XML 42 R27.htm IDEA: XBRL DOCUMENT v3.22.0.1
Segment Information
 12 Months Ended
Jan. 02, 2022
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 2021, 2020 and 2019 were $78.1 million, $71.5 million and $71.3 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 years 2020 and 2019 have been restated to reflect our new reportable segment structure.

Fiscal Year
202120202019
(in thousands)
Net Sales
AMS$651,216 $593,418 $757,112 
EAAA549,182 509,844 585,917 
Total net sales$1,200,398 $1,103,262 $1,343,029 
 
Segment AOI
AMS$85,014 $89,097 $120,921 
EAAA37,268 21,403 28,832 
Depreciation and Amortization
AMS$17,963 $17,164 $15,884 
EAAA28,382 28,756 29,048 
Total depreciation and amortization$46,345 $45,920 $44,932 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:

End of Fiscal Year
20212020
(in thousands)
Assets
AMS$652,423 $800,068 
EAAA691,844 682,295 
Total segment assets1,344,267 1,482,363 
Corporate assets146,204 111,073 
Eliminations(160,414)(287,425)
Total reported assets$1,330,057 $1,306,011 

Total assets in the table above include operating lease right-of-use assets for fiscal years 2021 and 2020. Below is a summary of the operating lease right-of-use assets by reportable segment and a reconciliation to the consolidated amounts:

End of Fiscal Year
Operating Lease Right-of-Use Assets20212020
(in thousands)
AMS$12,662 $11,945 
EAAA67,741 74,265 
Total segment operating lease right-of-use assets80,403 86,210 
Corporate operating lease right-of-use assets10,158 11,803 
Total operating lease right-of-use assets$90,561 $98,013 

Reconciliations of operating income (loss) to income (loss) before income tax expense and segment AOI are presented as follows:

Fiscal Year
202120202019
(in thousands)
AMS operating income$81,445 $73,234 $118,332 
EAAA operating income (loss)23,352 (112,521)12,571 
Consolidated operating income (loss)104,797 (39,287)130,903 
Interest expense29,681 29,244 25,656 
Other expense2,483 10,889 3,431 
Income (loss) before income tax expense$72,633 $(79,420)$101,816 
Fiscal Year
202120202019
AMSEAAAAMSEAAAAMSEAAA
(in thousands)
Operating income (loss)$81,445 $23,352 $73,234 $(112,521)$118,332 $12,571 
Purchase accounting amortization— 5,636 — 5,457 — 5,903 
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 charges3,569 8,280 9,722 6,943 2,589 10,358 
SEC fine— — 2,689 2,311 — — 
AOI$85,014 $37,268 $89,097 $21,403 $120,921 $28,832 

The Company has a large and diverse customer base, which includes numerous customers located in foreign countries. No single unaffiliated customer accounted for more than 10% of total sales in any year during the past three years. Sales to customers in foreign markets in 2021, 2020 and 2019 were approximately 50%, 51% and 49%, respectively, of total net sales. These sales were primarily to customers in Europe, Canada, Asia, Australia and Latin America. Other than the United States in 2021, 2020 and 2019, and Germany in 2020, no one country represented more than 10% of the Company’s net sales during the past three years. Revenue and long-lived assets related to operations in the United States and other countries are as follows:
 
 Fiscal Year
Sales to Unaffiliated Customers(1)
202120202019
 (in thousands)
United States$596,844 $545,183 $681,868 
Germany115,712 115,402 117,418 
Other foreign countries487,842 442,677 543,743 
Total net sales$1,200,398 $1,103,262 $1,343,029 
 
End of Fiscal Year
Long-Lived Assets(2)
20212020
(in thousands)
United States$157,194 $163,983 
Germany71,114 79,294 
Netherlands47,476 51,190 
Other foreign countries54,017 64,569 
Total long-lived assets$329,801 $359,036 
 
(1) Revenue attributed to geographic areas is based on the location of the customer.
(2) Long-lived assets attributed to geographic areas are based on the physical location of the asset. 2021 includes $1.6 million and $4.9 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. 2020 includes $1.8 million and $4.3 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively.