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Segment Information | 9 Months Ended
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Sep. 30, 2023
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company is 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 Mine Safety Appliances Company, LLC ("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 September 30, 2023 |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 314,273 |  |  | $ | 132,455 |  |  | $ | — |  |  |  |  | $ | 446,728 |
Operating income |  |  |  |  |  |  |  |  |  | 94,123 |
Restructuring charges (Note 3) |  |  |  |  |  |  |  |  |  | 3,285 |
Currency exchange losses, net |  |  |  |  |  |  |  |  |  | 1,496 |
Amortization of acquisition-related intangible assets |  |  |  |  |  |  |  |  |  | 2,315 |
Transaction costs(a) |  |  |  |  |  |  |  |  |  | 78 |
Adjusted operating income (loss) |  | 93,918 |  |  | 22,577 |  |  | (15,198) |  |  |  |  | 101,297 |
Adjusted operating margin % |  | 29.9 | % |  | 17.0 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 13,189 |
Adjusted EBITDA |  | 103,157 |  |  | 26,289 |  |  | (14,960) |  |  |  |  | 114,486 |
Adjusted EBITDA margin % |  | 32.8 | % |  | 19.8 | % |  |  |  |  |  |
Three Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 276,082 |  |  | $ | 105,612 |  |  | $ | — |  |  |  |  | $ | 381,694 |
Operating income |  |  |  |  |  |  |  |  |  | 64,313 |
Restructuring charges (Note 3) |  |  |  |  |  |  |  |  |  | 899 |
Currency exchange losses, net |  |  |  |  |  |  |  |  |  | 2,979 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 4,035 |
Amortization of acquisition-related intangible assets |  |  |  |  |  |  |  |  |  | 2,279 |
Transaction costs(a) |  |  |  |  |  |  |  |  |  | 620 |
Adjusted operating income (loss) |  | 75,088 |  |  | 8,448 |  |  | (8,411) |  |  |  |  | 75,125 |
Adjusted operating margin % |  | 27.2 | % |  | 8.0 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 11,518 |
Adjusted EBITDA |  | 83,945 |  |  | 10,980 |  |  | (8,282) |  |  |  |  | 86,643 |
Adjusted EBITDA margin % |  | 30.4 | % |  | 10.4 | % |  |  |  |  |  |
(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.
(In thousands, except percentages) |  | Americas |  | International |  | Corporate |  |  |  | Consolidated Totals
Nine Months Ended September 30, 2023 |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 902,918 |  |  | $ | 389,372 |  |  | $ | — |  |  |  |  | $ | 1,292,290 |
Operating income |  |  |  |  |  |  |  |  |  | 129,070 |
Restructuring charges (Note 3) |  |  |  |  |  |  |  |  |  | 8,382 |
Currency exchange losses, net |  |  |  |  |  |  |  |  |  | 8,781 |
Loss on divestiture of MSA LLC (Note 17) |  |  |  |  |  |  |  |  |  | 129,211 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 3 |
Amortization of acquisition-related intangible assets |  |  |  |  |  |  |  |  |  | 6,936 |
Transaction costs(a) |  |  |  |  |  |  |  |  |  | 78 |
Adjusted operating income (loss) |  | 260,428 |  |  | 60,099 |  |  | (38,066) |  |  |  |  | 282,461 |
Adjusted operating margin % |  | 28.8 | % |  | 15.4 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 38,029 |
Adjusted EBITDA |  | 287,628 |  |  | 70,296 |  |  | (37,434) |  |  |  |  | 320,490 |
Adjusted EBITDA margin % |  | 31.9 | % |  | 18.1 | % |  |  |  |  |  |
Nine Months Ended September 30, 2022 |  |  |  |  |  |  |  |  |  |
Net sales to external customers |  | $ | 754,116 |  |  | $ | 330,583 |  |  | $ | — |  |  |  |  | $ | 1,084,699 |
Operating income |  |  |  |  |  |  |  |  |  | 168,517 |
Restructuring charges (Note 3) |  |  |  |  |  |  |  |  |  | 3,146 |
Currency exchange losses, net |  |  |  |  |  |  |  |  |  | 4,788 |
Product liability expense (Note 17) |  |  |  |  |  |  |  |  |  | 9,733 |
