Segment Reporting | (1 4 ) Segment Reporting Operating segments are defined as components of an enterprise that are evaluated regularly by the Company's chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company's chief o perating decision maker is the Chief Executive O fficer. The Company has three reportable segments , Control Devic es, Electronics, and PST , which also represent its operating segments. The Control Devices reportable segment produces sensors, switches, valves and actuators. The Electronics reportable segment produces electronic instrument clusters, electronic control units and driver information systems and includes the recently acquired Orlaco business which designs and manufactures camera-based vision systems, monitors and related products using its vision processing technology. The PST reportable segment designs and manufactures electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services and in-vehicle audio and video devices. The accounting policies of the Company's reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” of the Company's 2016 Form 10-K. The Company's management evaluates the performance of its reportable segments based primarily on revenues from external customers and operating income . Inter-segment sales are accounted for on terms similar to those to third parties and are eliminated upon consolidation. The financial information presented below is for our three reportable operating segments and includes adjustments for unallocated corporate costs and intercompany eliminations, where applicable. Such costs and eliminations do not meet the requirements for being classified as an operating segment. Corporate costs include various support functions, such as information technology, corporate finance, legal, executive administration and human resources. A summary of financial information by reportable segment is as follows: Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net Sales: Control Devices $ 106,842 $ 103,700 $ 339,716 $ 304,957 Inter-segment sales 1,118 430 3,269 1,448 Control Devices net sales 107,960 104,130 342,985 306,405 Electronics 71,354 47,804 206,769 158,201 Inter-segment sales 8,959 9,495 30,538 24,706 Electronics net sales 80,313 57,299 237,307 182,907 PST 25,386 22,342 70,519 60,207 Inter-segment sales 145 - 145 - PST net sales 25,531 22,342 70,664 60,207 Eliminations (10,222) (9,925) (33,952) (26,154) Total net sales $ 203,582 $ 173,846 $ 617,004 $ 523,365 Operating Income (Loss): Control Devices $ 16,249 $ 15,319 $ 55,257 $ 47,133 Electronics 4,896 3,735 13,267 12,050 PST 1,018 29 2,720 (4,179) Unallocated Corporate (A) (8,867) (7,303) (27,108) (21,092) Total operating income $ 13,296 $ 11,780 $ 44,136 $ 33,912 Depreciation and Amortization: Control Devices $ 2,664 $ 2,561 $ 8,050 $ 7,345 Electronics 2,136 996 5,947 3,076 PST 2,115 2,307 6,299 6,388 Unallocated Corporate 181 115 376 309 Total depreciation and amortization (B) $ 7,096 $ 5,979 $ 20,672 $ 17,118 Interest Expense, net: Control Devices $ 19 $ 56 $ 84 $ 172 Electronics 24 33 68 196 PST 378 934 1,482 2,686 Unallocated Corporate 1,087 661 2,802 1,984 Total interest expense, net $ 1,508 $ 1,684 $ 4,436 $ 5,038 Capital Expenditures: Control Devices $ 5,523 $ 3,229 $ 13,318 $ 9,260 Electronics 2,417 1,244 6,451 5,229 PST 974 640 2,899 2,516 Unallocated Corporate (C) 811 1,365 2,224 1,479 Total capital expenditures $ 9,725 $ 6,478 $ 24,892 $ 18,484 September 30, December 31, 2017 2016 Total Assets: Control Devices $ 166,641 $ 150,623 Electronics 245,568 99,964 PST 108,162 107,405 Corporate (C) 356,396 287,031 Eliminations (336,498) (250,494) Total assets $ 540,269 $ 394,529 (A) Unallocated Corporate expenses include, among other items, finance, legal, human resources and information technology costs and share-based compensation. (B) These amounts represent depreciation and amortization on property, plant and equipment and certain intangible assets. (C) Assets located at Corporate consist primarily of cash, intercompany loan receivables, fixed assets for the corporate headquarter building, equity investments and investments in subsidiaries. The following tables present net sales and long-term assets for each of the geographic areas in which the Company operates: Three months ended Nine months ended September 30, September 30, 2017 2016 2017 2016 Net Sales: North America $ 113,402 $ 108,605 $ 358,275 $ 321,973 South America 25,386 22,342 70,519 60,207 Europe and Other (D) 64,794 42,899 188,210 141,185 Total net sales $ 203,582 $ 173,846 $ 617,004 $ 523,365 September 30, December 31, 2017 2016 Long-term Assets: North America $ 76,539 $ 73,835 South America 62,500 63,497 Europe and Other (D) 104,057 16,304 Total long-term assets $ 243,096 $ 153,636 (D) The amounts for 2017 include net sales and long-term assets related to Orlaco which is disclosed in Note 3. |