XML 32 R23.htm IDEA: XBRL DOCUMENT v3.22.1
Segment Information
 3 Months Ended
Apr. 02, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
 
The Company and its subsidiaries design, manufacture and sell component, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety. The Company reports its operations by the following segments: Electronics, Transportation, 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, silicon and silicon carbide metal-oxide-semiconductor field effect transistors (“MOSFETs”) and 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 and energy storage, building and home automation, appliances, and mobile electronics.

•Transportation Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy-duty truck, off-road vehicle, material handling, agricultural, construction and other commercial vehicle end markets. Passenger vehicle products are used in internal combustion engine, hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products designed to monitor the occupant’s safety and environment as well as the vehicle’s powertrain. Commercial vehicle products include fuses, switches, circuit breakers, relays, and power distribution modules and units used in applications serving a number of end markets, including heavy-duty truck, construction, agriculture, material handling and marine.

•Industrial Segment: Consists of industrial circuit protection (industrial fuses), industrial controls (protection relays, contactors, and transformers) and temperature sensors for use in various applications such as renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining and industrial automation.
 
Segment information is summarized as follows: 
 Three Months Ended
(in thousands)April 2, 2022March 27, 2021
Net sales  
Electronics$365,821 $286,535 
Transportation184,504 128,529 
Industrial73,005 48,730 
Total net sales$623,330 $463,794 
Depreciation and amortization
Electronics$15,393 $15,381 
Transportation10,744 7,073 
Industrial2,161 1,744 
Total depreciation and amortization$28,298 $24,198 
Operating income
Electronics$120,577 $55,523 
Transportation26,308 20,316 
Industrial12,505 3,506 
Other(a)
(8,800)(2,864)
Total operating income150,590 76,481 
Interest expense4,302 4,673 
Foreign exchange loss7,736 6,837 
Other expense (income), net4,427 (7,737)
Income before income taxes$134,125 $72,708 
 
(a) Included in “Other” Operating income for the first quarter of 2022 was $4.8 million of purchase accounting inventory step-up charges, $3.8 million of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $0.2 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion.

Included in “Other” Operating income for the 2021 first quarter was $3.5 million of purchase accounting inventory step-up charges, $0.8 million of legal and professional fees and other integration 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 gain of $1.9 million from the sale of a building within the Electronics segment.
The Company’s net sales by country were as follows: 
 Three Months Ended
(in thousands)April 2, 2022March 27, 2021
Net sales
United States$220,238 $130,931 
China164,782 139,158 
Other countries(a)
238,310 193,705 
Total net sales$623,330 $463,794 
 
 The Company’s long-lived assets by country were as follows:
 
(in thousands)April 2, 2022January 1, 2022
Long-lived assets
United States$65,163 $57,923 
China117,403 122,867 
Mexico107,120 107,283 
Germany38,044 39,055 
Philippines78,918 74,918 
Other countries(a)
35,374 35,843 
Total long-lived assets$442,022 $437,889 
 
The Company’s additions to long-lived assets by country were as follows:
 
 Three Months Ended
(in thousands)April 2, 2022March 27, 2021
Additions to long-lived assets
United States$3,174 $683 
China6,949 2,142 
Mexico7,918 6,121 
Germany918 593 
Philippines6,970 2,443 
Other countries(a)
1,561 754 
Total additions to long-lived assets$27,490 $12,736 

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