Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 12 Months Ended
Dec. 31, 2011
Segment Reporting [Abstract]  
Segment Reporting
18. 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. France operated as a subsidiary of the Company until its dissolution in November 2011, at which time it became a liaison office. 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.

 

Total 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                   United               
     States     Korea      Germany      Kingdom      Elimination     Consolidated  

2011

                

Sales to unaffiliated customers

    $ 131,714      $ 20,566       $ 27,997       $ 23,894       $ —        $ 204,171   

Intercompany sales

      33,711        —           201         1,536         (35,448 )      —     

Operating income

      41,847        2,492         6,715         4,167         48        55,269   

Total assets

      116,496        11,996         19,016         20,747         (727 )      167,528   

Depreciation and amortization

      5,308        114         357         942           6,721   

Capital expenditures

      9,324        274         63         482           10,143   

2010

                

Sales to unaffiliated customers

    $ 94,067      $ 16,284       $ 19,770       $ 20,574       $ —        $ 150,695   

Intercompany sales

      26,022        —           160         1,225         (27,407 )      —     

Operating income

      22,040        2,246         4,024         2,822         (93 )      31,039   

Total assets

      89,977        10,535         14,705         17,605         (788 )      132,034   

Depreciation and amortization

      5,388        89         429         967           6,873   

Capital expenditures

      3,400        217         27         212           3,856   

2009

                

Sales to unaffiliated customers

    $ 59,278      $ 9,978       $ 14,654       $ 13,483       $ —        $ 97,393   

Intercompany sales

      15,545        —           139         1,101         (16,785 )      —     

Operating income (loss)

      (2,110 )      616         2,475         884         278        2,143   

Total assets

      85,338        8,191         12,447         15,923         (1,966 )      119,933   

Depreciation and amortization

      5,335        104         502         1,027           6,968   

Capital expenditures

      4,758        41         30         267           5,096   

Sales to unaffiliated customers represent sales from each of the individual subsidiaries. For information on sales to geographic locations, see the Comparisons of the Years Ended December 31, 2011, and January 1, 2011, 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.

Included in U.S. sales to unaffiliated customers were export sales of $49,753, $34,955, and $19,031, during 2011, 2010, and 2009, respectively. Export sales to Canada and Asia/Pacific totaling, $34,506, $24,705, and $12,918, during 2011, 2010, and 2009, respectively, make up the majority of these export sales. Additionally, export sales to Europe were $12,474, $8,066 and $4,916 during 2011, 2010, and 2009, respectively.