XML 41 R27.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Information
 12 Months Ended
Jan. 01, 2023
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 2021, 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; Cyber Event impact; goodwill and intangible asset impairment charges; changes in equity award forfeiture accounting; restructuring, asset impairment, severance and other charges; and an SEC settlement fine. Intersegment revenues for 2022, 2021 and 2020 were $75.5 million, $78.1 million and $71.5 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 2022, 2021 and 2020 is presented in the tables below – segment information for fiscal year 2020 has been recast to reflect the new reportable segment structure:

Fiscal Year
202220212020
(in thousands)
Net sales
AMS$753,740 $651,216 $593,418 
EAAA544,179 549,182 509,844 
Total net sales$1,297,919 $1,200,398 $1,103,262 
 
Segment AOI
AMS$102,370 $85,014 $89,097 
EAAA30,058 37,268 21,403 
Depreciation and amortization
AMS$16,827 $17,963 $17,164 
EAAA23,510 28,382 28,756 
Total depreciation and amortization$40,337 $46,345 $45,920 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:

End of Fiscal Year
20222021
(in thousands)
Assets
AMS$588,110 $652,423 
EAAA652,921 691,844 
Total segment assets1,241,031 1,344,267 
Corporate assets110,495 146,204 
Eliminations(85,023)(160,414)
Total reported assets$1,266,503 $1,330,057 

Total assets in the table above include operating lease right-of-use assets for fiscal years 2022 and 2021. 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 Assets20222021
(in thousands)
AMS$14,140 $12,662 
EAAA58,255 67,741 
Total segment operating lease right-of-use assets72,395 80,403 
Corporate operating lease right-of-use assets9,249 10,158 
Total operating lease right-of-use assets$81,644 $90,561 

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

Fiscal Year
202220212020
(in thousands)
AMS operating income$92,234 $81,445 $73,234 
EAAA operating income (loss)(16,836)23,352 (112,521)
Consolidated operating income (loss)75,398 104,797 (39,287)
Interest expense29,929 29,681 29,244 
Other expense, net3,552 2,483 10,889 
Income (loss) before income tax expense$41,917 $72,633 $(79,420)
Fiscal Year
202220212020
AMSEAAAAMSEAAAAMSEAAA
(in thousands)
Operating income (loss)$92,234 $(16,836)$81,445 $23,352 $73,234 $(112,521)
Purchase accounting amortization— 5,038 — 5,636 — 5,457 
Thailand plant closure inventory write-down— 2,530 — — — — 
Cyber Event impact3,878 1,215 — — — — 
Goodwill and intangible asset impairment3,838 32,342 — — 2,695 118,563 
Impact of change in equity award forfeiture accounting— — — — 757 650 
Restructuring, asset impairment, severance and other charges2,420 5,769 3,569 8,280 9,722 6,943 
SEC fine— — — — 2,689 2,311 
AOI$102,370 $30,058 $85,014 $37,268 $89,097 $21,403 

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 2022, 2021 and 2020 were approximately 47%, 50% and 51%, respectively, of total net sales. These sales were primarily to customers in Europe, Canada, Asia, Australia and Latin America. Net sales and long-lived assets for the United States and other significant countries (that individually represent 10% or greater of consolidated totals for each year presented) are as follows:
 
 Fiscal Year
Net Sales to Unaffiliated Customers(1)
20222021
2020(2)
 (in thousands)
United States$694,299 $596,844 $545,183 
Other foreign countries603,620 603,554 558,079 
Total net sales$1,297,919 $1,200,398 $1,103,262 
 
End of Fiscal Year
Long-Lived Assets(3)
20222021
(in thousands)
United States$146,210 $157,194 
Germany64,182 71,114 
Netherlands42,422 47,476 
Australia29,924 33,536 
Other foreign countries15,238 20,481 
Total long-lived assets$297,976 $329,801 
 
(1) Revenue attributed to geographic areas is based on the location of the customer.
(2) Net sales in Germany were $115.4 million in 2020, which exceeded 10% of consolidated net sales for that year. Net sales in Germany did not exceed 10% of consolidated net sales for all other periods presented.
(3) Long-lived assets attributed to geographic areas are based on the physical location of the asset. 2022 includes $1.3 million and $4.5 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively. 2021 includes $1.6 million and $4.9 million of leased equipment, net of accumulated amortization, in the United States and foreign countries, respectively