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Segment Information
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
We are organized 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"). 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 Americas segment is comprised of our operations in Northern North American and Latin American 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, acquisition related costs, including acquisition related amortization 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 measures to the most directly comparable GAAP measure, operating income, as presented on the unaudited Condensed 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 unaudited condensed consolidated financial statements 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)AmericasInternationalCorporateConsolidated
Totals
Three Months Ended March 31, 2022
Sales to external customers$225,648 $105,044 $— $330,692 
Operating income42,668 
Restructuring charges (Note 3)2,189 
Currency exchange losses, net3,271 
Product liability expense (Note 18)2,772 
Acquisition related costs(a) (Note 14)
2,943 
Adjusted operating income (loss)52,435 9,024 (7,616)53,843 
Adjusted operating margin %23.2 %8.6 %
Depreciation and amortization11,829 
Adjusted EBITDA60,796 12,362 (7,486)65,672 
Adjusted EBITDA margin %26.9 %11.8 %
(In thousands, except percentage amounts)AmericasInternationalCorporateConsolidated
Totals
Three Months Ended March 31, 2021
Sales to external customers$208,340 $100,088 $— $308,428 
Operating income44,083 
Restructuring charges (Note 3)1,308 
Currency exchange gains, net (2,099)
Product liability expense (Note 18)2,796 
Acquisition related costs(a)
1,373 
Adjusted operating income (loss)45,195 8,792 (6,526)47,461 
Adjusted operating margin %21.7 %8.8 %
Depreciation and amortization10,504 
Adjusted EBITDA52,229 12,165 (6,429)57,965 
Adjusted EBITDA margin %25.1 %12.2 %
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. Adjustments were made to Americas and International.
(a)Acquisition related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during due diligence and integration. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income. Acquisition related costs also include the acquisition related amortization, which is included in Cost of products sold in the unaudited Condensed Consolidated Statements of Income.
Total sales by product group was as follows:
Three Months Ended March 31, 2022ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Fixed Gas & Flame Detection (a)
$83,077 25%$54,621 24%$28,456 27%
Breathing Apparatus70,951 22%50,398 22%20,553 20%
Firefighter Helmets & Protective Apparel48,461 15%33,476 15%14,985 14%
Portable Gas Detection36,744 11%25,791 11%10,953 10%
Industrial Head Protection36,157 11%28,165 13%7,992 8%
Fall Protection24,662 7%16,277 7%8,385 8%
Other (b)
30,640 9%16,920 8%13,720 13%
Total$330,692 100%$225,648 100%$105,044 100%
Three Months Ended March 31, 2021ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Breathing Apparatus$69,644 23%$48,798 23%$20,846 21%
Fixed Gas & Flame Detection60,119 19%36,277 17%23,842 24%
Firefighter Helmets & Protective Apparel46,010 15%34,988 17%11,022 11%
Portable Gas Detection37,429 12%25,702 12%11,727 12%
Industrial Head Protection32,696 11%25,111 12%7,585 8%
Fall Protection26,067 8%15,672 8%10,395 10%
Other (b)
36,463 12%21,792 11%14,671 14%
Total$308,428 100%$208,340 100%$100,088 100%
(a)Fixed Gas & Flame Detection includes sales from the Bacharach, Inc. and its affiliated companies ("Bacharach") acquisition for periods following July 1, 2021 (Americas and International). Please refer to Note 14 - Acquisitions.
(b)Other products include sales of Air Purifying Respirators.