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Segment Information
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information
We are organized into six geographic operating segments based on management responsibilities. The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three reportable segments: Americas, International, and Corporate.
The Americas and International segments were established on January 1, 2016. The Americas segment is comprised of our operations in North America and Latin America geographies. The International segment is comprised of our operations in all geographies outside of the Americas. Certain global expenses are now allocated to each segment in a manner consistent with where the benefits from the expenses are derived. The 2015 and 2014 segment results have been recast to conform with current period presentation.
The Company's sales are allocated to each country based primarily on the destination of the end-customer.
Adjusted operating income (loss) and adjusted operating margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income from continuing operations excluding restructuring charges and currency exchange gains (losses). Adjusted operating margin is defined as adjusted operating income (loss) divided by segment sales to external customers. Adjusted operating income (loss) and adjusted operating margin are not recognized terms under GAAP and therefore do not purport to be alternatives to operating income or operating margin from continuing operations as a measure of operating performance. Further, the Company's measure of adjusted operating income and adjusted operating margin may not be comparable to similarly titled measures of other companies. Adjusted operating income on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income as presented on the Consolidated Statement of Income.
The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation.
Reportable segment information is presented in the following table:
(In thousands)
 
Americas
 
International
 
Corporate
 
Reconciling
Items(1)
 
Consolidated
Totals
2016
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
678,433

 
$
471,097

 
$
—

 
$
—

 
$
1,149,530

Intercompany sales
 
113,273

 
275,640

 
—

 
(388,913
)
 
—

Operating income
 
 
 
 
 
 
 
 
 
164,192

Restructuring and other charges
 
 
 
 
 
 
 
 
 
5,694

Currency exchange losses, net
 
 
 
 
 
 
 
 
 
766

Adjusted operating income (loss)
 
162,788

 
46,491

 
(38,627
)
 
—

 
170,652

Adjusted operating margin %
 
24.0
%
 
9.9
%
 
 
 
 
 
 
Interest income
 
1,914

 
903

 
10

 
—

 
2,827

Interest expense
 
—

 
—

 
16,411

 
—

 
16,411

Noncash items:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
21,046

 
13,767

 
—

 
—

 
34,813

Pension (income) expense
 
(544
)
 
6,876

 
—

 
—

 
6,332

Income tax provision
 
37,838

 
12,830

 
8,778

 
(1,642
)
 
57,804

Total Assets
 
836,243

 
505,278

 
10,903

 
1,496

 
1,353,920

Capital expenditures
 
16,306

 
9,217

 
—

 
—

 
25,523

Net property
 
95,904

 
52,773

 
1

 
—

 
148,678

2015
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
704,754

 
$
426,029

 
$
—

 
$
—

 
$
1,130,783

Intercompany sales
 
134,185

 
225,358

 
—

 
(359,543
)
 
—

Operating income

 
 
 
 
 
 
 
 
 
122,741

Restructuring and other charges
 
 
 
 
 
 
 
 
 
12,258

Currency exchange losses, net
 
 
 
 
 
 
 

 
2,204

Adjusted operating income (loss)
 
141,971

 
33,501

 
(38,269
)
 
—

 
137,203

Adjusted operating margin %
 
20.1
%
 
7.9
%
 
 
 
 
 
 
Interest income
 
1,183

 
336

 
6

 
—

 
1,525

Interest expense
 
—

 
—

 
10,854

 
—

 
10,854

Noncash items:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
21,180

 
11,500

 
—

 
—

 
32,680

Pension expense
 
3,759

 
8,196

 
—

 
—

 
11,955

Income tax provision
 
50,751

 
13,706

 
(20,108
)
 
58

 
44,407

Total Assets
 
873,045

 
532,960

 
16,362

 
496

 
1,422,863

Capital expenditures
 
22,568

 
13,673

 
—

 
—

 
36,241

Net property
 
97,021

 
58,817

 
1

 
—

 
155,839

2014
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
663,655

 
$
470,230

 
$
—

 
$
—

 
$
1,133,885

Intercompany sales
 
117,681

 
131,477

 
—

 
(249,158
)
 
—

Operating income

 
 
 
 
 
 
 
 
 
134,281

Restructuring and other charges
 
 
 
 
 
 
 
 
 
8,515

Currency exchange losses, net
 
 
 
 
 
 
 
 
 
1,509

Adjusted operating income (loss)
 
134,819

 
46,847

 
(37,361
)
 
—

 
144,305

Adjusted operating margin %
 
20.3
%
 
10.0
%
 
 
 
 
 
 
Interest income
 
1,450

 
367

 
5

 
—

 
1,822

Interest expense
 
—

 
—

 
9,851

 
—

 
9,851

Noncash items:
 
 
 
 
 
 
 
 
 
 
Depreciation and amortization
 
20,145

 
9,617

 
—

 
—

 
29,762

Pension (income) expense
 
(1,977
)
 
6,813

 
—

 
—

 
4,836

Income tax provision
 
49,014

 
8,633

 
(15,972
)
 
(631
)
 
41,044

Total Assets
 
883,131

 
359,557

 
20,867

 
(143
)
 
1,263,412

Capital expenditures
 
20,268

 
13,315

 
—

 
—

 
33,583

Net property
 
95,933

 
55,418

 
1

 
—

 
151,352


(1)Reconciling items consist primarily of intercompany eliminations and items not directly attributable to operating segments.
Geographic information on sales to external customers, based on country of origin:
(In thousands)
2016
 
2015
 
2014
United States
$
580,724

 
$
593,539

 
$
530,845

Other
568,806

 
537,244

 
603,040

Total
$
1,149,530

 
$
1,130,783

 
$
1,133,885


Geographic information on net property, based on country of origin:
(In thousands)
2016
 
2015
 
2014
United States
$
84,675

 
$
88,368

 
$
85,247

China
11,732

 
13,504

 
15,128

Germany
7,919

 
7,596

 
17,654

Other
44,352

 
46,371

 
33,323

Total
$
148,678

 
$
155,839

 
$
151,352


The percentage of total sales by product group were as follows:
 
2016
 
2015
 
2014
Breathing Apparatus
26
%
 
27
%
 
19
%
Fixed Gas and Flame Detection
21
%
 
21
%
 
23
%
Portable Gas Detection
12
%
 
13
%
 
15
%
Head Protection
10
%
 
11
%
 
13
%
Fall Protection
8
%
 
5
%
 
4
%
Fire & Rescue Helmets
5
%
 
5
%
 
5
%
Other
18
%
 
18
%
 
21
%