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Segment Information
 12 Months Ended
Jan. 01, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
 
The Company and its subsidiaries design, manufacture and sell component, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety. The Company reports its operations by the following segments: Electronics, Transportation, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.
 
Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it.  Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.
 
•Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, silicon and silicon carbide metal-oxide-semiconductor field effect transistors (“MOSFETs”) and diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial motor drives and power conversion, automotive electronics, electric vehicle and related infrastructure, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics.
•Transportation Segment: Formerly known as Automotive segment. The term “Transportation” represents a more comprehensive description of the Company’s broad range of products, and the applications and end markets it serves. Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets. Passenger vehicle products are used in internal combustion engine, hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products designed to monitor the occupant’s safety and environment as well as the vehicle’s powertrain. Commercial vehicle products include fuses, switches, circuit breakers, relays, and power distribution modules and units used in applications serving a number of end markets, including heavy-duty truck, construction, agriculture, material handling and marine.

•Industrial Segment: Consists of industrial circuit protection (industrial fuse), industrial controls (protection relay, contactors, transformers) and temperature sensors for use in various applications such as renewable energy and energy storage systems, electric vehicle infrastructure, HVAC systems, industrial safety, non-residential construction, MRO, mining and industrial automation.

The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows:
 
(in thousands)
202120202019
Net sales   
Electronics$1,300,744 $937,762 $961,080 
Transportation528,058 395,764 428,533 
Industrial251,126 112,169 114,260 
Total net sales$2,079,928 $1,445,695 $1,503,873 
Depreciation and amortization
Electronics$61,512 $62,702 $60,345 
Transportation29,015 28,995 27,922 
Industrial8,108 4,481 4,236 
Other— — — 
Total depreciation and amortization$98,635 $96,178 $92,503 
Operating income (loss)
Electronics$309,633 $152,695 $145,594 
Transportation65,979 41,655 46,719 
Industrial22,621 11,996 22,407 
Other(a)
(12,591)(43,974)(21,929)
Total operating income385,642 162,372 192,791 
Interest expense18,527 21,077 22,266 
Foreign exchange loss (gain)17,158 (14,875)5,224 
Other expense (income), net8,932 (5,083)(583)
Income before income taxes$341,025 $161,253 $165,884 

(a) Included in “Other” Operating income (loss) for 2021 was $8.4 million of purchase accounting inventory step-up charges, $7.0 million of legal and professional fees and other integration expenses related to Carling, Hartland and other contemplated acquisitions, and $2.2 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 8, Restructuring, Impairment and Other Charges, for further discussion. In addition, there was a gain of $5.0 million recorded for the sale of buildings within the Electronics segment.

Included in “Other” Operating income (loss) for 2020 is $2.3 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $41.7 million of restructuring, impairment and other charges, primarily related to the goodwill impairment charge of $33.8 million recorded in the second quarter
associated with the automotive sensors reporting unit within the Transportation segment, employee termination costs of $5.5 million, $2.2 million of impairment charges recorded in the first quarter associated with the announced consolidation of a manufacturing facility within the Industrial segment and other restructuring charges of $0.2 million.

Included in “Other” Operating income (loss) for 2019 is $8.9 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $13.0 million of restructuring charges primarily related to employee termination costs.

The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2021, 2020, and 2019 are as follows:
 
(in thousands)
202120202019
Net sales   
U.S.$639,381 $392,544 $440,461 
China620,211 438,000 416,385 
Other countries(a)
820,336 615,151 647,027 
Total net sales$2,079,928 $1,445,695 $1,503,873 
Long-lived assets
U.S.$57,923 $46,132 $58,081 
China122,867 85,876 88,306 
Mexico107,283 70,125 73,096 
Germany39,055 37,976 36,025 
Philippines74,918 66,994 51,738 
Other countries35,843 37,075 37,371 
Total long-lived assets$437,889 $344,178 $344,617 
Additions to long-lived assets
U.S.$7,690 $4,170 $5,864 
China26,396 10,074 10,400 
Mexico28,707 9,977 13,827 
Germany8,519 5,600 4,017 
Philippines19,342 19,612 22,944 
Other countries5,654 1,775 9,314 
Total additions to long-lived assets$96,308 $51,208 $66,366 

(a)Each country included in other countries are less than 10% of net sales.
 
For the year ended January 1, 2022, approximately 69% of the Company’s net sales were to customers outside the U.S. (exports and foreign operations), including approximately 30% to China. For the year ended December 26, 2020, approximately 73% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 30% to China. For the year ended December 28, 2019, approximately 71% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 28% to China. Sales to Arrow Electronics, Inc., which were included in the Electronics, Transportation, and Industrial segments, were 10.7%, 10.4%, and 10.7% of consolidated net sales in 2021, 2020, and 2019 respectively. No other single customer accounted for more than 10% of net sales during the last three years.