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Segment Information | 9 Months Ended
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Sep. 30, 2020
Segment Reporting [Abstract] |
Segment Information | Segment Information On January 1, 2020, we restructured our business from six geographical operating segments into four geographical operating segments that are based on management responsibilities: Northern North America, Latin America, Europe, Middle East & Africa ("EMEA"), and Asia Pacific ("APAC") to better serve customer needs. 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 operating segment change did not impact reportable segments as all changes were within the International reportable segment. The Americas segment is comprised of our operations in North American and Latin American 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, strategic transaction costs and COVID-19 related costs, consisting of a one-time bonus for essential manufacturing employees 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 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 |  |  |  | Consolidated Totals
Three Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |  |
Sales to external customers |  | $ | 194,303 |  |  | $ | 110,089 |  |  | $ | — |  |  |  |  | $ | 304,392 |
Operating income |  |  |  |  |  |  |  |  |  | 41,149 |
Restructuring charges (Note 4) |  |  |  |  |  |  |  |  |  | 7,603 |
Currency exchange losses, net (Note 6) |  |  |  |  |  |  |  |  |  | 2,759 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 2,077 |
Strategic transaction costs |  |  |  |  |  |  |  |  |  | 41 |
Adjusted operating income (loss) |  | 40,898 |  |  | 15,658 |  |  | (2,927) |  |  |  |  | 53,629 |
Adjusted operating margin % |  | 21.0 | % |  | 14.2 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 9,856 |
Adjusted EBITDA |  | 47,465 |  |  | 18,848 |  |  | (2,828) |  |  |  |  | 63,485 |
Adjusted EBITDA % |  | 24.4 | % |  | 17.1 | % |  |  |  |  |  |
Nine Months Ended September 30, 2020 |  |  |  |  |  |  |  |  |  |
Sales to external customers |  | $ | 629,787 |  |  | $ | 330,188 |  |  | $ | — |  |  |  |  | $ | 959,975 |
Operating income |  |  |  |  |  |  |  |  |  | 148,213 |
Restructuring charges (Note 4) |  |  |  |  |  |  |  |  |  | 18,475 |
Currency exchange losses, net (Note 6) |  |  |  |  |  |  |  |  |  | 3,821 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 4,878 |
Strategic transaction costs |  |  |  |  |  |  |  |  |  | 202 |
COVID-19 related costs |  |  |  |  |  |  |  |  |  | 757 |
Adjusted operating income (loss) |  | 149,708 |  |  | 45,719 |  |  | (19,081) |  |  |  |  | 176,346 |
Adjusted operating margin % |  | 23.8 | % |  | 13.8 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 29,284 |
Adjusted EBITDA |  | 169,343 |  |  | 55,075 |  |  | (18,788) |  |  |  |  | 205,630 |
Adjusted EBITDA % |  | 26.9 | % |  | 16.7 | % |  |  |  |  |  |
(In thousands, except percentage amounts) |  | Americas |  | International |  | Corporate |  |  |  | Consolidated Totals
Three Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |  |
Sales to external customers |  | $ | 234,624 |  |  | $ | 116,390 |  |  | $ | — |  |  |  |  | $ | 351,014 |
Operating income |  |  |  |  |  |  |  |  |  | 59,614 |
Restructuring charges (Note 4) |  |  |  |  |  |  |  |  |  | 1,850 |
Currency exchange gains, net (Note 6) |  |  |  |  |  |  |  |  |  | (913) |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 1,730 |
Strategic transaction costs |  |  |  |  |  |  |  |  |  | 952 |
Adjusted operating income (loss) |  | 58,971 |  |  | 13,776 |  |  | (9,514) |  |  |  |  | 63,233 |
Adjusted operating margin % |  | 25.1 | % |  | 11.8 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 9,547 |
Adjusted EBITDA |  | 65,342 |  |  | 16,854 |  |  | (9,416) |  |  |  |  | 72,780 |
Adjusted EBITDA % |  | 27.8 | % |  | 14.5 | % |  |  |  |  |  |
Nine Months Ended September 30, 2019 |  |  |  |  |  |  |  |  |  |
Sales to external customers |  | $ | 679,699 |  |  | $ | 347,027 |  |  | $ | — |  |  |  |  | $ | 1,026,726 |
