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SEGMENT INFORMATION
 12 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION
17. SEGMENT INFORMATION

The Electrical segment manufactures high quality products used in the construction of electrical power systems including conduit, cable, and installation accessories. This segment serves contractors in partnership with the electrical wholesale channel.

The Safety & Infrastructure segment designs and manufactures solutions including metal framing, mechanical pipe, perimeter security, and cable management for the protection and reliability of critical infrastructure. These solutions are marketed to contractors, original equipment manufacturers and end users.
 
Both segments use Adjusted EBITDA as the primary measure of profit and loss. Segment Adjusted EBITDA is the income (loss) before income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, loss on extinguishment of debt, restructuring charges, impairment charges, stock-based compensation, certain legal matters, transaction costs, gain on purchase of business, gain on sale of a business and other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, and realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives.

Intersegment transactions primarily consist of product sales at designated transfer prices on an arm's-length basis. Gross profit earned and reported within the segment is eliminated in the Company’s consolidated results. Certain manufacturing and distribution expenses are allocated between the segments on a pro rata basis due to the shared nature of activities. Recorded amounts represent a proportional amount of the quantity of product produced for each segment. Certain assets, such as machinery and equipment and facilities, are not allocated to each segment despite serving both segments. These shared assets are reported within the Safety & Infrastructure segment. We allocate certain corporate operating expenses that directly benefit our operating segments, such as insurance and information technology, on a basis that reasonably approximates an estimate of the use of these services.

Fiscal year ended
 September 30, 2023September 30, 2022September 30, 2021
(in thousands)External Net SalesInter- segment SalesAdjusted EBITDAExternal Net SalesInter- segment SalesAdjusted EBITDAExternal Net SalesInter- segment SalesAdjusted EBITDA
Electrical$2,675,050 $25 $1,004,853 $3,013,755 $— $1,273,410 $2,229,862 $3,437 $873,868 
Safety & Infrastructure843,711 447 $103,231 900,194 394 $138,390 698,152 168 $81,827 
Eliminations— (471)(394)— (3,605)
Consolidated operations$3,518,761 $— $3,913,949 $— $2,928,014 $— 
Capital ExpendituresTotal Assets
(in thousands)September 30, 2023September 30, 2022September 30, 2021September 30, 2023September 30, 2022September 30, 2021
Electrical$137,485 $61,721 $34,995 $1,715,419 $1,524,670 $1,122,835 
Safety & Infrastructure69,475 38,280 22,407 753,821 618,331 482,942 
Unallocated11,928 35,775 7,072 465,769 455,995 604,322 
Consolidated operations$218,888 $135,776 $64,474 $2,935,009 $2,598,996 $2,210,099 

Presented below is a reconciliation of operating segment Adjusted EBITDA to Income before income taxes:
Fiscal Year Ended
(in thousands)September 30, 2023September 30, 2022September 30, 2021
Operating segment Adjusted EBITDA
Electrical$1,004,853 $1,273,410 $873,868 
Safety & Infrastructure103,231 138,390 81,827 
Total$1,108,083 $1,411,800 $955,695 
Unallocated expenses (a)(65,956)(70,010)(58,148)
Depreciation and amortization(115,524)(84,415)(78,557)
Interest expense, net(35,232)(30,676)(32,899)
Loss on extinguishment of debt— — (4,202)
Stock-based compensation(21,101)(17,245)(17,047)
Transaction costs(968)(3,424)(667)
Loss on assets held for sale(7,477)— — 
Other (b)(11,535)(2,410)15,826 
Income before income taxes$850,290 $1,203,620 $780,001 
(a) Represents unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, human resources, information technology, business development and communications, as well as certain costs and earnings of employee-related benefits plans, such as stock-based compensation and a portion of self-insured medical costs.
(b) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions and realized or unrealized gain (loss) on foreign currency impacts of intercompany loans, restructuring charges, gain on purchase of business, impairment charges, and related forward currency derivatives.

The Company’s long-lived assets and net sales by geography were as follows:

Long-lived assetsNet sales
(in thousands)September 30, 2023September 30, 2022September 30, 2021September 30, 2023September 30, 2022September 30, 2021
United States$612,066 $410,263 $258,069 $3,150,143 $3,552,893 $2,637,118 
Other Americas8,655 7,195 6,180 94,064 102,626 53,151 
Europe52,498 38,396 45,917 228,885 213,581 183,985 
Asia-Pacific6,569 5,400 6,569 45,669 44,849 53,760 
Total$679,788 $461,255 $316,735 $3,518,761 $3,913,949 $2,928,014 
The table below shows the amount of net sales from external customers for each of the Company’s product categories which accounted for 10% or more of consolidated net sales in any of the last three fiscal years:

Fiscal Year Ended
(in thousands)September 30, 2023September 30, 2022September 30, 2021
Metal Electrical Conduit and Fittings$529,083 $635,481 $612,137 
Plastic Pipe Conduit and Fittings1,252,422 1,479,331 893,199 
Electrical Cable and Flexible Conduit506,994 535,194 424,411 
Other Electrical products (a)
386,551 363,749 300,115 
Electrical2,675,050 3,013,755 2,229,862 
Mechanical Tube367,730 445,453 395,289 
Other Safety & Infrastructure products (b)
475,982 454,741 302,863 
Safety & Infrastructure843,711 900,194 698,152 
Net sales$3,518,761 $3,913,949 $2,928,014 
(a) Other Electrical products includes International Cable Management, Fiberglass Conduit and Corrosion Resistant Conduit
(b) Other S&I products includes Metal Framing and Fittings, Construction Services, Perimeter Security and Cable Management

Risks and Concentrations

Concentration of Credit Risk — The Company extends credit to various customers in the retail and construction industries. Collection of trade receivables may be affected by changes in economic or other industry conditions and may, accordingly, impact the Company's overall credit risk. Although the Company generally does not require collateral, the Company performs ongoing credit evaluations of customers and maintains reserves for potential credit losses. As of September 30, 2023, Sonepar USA represented 14% and CED National represented 11% of the Company’s accounts receivable, with no significant amounts past due. As of September 30, 2022, one customer, CED National represented 10% of the Company’s accounts receivable, with no significant amounts past due. For fiscal 2023, one customer, Sonepar USA accounted for more than 10% of sales, for fiscal 2022 and 2021, no single customer accounted for more than 10% of sales.
Concentration of Employees — As of September 30, 2023, approximately 18% of the Company's employees were represented by a union under a collective bargaining agreement. All unions are located in either the United States or Canada, with no unions or Worker's Councils at any of the other locations abroad. On July 14, 2020, the Company and the United Steelworkers Union, representing approximately 350 employees, reached agreement on the terms of a new collective bargaining agreement for our largest facility in Harvey, Illinois, which expires in April 2024. The Company believes its relationship with its employees is good.