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Segment Information
 6 Months Ended
Jun. 30, 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, and Asia Pacific. 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 June 30, 2022
Sales to external customers$252,386 $119,927 $— $372,313 
Operating income61,536 
Restructuring charges (Note 3)57 
Currency exchange gains, net(1,463)
Product liability expense (Note 18)2,926 
Acquisition related costs(a)
2,557 
Adjusted operating income (loss)57,141 17,207 (8,735)65,613 
Adjusted operating margin %22.6 %14.3 %
Depreciation and amortization(a)
11,604 
Adjusted EBITDA65,461 20,370 (8,614)77,217 
Adjusted EBITDA margin %25.9 %17.0 %
Six Months Ended June 30, 2022
Sales to external customers$478,034 $224,971 $— $703,005 
Operating income104,204 
Restructuring charges (Note 3)2,247 
Currency exchange losses, net1,809 
Product liability expense (Note 18)5,698 
Acquisition related costs(a)
5,499 
Adjusted operating income (loss)109,577 26,196 (16,316)119,457 
Adjusted operating margin %22.9 %11.6 %
Depreciation and amortization(a)
23,420 
Adjusted EBITDA126,256 32,698 (16,077)142,877 
Adjusted EBITDA margin %26.4 %14.5 %
(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.
(In thousands, except percentage amounts)AmericasInternationalCorporateConsolidated
Totals
Three Months Ended June 30, 2021
Sales to external customers$217,707 $123,582 $— $341,289 
Operating income35,135 
Restructuring charges (Note 3)7,078 
Currency exchange losses, net 1,640 
Product liability expense (Note 18)11,751 
Acquisition related costs(a)
3,168 
Adjusted operating income (loss)49,319 20,444 (10,991)58,772 
Adjusted operating margin %22.7 %16.5 %
Depreciation and amortization11,584 
Adjusted EBITDA57,218 24,024 (10,886)70,356 
Adjusted EBITDA margin %26.3 %19.4 %
Six Months Ended June 30, 2021
Sales to external customers$426,046 $223,671 $— $649,717 
Operating income79,217 
Restructuring charges (Note 3)8,385 
Currency exchange gains, net(459)
Product liability expense (Note 18)14,547 
Acquisition related costs(a)
4,541 
Adjusted operating income (loss)94,512 29,201 (17,482)106,231 
Adjusted operating margin %22.2 %13.1 %
Depreciation and amortization22,088 
Adjusted EBITDA109,444 36,154 (17,279)128,319 
Adjusted EBITDA margin %25.7 %16.2 %
*Prior periods have 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 Condensed Consolidated Statements of Income.
Total sales by product group was as follows:
Three Months Ended June 30, 2022ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Breathing Apparatus$91,950 25%$64,610 26%27,340 23%
Fixed Gas & Flame Detection (a)
80,498 22%50,514 20%29,984 25%
Firefighter Helmets & Protective Apparel47,899 13%35,037 14%12,862 11%
Portable Gas Detection44,892 12%31,665 13%13,227 11%
Industrial Head Protection43,724 12%34,023 13%9,701 8%
Fall Protection26,614 7%17,005 7%9,609 8%
Other (b)
36,736 9%19,532 7%17,204 14%
Total$372,313 100%$252,386 100%$119,927 100%
Six Months Ended June 30, 2022ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Breathing Apparatus$162,901 23%$115,008 24%$47,893 21%
Fixed Gas & Flame Detection (a)
163,575 23%105,135 22%58,440 26%
Firefighter Helmets & Protective Apparel96,360 14%68,513 14%27,847 12%
Portable Gas Detection81,635 12%57,456 12%24,179 11%
Industrial Head Protection79,881 11%62,188 13%17,693 8%
Fall Protection51,275 7%33,282 7%17,993 8%
Other (b)
67,378 10%36,452 8%30,926 14%
Total$703,005 100%$478,034 100%$224,971 100%
Three Months Ended June 30, 2021ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Breathing Apparatus$76,659 22%$51,436 24%$25,223 20%
Fixed Gas & Flame Detection64,920 19%36,950 17%27,970 23%
Firefighter Helmets & Protective Apparel53,121 16%36,424 17%16,697 14%
Portable Gas Detection38,820 11%25,393 12%13,427 11%
Industrial Head Protection38,155 11%28,820 13%9,335 8%
Fall Protection30,809 9%17,677 8%13,132 11%
Other (b)
38,805 12%21,007 9%17,798 13%
Total$341,289 100%$217,707 100%$123,582 100%
Six Months Ended June 30, 2021ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Breathing Apparatus$146,304 23%$100,234 24%$46,069 21%
Fixed Gas & Flame Detection125,039 19%73,227 17%51,811 23%
Firefighter Helmets & Protective Apparel 99,131 15%71,413 17%27,719 12%
Portable Gas Detection76,249 12%51,095 12%25,154 11%
Industrial Head Protection70,851 11%53,931 13%16,920 8%
Fall Protection56,876 9%33,349 8%23,526 11%
Other (b)
75,267 11%42,797 9%32,472 14%
Total$649,717 100%$426,046 100%$223,671 100%
(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).
(b)Other products include sales of Air Purifying Respirators.