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Segment Information
 6 Months Ended
Jun. 30, 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, currency exchange gains (losses) and other operating expense. 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 (loss) and adjusted operating margin may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) 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
Items1
 
Consolidated
Totals
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
174,960

 
$
113,815

 
$
—

 
$
—

 
$
288,775

Intercompany sales
 
32,264

 
75,575

 
—

 
(107,839
)
 
—

Operating income
 
 
 
 
 
 
 
 
 
14,301

Restructuring and other charges
 
 
 
 
 
 
 
 
 
967

Currency exchange losses, net
 
 
 
 
 
 
 
 
 
2,851

Other operating expense (Note 18)
 
 
 
 
 
 
 
 
 
29,610

Adjusted operating income (loss)
 
45,528

 
10,970

 
(8,769
)
 
—

 
47,729

Adjusted operating margin %
 
26.0
%
 
9.6
%
 
 
 
 
 
 
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
341,528

 
$
213,012

 
$
—

 
$
—

 
$
554,540

Intercompany sales
 
62,453

 
145,771

 
—

 
(208,224
)
 
—

Operating income
 
 
 
 
 
 
 
 
 
33,723

Restructuring and other charges
 
 
 
 
 
 
 
 
 
13,706

Currency exchange losses, net
 
 
 
 
 
 
 
 
 
3,431

Other operating expense (Note 18)
 
 
 
 
 
 
 
 
 
29,610

Adjusted operating income (loss)
 
83,634

 
17,614

 
(20,778
)
 
—

 
80,470

Adjusted operating margin %
 
24.5
%
 
8.3
%
 
 
 
 
 
 
(In thousands)
 
Americas
 
International
 
Corporate
 
Reconciling
Items1
 
Consolidated
Totals
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
177,623

 
$
118,375

 
$
—

 
$
—

 
$
295,998

Intercompany sales
 
30,037

 
69,648

 
—

 
(99,685
)
 
—

Operating income
 
 
 
 
 
 
 
 
 
47,899

Restructuring and other charges
 
 
 
 
 
 
 
 
 
1,338

Currency exchange (gains), net
 
 
 
 
 
 
 
 
 
(242
)
Other operating expense (Note 18)
 
 
 
 
 
 
 
 
 
—

Adjusted operating income (loss)
 
44,671

 
12,741

 
(8,417
)
 

 
48,995

Adjusted operating margin %
 
25.1
%
 
10.8
%
 
 
 
 
 
 
Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Sales to external customers
 
$
344,965

 
$
230,301

 
$
—

 
$
—

 
$
575,266

Intercompany sales
 
57,869

 
130,337

 
—

 
(188,206
)
 
—

Operating income
 
 
 
 
 
 
 
 
 
76,626

Restructuring and other charges
 
 
 
 
 
 
 
 
 
1,808

Currency exchange losses, net
 
 
 
 
 
 
 
 
 
1,708

Other operating expense (Note 18)
 
 
 
 
 
 
 
 
 
—

Adjusted operating income (loss)
 
76,016

 
21,148

 
(17,022
)
 
—

 
80,142

Adjusted operating margin %
 
22.0
%
 
9.2
%
 
 
 
 
 
 

1Reconciling items consist primarily of intercompany eliminations and items not directly attributable to reporting segments.
The percentage of total sales by product group were as follows:
Three Months Ended June 30,
2017
 
2016
Breathing Apparatus
24%
 
27%
Fixed Gas & Flame Detection
21%
 
18%
Portable Gas Detection
13%
 
14%
Industrial Head Protection
12%
 
11%
Fall Protection
9%
 
8%
Fire & Rescue Helmets
5%
 
5%
Other
16%
 
17%

Six Months Ended June 30,
2017
 
2016
Breathing Apparatus
25%
 
28%
Fixed Gas & Flame Detection
20%
 
19%
Portable Gas Detection
13%
 
13%
Industrial Head Protection
12%
 
10%
Fall Protection
9%
 
8%
Fire & Rescue Helmets
5%
 
5%
Other
16%
 
17%