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Segment Information
 9 Months Ended
Sep. 25, 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 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 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 EndedNine Months Ended
(in thousands)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Net sales    
Electronics$347,240 $255,349 $959,122 $692,809 
Automotive124,415 104,724 386,262 271,493 
Industrial67,926 31,493 181,479 80,697 
Total net sales$539,581 $391,566 $1,526,863 $1,044,999 
Depreciation and amortization
Electronics$15,503 $15,819 $45,998 46,967 
Automotive7,075 7,370 21,094 21,628 
Industrial2,058 1,140 5,957 3,270 
Total depreciation and amortization$24,636 $24,329 $73,049 $71,865 
Operating income
Electronics$100,524 $45,860 $230,283 $110,783 
Automotive15,806 15,383 55,380 20,642 
Industrial6,571 4,898 18,452 8,409 
Other(a)
(2,794)(1,583)(11,270)(42,476)
Total operating income120,107 64,558 292,845 97,358 
Interest expense4,602 4,988 13,901 16,261 
Foreign exchange loss (gain)3,154 (6,174)8,315 (9,600)
Other income, net(1,240)(1,682)(10,867)(1,643)
Income before income taxes$113,591 $67,426 $281,496 $92,340 
 
(a) Included in “Other” Operating income for the third quarter of 2021 was $6.8 million year-to-date of purchase accounting inventory step-up charges, $2.0 million ($3.4 million year-to-date) of legal and professional fees and other integration expenses related to Hartland and other contemplated acquisitions, and $0.8 million ($2.0 million year-to-date) 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 year-to-date gain of $0.9 million recorded for the sale of a building within the Electronics segment.

Included in “Other” Operating income for the 2020 third quarter was $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, 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 5, Goodwill and Other Intangible Assets and Note 7, Restructuring, Impairment, and Other Charges, for further discussion.
The Company’s net sales by country were as follows: 
 Three Months EndedNine Months Ended
(in thousands)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Net sales
United States$172,995 $106,121 $458,723 $285,901 
China160,628 126,506 455,872 314,547 
Other countries(a)
205,958 158,939 612,268 444,551 
Total net sales$539,581 $391,566 $1,526,863 $1,044,999 
 
 The Company’s long-lived assets by country were as follows:
 
(in thousands)September 25,
2021		December 26,
2020
Long-lived assets
United States$47,533 $46,132 
China90,984 85,876 
Mexico82,882 70,125 
Germany40,115 37,976 
Philippines68,594 66,994 
Other countries(a)
34,221 37,075 
Total long-lived assets$364,329 $344,178 
 
The Company’s additions to long-lived assets by country were as follows:
 
 Nine Months Ended
(in thousands)September 25, 2021September 26, 2020
Additions to long-lived assets
United States$3,696 $2,712 
China13,790 6,414 
Mexico22,518 7,291 
Germany6,994 3,793 
Philippines10,109 15,331 
Other countries(a)
3,527 1,152 
Total additions to long-lived assets$60,634 $36,693 

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