XML 32 R22.htm IDEA: XBRL DOCUMENT v3.24.3
Segment Information
 9 Months Ended
Sep. 28, 2024
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: 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 and bus, off-road and recreational vehicles, material handling equipment, agricultural machinery, construction equipment 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 and bus, construction, agriculture, material handling and marine.

•Industrial Segment: Consists of industrial circuit protection (industrial fuses), protective and monitoring relays (protection relays, residual current devices and monitors, ground fault circuit interrupters, and arc fault detection devices), and industrial controls and sensors (contactors, transformers, and temperature sensors) for use in various applications such as renewable energy and energy storage systems, industrial safety, factory automation, electric vehicle infrastructure, HVAC systems, non-residential construction, MRO, and mining.
Segment information is summarized as follows: 
 Three Months EndedNine Months Ended
(in thousands)September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Net sales    
Electronics$304,188 $343,933 $900,932 $1,052,673 
Transportation171,381 177,019 510,711 515,708 
Industrial91,821 86,119 249,620 260,469 
Total net sales$567,390 $607,071 $1,661,263 $1,828,850 
Depreciation and amortization
Electronics$20,045 $19,623 $59,656 59,219 
Transportation9,084 10,193 26,827 32,547 
Industrial4,041 4,093 11,960 11,517 
Total depreciation and amortization$33,170 $33,909 $98,443 $103,283 
Operating income (loss)
Electronics$48,891 $77,022 $132,859 $247,028 
Transportation23,485 9,694 54,925 26,015 
Industrial17,711 13,201 32,054 45,450 
Other (a)
(2,266)(6,272)(11,559)(22,154)
Total operating income87,821 93,645 208,279 296,339 
Interest expense9,772 10,101 29,358 29,803 
Foreign exchange loss9,630 11,776 4,273 8,697 
Other income, net(9,297)(3,527)(19,916)(11,810)
Income before income taxes$77,716 $75,295 $194,564 $269,649 
 
(a) Included in “Other” Operating income for the third quarter of 2024 includes $1.8 million ($9.4 million year-to-date) of restructuring charges primarily related to employee termination cost, and $1.0 million ($2.8 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions. During the first quarter of 2024, the Company recognized a $0.9 million impairment charge related to certain machinery and equipment in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. During the third quarter of 2024, the Company recorded a gain of $0.5 million related to the sale of a land use right within the Electronics segment. In addition, the Company recognized a gain of $1.0 million for the sale of two buildings within the Transportation segment during the first half of 2024.

Included in “Other” Operating income for the third quarter of 2023 was $3.7 million ($8.5 million year-to-date) of restructuring charges, primarily related to employee termination costs, and $1.8 million ($9.0 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions. During the third quarter of 2023, the Company recognized a $0.8 million impairment charge substantially related to certain patents in a business within the Industrial segment. In addition, during the second quarter of 2023, the Company recognized a $3.9 million impairment charge related to the land and building in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion.
The Company’s net sales by country were as follows, classified according to the country where the customer is located: 
 Three Months EndedNine Months Ended
(in thousands)September 28, 2024September 30, 2023September 28, 2024September 30, 2023
Net sales
United States$211,940 $217,904 $604,198 $635,892 
China133,051 138,393 379,730 415,430 
Other countries (a)
222,399 250,774 677,335 777,528 
Total net sales$567,390 $607,071 $1,661,263 $1,828,850 
 
The Company’s long-lived assets represent net property, plant, and equipment, and are classified according to the country where the asset is located were as follows:
(in thousands)September 28, 2024December 30, 2023
Long-lived assets
United States$67,491 $73,126 
China137,813 139,736 
Mexico93,057 102,218 
Germany56,578 47,217 
Philippines68,620 73,217 
Other countries 58,033 57,639 
Total long-lived assets$481,592 $493,153 
 
The Company’s additions to long-lived assets by country were as follows:
 Nine Months Ended
(in thousands)September 28, 2024September 30, 2023
Additions to long-lived assets
United States$9,591 $7,407 
China10,681 22,558 
Mexico8,875 11,339 
Germany12,160 6,534 
Philippines3,025 5,245 
Other countries 5,759 8,138 
Total additions to long-lived assets$50,091 $61,221 

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