XML 27 R17.htm IDEA: XBRL DOCUMENT v3.23.2
Segment Information
 6 Months Ended
Jul. 02, 2023
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company determines that an operating segment exists if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has operating results that are regularly reviewed by the chief operating decision maker (“CODM”) and (iii) has discrete financial information. Additionally, accounting standards require the utilization of a “management approach” to report the financial results of operating segments, which is based on information used by the CODM to assess performance and make operating and resource allocation decisions. The Company determined that it has two operating segments organized by geographical area – namely (a) Americas (“AMS”) and (b) Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment includes the United States, Canada and Latin America geographic areas.
Pursuant to the management approach discussed above, the Company’s CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on segment adjusted operating income (“AOI”), which includes allocations of corporate selling, general and administrative expenses. AOI excludes nora purchase accounting amortization; Thailand plant closure inventory write-down; Cyber Event impact; property casualty loss; and restructuring, asset impairment, severance and other charges. Intersegment revenues for the three and six months ended July 2, 2023, were $24.7 million and $47.3 million, respectively, and intersegment revenues for the three and six months ended July 3, 2022, were $19.4 million and $36.7 million, respectively. Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM.
The Company has determined that it has two reportable segments – AMS and EAAA, as each operating segment meets the quantitative thresholds defined in the accounting guidance.
Segment information for the three and six months ended July 2, 2023 and July 3, 2022 is presented in the following table:
Three Months EndedSix Months Ended
July 2, 2023July 3, 2022July 2, 2023July 3, 2022
(in thousands)
Net sales
AMS$201,281 $206,810 $370,522 $363,319 
EAAA128,301 139,795 254,852 271,288 
Total net sales$329,582 $346,605 $625,374 $634,607 
 
Segment AOI
AMS$24,034 $28,389 $35,303 $49,527 
EAAA 3,827 10,131 7,756 19,635 
 
Depreciation and amortization
AMS$4,424 $4,183 $8,817 $8,241 
EAAA5,731 5,983 11,329 12,595 
Total depreciation and amortization$10,155 $10,166 $20,146 $20,836 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
July 2, 2023January 1, 2023
(in thousands)
Assets
AMS$568,933 $588,110 
EAAA636,037 652,921 
Total segment assets1,204,970 1,241,031 
Corporate assets106,931 110,495 
Eliminations(91,947)(85,023)
Total reported assets$1,219,954 $1,266,503 
Reconciliations of operating income to income before income tax expense and segment AOI are presented as follows:
Three Months EndedSix Months Ended
July 2, 2023July 3, 2022July 2, 2023July 3, 2022
(in thousands)
AMS operating income$24,752 $28,413 $33,467 $49,663 
EAAA operating income4,156 6,112 4,918 12,282 
Consolidated operating income28,908 34,525 38,385 61,945 
Interest expense8,318 7,190 16,823 14,040 
Other (income) expense, net(528)1,394 972 1,564 
Income before income tax expense$21,118 $25,941 $20,590 $46,341 
Three Months Ended July 2, 2023Three Months Ended July 3, 2022
AMSEAAAAMSEAAA
(in thousands)
Operating income$24,752 $4,156 $28,413 $6,112 
Purchase accounting amortization— 1,301 — 1,271 
Thailand plant closure inventory write-down— — — 938 
Cyber Event impact264 173 — — 
Property casualty loss(1)
(1,300)— — — 
Restructuring, asset impairment, severance and other charges318 (1,803)(24)1,810 
AOI$24,034 $3,827 $28,389 $10,131 
(1) Represents insurance recovery of loss recognized in the first quarter of 2023.
Six Months Ended July 2, 2023Six Months Ended July 3, 2022
AMSEAAAAMSEAAA
(in thousands)
Operating income$33,467 $4,918 $49,663 $12,282 
Purchase accounting amortization— 2,584 — 2,613 
Thailand plant closure inventory write-down— — — 2,053 
Cyber Event impact492 373 — — 
Restructuring, asset impairment, severance and other charges1,344 (119)(136)2,687 
AOI$35,303 $7,756 $49,527 $19,635