Segment Information

3 Months Ended

Mar. 31, 2020

On January 1, 2020, we restructured our business from six geographical operating segments into four geographical operating segments that are based on management responsibilities: Northern North America, Latin America, Europe, Middle East & Africa ("EMEA"), and Asia Pacific ("APAC") to better serve customer needs. The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three reportable segments: Americas, International, and Corporate. The operating segment change did not impact reportable segments as all changes were within the International reportable segment.

The Americas segment is comprised of our operations in North America and Latin America geographies. The International segment is comprised of our operations of all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived.

The Company's sales are allocated to each country based primarily on the destination of the end-customer.

Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income excluding restructuring charges, currency exchange gains (losses), product liability expense, strategic transaction costs and COVID-19 related costs and adjusted operating margin is defined as adjusted operating income (loss) divided by segment sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization and adjusted EBITDA margin is defined as adjusted EBITDA divided by segment sales to external customers. Adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under U.S. GAAP, and therefore, do not purport to be alternatives to operating income or operating margin as a measure of operating performance. Further, the Company's measure of adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) and adjusted EBITDA on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income as presented on the Consolidated Statement of Income.

The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation.

Reportable segment information is presented in the following table:



(In thousands, except percentage amounts)	Americas			International			Corporate			Consolidated Totals
Three Months Ended March 31, 2020
Sales to external customers	$	231,253		$	109,892		$	—		$	341,145
Operating income										58,782
Restructuring charges (Note 4)										2,007
Currency exchange losses, net (Note 6)										270
Product liability expense (Note 17)										1,951
Strategic transaction costs (Note 18)										97
COVID-19 related costs										757
Adjusted operating income (loss)	59,807			12,671			(8,614		)	63,864
Adjusted operating margin %	25.9		%	11.5		%
Depreciation and amortization										9,640
Adjusted EBITDA	66,257			15,765			(8,518		)	73,504
Adjusted EBITDA %	28.7		%	14.3		%



(In thousands, except percentage amounts)	Americas			International			Corporate			Consolidated Totals
Three Months Ended March 31, 2019
Sales to external customers	$	213,687		$	112,351		$	—		$	326,038
Operating income										32,160
Restructuring charges (Note 4)										5,831
Currency exchange losses, net (Note 6)										16,961
Product liability expense (Note 17)										2,896
Strategic transaction costs (Note 18)										456
Adjusted operating income (loss)	54,803			11,040			(7,539		)	58,304
Adjusted operating margin %	25.6		%	9.8		%
Depreciation and amortization										9,326
Adjusted EBITDA	60,900			14,171			(7,441		)	67,630
Adjusted EBITDA %	28.5		%	12.6		%

Total sales by product group was as follows:



Three Months Ended March 31, 2020	Consolidated			Americas			International
(In thousands, except percentages)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	75,844		22%	52,693		23%	$	23,151	21%
Fixed Gas & Flame Detection	69,911		21%	41,247		18%	28,664		26%
Firefighter Helmets & Protective Apparel	42,547		12%	35,113		15%	7,434		7%
Portable Gas Detection	41,052		12%	27,648		12%	13,404		12%
Industrial Head Protection	35,332		10%	27,555		12%	7,777		7%
Fall Protection	27,428		8%	17,697		8%	9,731		9%
Other*	49,031		15%	29,300		12%	19,731		18%
Total	$	341,145	100%	$	231,253	100%	$	109,892	100%



Three Months Ended March 31, 2019	Consolidated			Americas			International
(In thousands, except percentages)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	75,446	23%	$	50,904	24%	$	24,542	22%
Fixed Gas & Flame Detection	60,398		19%	32,930		15%	27,468		24%
Firefighter Helmets & Protective Apparel	43,577		13%	35,064		16%	8,513		8%
Portable Gas Detection	40,726		13%	26,991		13%	13,735		12%
Industrial Head Protection	35,744		11%	27,836		13%	7,908		7%
Fall Protection	30,128		9%	17,961		8%	12,167		11%
Other*	40,019		12%	22,001		11%	18,018		16%
Total	$	326,038	100%	$	213,687	100%	$	112,351	100%

* Other products include sales of Air Purifying Respirators.