SEGMENT REPORTING

9 Months Ended

Sep. 29, 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				Thirty-Nine Weeks Ended
	September 29, 2019		September 30, 2018		September 29, 2019		September 30, 2018
Net Sales	(In thousands)
U.S.	$	1,931,657	$	1,864,169	$	5,732,201	$	5,604,709
U.K. and Europe	517,531		526,722		1,568,396		1,634,125
Mexico	328,782		306,713		1,045,133		1,042,161
Total net sales	$	2,777,970	$	2,697,604	$	8,345,730	$	8,280,995



	Thirteen Weeks Ended						Thirty-Nine Weeks Ended
	September 29, 2019			September 30, 2018			September 29, 2019			September 30, 2018
Operating Income	(In thousands)
U.S.	$	125,169		$	74,206		$	426,968		$	300,960
U.K. and Europe	25,325			23,470			62,233			68,545
Mexico	37,667			(12,355		)	115,503			102,512
Elimination	24			25			72			34
Total operating income	188,185			85,346			604,776			472,051
Interest expense, net of capitalized interest	32,028			35,334			99,184			125,901
Interest income	(4,698		)	(4,241		)	(11,481		)	(10,665		)
Foreign currency transaction losses (gains)	3,027			(6,711		)	7,923			(2,802		)
Miscellaneous, net	1,367			653			2,521			(1,781		)
Income before income taxes	$	156,461		$	60,311		$	506,629		$	361,398

In addition to the net sales reported above, the U.S. segment also generated intersegment net sales of $57.2 million and $23.6 million in the thirteen weeks ended September 29, 2019 and September 30, 2018, respectively, from transactions with the Mexico segment and intersegment net sales of $125.9 million and $95.7 million in the thirty-nine weeks ended September 29, 2019 and September 30, 2018, respectively, from transactions with the Mexico segment. These intersegment net sales were transacted at market prices.



	September 29, 2019		December 30, 2018
Long-Lived Assets^(a)	(In thousands)
U.S.	$	1,582,318	$	1,506,217
U.K. and Europe	345,412		359,621
Mexico	283,394		295,864
Total assets	$	2,211,124	$	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.