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Segment Information
 9 Months Ended
Oct. 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, electromechanical switches and interconnect solutions, 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, aerospace, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics.

•Transportation Segment: 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 vehicle, 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 fuses), industrial controls (protection relays, contactors, and 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.
 
Segment information is summarized as follows: 
 Three Months EndedNine Months Ended
(in thousands)October 1, 2022September 25, 2021October 1, 2022September 25, 2021
Net sales    
Electronics$397,629 $347,240 $1,121,626 $959,122 
Transportation181,735 124,415 548,266 386,262 
Industrial79,516 67,926 230,754 181,479 
Total net sales$658,880 $539,581 $1,900,646 $1,526,863 
Depreciation and amortization
Electronics$19,080 $15,503 $48,984 45,998 
Transportation11,331 7,075 32,703 21,094 
Industrial2,180 2,058 6,522 5,957 
Total depreciation and amortization$32,591 $24,636 $88,209 $73,049 
Operating income
Electronics$113,140 $100,524 $339,675 $230,283 
Transportation12,987 15,806 57,604 55,380 
Industrial12,178 6,571 39,968 18,452 
Other(a)
(16,435)(2,794)(30,623)(11,270)
Total operating income121,870 120,107 406,624 292,845 
Interest expense8,399 4,602 17,069 13,901 
Foreign exchange loss 18,191 3,154 40,051 8,315 
Other (income) expense, net(698)(1,240)9,789 (10,867)
Income before income taxes$95,978 $113,591 $339,715 $281,496 
 
(a) Included in “Other” Operating income for the third quarter of 2022 was $6.8 million ($11.6 million year-to-date) of purchase accounting inventory step-up charges, $6.2 million ($14.8 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $3.4 million ($4.3 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion.

Included in “Other” Operating income for the third quarter of 2021 was $6.8 million year-to-date of purchase accounting inventory step-up charges, $2.0 million ($3.4 million year-to-date) of legal and professional fees and other integration expenses related to Hartland and other contemplated acquisitions, and $0.8 million ($2.0 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, there was a year-to-date gain of $0.9 million recorded for the sale of a building within the Electronics segment.
The Company’s net sales by country were as follows: 
 Three Months EndedNine Months Ended
(in thousands)October 1, 2022September 25, 2021October 1, 2022September 25, 2021
Net sales
United States$244,907 $172,995 $689,888 $458,723 
China165,091 160,628 492,195 455,872 
Other countries(a)
248,882 205,958 718,563 612,268 
Total net sales$658,880 $539,581 $1,900,646 $1,526,863 
 
 The Company’s long-lived assets by country were as follows:
 
(in thousands)October 1, 2022January 1, 2022
Long-lived assets
United States$76,191 $57,923 
China120,079 122,867 
Mexico105,290 107,283 
Germany36,033 39,055 
Philippines74,967 74,918 
Other countries(a)
45,674 35,843 
Total long-lived assets$458,234 $437,889 
 
The Company’s additions to long-lived assets by country were as follows:
 
 Nine Months Ended
(in thousands)October 1, 2022September 25, 2021
Additions to long-lived assets
United States$9,761 $3,696 
China23,449 13,790 
Mexico21,169 22,518 
Germany3,246 6,994 
Philippines13,118 10,109 
Other countries(a)
4,269 3,527 
Total additions to long-lived assets$75,012 $60,634 

(a)Each country included in other countries is less than 10% of net sales.