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Segment Information
 9 Months Ended
Sep. 30, 2023
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, electromechanical switches and interconnect solutions, 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 charging infrastructure, aerospace, 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 and bus, off-road and recreational vehicles, material handling equipment, agricultural machinery, construction equipment 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 and bus, construction, agriculture, material handling and marine.

•Industrial Segment: Consists of industrial circuit protection (industrial fuses), industrial controls (protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, and arc fault detection devices) and temperature sensors for use in various applications such as renewable energy and energy storage systems, industrial safety, factory automation, electric vehicle infrastructure, HVAC systems, non-residential construction, MRO, and mining.
 
Segment information is summarized as follows: 
 Three Months EndedNine Months Ended
(in thousands)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net sales    
Electronics$343,933 $397,629 $1,052,673 $1,121,626 
Transportation177,019 181,735 515,708 548,266 
Industrial86,119 79,516 260,469 230,754 
Total net sales$607,071 $658,880 $1,828,850 $1,900,646 
Depreciation and amortization
Electronics$19,623 $19,080 $59,219 48,984 
Transportation10,193 11,331 32,547 32,703 
Industrial4,093 2,180 11,517 6,522 
Total depreciation and amortization$33,909 $32,591 $103,283 $88,209 
Operating income
Electronics$77,022 $113,140 $247,028 $339,675 
Transportation9,694 12,987 26,015 57,604 
Industrial13,201 12,178 45,450 39,968 
Other (a)
(6,272)(16,435)(22,154)(30,623)
Total operating income93,645 121,870 296,339 406,624 
Interest expense10,101 8,399 29,803 17,069 
Foreign exchange loss11,776 18,191 8,697 40,051 
Other (income) expense, net(3,527)(698)(11,810)9,789 
Income before income taxes$75,295 $95,978 $269,649 $339,715 
 
(a) Included in “Other” Operating income for the third quarter of 2023 was $3.7 million ($8.5 million year-to-date) of restructuring charges, primarily related to employee termination costs, and $1.8 million ($9.0 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions. During the third quarter of 2023, the Company recognized a $0.8 million impairment charge substantially related to certain patents in a business within the Industrial segment. In addition, during the second quarter of 2023, the Company recognized a $3.9 million impairment charge related to the land and building in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion.
Included in “Other” Operating income for the third quarter of 2022 was $6.8 million ($11.6 million year-to-date) of purchase accounting inventory step-up charges, $6.2 million ($14.8 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $3.4 million ($4.3 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.

The Company’s net sales by country were as follows: 

 Three Months EndedNine Months Ended
(in thousands)September 30, 2023October 1, 2022September 30, 2023October 1, 2022
Net sales
United States$217,904 $244,907 $635,892 $689,888 
China138,393 165,091 415,430 492,195 
Other countries (a)
250,774 248,882 777,528 718,563 
Total net sales$607,071 $658,880 $1,828,850 $1,900,646 
 
 The Company’s long-lived assets by country were as follows:
 
(in thousands)September 30, 2023December 31, 2022
Long-lived assets
United States$73,902 $76,325 
China131,438 129,094 
Mexico102,896 107,119 
Germany42,712 39,635 
Philippines74,004 77,240 
Other countries 53,954 51,697 
Total long-lived assets$478,906 $481,110 
 
The Company’s additions to long-lived assets by country were as follows:
 Nine Months Ended
(in thousands)September 30, 2023October 1, 2022
Additions to long-lived assets
United States$7,407 $9,761 
China22,558 23,449 
Mexico11,339 21,169 
Germany6,534 3,246 
Philippines5,245 13,118 
Other countries 8,138 4,269 
Total additions to long-lived assets$61,221 $75,012 

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