SEGMENT REPORTING

6 Months Ended

Jun. 30, 2019

The Company operates in three reportable 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				Twenty-Six Weeks Ended
	June 30, 2019		July 1, 2018		June 30, 2019		July 1, 2018
Net Sales	(In thousands)
U.S.	$	1,916,954	$	1,899,435	$	3,800,544	$	3,740,540
U.K. and Europe	535,902		563,102		1,050,865		1,107,402
Mexico	390,229		374,176		716,351		735,449
Total net sales	$	2,843,085	$	2,836,713	$	5,567,760	$	5,583,391



	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	June 30, 2019			July 1, 2018			June 30, 2019			July 1, 2018
Operating Income	(In thousands)
U.S.	$	186,960		$	99,469		$	301,800		$	226,755
U.K. and Europe	24,194			23,662			36,908			45,075
Mexico	68,372			61,997			77,836			114,867
Elimination	24			(16		)	48			8
Total operating income	279,550			185,112			416,592			386,705
Interest expense, net of capitalized interest	33,594			40,267			67,156			90,567
Interest income	(3,444		)	(4,834		)	(6,784		)	(6,424		)
Foreign currency transaction losses (gains)	2,260			5,630			4,896			3,909
Miscellaneous, net	1,513			(817		)	1,156			(2,434		)
Income before income taxes	$	245,627		$	144,866		$	350,168		$	301,087

In addition to the net sales reported above, the U.S. segment also generated intersegment net sales of $32.5 million and $45.6 million in the thirteen weeks ended June 30, 2019 and July 1, 2018, respectively, from transactions with the Mexico segment and intersegment net sales of $67.5 million and $72.1 million in the twenty-six weeks ended June 30, 2019 and July 1, 2018, respectively, from transactions with the Mexico segment. These intersegment net sales were transacted at market prices.



	June 30, 2019		December 30, 2018
Long-Lived Assets^(a)	(In thousands)
U.S.	$	1,562,325	$	1,506,217
U.K. and Europe	358,782		359,621
Mexico	289,105		295,864
Total assets	$	2,210,212	$	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.