Amortization of acquisition-related intangible assets |  |  |  |  |  |  |  |  |  | 6,922 |
Transaction costs(a) |  |  |  |  |  |  |  |  |  | 1,476 |
Adjusted operating income (loss) |  | 184,664 |  |  | 34,674 |  |  | (24,756) |  |  |  |  | 194,582 |
Adjusted operating margin % |  | 24.5 | % |  | 10.5 | % |  |  |  |  |  |
Depreciation and amortization |  |  |  |  |  |  |  |  |  | 34,961 |
Adjusted EBITDA |  | 210,201 |  |  | 43,708 |  |  | (24,366) |  |  |  |  | 229,543 |
Adjusted EBITDA margin % |  | 27.9 | % |  | 13.2 | % |  |  |  |  |  |
(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 September 30, 2023 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Fixed Gas & Flame Detection | $ | 112,012 |  | 25% |  | $ | 73,074 |  | 23% |  | $ | 38,938 |  | 29%
Breathing Apparatus | 111,024 |  | 25% |  | 79,908 |  | 25% |  | 31,116 |  | 24%
Firefighter Helmets & Protective Apparel | 64,707 |  | 15% |  | 51,608 |  | 16% |  | 13,099 |  | 10%
Portable Gas Detection | 43,682 |  | 10% |  | 31,933 |  | 10% |  | 11,749 |  | 9%
Industrial Head Protection | 45,780 |  | 10% |  | 36,402 |  | 12% |  | 9,378 |  | 7%
Fall Protection | 31,980 |  | 7% |  | 20,235 |  | 7% |  | 11,745 |  | 9%
Other | 37,543 |  | 8% |  | 21,113 |  | 7% |  | 16,430 |  | 12%
Total | $ | 446,728 |  | 100% |  | $ | 314,273 |  | 100% |  | $ | 132,455 |  | 100%
Three Months Ended September 30, 2022 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Fixed Gas & Flame Detection | $ | 87,746 |  | 23% |  | $ | 62,134 |  | 23% |  | $ | 25,612 |  | 24%
Breathing Apparatus | 91,977 |  | 24% |  | 70,482 |  | 26% |  | 21,495 |  | 20%
Firefighter Helmets & Protective Apparel | 54,738 |  | 14% |  | 41,958 |  | 15% |  | 12,780 |  | 12%
Portable Gas Detection | 39,481 |  | 10% |  | 28,358 |  | 10% |  | 11,123 |  | 11%
Industrial Head Protection | 43,608 |  | 11% |  | 34,620 |  | 13% |  | 8,988 |  | 9%
Fall Protection | 27,839 |  | 7% |  | 17,658 |  | 6% |  | 10,181 |  | 10%
Other | 36,305 |  | 11% |  | 20,872 |  | 7% |  | 15,433 |  | 14%
Total | $ | 381,694 |  | 100% |  | $ | 276,082 |  | 100% |  | $ | 105,612 |  | 100%
Nine Months Ended September 30, 2023 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Fixed Gas & Flame Detection | $ | 311,502 |  | 24% |  | $ | 200,604 |  | 22% |  | $ | 110,898 |  | 28%
Breathing Apparatus | 288,976 |  | 22% |  | 201,945 |  | 22% |  | 87,031 |  | 22%
Firefighter Helmets & Protective Apparel | 192,634 |  | 15% |  | 152,784 |  | 17% |  | 39,850 |  | 10%
Portable Gas Detection | 149,036 |  | 12% |  | 108,088 |  | 12% |  | 40,948 |  | 11%
Industrial Head Protection | 135,851 |  | 11% |  | 106,120 |  | 12% |  | 29,731 |  | 8%
Fall Protection | 97,019 |  | 7% |  | 63,168 |  | 7% |  | 33,851 |  | 9%
Other | 117,272 |  | 9% |  | 70,209 |  | 8% |  | 47,063 |  | 12%
Total | $ | 1,292,290 |  | 100% |  | $ | 902,918 |  | 100% |  | $ | 389,372 |  | 100%
Nine Months Ended September 30, 2022 | Consolidated |  | Americas |  | International
(In thousands, except percentages) | Dollars | Percent |  | Dollars | Percent |  | Dollars | Percent
Fixed Gas & Flame Detection | $ | 251,321 |  | 23% |  | $ | 167,269 |  | 22% |  | $ | 84,052 |  | 25%
Breathing Apparatus | 254,878 |  | 23% |  | 185,490 |  | 25% |  | 69,388 |  | 21%
Firefighter Helmets & Protective Apparel | 151,097 |  | 14% |  | 110,471 |  | 15% |  | 40,626 |  | 12%
Portable Gas Detection | 121,116 |  | 11% |  | 85,815 |  | 11% |  | 35,301 |  | 11%
Industrial Head Protection | 123,489 |  | 11% |  | 96,808 |  | 13% |  | 26,681 |  | 8%
Fall Protection | 79,114 |  | 7% |  | 50,940 |  | 7% |  | 28,174 |  | 9%
Other | 103,684 |  | 11% |  | 57,323 |  | 7% |  | 46,361 |  | 14%
Total | $ | 1,084,699 |  | 100% |  | $ | 754,116 |  | 100% |  | $ | 330,583 |  | 100%

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