SEGMENT REPORTING

3 Months Ended

Mar. 31, 2019

The Company operates in three reportable business segments, U.S., U.K. and Europe, and Mexico. The Company measures segment profit as operating income. Corporate expenses are allocated to Mexico based upon various apportionment methods for specific expenditures incurred related thereto with the remaining amounts allocated to the U.S.

Information on segments and a reconciliation to income before income taxes are as follows:



	Thirteen Weeks Ended
	March 31, 2019		April 1, 2018
Net Sales	(In thousands)
U.S.	$	1,883,591	$	1,841,105
U.K. and Europe	514,962		544,300
Mexico	326,122		361,273
Total	$	2,724,675	$	2,746,678



	Thirteen Weeks Ended
	March 31, 2019			April 1, 2018
Operating Income	(In thousands)
U.S.	$	114,840		$	127,286
U.K. and Europe	12,714			21,413
Mexico	9,464			52,870
Elimination	24			24
Total operating income	137,042			201,593
Interest expense, net of capitalized interest	33,562			50,300
Interest income	(3,340		)	(1,590		)
Foreign currency transaction loss (gain)	2,636			(1,721		)
Miscellaneous, net	(357		)	(1,617		)
Income before income taxes	$	104,541		$	156,221

In addition to the net sales reported above, the U.S. segment also generated intersegment net sales of $35.0 million and $26.5 million in the thirteen weeks ended March 31, 2019 and April 1, 2018, respectively, from transactions with the Mexico segment. These intersegment net sales were transacted at market prices.



	March 31, 2019		December 30, 2018
Long-Lived Assets^(a)	(In thousands)
U.S.	$	1,535,489	$	1,506,217
U.K. and Europe	367,765		359,621
Mexico	292,452		295,864
Total assets	$	2,195,706	$	2,161,702

(a)

For this disclosure, we exclude financial instruments, deferred tax assets, operating lease assets and intangible assets in accordance with Accounting Standards Codification (“ASC”) 280-10-50-41, Segment Reporting. Long-lived assets, as used in ASC 280-10-50-41, implies hard assets that cannot be readily removed.