Segment Information

3 Months Ended

Mar. 30, 2025

Segment Information

Segment Information

9. Segment Information

The Company adopted ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” for its annual reporting beginning January 1, 2024. The Company discloses segment information on the same basis that the Chief Executive Officer, the Company’s chief operating decision-maker (“CODM”), manages the segments, evaluates financial results and makes key operating decisions to allocate investments and resources. The Company operates in three geographic and reportable segments: Americas, Europe, and APMEA. Each of these segments sells similar products and solutions and has separate financial results that are reviewed by the CODM. Each segment earns revenue and income almost exclusively from the sale of the Company’s products. The Company sells its products into various end markets around the world with sales by region based upon location of the entity recording the sale. See Note 3 for further detail on sales by region of the product categories. The accounting policies for each segment are the same as those described in Note 2 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

In the fourth quarter of 2024, the Company’s segment performance measure was changed to segment earnings as this is the performance measure used by the CODM in assessing segment performance and deciding how to allocate resources. Prior to the fourth quarter of 2024, the Company’s segment performance measure was operating income (loss). Segment earnings excludes the impact of special items defined as non-recurring and unusual items such as restructuring costs, acquisition-related costs, and gain on sale of assets. The CODM uses segment earnings for insight into underlying trends comparing past financial performance with current performance by reporting segment on a consistent basis.

The following is a summary of the Company’s significant accounts and balances by segment, reconciled to its consolidated financial statements:

	For the First Quarter Ended March 30, 2025
	Americas		Europe		APMEA		Total
	(in millions)
Net sales
Net sales from external customers	$	418.1	$	108.4	$	31.5	$	558.0
Intersegment sales		2.2		8.2		24.9		35.3
Total segment net sales	$	420.3	$	116.6	$	56.4	$	593.3
Reconciliation of net sales
Elimination of intersegment sales								(35.3)
Total consolidated net sales							$	558.0
Less (a)
Segment cost of goods sold		204.0		74.5		41.3
Segment selling, general and administrative		104.8		24.7		8.9
Segment research and development		13.7		2.3		0.7
Segment earnings		97.8		15.1		5.5		118.4
Reconciliation of segment earnings to income before income taxes
Segment special items (b)								(18.4)
Corporate operating loss (c)								(12.3)
Consolidated operating income								87.7
Interest income								(2.3)
Interest expense								2.7
Other income, net								0.4
Income before income taxes							$	86.9

	For the First Quarter Ended March 31, 2024
	Americas		Europe		APMEA		Total
	(in millions)
Net sales
Net sales from external customers	$	418.8	$	123.3	$	28.8	$	570.9
Intersegment sales		2.6		5.8		21.4		29.8
Total segment net sales	$	421.4	$	129.1	$	50.2	$	600.7
Reconciliation of net sales
Elimination of intersegment sales								(29.8)
Total consolidated net sales							$	570.9
Less (a)
Segment cost of goods sold		211.1		81.5		36.2
Segment selling, general and administrative		102.5		25.3		8.2
Segment research and development		15.1		2.9		0.6
Segment earnings		92.7		19.4		5.2		117.3
Reconciliation of segment earnings to income before income taxes
Segment special items (b)								(6.4)
Corporate operating loss (c)								(14.2)
Consolidated operating income								96.7
Interest income								(2.1)
Interest expense								4.2
Other income, net								(0.6)
Income before income taxes							$	95.2

(a) The significant expense categories and amounts align with segment-level information that is regularly provided to the CODM. Significant segment expenses exclude certain expenses incurred and benefits recognized, see footnote (b) below. Intersegment expenses are included within the amounts shown.

(b) Segment special items are excluded from segment earnings and defined as non-recurring and unusual expenses incurred or benefits recognized such as restructuring costs, acquisition-related costs, and gain on sale of assets.

(c) Corporate expenses are primarily for administrative compensation expense, compliance costs, professional fees, including corporate-related legal and audit expenses, shareholder services and benefit administration costs. Corporate special items are included within the amounts shown and consist of acquisition-related costs.

	First Quarter Ended
	March 30,		March 31,
	2025		2024
	(in millions)
Capital expenditures
Americas	$	6.5	$	7.4
Europe		2.8		2.4
APMEA		0.3		0.3
Consolidated capital expenditures	$	9.6	$	10.1
Depreciation and amortization
Americas	$	10.8	$	10.4
Europe		2.4		2.3
APMEA		0.5		0.6
Consolidated depreciation and amortization	$	13.7	$	13.3

	March 30,		December 31,
	2025		2024
	(in millions)
Identifiable assets (at end of period)
Americas	$	1,765.7	$	1,728.0
Europe		579.5		534.1
APMEA		155.5		134.9
Consolidated identifiable assets	$	2,500.7	$	2,397.0
Property, plant and equipment, net (at end of period)
Americas	$	182.7	$	182.9
Europe		69.9		67.0
APMEA		5.0		4.9
Consolidated property, plant and equipment, net	$	257.6	$	254.8

The above summary of the Company’s significant accounts and balances by segment are presented on a basis consistent with the presentation included in Note 18 of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

The property, plant and equipment, net, in the U.S. of the Company’s Americas segment was $171.0 million and $170.9 million as of March 30, 2025 and December 31, 2024, respectively.

The following includes U.S. net sales of the Company’s Americas segment:

	First Quarter Ended
	March 30,		March 31,
	2025		2024
	(in millions)
U.S. net sales	$	394.1	$	392.6