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Segment Information
 3 Months Ended
Apr. 01, 2023
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 charging 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: 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 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, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, and arc fault detection devices) and temperature sensors for use in various applications such as renewable energy and energy storage systems, industrial safety, industrial automation, electric vehicle infrastructure, HVAC systems, non-residential construction, MRO, and mining.
 
Segment information is summarized as follows: 
 Three Months Ended
(in thousands)April 1, 2023April 2, 2022
Net sales  
Electronics$358,593 $365,821 
Transportation166,641 184,504 
Industrial84,548 73,005 
Total net sales$609,782 $623,330 
Depreciation and amortization
Electronics$19,788 $15,393 
Transportation11,291 10,744 
Industrial3,403 2,161 
Total depreciation and amortization$34,482 $28,298 
Operating income
Electronics$90,162 $120,577 
Transportation8,532 26,308 
Industrial17,141 12,505 
Other (a)
(5,194)(8,800)
Total operating income110,641 150,590 
Interest expense9,646 4,302 
Foreign exchange (gain) loss(1,675)7,736 
Other (income) expense, net(6,233)4,427 
Income before income taxes$108,903 $134,125 
 
(a) Included in “Other” Operating income for the first quarter of 2023 was $3.3 million of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $1.9 million 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 first quarter of 2022 was $4.8 million of purchase accounting inventory step-up charges, $3.8 million of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $0.2 million of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion.

The Company’s net sales by country were as follows: 

 Three Months Ended
(in thousands)April 1, 2023April 2, 2022
Net sales
United States$212,195 $220,238 
China133,467 164,782 
Other countries (a)
264,120 238,310 
Total net sales$609,782 $623,330 
 
 The Company’s long-lived assets by country were as follows:
 
(in thousands)April 1, 2023December 31, 2022
Long-lived assets
United States$77,246 $76,325 
China135,233 129,094 
Mexico107,427 107,119 
Germany41,049 39,635 
Philippines77,314 77,240 
Other countries (a)
54,099 51,697 
Total long-lived assets$492,368 $481,110 
 
The Company’s additions to long-lived assets by country were as follows:
 Three Months Ended
(in thousands)April 1, 2023April 2, 2022
Additions to long-lived assets
United States$4,091 $3,174 
China8,403 6,949 
Mexico3,744 7,918 
Germany1,234 918 
Philippines1,398 6,970 
Other countries(a)
2,593 1,561 
Total additions to long-lived assets$21,463 $27,490 

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