Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.7.0.1
Segment Reporting
 3 Months Ended
Apr. 01, 2017
Segment Reporting [Abstract]  
SEGMENT REPORTING

11.  SEGMENT REPORTING

For the three months ended April 2, 2016, the Company’s individual subsidiaries operated predominantly in a single industry as manufacturers and distributors of hydraulic components.  Given the similar nature of products offered for sale, the type of customers, the methods of distribution and how the Company was managed, the Company determined that it had only one operating and reporting segment for both internal and external reporting purposes.  With the acquisition of Enovation Controls on December 5, 2016, the Company re-evaluated the reportable operating segment presentation.  As of the date of the acquisition, the Company has two reportable segments: Hydraulics and Electronics. These segments are organized primarily based on the similar nature of products offered for sale, the types of customers served and the methods of distribution and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision makers. As a result of the re-evaluation of reportable operating segments, financial information for HCT is presented in the Electronics segment as of the beginning of the 2016 fiscal year.

The Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the business segments as they are not used in evaluating the results of, or in allocating resources to, Sun’s segments. These costs are presented in the Corporate and other line item below. For the three months ended April 1, 2017, the unallocated costs included certain corporate costs not deemed to be allocable to all segments of $200 and acquisition-related costs including charges related to inventory step-up to fair value of $1,774 and amortization of acquisition-related intangible assets of $2,250.  The accounting policies of Sun’s operating segments are the same as those used to prepare the accompanying consolidated financial statements.

The following table presents financial information by reportable segment:

 

 

 

Three months ended

 

 

 

April 1, 2017

 

 

April 2, 2016

 

Net sales

 

 

 

 

 

 

 

 

Hydraulics

 

$

54,122

 

 

$

50,183

 

Electronics

 

 

27,231

 

 

 

845

 

 

 

$

81,353

 

 

$

51,028

 

Operating Income:

 

 

 

 

 

 

 

 

Hydraulics

 

$

13,772

 

 

$

11,926

 

Electronics

 

 

6,236

 

 

 

(40

)

Corporate and other

 

 

(4,224

)

 

 

-

 

 

 

$

15,784

 

 

$

11,886

 

Depreciation and Amortization:

 

 

 

 

 

 

 

 

Hydraulics

 

$

2,288

 

 

$

2,394

 

Electronics

 

 

2,803

 

 

 

133

 

 

 

$

5,091

 

 

$

2,527

 

Capital Expenditures:

 

 

 

 

 

 

 

 

Hydraulics

 

$

611

 

 

$

942

 

Electronics

 

 

147

 

 

 

57

 

 

 

$

758

 

 

$

999

 

 

 

 

April 1, 2017

 

 

December 31, 2016

 

Total Assets:

 

 

 

 

 

 

 

 

Hydraulics

 

$

192,217

 

 

$

193,722

 

Electronics

 

 

257,577

 

 

 

251,055

 

Total

 

$

449,794

 

 

$

444,777

 

 

Geographic Region Information

Net sales are measured based on the geographic destination of sales. Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment:

 

 

 

Three months ended

 

 

 

April 1, 2017

 

 

April 2, 2016

 

Net sales

 

 

 

 

 

 

 

 

United States

 

$

43,090

 

 

$

21,403

 

Other Americas

 

 

4,198

 

 

 

3,312

 

Europe/Middle East/Africa

 

 

20,100

 

 

 

15,677

 

Asia/Pacific

 

 

13,965

 

 

 

10,636

 

Total

 

$

81,353

 

 

$

51,028

 

 

 

 

 

April 1, 2017

 

 

December 31, 2016

 

Tangible long-lived assets

 

 

 

 

 

 

 

 

United States

 

$

70,074

 

 

$

71,802

 

Europe/Middle East/Africa

 

 

7,068

 

 

 

7,116

 

Asia/Pacific

 

 

1,608

 

 

 

1,597

 

Total

 

$

78,750

 

 

$

80,515