XML 27 R16.htm IDEA: XBRL DOCUMENT v3.25.1
Segment Information
 3 Months Ended
Mar. 30, 2025
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 operating income (“AOI”). The CODM uses AOI to evaluate segment operating results compared to expectations. AOI is also used by the CODM to develop variable compensation targets and make capital spend decisions. AOI excludes: nora purchase accounting amortization; restructuring, asset impairment, severance, and other, net, and the impact of a cyber event. Intersegment revenues for the three months ended March 30, 2025 and March 31, 2024 were $28.0 million and $16.8 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.
The following table outlines information by reportable segment including net sales, significant segment expenses, and AOI. The table also includes a reconciliation to income before taxes for the three months ended March 30, 2025 and March 31, 2024.
Three Months Ended
March 30, 2025March 31, 2024
AMSEAAATOTALAMSEAAATOTAL
(in thousands)
Net sales$179,937 $117,476 $297,413 $169,915 $119,828 $289,743 
Less: significant segment expenses (1)
   Adjusted cost of sales (2)
108,527 76,668 101,605 76,435 
   Adjusted selling, general, & administrative expenses(3)
51,547 35,217 50,230 35,948 
Segment AOI19,863 5,591 25,454 18,080 7,445 25,525 
Reconciliation of AOI to income before taxes
Restructuring, severance, asset impairment and other, net973 198 
Purchasing accounting amortization1,255 1,297 
Cyber event impact
— (416)
Interest expense4,415 6,423 
Other expense (income), net
1,703 (976)
Income before taxes$17,109 $18,999 
(1) Significant segment expense categories and amounts align with segment level information that is regularly provided to the CODM, included in the measure of segment profit, and considered to be significant. Amounts include allocation of corporate overhead and global support costs. Intersegment expenses are excluded.
(2) Adjusted cost of sales excludes purchase accounting amortization.
(3) Adjusted selling, general, and administrative expenses exclude restructuring, asset impairment, severance, and other, net and the impact of a cyber event.
Segment depreciation and amortization for the three months ended March 30, 2025 and March 31, 2024 is presented as follows:
Three Months Ended
March 30, 2025March 31, 2024
(in thousands)
 
Depreciation and amortization
AMS$4,587 $4,353 
EAAA4,814 5,263 
Total depreciation and amortization$9,401 $9,616 

A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
March 30, 2025December 29, 2024
(in thousands)
Assets
AMS$546,021 $644,085 
EAAA617,445 587,639 
Total segment assets1,163,466 1,231,724 
Corporate assets101,208 111,761 
Eliminations(72,876)(172,669)
Total reported assets$1,191,798 $1,170,816