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 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), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA 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, product liability expense and strategic transaction costs and adjusted operating margin is defined as adjusted operating income (loss) divided by segment sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization and adjusted EBITDA margin is defined as adjusted EBITDA divided by segment sales to external customers. Adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA 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), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) and adjusted EBITDA on a consolidated basis is presented in the following table to reconcile the segment operating performance measure to operating income as presented on the unaudited 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, except percentage amounts)	Americas			International			Corporate			Reconciling Items₁			Consolidated Totals
Three Months Ended March 31, 2019
Sales to external customers	$	213,687		$	112,351		$	—		$	—		$	326,038
Intercompany sales	159,262			79,329			—			(238,591		)	—
Operating income													32,160
Restructuring charges (Note 4)													5,831
Currency exchange losses, net (Note 6)													16,961
Product liability expense (Note 18)													2,896
Strategic transaction costs													456
Adjusted operating income (loss)	54,803			11,040			(7,539		)	—			58,304
Adjusted operating margin %	25.6		%	9.8		%
Depreciation and amortization													9,326
Adjusted EBITDA	60,900			14,171			(7,441		)	—			67,630
Adjusted EBITDA %	28.5		%	12.6		%



(In thousands, except percentage amounts)	Americas			International			Corporate			Reconciling Items₁			Consolidated Totals
Three Months Ended March 31, 2018
Sales to external customers	$	209,129		$	116,765		$	—		$	—		$	325,894
Intercompany sales	34,198			82,379			—			(116,577		)	—
Operating income													44,435
Restructuring charges (Note 4)													5,274
Currency exchange losses, net (Note 6)													2,008
Product liability expense (Note 18)													2,824
Strategic transaction costs													94
Adjusted operating income (loss)	50,086			12,778			(8,229		)	—			54,635
Adjusted operating margin %	23.9		%	10.9		%
Depreciation and amortization													9,671
Adjusted EBITDA	56,225			16,209			(8,128		)				64,306
Adjusted EBITDA %	26.9		%	13.9		%

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

Total sales by product group was as follows:



(In thousands, except percentage amounts)	Consolidated			Americas			International
Three Months Ended March 31, 2019	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	75,446	23%	$	50,904	24%	$	24,542	22%
Fixed Gas & Flame Detection	60,398		19%	32,930		15%	27,468		24%
Firefighter Helmets & Protective Apparel	43,577		13%	35,064		16%	8,513		8%
Portable Gas Detection	40,726		13%	26,991		13%	13,735		12%
Industrial Head Protection	35,744		11%	27,836		13%	7,908		7%
Fall Protection	30,128		9%	17,961		8%	12,167		11%
Other	40,019		12%	22,001		11%	18,018		16%
Total	$	326,038	100%	$	213,687	100%	$	112,351	100%



(In thousands, except percentage amounts)	Consolidated			Americas			International
Three Months Ended March 31, 2018	Dollars		Percent	Dollars		Percent	Dollars		Percent
Breathing Apparatus	$	74,618	23%	$	49,333	24%	$	25,285	22%
Fixed Gas & Flame Detection	60,931		19%	32,526		15%	28,405		24%
Firefighter Helmets & Protective Apparel	44,484		14%	34,754		17%	9,730		8%
Portable Gas Detection	42,227		13%	28,762		14%	13,465		12%
Industrial Head Protection	34,956		11%	27,841		13%	7,115		6%
Fall Protection	25,705		8%	14,109		7%	11,596		10%
Other	42,973		12%	21,804		10%	21,169		18%
Total	$	325,894	100%	$	209,129	100%	$	116,765	100%