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Segment Information
 9 Months Ended
Sep. 26, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information
 
The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments' current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.

•Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field effect transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial and
automotive electronics, electric vehicle and related infrastructure, data and telecommunications, medical devices, alternative energy, consumer electronics and white goods.

•Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain.

•Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy, electric vehicle infrastructure, non-residential construction, HVAC systems, elevators and other industrial equipment.

 
Segment information is summarized as follows: 
 Three Months EndedNine Months Ended
(in thousands)September 26, 2020September 28, 2019September 26, 2020September 28, 2019
Net sales    
Electronics$255,349 $227,252 $692,809 $752,199 
Automotive104,724 104,681 271,493 326,814 
Industrial31,493 30,038 80,697 86,337 
Total net sales$391,566 $361,971 $1,044,999 $1,165,350 
Depreciation and amortization
Electronics$15,819 $14,960 $46,967 45,031 
Automotive7,370 7,067 21,628 20,848 
Industrial1,140 1,061 3,270 3,177 
Total depreciation and amortization$24,329 $23,088 $71,865 $69,056 
Operating income
Electronics$45,860 $34,567 $110,783 $127,233 
Automotive15,383 11,437 20,642 34,987 
Industrial4,898 6,822 8,409 16,158 
Other(a)
(1,583)(5,659)(42,476)(17,904)
Total operating income64,558 47,167 97,358 160,474 
Interest expense4,988 5,559 16,261 16,834 
Foreign exchange (gain) loss(6,174)4,968 (9,600)5,636 
Other income, net(1,682)(4,764)(1,643)(3,406)
Income before income taxes$67,426 $41,404 $92,340 $141,410 
 
(a) Included in “Other” Operating income for the third quarter of 2020 is $0.3 million ($1.6 million year-to-date) of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there was $1.3 million ($40.9 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs of $1.2 million ($4.6 million year-to-date), and other restructuring charges of $0.1 million ($0.2 million year-to-date), the goodwill impairment charge of $33.8 million recorded in the second quarter associated with the automotive sensors reporting unit within the Automotive segment, and impairment charges of $2.2 million recorded in the first quarter associated with the
announced consolidation of a manufacturing facility within the Industrial segment. See Note 4, Goodwill and Other Intangible Assets and Note 6, Restructuring, Impairment and Other Charges, for further discussion.

Included in "Other" Operating income for the third quarter of 2019 is $3.2 million ($6.9 million year-to-date) of acquisition integration charges primarily related to the IXYS acquisition. In addition, there were $2.5 million ($11.0 million year-to-date) of restructuring charges primarily related to employee termination costs.



The Company’s net sales by country were as follows:
 
 Three Months EndedNine Months Ended
(in thousands)September 26, 2020September 28, 2019September 26, 2020September 28, 2019
Net sales
United States$106,121 $105,292 $285,901 $340,811 
China126,506 101,960 314,547 316,553 
Other countries(a)
158,939 154,719 444,551 507,986 
Total net sales$391,566 $361,971 $1,044,999 $1,165,350 
 
 The Company’s long-lived assets by country were as follows:
 
(in thousands)September 26,
2020		December 28,
2019
Long-lived assets
United States$52,009 $58,081 
China82,956 88,306 
Mexico68,346 73,096 
Germany37,611 36,025 
Philippines64,171 51,738 
Other countries(a)
34,777 37,371 
Total long-lived assets$339,870 $344,617 
 
The Company’s additions to long-lived assets by country were as follows:
 
 Nine Months Ended
(in thousands)September 26, 2020September 28, 2019
Additions to long-lived assets
United States$2,712 $4,972 
China6,414 12,418 
Mexico7,291 12,650 
Germany3,793 4,335 
Philippines15,331 9,546 
Other countries(a)
1,152 3,454 
Total additions to long-lived assets$36,693 $47,375 

(a)Each country included in other countries is less than 10% of net sales.