Segment Information

12 Months Ended

Dec. 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 in 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 segment based primarily on the country 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, consisting of a one-time bonus for essential manufacturing employees 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 Statements 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)	Americas			International			Corporate		Reconciling Items(1)		Consolidated Totals
2020
Net sales to external customers	$	874,305		$	473,918		$	—	$	—	$	1,348,223

Operating income											166,851
Restructuring charges (Note 2)											27,381
Currency exchange losses, net (Note 5)											8,578
Product liability expense (Note 19)											39,036
Strategic transaction costs (Note 13)											717
COVID-19 related costs											757
Adjusted operating income (loss)	200,536			70,864			(28,080)		—		243,320
Adjusted operating margin %	22.9		%	15.0		%


Depreciation and amortization	26,762			12,521			391		—		39,674
Adjusted EBITDA	227,298			83,385			(27,689)		—		282,994
Adjusted EBITDA %	26.0		%	17.6		%
Noncash items:
Pension expense	910			8,113			—		—		9,023

Total Assets	1,228,739			615,114			29,761		(1,130)		1,872,484
Capital expenditures	43,181			5,724			—		—		48,905

2019
Net sales to external customers	$	915,118		$	486,863		$	—	$	—	$	1,401,981

Operating income											186,230
Restructuring charges (Note 2)											13,846
Currency exchange losses, net (Note 5)											19,814
Product liability expense (Note 19)											26,619
Strategic transaction costs (Note 13)											4,400
Adjusted operating income (loss)	226,596			59,910			(35,597)		—		250,909
Adjusted operating margin %	24.8		%	12.3		%


Depreciation and amortization	24,691			12,938			391		—		38,020
Adjusted EBITDA	251,287			72,848			(35,206)		—		288,929
Adjusted EBITDA %	27.5		%	15.0		%
Noncash items:
Pension (income) expense	(6,111)			7,044			—		—		933

Total Assets	1,131,911			584,195			22,367		1,220		1,739,693
Capital expenditures	26,823			9,781			—		—		36,604

2018
Net sales to external customers	$	854,287		$	503,817		$	—	$	—	$	1,358,104

Operating income											173,479
Restructuring charges (Note 2)											13,247
Currency exchange losses, net (Note 5)											2,330
Product liability expense (Note 19)											45,327
Strategic transaction costs (Note 13)											421
Adjusted operating income (loss)	206,839			59,866			(31,901)		—		234,804
Adjusted operating margin %	24.2		%	11.9		%


Depreciation and amortization	24,143			13,303			406		—		37,852
Adjusted EBITDA	230,982			73,169			(31,495)		—		272,656
Adjusted EBITDA %	27.0		%	14.5		%
Noncash items:
Pension (income) expense	(1,201)			7,102			—		—		5,901

Total Assets	1,077,938			522,042			10,842		(2,810)		1,608,012
Capital expenditures	25,001			8,959			—		—		33,960

(1)Reconciling items consist primarily of intercompany eliminations and items not directly attributable to operating segments.

Geographic information on Net sales to external customers, based on country of origin:


(In thousands)	2020		2019		2018
United States	$	750,315	$	785,155	$	734,033
Other	597,908		616,826		624,071
Total	$	1,348,223	$	1,401,981	$	1,358,104

Geographic information on tangible long-lived assets, net based on country of origin:


(In thousands)	2020		2019		2018
United States	$	134,234	$	113,528	$	92,511



Other	108,837		105,185		65,429
Total	$	243,071	$	218,713	$	157,940

Total Net sales by product group was as follows:


2020	Consolidated			Americas			International
(In thousands)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	329,179	24%	$	220,650	25%	$	108,529	23%
Fixed Gas & Flame Detection	287,414		21%	158,924		18%	128,490		27%
Firefighter Helmets & Protective Apparel	162,207		12%	133,653		15%	28,554		6%
Portable Gas Detection	142,581		11%	90,545		10%	52,036		11%
Industrial Head Protection	125,921		9%	92,075		11%	33,846		7%
Fall Protection	103,075		8%	58,060		7%	45,015		10%
Other (a)	197,846		15%	120,398		14%	77,448		16%
Total	$	1,348,223	100%	$	874,305	100%	$	473,918	100%

2019	Consolidated			Americas			International
(In thousands)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	317,678	23%	$	212,463	23%	$	105,215	22%
Fixed Gas & Flame Detection	292,988		21%	159,892		17%	133,096		27%
Firefighter Helmets & Protective Apparel	178,012		13%	142,043		16%	35,969		7%
Portable Gas Detection	169,479		12%	113,914		12%	55,565		11%
Industrial Head Protection	145,403		10%	112,673		12%	32,730		7%
Fall Protection	125,869		9%	78,054		9%	47,815		10%
Other (a)	172,552		12%	96,079		11%	76,473		16%
Total	$	1,401,981	100%	$	915,118	100%	$	486,863	100%

2018	Consolidated			Americas			International
(In thousands)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	324,672	24%	$	205,100	24%	$	119,572	24%
Fixed Gas & Flame Detection	262,432		19%	135,922		16%	126,510		25%
Firefighter Helmets & Protective Apparel	169,679		13%	136,794		16%	32,885		6%
Portable Gas Detection	163,716		12%	109,401		13%	54,315		11%
Industrial Head Protection	146,388		11%	114,465		13%	31,923		6%
Fall Protection	109,472		8%	61,289		7%	48,183		10%
Other (a)	181,745		13%	91,316		11%	90,429		18%
Total	$	1,358,104	100%	$	854,287	100%	$	503,817	100%