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v3.23.1

Segment Information | 3 Months Ended
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Mar. 31, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information We are organized into four geographical operating segments that are based on management responsibilities: Northern North America, Latin America, Europe, Middle East & Africa, and Asia Pacific. 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 Northern North American and Latin American 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 Company's sales are allocated to each segment based primarily on the country 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 (loss) excluding restructuring charges, currency exchange (gains) losses, product liability expense, loss on divestiture of MSA LLC, transaction costs and acquisition-related amortization. Adjusted operating margin is defined as adjusted operating income (loss) divided by segment net sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization. Adjusted EBITDA margin is defined as adjusted EBITDA divided by segment net sales to external customers. The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the unaudited condensed 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 percentages) |  | Americas |  | International |  | Corporate |  |  |  | Consolidated Totals
Three Months Ended March 31, 2023 |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 280,267 |  |  | $ | 117,995 |  |  | $ | — |  |  |  |  | $ | 398,262 |
Operating loss |  |  |  |  |  |  |  |  |  | (60,061) |
Restructuring charges (Note 3) |  |  |  |  |  |  |  |  |  | 1,747 |
Currency exchange losses, net |  |  |  |  |  |  |  |  |  | 4,175 |
Loss on divestiture of MSA LLC (Note 17) |  |  |  |  |  |  |  |  |  | 129,211 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 3 |
Amortization of acquisition-related intangible assets |  |  |  |  |  |  |  |  |  | 2,305 |
Adjusted operating income (loss) |  | 71,694 |  |  | 15,779 |  |  | (10,093) |  |  |  |  | 77,380 |
Adjusted operating margin % |  | 25.6 | % |  | 13.4 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 12,267 |
Adjusted EBITDA |  | 80,494 |  |  | 19,058 |  |  | (9,905) |  |  |  |  | 89,647 |
Adjusted EBITDA margin % |  | 28.7 | % |  | 16.2 | % |  |  |  |  |  |
Three Months Ended March 31, 2022 |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 225,648 |  |  | $ | 105,044 |  |  | $ | — |  |  |  |  | $ | 330,692 |
Operating income |  |  |  |  |  |  |  |  |  | 42,668 |
Restructuring charges (Note 3) |  |  |  |  |  |  |  |  |  | 2,189 |
Currency exchange losses, net |  |  |  |  |  |  |  |  |  | 3,271 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 2,772 |
Amortization of acquisition-related intangible assets |  |  |  |  |  |  |  |  |  | 2,336 |
Transaction costs(a) |  |  |  |  |  |  |  |  |  | 607 |
Adjusted operating income (loss) |  | 52,435 |  |  | 9,024 |  |  | (7,616) |  |  |  |  | 53,843 |
Adjusted operating margin % |  | 23.2 | % |  | 8.6 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 11,829 |
Adjusted EBITDA |  | 60,796 |  |  | 12,362 |  |  | (7,486) |  |  |  |  | 65,672 |
Adjusted EBITDA margin % |  | 26.9 | % |  | 11.8 | % |  |  |  |  |  |
(a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Operations.
Total sales by product group was as follows:
Three Months Ended March 31, 2023 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Fixed Gas & Flame Detection | $ | 93,635 |  | 24% |  | $ | 61,143 |  | 22% |  | $ | 32,492 |  | 28%
Breathing Apparatus | 76,721 |  | 19% |  | 52,769 |  | 19% |  | 23,952 |  | 20%
Firefighter Helmets & Protective Apparel | 62,667 |  | 16% |  | 49,287 |  | 18% |  | 13,380 |  | 11%
Portable Gas Detection | 52,966 |  | 13% |  | 38,168 |  | 14% |  | 14,798 |  | 13%
Industrial Head Protection | 42,907 |  | 11% |  | 33,625 |  | 12% |  | 9,282 |  | 8%
Fall Protection | 31,157 |  | 8% |  | 20,458 |  | 7% |  | 10,699 |  | 9%
Other | 38,209 |  | 9% |  | 24,817 |  | 8% |  | 13,392 |  | 11%
Total | $ | 398,262 |  | 100% |  | $ | 280,267 |  | 100% |  | $ | 117,995 |  | 100%
Three Months Ended March 31, 2022 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Fixed Gas & Flame Detection | $ | 83,077 |  | 25% |  | $ | 54,621 |  | 24% |  | $ | 28,456 |  | 27%
Breathing Apparatus | 70,951 |  | 22% |  | 50,398 |  | 22% |  | 20,553 |  | 20%
Firefighter Helmets & Protective Apparel | 48,461 |  | 15% |  | 33,476 |  | 15% |  | 14,985 |  | 14%
Portable Gas Detection | 36,744 |  | 11% |  | 25,791 |  | 11% |  | 10,953 |  | 10%
Industrial Head Protection | 36,157 |  | 11% |  | 28,165 |  | 13% |  | 7,992 |  | 8%
Fall Protection | 24,662 |  | 7% |  | 16,277 |  | 7% |  | 8,385 |  | 8%
Other | 30,640 |  | 9% |  | 16,920 |  | 8% |  | 13,720 |  | 13%
Total | $ | 330,692 |  | 100% |  | $ | 225,648 |  | 100% |  | $ | 105,044 |  | 100%

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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