Segment Information

We are organized into seven 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 allocated to each segment in a manner consistent with where the benefits from the expenses are derived. The 2015 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, 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 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 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
2017
Sales to external customers	$	736,847		$	459,962		$	—		$	—		$	1,196,809
Intercompany sales	124,886			304,376			—			(429,262		)	—
Operating income													43,345
Restructuring and other charges													17,632
Currency exchange losses, net													5,127
Other operating expense (Note 19)													126,432
Adjusted operating income (loss)	184,287			45,461			(37,212		)	—			192,536
Adjusted operating margin %	25.0		%	9.9		%
Noncash items:
Depreciation and amortization	23,207			14,265			405			—			37,877
Pension expense	246			6,896			—			—			7,142
Total Assets	1,110,698			563,480			12,099			(1,451		)	1,684,826
Capital expenditures	16,910			6,815			—			—			23,725
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
Other operating expense (Note 19)													—
Adjusted operating income (loss)	162,788			46,491			(38,627		)	—			170,652
Adjusted operating margin %	24.0		%	9.9		%
Noncash items:
Depreciation and amortization	21,046			13,767			—			—			34,813
Pension (income) expense	(544		)	6,876			—			—			6,332
Total Assets	836,243			505,278			10,903			1,496			1,353,920
Capital expenditures	16,306			9,217			—			—			25,523
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
Other operating expense (Note 19)													—
Adjusted operating income (loss)	141,971			33,501			(38,269		)	—			137,203
Adjusted operating margin %	20.1		%	7.9		%
Noncash items:
Depreciation and amortization	21,180			11,500			—			—			32,680
Pension expense	3,759			8,196			—			—			11,955
Total Assets	873,045			532,960			16,362			496			1,422,863
Capital expenditures	22,568			13,673			—			—			36,241

⁽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)	2017		2016		2015
United States	$	622,276	$	580,724	$	593,539
Other	574,533		568,806		537,244
Total	$	1,196,809	$	1,149,530	$	1,130,783

Geographic information on long-lived assets, based on country of origin:



(In thousands)	2017		2016		2015
United States	$	91,730	$	84,675	$	88,368
China	11,641		11,732		13,504
Germany	9,350		7,919		7,596
Other	44,293		44,352		46,371
Total	$	157,014	$	148,678	$	155,839

Percentage of total sales by product group was as follows:



	2017		2016		2015
Breathing Apparatus	25	%	26	%	27	%
Fixed Gas and Flame Detection	21	%	21	%	21	%
Portable Gas Detection	12	%	12	%	13	%
Head Protection	11	%	10	%	11	%
Fire Helmets & Protective Apparel	9	%	5	%	5	%
Fall Protection	8	%	8	%	5	%
Other	14	%	18	%	18	%