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 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 excluding restructuring charges, currency exchange gains/losses, other operating expense and strategic transaction costs. 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 U.S. GAAP and therefore do not purport to be alternatives to operating income or operating margin 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, 2018
Sales to external customers	$	215,339		$	123,992		$	—		$	—		$	339,331
Intercompany sales	36,445			84,514			—			(120,959		)	—
Operating income													46,797
Restructuring charges (Note 5)													2,335
Currency exchange losses, net													815
Other operating expense (Note 19)													8,018
Strategic transaction costs (Note 15)													58
Adjusted operating income (loss)	49,838			15,853			(7,668		)	—			58,023
Adjusted operating margin %	23.1		%	12.8		%
Six Months Ended June 30, 2018
Sales to external customers	$	424,468		$	240,757		$	—		$	—		$	665,225
Intercompany sales	70,643			166,893						(237,536		)	—
Operating income													91,232
Restructuring charges (Note 5)													7,609
Currency exchange losses, net													2,823
Other operating expense (Note 19)													10,842
Strategic transaction costs (Note 15)													152
Adjusted operating income (loss)	99,924			28,631			(15,897		)	—			112,658
Adjusted operating margin %	23.5		%	11.9		%



(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													13,498
Restructuring charges (Note 5)													967
Currency exchange losses, net													2,851
Other operating expense (Note 19)													29,610
Strategic transaction costs (Note 15)													1,642
Adjusted operating income (loss)	43,573			12,122			(7,127		)	—			48,568
Adjusted operating margin %	24.9		%	10.7		%
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													32,117
Restructuring charges (Note 5)													13,706
Currency exchange losses, net													3,431
Other operating expense (Note 19)													29,610
Strategic transaction costs (Note 15)													2,979
Adjusted operating income (loss)	79,724			19,918			(17,799		)	—			81,843
Adjusted operating margin %	23.3		%	9.4		%

₁Reconciling items consist primarily of intercompany eliminations and items not directly attributable to reporting segments.

Total sales by product group was as follows:



Three Months Ended June 30, 2018	Americas			International			Consolidated
(In thousands)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	46,678	22%	$	28,605	23%	$	75,283	22%
Fixed Gas & Flame Detection	33,128		15%	30,471		25%	63,599		19%
Firefighter Helmets & Protective Apparel	37,779		18%	8,897		7%	46,676		14%
Portable Gas Detection	27,137		13%	14,170		11%	41,307		12%
Industrial Head Protection	31,151		14%	8,488		7%	39,639		12%
Fall Protection	15,094		7%	10,958		9%	26,052		8%
Other	24,372		11%	22,403		18%	46,775		13%
Total	$	215,339	100%	$	123,992	100%	$	339,331	100%

Six Months Ended June 30, 2018	Americas			International			Consolidated
(In thousands)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	96,012	23%	$	53,889	22%	$	149,901	23%
Fixed Gas & Flame Detection	65,654		15%	58,876		24%	124,530		19%
Firefighter Helmets & Protective Apparel	72,533		17%	18,626		8%	91,159		14%
Portable Gas Detection	55,899		13%	27,635		11%	83,534		13%
Industrial Head Protection	58,992		14%	15,602		6%	74,594		11%
Fall Protection	29,203		7%	22,554		9%	51,757		8%
Other	46,175		11%	43,575		20%	89,750		12%
Total	$	424,468	100%	$	240,757	100%	$	665,225	100%



Three Months Ended June 30, 2017	Americas			International			Consolidated
(In thousands)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	45,269	26%	$	25,124	22%	$	70,393	24%
Fixed Gas & Flame Detection	30,660		18%	29,515		26%	60,175		21%
Firefighter Helmets & Protective Apparel	5,676		3%	8,385		7%	14,061		5%
Portable Gas Detection	24,669		14%	12,346		11%	37,015		13%
Industrial Head Protection	28,205		16%	7,792		7%	35,997		12%
Fall Protection	14,262		8%	11,250		10%	25,512		9%
Other	26,219		15%	19,403		17%	45,622		16%
Total	$	174,960	100%	$	113,815	100%	$	288,775	100%

Six Months Ended June 30, 2017	Americas			International			Consolidated
(In thousands)	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	93,959	28%	$	44,679	21%	$	138,638	25%
Fixed Gas & Flame Detection	58,639		17%	52,317		25%	110,956		20%
Firefighter Helmets & Protective Apparel	11,778		3%	16,688		8%	28,466		5%
Portable Gas Detection	49,683		15%	23,838		11%	73,521		13%
Industrial Head Protection	52,964		16%	13,909		7%	66,873		12%
Fall Protection	25,490		7%	21,965		10%	47,455		9%
Other	49,015		14%	39,616		18%	88,631		16%
Total	$	341,528	100%	$	213,012	100%	$	554,540	100%