Segment Information

3 Months Ended

Dec. 27, 2019

18. SEGMENT INFORMATION

The Company has two operating segments, which are also its reportable segments. The Company's operating segments are organized based upon primary market channels and, in most instances, the end use of products.

Through its Electrical Raceway segment, the Company manufactures products that deploy, isolate and protect a structure's electrical circuitry from the original power source to the final outlet. These products, which include electrical conduit, armored cable, cable trays, mounting systems and fittings, are critical components of the electrical infrastructure for maintenance, repair and remodel markets. The vast majority of the Company's Electrical Raceway net sales are made to electrical distributors, who then serve electrical contractors and the Company considers both to be customers.

Through the MP&S segment, the Company provides products and services that frame, support and secure component parts in a broad range of structures, equipment and systems in electrical, industrial and construction applications. The Company's principal products in this segment are metal framing products and in-line galvanized mechanical tube. Through its metal framing business, the Company designs, manufactures and installs metal strut and fittings used to assemble mounting structures that support heavy equipment and electrical content in buildings and other structures.

Both segments use Adjusted EBITDA as the primary measure of profit and loss. Segment Adjusted EBITDA is the sum of income (loss) before income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, restructuring charges, stock-based compensation, certain legal matters, transaction costs and other items, such as inventory reserves and adjustments, release of indemnified uncertain tax positions, and the impact of foreign exchange gains or losses.

Intersegment transactions primarily consist of product sales at designated transfer prices on an arm's-length basis. Gross profit earned and reported within the segment is eliminated in the Company's consolidated results. Certain manufacturing and distribution expenses are allocated between the segments on a pro rata basis due to the shared nature of activities. Recorded amounts represent a proportional amount of the quantity of product produced for each segment. Certain assets, such as machinery and equipment and facilities, are not allocated to each segment despite serving both segments. These shared assets are reported within the MP&S segment. We allocate certain corporate operating expenses that directly benefit our operating segments, such as insurance and information technology, on a basis that reasonably approximates an estimate of the use of these services.



	Three months ended
	December 27, 2019							December 28, 2018
(in thousands)	External Net Sales		Intersegment Sales			Adjusted EBITDA		External Net Sales		Intersegment Sales			Adjusted EBITDA
Electrical Raceway	$	340,788	$	588		$	70,193	$	343,215	$	191		$	68,489
MP&S	106,660		—			16,654		108,813		—			10,887
Eliminations	—		(588		)			—		(191		)
Consolidated operations	$	447,448	$	—				$	452,028	$	—

Presented below is a reconciliation of operating segment Adjusted EBITDA to Income before income taxes:



	Three months ended
(in thousands)	December 27, 2019			December 28, 2018
Operating segment Adjusted EBITDA
Electrical Raceway	$	70,193		$	68,489
MP&S	16,654			10,887
Total	86,847			79,376
Unallocated expenses ^(a)	(9,137		)	(9,353		)
Depreciation and amortization	(18,730		)	(18,021		)
Interest expense, net	(10,620		)	(12,160		)
Restructuring charges	(220		)	(1,387		)
Stock-based compensation	(3,123		)	(2,982		)
Transaction costs	(51		)	(164		)
Other^(b)	(2,836		)	(206		)
Income before income taxes	$	42,130		$	35,103

(a) Represents unallocated selling, general and administrative activities and associated expenses including, in part, executive, legal, finance, human resources, information technology, business development and communications, as well as certain costs and earnings of employee-related benefits plans, such as stock-based compensation and a portion of self-insured medical costs.

(b) Represents other items, such as inventory reserves and adjustments, release of indemnified uncertain tax positions and the impact of foreign exchange gains or losses.

The Company's net sales by geography were as follows for the three months ended December 27, 2019 and December 28, 2018:



	Three months ended
(in thousands)	December 27, 2019		December 28, 2018
United States	$	396,141	$	395,628
Other Americas	6,586		9,232
Europe	33,309		33,862
Asia-Pacific	11,412		13,306
Total	$	447,448	$	452,028

The table below shows the amount of net sales from external customers for each of the Company's product categories which accounted for 10% or more of consolidated net sales in either period for the three months ended December 27, 2019 and December 28, 2018:



	Three months ended
(in thousands)	December 27, 2019		December 28, 2018
Metal Electrical Conduit and Fittings	$	123,842	131,247
Armored Cable and Fittings	83,823		84,345
PVC Electrical Conduit and Fittings	72,888		68,233
Cable Tray and Cable Ladders	50,246		45,774
Other raceway products	9,989		13,616
Electrical Raceway	340,788		343,215

Mechanical Pipe	58,331		60,668
Other MP&S products	48,329		48,145
MP&S	106,660		108,813
Net sales	$	447,448	$	452,028