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Segment Information | 12 Months Ended
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Dec. 28, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information The Company and its subsidiaries design, manufacture and sell components and modules for circuit protection, power control and sensing throughout the world. The Company reports its operations by the following segments: Electronics, Automotive, and Industrial. An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the Company’s President and Chief Executive Officer (“CEO”). The CODM allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information. Sales, marketing, and research and development expenses are charged directly into each operating segment. Purchasing, logistics, customer service, finance, information technology, and human resources are shared functions that are allocated back to the three operating segments. The Company does not report inter-segment revenue because the operating segments do not record it. Certain expenses, determined by the CODM to be strategic in nature and not directly related to segments current results, are not allocated but identified as “Other”. Additionally, the Company does not allocate interest and other income, interest expense, or taxes to operating segments. These costs are not allocated to the segments, as management excludes such costs when assessing the performance of the segments. Although the CODM uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the Company as a whole.
• | Electronics Segment: Consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (“PTC”) resettable fuses, polymer electrostatic discharge (“ESD”) suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes; semiconductor products such as discrete transient voltage suppressor (“TVS”) diodes, TVS diode arrays, protection and switching thyristors, metal-oxide-semiconductor field-effect transistors (“MOSFETs”) and silicon carbide diodes; and insulated gate bipolar transistors (“IGBT”) technologies.
The segment covers a broad range of end markets, including industrial and automotive electronics, electric vehicle and related infrastructure, data and telecommunications, medical devices, alternative energy, consumer electronics and white goods.
• | Automotive Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-I suppliers and parts distributors in passenger car, heavy duty truck, off-road vehicles, material handling, agricultural, construction and other commercial vehicle end markets. Passenger car fuse products include fuses and fuse accessories for internal combustion engine vehicles and hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, and high-voltage fuses. Commercial vehicle products include fuses, switches, relays, and power distribution modules for the commercial vehicle industry. Automotive sensor products include a wide range of automotive and commercial vehicle products designed to monitor the passenger compartment occupants, safety and environment as well as the vehicle’s powertrain.
• | Industrial Segment: Consists of power fuses, protection relays and controls and other circuit protection products for use in various industrial applications such as oil, gas, mining, alternative energy, electric vehicle infrastructure, non-residential construction, HVAC systems, elevators and other industrial equipment.
The Company has provided this segment information for all comparable prior periods. Segment information is summarized as follows:
(in thousands) | 2019 |  | 2018 |  | 2017
Net sales |  |  |  |  |
Electronics | $ | 961,080 |  |  | $ | 1,124,296 |  |  | $ | 661,928 |
Automotive | 428,533 |  |  | 479,791 |  |  | 453,227 |
Industrial | 114,260 |  |  | 114,381 |  |  | 106,379 |
Total net sales | $ | 1,503,873 |  |  | $ | 1,718,468 |  |  | $ | 1,221,534 |
Depreciation and amortization |  |  |  |  |
Electronics | $ | 60,345 |  |  | $ | 61,779 |  |  | $ | 35,215 |
Automotive | 27,922 |  |  | 23,333 |  |  | 22,459 |
Industrial | 4,236 |  |  | 5,661 |  |  | 5,337 |
Other | — |  |  | 12,420 |  |  | — |
Total depreciation and amortization | $ | 92,503 |  |  | $ | 103,193 |  |  | $ | 63,011 |
Operating income (loss) |  |  |  |  |
Electronics | $ | 145,594 |  |  | $ | 241,426 |  |  | $ | 155,880 |
Automotive | 46,719 |  |  | 54,982 |  |  | 62,571 |
Industrial | 22,407 |  |  | 17,335 |  |  | 10,334 |
Other(a) | (21,929 | ) |  | (88,694 | ) |  | (10,274 | )
Total operating income | 192,791 |  |  | 225,049 |  |  | 218,511 |
