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Segment Information
 3 Months Ended
Mar. 27, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
 
The Company and its subsidiaries design, manufacture and sell components and modules empowering a sustainable, connected, and safer 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 industrial circuit protection products (i.e. fuses, power distribution modules, switches) and industrial control products (i.e. relays, transformers, contactors, sensors). These products are used in a variety of applications and end-markets including: Renewable Energy, Energy Storage, HVAC, Electric Vehicle Infrastructure, Industrial Equipment, Industrial Automation, Construction, Mining, and Oil & Gas.
 
Segment information is summarized as follows: 
 Three Months Ended
(in thousands)March 27, 2021March 28, 2020
Net sales  
Electronics$286,535 $214,189 
Automotive128,529 104,770 
Industrial48,730 27,137 
Total net sales$463,794 $346,096 
Depreciation and amortization
Electronics$15,381 $15,531 
Automotive7,073 7,187 
Industrial1,744 1,084 
Total depreciation and amortization$24,198 $23,802 
Operating income
Electronics$55,523 $32,272 
Automotive20,316 14,116 
Industrial3,506 3,534 
Other(a)
(2,864)(5,172)
Total operating income76,481 44,750 
Interest expense4,673 5,418 
Foreign exchange loss6,837 2,584 
Other (income) expense, net(7,737)1,249 
Income before income taxes$72,708 $35,499 
 
(a) Included in “Other” Operating income for the first quarter of 2021 was $3.5 million of purchase accounting inventory step-up charges, $0.8 million of legal and professional fees and other expenses related to Hartland and other contemplated acquisitions and $0.4 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment and Other Charges, for further discussion. In addition, there was a $1.9 million gain from the sale of a building within the Electronics segment.

Included in "Other" Operating income for the first quarter of 2020 was $1.2 million of acquisition integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $4.0 million of restructuring, impairment and other charges, primarily related to impairment charges of $2.2 million associated with the announced consolidation of a manufacturing facility within the Industrial segment and $1.7 million of employee termination costs and other restructuring charges. See Note 7, Restructuring, Impairment and Other Charges, for further discussion.
The Company’s net sales by country were as follows:
 
 Three Months Ended
(in thousands)March 27, 2021March 28, 2020
Net sales
United States$130,931 $102,910 
China139,158 86,015 
Other countries(a)
193,705 157,171 
Total net sales$463,794 $346,096 
 
 The Company’s long-lived assets by country were as follows:
 
(in thousands)March 27,
2021		December 26,
2020
Long-lived assets
United States$48,908 $46,132 
China85,280 85,876 
Mexico72,499 70,125 
Germany36,227 37,976 
Philippines66,956 66,994 
Other countries(a)
35,044 37,075 
Total long-lived assets$344,914 $344,178 
 
The Company’s additions to long-lived assets by country were as follows:
 
 Three Months Ended
(in thousands)March 27, 2021March 28, 2020
Additions to long-lived assets
United States$683 $580 
China2,142 1,657 
Mexico6,121 2,592 
Germany593 753 
Philippines2,443 3,218 
Other countries(a)
754 2,508 
Total additions to long-lived assets$12,736 $11,308 

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