Segment Information

6 Months Ended

Mar. 27, 2020

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
	March 27, 2020							March 29, 2019
(in thousands)	External Net Sales		Intersegment Sales			Adjusted EBITDA		External Net Sales		Intersegment Sales			Adjusted EBITDA
Electrical Raceway	$	339,005	$	700		$	78,954	$	353,119	$	395		$	67,375
MP&S	116,649		—			16,144		116,190		—			17,421
Eliminations	—		(700		)			—		(395		)
Consolidated operations	$	455,654	$	—				$	469,309	$	—



	Six months ended
	March 27, 2020							March 29, 2019
(in thousands)	External Net Sales		Intersegment Sales			Adjusted EBITDA		External Net Sales		Intersegment Sales			Adjusted EBITDA
Electrical Raceway	$	679,793	$	1,288		$	149,175	$	696,334	$	586		$	135,864
MP&S	223,309		—			32,798		225,003		—			28,308
Eliminations	—		(1,288		)			—		(586		)
Consolidated operations	$	903,102	$	—				$	921,337	$	—

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



	Three months ended						Six months ended
(in thousands)	March 27, 2020			March 29, 2019			March 27, 2020			March 29, 2019
Operating segment Adjusted EBITDA
Electrical Raceway	$	78,954		$	67,375		$	149,175		$	135,864
MP&S	16,144			17,421			32,798			28,308
Total	95,098			84,796			181,973			164,172
Unallocated expenses ^(a)	(8,092		)	(7,702		)	(17,257		)	(17,055		)
Depreciation and amortization	(18,478		)	(18,280		)	(37,208		)	(36,301		)
Interest expense, net	(10,564		)	(13,328		)	(21,184		)	(25,488		)
Restructuring charges	(2,645		)	(1,085		)	(2,865		)	(2,472		)
Stock-based compensation	(4,523		)	(1,834		)	(7,646		)	(4,816		)
Transaction costs	(6		)	(123		)	(57		)	(287		)
Other^(b)	1,503			(2,636		)	(1,333		)	(2,842		)
Income before income taxes	$	52,293		$	39,808		$	94,423		$	74,911

(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, realized or unrealized gain (loss) on foreign currency transactions, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment and release of certain indemnified uncertain tax positions.

The Company's net sales by geography were as follows for the six months ended March 27, 2020 and March 29, 2019:



	Three months ended				Six months ended
(in thousands)	March 27, 2020		March 29, 2019		March 27, 2020		March 29, 2019
United States	$	401,055	$	408,007	$	797,195	$	803,635
Other Americas	7,655		8,977		14,242		18,209
Europe	37,241		38,808		69,327		72,670
Asia-Pacific	9,703		13,517		22,338		26,823
Total	$	455,654	$	469,309	$	903,102	$	921,337

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 six months ended March 27, 2020 and March 29, 2019:



	Three months ended				Six months ended
(in thousands)	March 27, 2020		March 29, 2019		March 27, 2020		March 29, 2019
Metal Electrical Conduit and Fittings	$	125,609	$	134,131	$	249,451	265,378
Armored Cable and Fittings	82,615		88,629		166,438		172,973
PVC Electrical Conduit and Fittings	71,341		66,183		144,229		134,416
Cable Tray and Cable Ladders	51,103		51,138		101,349		96,912
Other raceway products	8,337		13,038		18,326		26,655
Electrical Raceway	339,005		353,119		679,793		696,334

Mechanical Pipe	65,694		62,039		124,025		122,707
Metal Framing and Fittings	30,676		30,450		58,533		59,061
Other MP&S products	20,279		23,701		40,751		43,235
MP&S	116,649		116,190		223,309		225,003
Net sales	$	455,654	$	469,309	$	903,102	$	921,337