Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 9 Months Ended
Sep. 29, 2012
Segment Reporting [Abstract]  
SEGMENT REPORTING

11. 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, and Korea. Operations in France were conducted through a subsidiary of the Company until its dissolution in November 2011, at which time it became a liaison office. Amounts for France, due to their immateriality, are included with the U.S. Additionally, costs associated with the Company’s representative office in China and liaison office in India are included as part of the U.S. operating segment, as are sales into these regions. 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 September 29, 2012

                                                

Sales to unaffiliated customers

   $ 34,302     $ 3,495     $ 6,267     $ 4,761     $ —       $ 48,825  

Intercompany sales

     7,331       —         31       443       (7,805 )      —    

Operating income

     11,069       185       1,296       912       (267 )      13,195  

Depreciation

     1,302       36       82       185       —         1,605  

Capital expenditures

     1,735       4       6       206       —         1,951  
             

Three Months Ended October 1, 2011

                                                

Sales to unaffiliated customers

   $ 34,897     $ 5,081     $ 7,824     $ 5,239     $ —       $ 53,041  

Intercompany sales

     8,763       —         60       405       (9,228 )      —    

Operating income

     12,119       575       2,028       892       (115 )      15,499  

Depreciation

     1,294       28       85       235       —         1,642  

Capital expenditures

     4,121       89       7       68       —         4,285  
             

Nine Months Ended September 29, 2012

                                                

Sales to unaffiliated customers

   $ 109,381     $ 14,401     $ 20,741     $ 16,608     $ —       $ 161,131  

Intercompany sales

     24,872       —         75       1,289       (26,236 )      —    

Operating income

     35,966       1,400       4,488       3,131       (62 )      44,923  

Depreciation

     3,933       93       242       622       —         4,890  

Capital expenditures

     5,949       24       38       692       —         6,703  
             

Nine Months Ended October 1, 2011

                                                

Sales to unaffiliated customers

   $ 100,515     $ 16,778     $ 22,320     $ 18,901     $ —       $ 158,514  

Intercompany sales

     26,722       —         176       1,188       (28,086 )      —    

Operating income

     33,481       2,175       5,690       3,379       72       44,797  

Depreciation

     3,879       83       272       721       —         4,955  

Capital expenditures

     6,631       234       57       173       —         7,095  

Sales to unaffiliated customers represent sales from each of the individual subsidiaries. For information on sales to geographic locations, see the Comparison of the Nine Month Periods Ended September 29, 2012, and October 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.