Reportable Segments

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Reportable Segments

Reportable Segments

We are organized around two global businesses: Enterprise Solutions and Industrial Automation Solutions. Each of the global businesses represents a reportable segment. The key measures of segment profit or loss are Segment Revenues and Segment EBITDA. Segment Revenues represent non-affiliate revenues. Segment EBITDA excludes certain items, including depreciation expense; amortization of intangibles; asset impairment; severance, restructuring, and acquisition integration costs; adjustments related to acquisitions and divestitures; and other costs. We allocate corporate expenses to the segments for purposes of measuring Segment EBITDA. Corporate expenses are allocated on the basis of each segment’s relative EBITDA prior to the allocation.

Our measure of segment assets does not include cash, goodwill, intangible assets, deferred tax assets, or corporate assets. All goodwill is allocated to reporting units of our segments for purposes of impairment testing. Inter-company revenues between our segments is not material.

	Enterprise Solutions		Industrial Automation Solutions		Total Segments
	(In thousands)
As of and for the three months ended March 31, 2024
Segment Revenues	$	234,089	$	301,586	$	535,675
Segment EBITDA	25,788		58,745		84,533
Depreciation expense	6,305		7,160		13,465
Amortization of intangibles	5,719		5,090		10,809
Amortization of software development intangible assets	—		2,713		2,713
Severance, restructuring, and acquisition integration costs	1,590		2,622		4,212
Adjustments related to acquisitions and divestitures	—		298		298
Segment assets	610,106		754,732		1,364,838

As of and for the three months ended April 2, 2023
Segment Revenues	$	275,343	$	366,446	$	641,789
Segment EBITDA	37,205		73,787		110,992
Depreciation expense	5,954		6,400		12,354
Amortization of intangibles	4,495		5,115		9,610
Amortization of software development intangible assets	—		1,452		1,452
Severance, restructuring, and acquisition integration costs	25		1,687		1,712
Adjustments related to acquisitions and divestitures	—		298		298
Segment assets	597,426		660,300		1,257,726

The following table is a reconciliation of the total of the reportable segments’ Revenues and EBITDA to consolidated revenues and consolidated income before taxes, respectively.

	Three Months Ended
	March 31, 2024		April 2, 2023
	(In thousands)
Total Segment and Consolidated Revenues	$	535,675	$	641,789
Total Segment EBITDA	$	84,533	$	110,992
Depreciation expense	(13,465)		(12,354)
Amortization of intangibles	(10,809)		(9,610)
Severance, restructuring, and acquisition integration costs (1)	(4,212)		(1,712)
Amortization of software development intangible assets	(2,713)		(1,452)
Adjustments related to acquisitions and divestitures (2)	(298)		(298)
Eliminations	(16)		(29)
Consolidated operating income	53,020		85,537
Interest expense, net	(7,582)		(8,201)
Total non-operating pension benefit	231		488
Consolidated income before taxes	$	45,669	$	77,824

(1) Includes restructuring and integration costs associated with acquisitions as well as costs associated with certain manufacturing footprint actions.

(2) Adjustments related to acquisitions and divestitures include fair value adjustments of acquired assets.