8. SEGMENTS AND GEOGRAPHIC INFORMATION

The Company’s three reportable segments, which align with the manner in which the business is managed, are Wireless, Enterprise and Broadband.

The Wireless segment provides merchant radio frequency (RF) wireless network connectivity solutions and small cell distributed antenna systems (DAS) solutions. These solutions, marketed primarily under the Andrew brand, enable wireless operators to deploy both cell sites and small cell DAS solutions to meet 2G, 3G and 4G cellular coverage and capacity requirements. Macro cell site solutions can be found at wireless tower sites and on rooftops and include base station antennas, microwave antennas, hybrid fiber-feeder cables, coaxial cables, connectors, amplifiers, filters and backup power solutions. Metro cell solutions can be found outdoors on street poles and on other urban structures and include RF delivery, equipment housing and concealment solutions. These fully integrated outdoor systems consist of specialized antennas, filters/combiners, backhaul solutions, intra-system cabling and power distribution systems, all minimized to fit an urban environment. The small cell DAS solutions are composed of distributed antenna systems that allow wireless operators to extend and enhance cellular coverage and capacity in challenging network conditions such as commercial buildings, urban areas, stadiums and transportation systems.

The Enterprise segment provides connectivity and network intelligence for commercial buildings and data centers. These solutions include optical fiber and twisted pair structured cabling applications, intelligent infrastructure software, network rack and cabinet enclosures, intelligent building sensors, advanced LED lighting control systems and network design services.

The Broadband segment consists of cable and communications equipment that support the multi-channel video, voice and high-speed data services provided by cable operators. The segment’s products include coaxial and fiber-optic cables, fiber-to-the-home equipment, amplifiers, splitters, conduit and headend solutions for the network core.

The following table provides summary financial information by reportable segment (in millions):

 

		March 31, 2015				December 31, 2014
Identifiable segment-related assets:
Wireless		$	2,388.5			$	2,370.4
Enterprise			1,398.6				1,401.9
Broadband			339.0				352.1
Total identifiable segment-related assets			4,126.1				4,124.4
Reconciliation to total assets:
Cash and cash equivalents			735.1				729.3
Deferred income tax assets			56.5				59.0
Debt issuance costs			40.7				43.2
Total assets		$	4,958.4			$	4,955.9

 

The following table provides net sales, operating income, depreciation and amortization by reportable segment (in millions):

 

		Three Months Ended
		March 31,
		2015				2014
Net sales:
Wireless		$	496.3			$	627.2
Enterprise			211.3				201.5
Broadband			118.0				107.5
Inter-segment eliminations			(0.2	)			(1.2	)
Consolidated net sales		$	825.4			$	935.0
Operating income:
Wireless (1)		$	64.4			$	127.6
Enterprise (2)			26.9				22.6
Broadband (3)			1.8				(3.7	)
Consolidated operating income		$	93.1			$	146.5
Depreciation:
Wireless		$	7.2			$	7.0
Enterprise			2.6				2.7
Broadband			1.8				2.0
Consolidated depreciation		$	11.6			$	11.7
Amortization (4):
Wireless		$	23.1			$	22.5
Enterprise			17.4				17.4
Broadband			4.3				4.4
Consolidated amortization		$	44.8			$	44.3

 

(1)	Operating income for the three months ended March 31, 2015 and 2014 includes transaction and integration costs of $6.0 million and $0.6 million, respectively.

(2)

Operating income for the three months ended March 31, 2015 and 2014 includes transaction and integration costs of $3.0 million and $0.2 million, respectively. Operating income for the three months ended March 31, 2014 includes a gain of $5.4 million, from adjustments to the estimated fair value of contingent consideration related to the Redwood acquisition.

(3)	Operating income for the three months ended March 31, 2015 and 2014 includes transaction and integration costs of $2.4 million and $0.1 million, respectively.

(4)	Excludes amortization of debt issuance costs and original issue discount.

Sales to customers located outside of the United States comprised 53.6% and 39.8% of total net sales for the three months ended March 31, 2015 and 2014, respectively. Sales by geographic region, based on the destination of product shipments, were as follows (in millions):

 

		Three Months Ended
		March 31,
		2015				2014
United States		$	383.1			$	562.9
Europe, Middle East and Africa			158.9				169.6
Asia Pacific			189.9				128.9
Central and Latin America			66.7				58.4
Canada			26.8				15.2
Consolidated net sales		$	825.4			$	935.0