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Segment Information
 9 Months Ended
Oct. 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. The Company 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 includes 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 (“AOI”), which includes allocations of corporate selling, general and administrative expenses. AOI excludes nora purchase accounting amortization, Thailand plant closure inventory write-down, and restructuring charges, asset impairment, severance and other charges. Intersegment revenues for the three and nine months ended October 2, 2022 were $19.7 million and $56.4 million, respectively, and intersegment revenues for the three and nine months ended October 3, 2021 were $20.1 million and $56.4 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 for the three and nine months ended October 2, 2022 and October 3, 2021 is presented in the following table:
Three Months EndedNine Months Ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(in thousands)
Net sales
AMS$194,449 $176,770 $557,768 $460,402 
EAAA133,308 135,937 404,596 400,350 
Total net sales$327,757 $312,707 $962,364 $860,752 
 
Segment AOI
AMS$24,975 $21,595 $74,502 $54,606 
EAAA 6,273 8,586 25,908 26,557 
 
Depreciation and amortization
AMS$4,344 $4,365 $12,585 $13,592 
EAAA5,481 7,052 18,076 21,495 
Total depreciation and amortization$9,825 $11,417 $30,661 $35,087 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
October 2, 2022January 2, 2022
(in thousands)
Assets
AMS$556,558 $652,423 
EAAA635,210 691,844 
Total segment assets1,191,768 1,344,267 
Corporate assets114,204 146,204 
Eliminations(65,339)(160,414)
Total reported assets$1,240,633 $1,330,057 
Reconciliations of operating income to income before income tax expense and segment AOI are presented as follows:
Three Months EndedNine Months Ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(in thousands)
AMS operating income$24,955 $21,684 $74,618 $54,432 
EAAA operating income3,087 3,093 15,369 16,435 
Consolidated operating income28,042 24,777 89,987 70,867 
Interest expense7,747 7,727 21,787 22,272 
Other expense, net124 887 1,688 2,219 
Income before income tax expense$20,171 $16,163 $66,512 $46,376 
Three Months Ended October 2, 2022Three Months Ended October 3, 2021
AMSEAAAAMSEAAA
(in thousands)
Operating income$24,955 $3,087 $21,684 $3,093 
Purchase accounting amortization— 1,204 — 1,407 
Thailand plant closure inventory write-down— 477 — — 
Restructuring, asset impairment, severance and other charges20 1,505 (89)4,086 
AOI$24,975 $6,273 $21,595 $8,586 
Nine Months Ended October 2, 2022Nine Months Ended October 3, 2021
AMSEAAAAMSEAAA
(in thousands)
Operating income$74,618 $15,369 $54,432 $16,435 
Purchase accounting amortization— 3,817 — 4,269 
Thailand plant closure inventory write-down— 2,530 — — 
Restructuring, asset impairment, severance and other charges(116)4,192 174 5,853 
AOI$74,502 $25,908 $54,606 $26,557