XML 27 R16.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Segment Information
 6 Months Ended
Jun. 30, 2024
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 (“SG&A”) expenses and allocations of global support SG&A as discussed below. AOI excludes: nora purchase accounting amortization; Cyber Event impact; property casualty loss; and restructuring, asset impairment, severance, and other, net. Intersegment revenues for the three and six months ended June 30, 2024, were $24.5 million and $41.3 million, respectively, and intersegment revenues for the three and six months ended July 2, 2023, were $24.7 million and $47.3 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.
During the first quarter of 2024, the Company implemented a cost center realignment initiative to centralize certain global/shared functions. For the three and six months ended June 30, 2024, SG&A expenses for these global support functions were allocated to AOI for each reportable segment consistent with the allocation methodology used to allocate corporate overhead in prior periods. Prior year AOI amounts below were not recast as there was no material impact to the measure of segment profit for each reportable segment. There were no changes to the composition of the Company’s operating or reportable segments.
Segment information for the three and six months ended June 30, 2024 and July 2, 2023 is presented in the following table:
Three Months EndedSix Months Ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
(in thousands)
Net sales
AMS$215,012 $201,281 $384,927 $370,522 
EAAA131,623 128,301 251,451 254,852 
Total net sales$346,635 $329,582 $636,378 $625,374 
 
Segment AOI
AMS$26,947 $24,034 $45,027 $35,303 
EAAA 12,658 3,827 20,103 7,756 
 
Depreciation and amortization
AMS$4,446 $4,424 $8,799 $8,817 
EAAA5,282 5,731 10,545 11,329 
Total depreciation and amortization$9,728 $10,155 $19,344 $20,146 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
June 30, 2024December 31, 2023
(in thousands)
Assets
AMS$581,835 $627,782 
EAAA618,901 630,939 
Total segment assets1,200,736 1,258,721 
Corporate assets109,939 108,673 
Eliminations(94,558)(137,299)
Total reported assets$1,216,117 $1,230,095 
Reconciliations of operating income to income before income tax expense and segment AOI are presented as follows:
Three Months EndedSix Months Ended
June 30, 2024July 2, 2023June 30, 2024July 2, 2023
(in thousands)
AMS operating income$26,804 $24,752 $44,999 $33,467 
EAAA operating income11,347 4,156 17,598 4,918 
Consolidated operating income38,151 28,908 62,597 38,385 
Interest expense6,173 8,318 12,596 16,823 
Other expense (income), net
832 (528)(144)972 
Income before income tax expense$31,146 $21,118 $50,145 $20,590 
Three Months Ended June 30, 2024Three Months Ended July 2, 2023
AMSEAAAAMSEAAA
(in thousands)
Operating income$26,804 $11,347 $24,752 $4,156 
Purchase accounting amortization— 1,287 — 1,301 
Cyber Event impact21 14 264 173 
Property casualty loss(1)
— — (1,300)— 
Restructuring, asset impairment, severance, and other, net
122 10 318 (1,803)
AOI$26,947 $12,658 $24,034 $3,827 
(1) Represents insurance recovery of loss recognized in the first quarter of 2023.
Six Months Ended June 30, 2024Six Months Ended July 2, 2023
AMSEAAAAMSEAAA
(in thousands)
Operating income$44,999 $17,598 $33,467 $4,918 
Purchase accounting amortization— 2,584 — 2,584 
Cyber Event impact(225)(156)492 373 
Restructuring, asset impairment, severance, and other, net
253 77 1,344 (119)
AOI$45,027 $20,103 $35,303 $7,756