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Segment Information
 9 Months Ended
Oct. 03, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company determines that an operating segment exists if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has operating results that are regularly reviewed by the chief operating decision maker (“CODM”) and (iii) has discrete financial information. Additionally, accounting standards require the utilization of a “management approach” to report the financial results of operating segments, which is based on information used by the CODM to assess performance and make operating and resource allocation decisions. In the first quarter of 2021, the Company largely completed its integration of the nora acquisition, and integration of its European and Asia-Pacific commercial areas and determined that it has two operating segments organized by geographical area – namely (a) Americas (“AMS”) and (b) Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment is unchanged from prior year and continues to include the United States, Canada and Latin America geographic areas.
Pursuant to the management approach discussed above, the Company’s CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on segment adjusted operating income or loss (“AOI”), which includes allocations of corporate selling, general and administrative expenses. AOI excludes nora purchase accounting amortization, goodwill and intangible asset impairment charges, changes in equity award forfeiture accounting, restructuring charges, asset impairment, severance and other charges, and an SEC settlement fine. Intersegment revenues for the three and nine months ended October 3, 2021 were $20.1 million and $56.4 million, respectively, and intersegment revenues for the three and nine months ended October 4, 2020 were $15.6 million and $56.2 million, respectively. Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM.
The Company has determined that it has two reportable segments – AMS and EAAA as each operating segment meets the quantitative thresholds defined in the accounting guidance.
Segment information below for fiscal year 2020 has been restated to reflect our new reportable segment structure.
Three Months EndedNine Months Ended
October 3, 2021October 4, 2020October 3, 2021October 4, 2020
(in thousands)
Net Sales
AMS$176,770 $142,858 $460,402 $452,171 
EAAA135,937 135,784 400,350 374,144 
Total net sales$312,707 $278,642 $860,752 $826,315 
 
Segment AOI
AMS$21,595 $20,279 $54,606 $67,771 
EAAA 8,586 7,821 26,557 17,151 
 
Depreciation and Amortization
AMS$4,365 $4,301 $13,592 $12,174 
EAAA7,052 7,431 21,495 21,306 
Total depreciation and amortization$11,417 $11,732 $35,087 $33,480 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
October 3, 2021January 3, 2021
(in thousands)
Assets
AMS$808,015 $800,068 
EAAA697,799 682,295 
Total segment assets1,505,814 1,482,363 
Corporate assets123,196 111,073 
Eliminations(339,768)(287,425)
Total reported assets$1,289,242 $1,306,011 
Reconciliations of operating income (loss) to income (loss) before income tax expense and segment AOI are presented as follows:
Three Months EndedNine Months Ended
October 3, 2021October 4, 2020October 3, 2021October 4, 2020
(in thousands)
AMS operating income$21,684 $14,857 $54,432 $52,144 
EAAA operating income (loss)3,093 1,025 16,435 (112,381)
Consolidated operating income (loss)24,777 15,882 70,867 (60,237)
Interest expense7,727 5,426 22,272 16,021 
Other expense887 2,921 2,219 9,551 
Income (loss) before income tax expense$16,163 $7,535 $46,376 $(85,809)
Three Months Ended October 3, 2021Three Months Ended October 4, 2020
AMSEAAAAMSEAAA
(in thousands)
Operating income$21,684 $3,093 $14,857 $1,025 
Purchase accounting amortization— 1,407 — 1,399 
Restructuring, asset impairment, severance and other charges(89)4,086 2,733 3,086 
SEC fine— — 2,689 2,311 
AOI$21,595 $8,586 $20,279 $7,821 
Nine Months Ended October 3, 2021Nine Months Ended October 4, 2020
AMSEAAAAMSEAAA
(in thousands)
Operating income (loss)$54,432 $16,435 $52,144 $(112,381)
Purchase accounting amortization— 4,269 — 4,030 
Goodwill and intangible asset impairment— — 2,695 118,563 
Impact of change in equity award forfeiture accounting— — 757 650 
Restructuring, asset impairment, severance and other charges174 5,853 9,486 3,978 
SEC fine— — 2,689 2,311 
AOI$54,606 $26,557 $67,771 $17,151