Segment Information (Tables)

6 Months Ended

Jun. 27, 2020

Schedule of Segment Reportable Segments, by Segment

The following tables set forth certain information relating to our segments’ operations:



(amounts in thousands)	North America			Europe			Australasia			Total Operating Segments			Corporate and Unallocated Costs			Total Consolidated
Three Months Ended June 27, 2020
Total net revenues	$	608,345		$	262,173		$	124,717		$	995,235		$	—		$	995,235
Intersegment net revenues	(232		)	(649		)	(2,008		)	(2,889		)	—			(2,889		)
Net revenues from external customers	$	608,113		$	261,524		$	122,709		$	992,346		$	—		$	992,346
Impairment and restructuring charges	$	1,266		$	153		$	833		$	2,252		$	14		$	2,266
Adjusted EBITDA	$	91,115		$	28,354		$	15,235		$	134,704		$	(8,985	)	$	125,719
Three Months Ended June 29, 2019
Total net revenues	$	668,866		$	300,479		$	152,203		$	1,121,548		$	—		$	1,121,548
Intersegment net revenues	(494		)	(93		)	(1,974		)	(2,561		)	—			(2,561		)
Net revenues from external customers	$	668,372		$	300,386		$	150,229		$	1,118,987		$	—		$	1,118,987
Impairment and restructuring charges	$	2,190		$	644		$	1,953		$	4,787		$	947		$	5,734
Adjusted EBITDA	$	87,519		$	28,988		$	21,258		$	137,765		$	(10,182	)	$	127,583



(amounts in thousands)	North America			Europe			Australasia			Total Operating Segments			Corporate and Unallocated Costs			Total Consolidated
Six Months Ended June 27, 2020
Total net revenues	$	1,195,393		$	543,980		$	237,689		$	1,977,062		$	—		$	1,977,062
Intersegment net revenues	(544		)	(963		)	(4,022		)	(5,529		)	—			(5,529		)
Net revenues from external customers	$	1,194,849		$	543,017		$	233,667		$	1,971,533		$	—		$	1,971,533
Impairment and restructuring charges	$	2,209		$	2,154		$	1,097		$	5,460		$	3,351		$	8,811
Adjusted EBITDA	$	140,105		$	51,680		$	23,960		$	215,745		$	(15,518	)	$	200,227
Six Months Ended June 29, 2019
Total net revenues	$	1,234,568		$	600,471		$	298,723		$	2,133,762		$	—		$	2,133,762
Intersegment net revenues	(1,090		)	(120		)	(3,305		)	(4,515		)	—			(4,515		)
Net revenues from external customers	$	1,233,478		$	600,351		$	295,418		$	2,129,247		$	—		$	2,129,247
Impairment and restructuring charges	$	4,147		$	1,953		$	2,419		$	8,519		$	934		$	9,453
Adjusted EBITDA	$	140,314		$	56,627		$	37,638		$	234,579		$	(17,718	)	$	216,861

Reconciliation of Net Income to Adjusted EBITDA

Reconciliations of net income to Adjusted EBITDA are as follows:



	Three Months Ended					Six Months Ended
(amounts in thousands)	June 27, 2020			June 29, 2019		June 27, 2020			June 29, 2019
Net income	$	23,097		$	22,356	$	22,867		$	38,133
Income tax expense	10,403			12,181		11,600			22,530
Depreciation and amortization	32,771			33,930		66,217			64,828
Interest expense, net	19,076			18,492		35,680			36,148
Impairment and restructuring charges⁽¹⁾	2,343			6,214		9,038			10,317
(Gain) loss on sale of property and equipment	(337		)	568		(2,410		)	1,080
Share-based compensation expense	5,162			3,882		8,895			6,477
Non-cash foreign exchange transaction/translation (income) loss	8,784			7,484		7,595			3,797
Other items⁽²⁾	24,250			22,407		40,575			32,817
Other non-cash items⁽³⁾	—			69		—			734
Costs relating to debt restructuring and debt refinancing	170			—		170			—
Adjusted EBITDA	$	125,719		$	127,583	$	200,227		$	216,861

(1)

Impairment and restructuring charges consist of (i) impairment and restructuring charges that are included in our consolidated unaudited statements of operations plus (ii) additional charges relating to inventory and/or manufacturing of our products that are included in cost of sales in the accompanying unaudited consolidated statements of operations in the amount of $77 and $480 for the three months ended June 27, 2020 and June 29, 2019, respectively, and $227 and $864 for the six months ended June 27, 2020 and June 29, 2019, respectively. For further explanation of impairment and restructuring charges that are included in our consolidated statements of operations, see Note 17 - Impairment and Restructuring Charges in our financial statements.

(2)

Other non-recurring items not core to ongoing business activity include: (i) in the three months ended June 27, 2020 (1) $22,994 in legal costs and professional expenses relating primarily to litigation and (2) $967 in facility closure and consolidation costs related to our facility footprint rationalization program; (ii) in the three months ended June 29, 2019 (1) $9,063 in acquisition and integration costs including $7,077 related to purchase price structured by the former owners as retention payments for key employees of a recent acquisition, (2) $8,324 in facility closure and consolidation costs related to our facility footprint rationalization program, (3) $4,640 in legal costs and professional expenses relating primarily to litigation, (4) $274 in miscellaneous costs, and (5) $100 in costs related to departure of former executives; (iii) in the six months ended June 27, 2020 (1) $34,700 in legal costs and professional expenses relating primarily to litigation, (2) $4,077 in facility closure and consolidation costs related to our facility footprint rationalization program, and (3) $1,235 in one-time lease termination charges; (iv) in the six months ended June 29, 2019 (1) $13,151 in facility closure and consolidation costs related to our facility footprint rationalization program, (2) $11,997 in acquisition and integration costs including $7,077 related to purchase price structured by the former owners as retention payments for key employees of a recent acquisition, (3) $6,288 in legal costs and professional expenses relating primarily to litigation, (4) $856 in miscellaneous costs, and (5) $525 in costs related to departure of former executives.


(3)	Other non-cash items include: (i) in the three months ended June 29, 2019, $69 for initial inventory adjustments related to the VPI acquisition; (ii) in the six months ended June 29, 2019, $734 for inventory adjustments.

The prior period information has been reclassified to conform with current period presentation.