2008 Annual Report - Hubbell Wiring Device-Kellems

HUBBELL INCORPORATED AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)industrial controls and communication systems used in the non-residential and industrial markets. Many of theseproducts may also be found in the oil and gas (onshore and offshore) and mining industries. Certain lighting fixtures,wiring devices and electrical products also have residential applications. These products are primarily sold throughelectrical and industrial distributors, home centers, some retail and hardware outlets, and lighting showrooms.Special application products are sold primarily through wholesale distributors to contractors, industrial customersand OEMs. High voltage products are also sold direct to customers through its sales engineers.The Power segment consists of operations that design and manufacture various transmission, distribution,substation and telecommunications products primarily used by the utility industry. In addition, certain of theseproducts are used in the civil construction and transportation industries. Products are sold to distributors and directlyto users such as electric utilities, mining operations, industrial firms, construction and engineering firms.Financial InformationFinancial information by industry segment and geographic area for the three years ended December 31, 2008,is summarized below (in millions). When reading the data the following items should be noted:• Net sales comprise sales to unaffiliated customers — inter-segment and inter-area sales are not significant.• Segment operating income consists of net sales less operating expenses, including total corporate expenses,which are generally allocated to each segment on the basis of the segment’s percentage of consolidated netsales. Interest expense and investment income and other expense, net have not been allocated to segments.• General corporate assets not allocated to segments are principally cash, prepaid pensions, investments anddeferred taxes.72