XML 27 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Information
3 Months Ended
Mar. 31, 2017
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 of all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived.
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 Condensed 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
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
166,568

 
$
99,197

 
$

 
$

 
$
265,765

Intercompany sales
 
30,189

 
70,196

 

 
(100,385
)
 

Operating income
 
 
 
 
 
 
 
 
 
19,422

Restructuring charges
 
 
 
 
 
 
 
 
 
12,739

Currency exchange losses, net
 
 
 
 
 
 
 
 
 
580

Adjusted operating income (loss)
 
38,106

 
6,644

 
(12,009
)
 

 
32,741

Adjusted operating margin %
 
22.9
%
 
6.7
%
 
 
 
 
 
 
(In thousands)
 
Americas
 
International
 
Corporate
 
Reconciling
Items
1
 
Consolidated
Totals
Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
167,342

 
$
111,926

 
$

 
$

 
$
279,268

Intercompany sales
 
27,832

 
60,688

 

 
(88,520
)
 

Operating income
 
 
 
 
 
 
 
 
 
28,727

Restructuring charges
 
 
 
 
 
 
 
 
 
470

Currency exchange losses, net
 
 
 
 
 
 
 
 
 
1,950

Adjusted operating income (loss)
 
31,345

 
8,408

 
(8,606
)
 

 
31,147

Adjusted operating margin %
 
18.7
%
 
7.5
%
 
 
 
 
 
 

1Reconciling items consist primarily of intercompany eliminations and items not directly attributable to operating segments.
The percentage of total sales by product group were as follows:
Three Months Ended March 31,
2017
 
2016
Breathing Apparatus
26%
 
28%
Fixed Gas & Flame Detection
19%
 
20%
Portable Gas Detection
14%
 
12%
Industrial Head Protection
12%
 
9%
Fall Protection
8%
 
9%
Fire & Rescue Helmets
5%
 
5%
Other
16%
 
17%