Segment Information

3 Months Ended

Apr. 02, 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. 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; property casualty loss; and restructuring, asset impairment, severance and other charges. Intersegment revenues for the three months ended April 2, 2023 and April 3, 2022 were $22.6 million and $17.3 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 for the three months ended April 2, 2023 and April 3, 2022 is presented in the following table:

	Three Months Ended
	April 2, 2023		April 3, 2022
	(in thousands)
Net sales
AMS	$	169,241	$	156,509
EAAA	126,551		131,493
Total net sales	$	295,792	$	288,002
Segment AOI
AMS	$	11,269	$	21,138
EAAA	3,929		9,504
Depreciation and amortization
AMS	$	4,393	$	4,058
EAAA	5,598		6,612
Total depreciation and amortization	$	9,991	$	10,670

A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:

	April 2, 2023		January 1, 2023
	(in thousands)
Assets
AMS	$	554,790	$	588,110
EAAA	655,823		652,921
Total segment assets	1,210,613		1,241,031
Corporate assets	121,418		110,495
Eliminations	(78,826)		(85,023)
Total reported assets	$	1,253,205	$	1,266,503

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

	Three Months Ended
	April 2, 2023		April 3, 2022
	(in thousands)
AMS operating income	$	8,715	$	21,250
EAAA operating income	762		6,170
Consolidated operating income	9,477		27,420
Interest expense	8,505		6,850
Other expense, net	1,500		170
Income (loss) before income tax expense	$	(528)	$	20,400

	Three Months Ended April 2, 2023				Three Months Ended April 3, 2022
	AMS		EAAA		AMS		EAAA
	(in thousands)
Operating income	$	8,715	$	762	$	21,250	$	6,170
Purchase accounting amortization	—		1,283		—		1,342
Thailand plant closure inventory write-down	—		—		—		1,115
Cyber Event impact	228		200		—		—
Property casualty loss	1,300		—		—		—
Restructuring, asset impairment, severance and other charges	1,026		1,684		(112)		877
AOI	$	11,269	$	3,929	$	21,138	$	9,504