Interest expense | 22,266 |  |  | 22,569 |  |  | 13,380 |
Foreign exchange (gain) loss | 5,224 |  |  | (863 | ) |  | 2,376 |
Other income, net | (583 | ) |  | (1,599 | ) |  | (1,282 | )
Income before income taxes | $ | 165,884 |  |  | $ | 204,942 |  |  | $ | 204,037 |
(a) Included in “Other” Operating income (loss) for 2019 is $8.9 million of acquisition-related and integration charges related to the IXYS acquisition and other contemplated acquisitions. In addition, there were $13.0 million of restructuring charges primarily related to employee termination costs. See Note 8, Restructuring, Impairment and Other Charges, for further discussion. Included in “Other” Operating income (loss) for 2018 is $88.7 million of charges primarily related to the IXYS acquisition, which include $36.9 million of purchase accounting inventory step-up charges, $18.7 million in acquisition-related and integration costs primarily related to legal, accounting and other expenses, $12.4 million in backlog amortization costs, $8.3 million of employee termination costs, impairment and other restructuring charges, and $4.5 million in stock compensation expense recognized immediately upon close for converted IXYS options related to prior service periods and $2.1 million change in control expense related to IXYS. In addition, there were $5.8 million of employee termination costs, impairment and other restructuring charges and acquisition-related expenses for other contemplated acquisitions which included $2.2 million of impairment charges primarily related to the impairment of a building and a trade name associated with the exit of the Custom business within the Industrial segment. Included in “Other” Operating income (loss) for 2017 are costs related to acquisition and integration costs associated with the Company’s completed and pending acquisitions in 2017 ($8.0 million in Cost of sales ("COS") and Selling, general, and administrative expenses (“SG&A”), and charges related to restructuring and production transfers in the Company’s Asia operations ($2.2 million in SG&A). The Company’s net sales, long-lived assets and additions to long-lived assets by country for the fiscal years ended 2019, 2018, and 2017 are as follows:
(in thousands) | 2019 |  | 2018 |  | 2017
Net sales |  |  |  |  |
United States | $ | 440,461 |  |  | $ | 511,544 |  |  | $ | 383,025 |
China | 416,385 |  |  | 468,174 |  |  | 321,111 |
Other countries(a) | 647,027 |  |  | 738,750 |  |  | 517,398 |
Total net sales | $ | 1,503,873 |  |  | $ | 1,718,468 |  |  | $ | 1,221,534 |
Long-lived assets |  |  |  |  |
United States | $ | 58,081 |  |  | $ | 58,691 |  |  | $ | 23,490 |
China | 88,306 |  |  | 95,806 |  |  | 86,866 |
Mexico | 73,096 |  |  | 70,495 |  |  | 62,510 |
Germany | 36,025 |  |  | 36,548 |  |  | 1,082 |
Philippines | 51,738 |  |  | 32,459 |  |  | 31,129 |
Other countries | 37,371 |  |  | 45,895 |  |  | 45,500 |
Total long-lived assets | $ | 344,617 |  |  | $ | 339,894 |  |  | $ | 250,577 |
Additions to long-lived assets |  |  |  |  |
United States | $ | 5,864 |  |  | $ | 5,567 |  |  | $ | 3,518 |
China | 10,400 |  |  | 29,286 |  |  | 32,775 |
Mexico | 13,827 |  |  | 18,723 |  |  | 19,395 |
Germany | 4,017 |  |  | 5,208 |  |  | 93 |
Philippines | 22,944 |  |  | 7,605 |  |  | 2,979 |
Other countries | 9,314 |  |  | 8,364 |  |  | 7,165 |
Total additions to long-lived assets | $ | 66,366 |  |  | $ | 74,753 |  |  | $ | 65,925 |
(a) | Each country included in other countries are less than 10% of net sales.
For the year ended December 28, 2019, approximately 71% of the Company’s net sales were to customers outside the United States (exports and foreign operations), including approximately 28% to China. For the year ended December 29, 2018, approximately 70% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 27% to China. For the year ended December 30, 2017, approximately 69% of the Company's net sales were to customers outside the U.S. (exports and foreign operations), including approximately 26% to China. Sales to Arrow Electronics, Inc., which were included in the Electronics, Automotive, and Industrial segments, were 10.7%, 10.7%, and 10.6% of consolidated net sales in 2019, 2018, and 2017 respectively. No other single customer accounted for more than 10% of net sales during the last three years.

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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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