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Segment Information
 3 Months Ended
Mar. 31, 2023
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 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 (loss) excluding restructuring charges, currency exchange (gains) losses, product liability expense, loss on divestiture of MSA LLC, transaction costs and acquisition-related amortization. Adjusted operating margin is defined as adjusted operating income (loss) divided by segment net sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization. Adjusted EBITDA margin is defined as adjusted EBITDA divided by segment net sales to external customers.
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 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 percentages)AmericasInternationalCorporateConsolidated
Totals
Three Months Ended March 31, 2023
Net sales to external customers$280,267 $117,995 $— $398,262 
Operating loss(60,061)
Restructuring charges (Note 3)1,747 
Currency exchange losses, net4,175 
Loss on divestiture of MSA LLC (Note 17)129,211 
Product liability expense (Note 17)3 
Amortization of acquisition-related intangible assets2,305 
Adjusted operating income (loss)71,694 15,779 (10,093)77,380 
Adjusted operating margin %25.6 %13.4 %
Depreciation and amortization12,267 
Adjusted EBITDA80,494 19,058 (9,905)89,647 
Adjusted EBITDA margin %28.7 %16.2 %
Three Months Ended March 31, 2022
Net 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 17)2,772 
Amortization of acquisition-related intangible assets2,336 
Transaction costs(a)
607 
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 %
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Operations.
Total sales by product group was as follows:
Three Months Ended March 31, 2023ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Fixed Gas & Flame Detection$93,635 24%$61,143 22%$32,492 28%
Breathing Apparatus76,721 19%52,769 19%23,952 20%
Firefighter Helmets & Protective Apparel62,667 16%49,287 18%13,380 11%
Portable Gas Detection52,966 13%38,168 14%14,798 13%
Industrial Head Protection42,907 11%33,625 12%9,282 8%
Fall Protection31,157 8%20,458 7%10,699 9%
Other38,209 9%24,817 8%13,392 11%
Total$398,262 100%$280,267 100%$117,995 100%
Three Months Ended March 31, 2022ConsolidatedAmericasInternational
(In thousands, except percentages)DollarsPercentDollarsPercentDollarsPercent
Fixed Gas & Flame Detection$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%
Other30,640 9%16,920 8%13,720 13%
Total$330,692 100%$225,648 100%$105,044 100%