Operating income |  |  |  |  |  |  |  |  |  | 146,252 |
Restructuring charges (Note 4) |  |  |  |  |  |  |  |  |  | 11,203 |
Currency exchange losses, net (Note 6) |  |  |  |  |  |  |  |  |  | 17,338 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 8,155 |
Strategic transaction costs |  |  |  |  |  |  |  |  |  | 2,937 |
Adjusted operating income (loss) |  | 171,463 |  |  | 39,888 |  |  | (25,466) |  |  |  |  | 185,885 |
Adjusted operating margin % |  | 25.2 | % |  | 11.5 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 28,339 |
Adjusted EBITDA |  | 190,084 |  |  | 49,313 |  |  | (25,173) |  |  |  |  | 214,224 |
Adjusted EBITDA % |  | 28.0 | % |  | 14.2 | % |  |  |  |  |  |
Total sales by product group was as follows:
Three Months Ended September 30, 2020 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Breathing Apparatus | $ | 62,454 |  | 20% |  | $ | 38,889 |  | 20% |  | $ | 23,565 |  | 21%
Fixed Gas & Flame Detection | 70,038 |  | 23% |  | 39,411 |  | 20% |  | 30,627 |  | 28%
Firefighter Helmets & Protective Apparel | 38,785 |  | 13% |  | 33,000 |  | 17% |  | 5,785 |  | 5%
Portable Gas Detection | 32,701 |  | 11% |  | 20,972 |  | 11% |  | 11,729 |  | 11%
Industrial Head Protection | 29,328 |  | 10% |  | 21,489 |  | 11% |  | 7,839 |  | 7%
Fall Protection | 24,620 |  | 8% |  | 13,109 |  | 7% |  | 11,511 |  | 11%
Other (a) | 46,466 |  | 15% |  | 27,433 |  | 14% |  | 19,033 |  | 17%
Total | $ | 304,392 |  | 100% |  | $ | 194,303 |  | 100% |  | $ | 110,089 |  | 100%
Nine Months Ended September 30, 2020 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Breathing Apparatus | $ | 214,162 |  | 22% |  | $ | 141,850 |  | 23% |  | $ | 72,312 |  | 22%
Fixed Gas & Flame Detection | 205,334 |  | 21% |  | 117,399 |  | 19% |  | 87,935 |  | 27%
Firefighter Helmets & Protective Apparel | 121,669 |  | 13% |  | 101,857 |  | 16% |  | 19,812 |  | 6%
Portable Gas Detection | 102,138 |  | 11% |  | 65,822 |  | 10% |  | 36,316 |  | 11%
Industrial Head Protection | 95,260 |  | 10% |  | 69,549 |  | 11% |  | 25,711 |  | 8%
Fall Protection | 73,707 |  | 8% |  | 42,185 |  | 7% |  | 31,522 |  | 9%
Other (a) | 147,705 |  | 15% |  | 91,125 |  | 14% |  | 56,580 |  | 17%
Total | $ | 959,975 |  | 100% |  | $ | 629,787 |  | 100% |  | $ | 330,188 |  | 100%
Three Months Ended September 30, 2019 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Breathing Apparatus | $ | 71,312 |  | 20% |  | $ | 46,287 |  | 20% |  | $ | 25,025 |  | 22%
Fixed Gas & Flame Detection | 75,855 |  | 22% |  | 42,953 |  | 18% |  | 32,902 |  | 28%
Firefighter Helmets & Protective Apparel | 42,804 |  | 12% |  | 35,017 |  | 15% |  | 7,787 |  | 7%
Portable Gas Detection | 44,240 |  | 13% |  | 30,305 |  | 13% |  | 13,935 |  | 12%
Industrial Head Protection | 37,730 |  | 11% |  | 29,217 |  | 12% |  | 8,513 |  | 7%
Fall Protection | 34,639 |  | 10% |  | 22,972 |  | 10% |  | 11,667 |  | 10%
Other (a) | 44,434 |  | 12% |  | 27,873 |  | 12% |  | 16,561 |  | 14%
Total | $ | 351,014 |  | 100% |  | $ | 234,624 |  | 100% |  | $ | 116,390 |  | 100%
Nine Months Ended September 30, 2019 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Breathing Apparatus | $ | 221,666 |  | 22% |  | $ | 147,776 |  | 22% |  | $ | 73,890 |  | 21%
Fixed Gas & Flame Detection | 206,564 |  | 20% |  | 115,001 |  | 17% |  | 91,563 |  | 26%
Firefighter Helmets & Protective Apparel | 135,181 |  | 13% |  | 109,173 |  | 16% |  | 26,008 |  | 7%
Portable Gas Detection | 127,309 |  | 12% |  | 85,763 |  | 13% |  | 41,546 |  | 12%
Industrial Head Protection | 112,395 |  | 11% |  | 87,475 |  | 13% |  | 24,920 |  | 7%
Fall Protection | 96,396 |  | 9% |  | 59,653 |  | 9% |  | 36,743 |  | 11%
Other (a) | 127,215 |  | 13% |  | 74,858 |  | 10% |  | 52,357 |  | 16%
Total | $ | 1,026,726 |  | 100% |  | $ | 679,699 |  | 100% |  | $ | 347,027 |  | 100%
a)Other products include sales of Air Purifying Respirators ("APR")

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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