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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 and its subsidiaries design, manufacture and sell component, modules and subassemblies to empower the long-term structural themes of sustainability, connectivity and safety. The Company reports its operations by the following segments: Electronics, Transportation, 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, electromechanical switches and interconnect solutions, 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, silicon and silicon carbide metal-oxide-semiconductor field effect transistors (“MOSFETs”) and diodes; and insulated gate bipolar transistors (“IGBT”) technologies. The segment covers a broad range of end markets, including industrial motor drives and power conversion, automotive electronics, electric vehicle and related charging infrastructure, aerospace, power supplies, data centers and telecommunications, medical devices, alternative energy and energy storage, building and home automation, appliances, and mobile electronics. •Transportation Segment: Consists of a wide range of circuit protection, power control and sensing technologies for global original equipment manufacturers (“OEMs”), Tier-one suppliers and parts and aftermarket distributors in passenger vehicle, heavy-duty truck and bus, off-road and recreational vehicles, material handling equipment, agricultural machinery, construction equipment and other commercial vehicle end markets. Passenger vehicle products are used in internal combustion engine, hybrid and electric vehicles including blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products designed to monitor the occupant’s safety and environment as well as the vehicle’s powertrain. Commercial vehicle products include fuses, switches, circuit breakers, relays, and power distribution modules and units used in applications serving a number of end markets, including heavy-duty truck and bus, construction, agriculture, material handling and marine. •Industrial Segment: Consists of industrial circuit protection (industrial fuses), industrial controls (protection relays, contactors, transformers, residual current devices, ground fault circuit interrupters, residual current monitors, and arc fault detection devices) and temperature sensors for use in various applications such as renewable energy and energy storage systems, industrial safety, factory automation, electr ic vehicle infrastructure, HVAC systems, non-residential construction, MRO, and mining. Segment information is summarized as follows:
|  | Three Months Ended |  | Nine Months Ended
(in thousands) |  | September 30, 2023 |  | October 1, 2022 |  | September 30, 2023 |  | October 1, 2022
Net sales |  |  |  |  |  |  |  |
Electronics |  | $ | 343,933 |  |  | $ | 397,629 |  |  | $ | 1,052,673 |  |  | $ | 1,121,626 |
Transportation |  | 177,019 |  |  | 181,735 |  |  | 515,708 |  |  | 548,266 |
Industrial |  | 86,119 |  |  | 79,516 |  |  | 260,469 |  |  | 230,754 |
Total net sales |  | $ | 607,071 |  |  | $ | 658,880 |  |  | $ | 1,828,850 |  |  | $ | 1,900,646 |
Depreciation and amortization |  |  |  |  |  |  |  |
Electronics |  | $ | 19,623 |  |  | $ | 19,080 |  |  | $ | 59,219 |  |  | 48,984 |
Transportation |  | 10,193 |  |  | 11,331 |  |  | 32,547 |  |  | 32,703 |
Industrial |  | 4,093 |  |  | 2,180 |  |  | 11,517 |  |  | 6,522 |
Total depreciation and amortization |  | $ | 33,909 |  |  | $ | 32,591 |  |  | $ | 103,283 |  |  | $ | 88,209 |
Operating income |  |  |  |  |  |  |  |
Electronics |  | $ | 77,022 |  |  | $ | 113,140 |  |  | $ | 247,028 |  |  | $ | 339,675 |
Transportation |  | 9,694 |  |  | 12,987 |  |  | 26,015 |  |  | 57,604 |
Industrial |  | 13,201 |  |  | 12,178 |  |  | 45,450 |  |  | 39,968 |
Other (a) |  | (6,272) |  |  | (16,435) |  |  | (22,154) |  |  | (30,623) |
Total operating income |  | 93,645 |  |  | 121,870 |  |  | 296,339 |  |  | 406,624 |
Interest expense |  | 10,101 |  |  | 8,399 |  |  | 29,803 |  |  | 17,069 |
Foreign exchange loss |  | 11,776 |  |  | 18,191 |  |  | 8,697 |  |  | 40,051 |
Other (income) expense, net |  | (3,527) |  |  | (698) |  |  | (11,810) |  |  | 9,789 |
Income before income taxes |  | $ | 75,295 |  |  | $ | 95,978 |  |  | $ | 269,649 |  |  | $ | 339,715 |
(a) Included in “Other” Operating income for the third quarter of 2023 was $3.7 million ($8.5 million year-to-date) of restructuring charges, primarily related to employee termination costs, and $1.8 million ($9.0 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions. During the third quarter of 2023, the Company recognized a $0.8 million impairment charge substantially related to certain patents in a business within the Industrial segment. In addition, during the second quarter of 2023, the Company recognized a $3.9 million impairment charge related to the land and building in the commercial vehicle business within the Transportation segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. Included in “Other” Operating income for the third quarter of 2022 was $6.8 million ($11.6 million year-to-date) of purchase accounting inventory step-up charges, $6.2 million ($14.8 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and $3.4 million ($4.3 million year-to-date) of restructuring, impairment and other charges, primarily related to employee termination costs. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. The Company’s net sales by country were as follows:
|  | Three Months Ended |  | Nine Months Ended
(in thousands) |  | September 30, 2023 |  | October 1, 2022 |  | September 30, 2023 |  | October 1, 2022
Net sales |  |  |  |  |  |  |  |
United States |  | $ | 217,904 |  |  | $ | 244,907 |  |  | $ | 635,892 |  |  | $ | 689,888 |
China |  | 138,393 |  |  | 165,091 |  |  | 415,430 |  |  | 492,195 |
Other countries (a) |  | 250,774 |  |  | 248,882 |  |  | 777,528 |  |  | 718,563 |
Total net sales |  | $ | 607,071 |  |  | $ | 658,880 |  |  | $ | 1,828,850 |  |  | $ | 1,900,646 |
The Company’s long-lived assets by country were as follows:
(in thousands) |  | September 30, 2023 |  | December 31, 2022
Long-lived assets |  |  |  |
United States |  | $ | 73,902 |  |  | $ | 76,325 |
China |  | 131,438 |  |  | 129,094 |
Mexico |  | 102,896 |  |  | 107,119 |
Germany |  | 42,712 |  |  | 39,635 |
Philippines |  | 74,004 |  |  | 77,240 |
Other countries |  | 53,954 |  |  | 51,697 |
Total long-lived assets |  | $ | 478,906 |  |  | $ | 481,110 |
The Company’s additions to long-lived assets by country were as follows:
|  | Nine Months Ended
(in thousands) |  | September 30, 2023 |  | October 1, 2022
Additions to long-lived assets |  |  |  |
United States |  | $ | 7,407 |  |  | $ | 9,761 |
China |  | 22,558 |  |  | 23,449 |
Mexico |  | 11,339 |  |  | 21,169 |
Germany |  | 6,534 |  |  | 3,246 |
Philippines |  | 5,245 |  |  | 13,118 |
Other countries |  | 8,138 |  |  | 4,269 |
Total additions to long-lived assets |  | $ | 61,221 |  |  | $ | 75,012 |
(a)Each country included in other countries is less than 10% of net sales.

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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