Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v2.4.0.6
Segment Reporting
 6 Months Ended
Jun. 30, 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, 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. 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 June 30, 2012

                                                

Sales to unaffiliated customers

   $ 39,458     $ 4,953     $ 7,054     $ 5,566     $ —       $ 57,031  

Intercompany sales

     8,466       —         21       473       (8,960 )      —    

Operating income

     13,116       508       1,647       1,085       108       16,464  

Depreciation

     1,306       31       78       219       —         1,634  

Capital expenditures

     2,621       9       15       321       —         2,966  
             

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  
             

Six Months

                                                

Ended June 30, 2012

                                                

Sales to unaffiliated customers

   $ 75,078     $ 10,906     $ 14,474     $ 11,847     $ —       $ 112,305  

Intercompany sales

     17,541       —         44       847       (18,432 )      —    

Operating income

     24,897       1,214       3,192       2,219       206       31,728  

Depreciation

     2,631       57       160       438       —         3,286  

Capital expenditures

     4,214       20       32       486       —         4,752  
             

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  

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 June 30, 2012, and July 2, 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.