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Segment Information
 9 Months Ended
Sep. 29, 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 nine months ended September 29, 2024, were $19.1 million and $60.4 million, respectively, and intersegment revenues for the three and nine months ended October 1, 2023, were $25.0 million and $72.3 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 nine months ended September 29, 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 nine months ended September 29, 2024 and October 1, 2023 is presented in the following table:
Three Months EndedNine Months Ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
(in thousands)
Net sales
AMS$210,155 $178,194 $595,082 $548,716 
EAAA134,115 132,812 385,566 387,664 
Total net sales$344,270 $311,006 $980,648 $936,380 
 
Segment AOI
AMS$32,187 $23,318 $77,214 $58,621 
EAAA 11,299 9,049 31,402 16,805 
 
Depreciation and amortization
AMS$4,453 $4,640 $13,252 $13,457 
EAAA5,449 5,805 15,994 17,134 
Total depreciation and amortization$9,902 $10,445 $29,246 $30,591 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
September 29, 2024December 31, 2023
(in thousands)
Assets
AMS$628,090 $627,782 
EAAA640,638 630,939 
Total segment assets1,268,728 1,258,721 
Corporate assets112,674 108,673 
Eliminations(138,138)(137,299)
Total reported assets$1,243,264 $1,230,095 
Reconciliations of operating income to income before income tax expense and segment AOI are presented as follows:
Three Months EndedNine Months Ended
September 29, 2024October 1, 2023September 29, 2024October 1, 2023
(in thousands)
AMS operating income$31,878 $23,530 $76,877 $56,997 
EAAA operating income10,297 7,455 27,895 12,373 
Consolidated operating income42,175 30,985 104,772 69,370 
Interest expense5,721 8,163 18,317 24,986 
Other expense, net
381 6,702 237 7,674 
Income before income tax expense$36,073 $16,120 $86,218 $36,710 
Three Months Ended
September 29, 2024
Three Months Ended
October 1, 2023
AMSEAAAAMSEAAA
(in thousands)
Operating income$31,878 $10,297 $23,530 $7,455 
Purchase accounting amortization— 1,311 — 1,302 
Cyber Event impact— — 62 42 
Restructuring, asset impairment, severance, and other, net
309 (309)(274)250 
AOI$32,187 $11,299 $23,318 $9,049 
Nine Months Ended
September 29, 2024
Nine Months Ended
October 1, 2023
AMSEAAAAMSEAAA
(in thousands)
Operating income$76,877 $27,895 $56,997 $12,373 
Purchase accounting amortization— 3,895 — 3,886 
Cyber Event impact(225)(156)554 415 
Restructuring, asset impairment, severance, and other, net
562 (232)1,070 131 
AOI$77,214 $31,402 $58,621 $16,805