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Segment Information
 12 Months Ended
Dec. 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 motor drives and power conversion, automotive electronics, electric vehicle and related infrastructure, power supplies, data centers and telecommunications, medical devices, alternative energy, building and home automation, appliances, and mobile electronics.

•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 for internal combustion engine, 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 used in applications serving a number of end markets, including heavy truck, construction, agriculture and material handling. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupant's safety and environment as well as the vehicle’s powertrain.

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

The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows:
 
(in thousands)
202020192018
Net sales   
Electronics$937,762 $961,080 $1,124,296 
Automotive395,764 428,533 479,791 
Industrial112,169 114,260 114,381 
Total net sales$1,445,695 $1,503,873 $1,718,468 
Depreciation and amortization
Electronics$62,702 $60,345 $61,779 
Automotive28,995 27,922 23,333 
Industrial4,481 4,236 5,661 
Other— — 12,420 
Total depreciation and amortization$96,178 $92,503 $103,193 
Operating income (loss)
Electronics$152,695 $145,594 $241,426 
Automotive41,655 46,719 54,982 
Industrial11,996 22,407 17,335 
Other(a)
(43,974)(21,929)(88,694)
Total operating income162,372 192,791 225,049 
Interest expense21,077 22,266 22,569 
Foreign exchange (gain) loss(14,875)5,224 (863)
Other income, net(5,083)(583)(1,599)
Income before income taxes$161,253 $165,884 $204,942 
 (a) Included in “Other” Operating income (loss) for 2020 is $2.3 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $41.7 million of restructuring, impairment and other charges, primarily related to the goodwill impairment charge of $33.8 million recorded in the second quarter associated with the automotive sensors reporting unit within the Automotive segment, employee termination costs of $5.5 million, $2.2 million of impairment charges recorded in the first quarter associated with the announced consolidation of a
manufacturing facility within the Industrial segment and other restructuring charges of $0.2 million. See Note 8, Restructuring, Impairment and Other Charges, for further discussion.

Included in “Other” Operating income (loss) for 2019 is $8.9 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $13.0 million of restructuring charges primarily related to employee termination costs.

Included in “Other” Operating income (loss) for 2018 is $88.7 million of charges primarily related to the IXYS acquisition, which include $36.9 million of purchase accounting inventory step-up charges, $18.7 million in acquisition-related and integration costs primarily related to legal, accounting and other expenses, $12.4 million in backlog amortization costs, $8.3 million of employee termination costs, impairment and other restructuring charges, and $4.5 million in stock compensation expense recognized immediately upon close for converted IXYS options related to prior service periods and $2.1 million change in control expense related to IXYS. In addition, there were $5.8 million of employee termination costs, impairment and other restructuring charges and acquisition-related expenses for other contemplated acquisitions which included $2.2 million of impairment charges primarily related to the impairment of a building and a trade name associated with the exit of the Custom business within the Industrial segment.

The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2020, 2019, and 2018 are as follows:
 
(in thousands)
202020192018
Net sales   
United States$392,544 $440,461 $511,544 
China438,000 416,385 468,174 
Other countries(a)
615,151 647,027 738,750 
Total net sales$1,445,695 $1,503,873 $1,718,468 
Long-lived assets
United States$46,132 $58,081 $58,691 
China85,876 88,306 95,806 
Mexico70,125 73,096 70,495 
Germany37,976 36,025 36,548 
Philippines66,994 51,738 32,459 
Other countries37,075 37,371 45,895 
Total long-lived assets$344,178 $344,617 $339,894 
Additions to long-lived assets
United States$4,170 $5,864 $5,567 
China10,074 10,400 29,286 
Mexico9,977 13,827 18,723 
Germany5,600 4,017 5,208 
Philippines19,612 22,944 7,605 
Other countries1,775 9,314 8,364 
Total additions to long-lived assets$51,208 $66,366 $74,753 

(a)Each country included in other countries are less than 10% of net sales.
 
For the year ended December 26, 2020, approximately 73% of the Company’s net sales were to customers outside the United States (exports and foreign operations), including approximately 30% to China. For the year ended December 28, 2019, approximately 71% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 28% to China. For the year ended December 29, 2018, approximately 70% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 27% to China. Sales to Arrow Electronics, Inc., which were included in the Electronics, Automotive, and Industrial segments, were 10.4%, 10.7%, and 10.7%
of consolidated net sales in 2020, 2019, and 2018 respectively. No other single customer accounted for more than 10% of net sales during the last three years.