transition costs	4,128			—
Legal entity restructuring costs	1,264			—
Legal reserve	43			147
Operating profit	40			4,284
Interest expense, net	(26,317		)	(24,492		)
Other expense, net	(1,829		)	(2,432		)
Loss before income taxes	$	(28,106	)	$	(22,640	)

Depreciation and amortization per segment was as follows (in thousands):

	Years Ended
	December 26, 2014		December 27, 2013
Depreciation and amortization:
Network	$	2,219	$	2,102
Power	1,243		1,286
Wireless	3,772		4,005
Total	$	7,234	$	7,393

We are a global company that services customers throughout the world.  Each of our segments sells products to multinational original equipment manufacturers, original design manufacturers, contract equipment manufacturers and distributors. We attribute customer sales to the country addressed on the sales invoice, as the product is usually shipped to the same country.

The following table summarizes our net customer sales in the geographic areas or regions where our sales are significant (in thousands):

	Years Ended
	December 26, 2014		December 27, 2013
Sales to customers in:
China	$	184,166	$	182,033
United States	43,913		46,528
Asia, other than China	38,224		52,683
Europe	70,368		66,520
Other	6,863		7,912
Total	$	343,534	$	355,676

For the years ended December 26, 2014 and December 27, 2013, one individual customer in our Network segment accounted for 12.7% and 10.8% of our consolidated net sales, respectively.  Sales to our 10 largest customers accounted for 54.1% of net sales for the year ended December 26, 2014 and 49.9% of net sales for the year ended December 27, 2013.

The following table summarizes our net property, plant and equipment in the geographic areas or regions where our assets are significant (in thousands):

	December 26, 2014		December 27, 2013
Net property, plant and equipment located in:
China	$	12,514	$	14,723
United States	11,482		11,614
Tunisia	1,652		—
Korea	—		1,045
Europe	803		538
Other	21		35
Total	$	26,472	$	27,955