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Segment Information

9 Months Ended

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

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