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Segment Information
 12 Months Ended
Dec. 31, 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; goodwill and intangible asset impairment charges; and restructuring, asset impairment, severance, and other, net. Intersegment revenues for 2023, 2022 and 2021 were $82.8 million, $75.5 million and $78.1 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 2023, 2022 and 2021 is presented in the table below:

Fiscal Year
202320222021
(in thousands)
Net sales
AMS$736,955 $753,740 $651,216 
EAAA524,543 544,179 549,182 
Total net sales$1,261,498 $1,297,919 $1,200,398 
 
Segment AOI
AMS$87,789 $102,370 $85,014 
EAAA28,608 30,058 37,268 
Depreciation and amortization
AMS$17,989 $16,827 $17,963 
EAAA22,785 23,510 28,382 
Total depreciation and amortization$40,774 $40,337 $46,345 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:

End of Fiscal Year
20232022
(in thousands)
Assets
AMS$627,782 $588,110 
EAAA630,939 652,921 
Total segment assets1,258,721 1,241,031 
Corporate assets108,673 110,495 
Eliminations(137,299)(85,023)
Total reported assets$1,230,095 $1,266,503 

Total assets in the table above include operating lease right-of-use assets for fiscal years 2023 and 2022. Below is a summary of the operating lease right-of-use assets by reportable segment and a reconciliation to the consolidated amounts:

End of Fiscal Year
Operating Lease Right-of-Use Assets20232022
(in thousands)
AMS$23,149 $14,140 
EAAA54,663 58,255 
Total segment operating lease right-of-use assets77,812 72,395 
Corporate operating lease right-of-use assets9,707 9,249 
Total operating lease right-of-use assets$87,519 $81,644 

Reconciliations of operating income (loss) to income before income tax expense and segment AOI are presented as follows:

Fiscal Year
202320222021
(in thousands)
AMS operating income$85,035 $92,234 $81,445 
EAAA operating income (loss)19,487 (16,836)23,352 
Consolidated operating income
104,522 75,398 104,797 
Interest expense31,787 29,929 29,681 
Other expense, net9,081 3,552 2,483 
Income before income tax expense
$63,654 $41,917 $72,633 
Fiscal Year
202320222021
AMSEAAAAMSEAAAAMSEAAA
(in thousands)
Operating income (loss)$85,035 $19,487 $92,234 $(16,836)$81,445 $23,352 
Purchase accounting amortization— 5,172 — 5,038 — 5,636 
Thailand plant closure inventory write-down— — — 2,530 — — 
Cyber Event impact616 456 3,878 1,215 — — 
Goodwill and intangible asset impairment— — 3,838 32,342 — — 
Restructuring, asset impairment, severance, and other, net
2,138 3,493 2,420 5,769 3,569 8,280 
AOI$87,789 $28,608 $102,370 $30,058 $85,014 $37,268 

The Company has a large and diverse customer base, which includes numerous customers located in foreign countries. No single unaffiliated customer accounted for more than 10% of total sales in any year during the past three years. Sales to customers in foreign markets in 2023, 2022 and 2021 were approximately 46%, 47% and 50%, respectively, of total net sales. These sales were primarily to customers in Europe, Canada, Asia, Australia and Latin America. Net sales and long-lived assets for the United States and other significant countries (that individually represent 10% or greater of consolidated totals for each year presented) are as follows:
 
 Fiscal Year
Net Sales to Unaffiliated Customers(1)
202320222021
 (in thousands)
United States$677,342 $694,299 $596,844 
Other foreign countries584,156 603,620 603,554 
Total net sales$1,261,498 $1,297,919 $1,200,398 
 
End of Fiscal Year
Long-Lived Assets(2)
2023
2022
(in thousands)
United States$146,106 $146,210 
Germany66,740 64,182 
Netherlands40,455 42,422 
Other foreign countries(3)
37,839 45,162 
Total long-lived assets$291,140 $297,976 
 
(1) Revenue attributed to geographic areas is based on the location of the customer.
(2) Long-lived assets attributed to geographic areas are based on the physical location of the asset. 2023 includes $2.2 million and $5.0 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. 2022 includes $1.3 million and $4.5 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively.
(3) Long-lived assets in Australia did not exceed 10% of consolidated long-lived assets for 2023. Long-lived assets in Australia were $29.9 million in 2022, which exceeded 10% of consolidated long-lived assets as of the end of that fiscal year.