Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

 v2.3.0.11
Segment Reporting
 6 Months Ended
Jul. 02, 2011
Segment Reporting  
Segment Reporting
10. SEGMENT REPORTING

The individual subsidiaries comprising the Company operate predominantly in a single industry as manufacturers and distributors of hydraulic components. The Company is multinational with operations in the United States, and subsidiaries in the United Kingdom, Germany, Korea, and France. Amounts for France, due to their immateriality, are included with the U.S. In computing operating profit for the foreign subsidiaries, no allocations of general corporate expenses have been made. Management bases its financial decisions by the geographical location of its operations.

Identifiable assets of the foreign subsidiaries are those assets related to the operation of those companies. United States assets consist of all other operating assets of the Company.

 

Segment information is as follows:

 

     United
States		      Korea      Germany      United
Kingdom		      Elimination     Consolidated  

Three Months

Ended July 2, 2011

                 

Sales to unaffiliated customers

    $ 35,152       $ 5,674       $ 7,308       $ 6,636       $ —        $ 54,770   

Intercompany sales

      8,470         —           63         407         (8,940 )      —     

Operating income

      11,383         659         1,922         1,281         139        15,384   

Depreciation

      1,292         29         88         246         —          1,655   

Capital expenditures

      1,615         23         5         56         —          1,699   

Three Months

Ended July 3, 2010

                 

Sales to unaffiliated customers

    $ 25,259       $ 4,644       $ 4,669       $ 4,674       $ —        $ 39,246   

Intercompany sales

      6,785         —           28         287         (7,100 )      —     

Operating income (loss)

      7,005         651         911         759         (187 )      9,139   

Depreciation

      1,320         22         102         234         —          1,678   

Capital expenditures

      515         48         1         92         —          656   

Six Months

Ended July 2, 2011

                 

Sales to unaffiliated customers

    $ 65,618       $ 11,697       $ 14,496       $ 13,662       $ —        $ 105,473   

Intercompany sales

      17,959         —           116         783         (18,858 )      —     

Operating income

      21,359         1,599         3,662         2,487         187        29,294   

Depreciation

      2,585         54         188         486         —          3,313   

Capital expenditures

      2,510         146         50         104         —          2,810   

Six Months

Ended July 3, 2010

                 

Sales to unaffiliated customers

    $ 44,228       $ 8,836       $ 9,368       $ 8,418       $ —        $ 70,850   

Intercompany sales

      11,882         —           81         625         (12,588 )      —     

Operating income (loss)

      9,875         1,277         2,028         1,095         (173 )      14,102   

Depreciation

      2,648         44         214         484         —          3,390   

Capital expenditures

      1,081         113         5         125         —          1,324   

Sales to unaffiliated customers represent sales from each of the individual subsidiaries. For information on sales to geographic locations, see the Comparison of the Six Month Periods Ended July 2, 2011, and July 3, 2010, in Management's Discussion and Analysis of Financial Condition and Results of Operations. Operating income is total sales and other operating income less operating expenses. Segment operating income does not include interest income/expense, foreign currency transaction gain/loss, and net miscellaneous income/expense.