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Segment Information
 3 Months Ended
Apr. 04, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company determines that an operating segment exists if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has operating results that are regularly reviewed by the chief operating decision maker (“CODM”) and (iii) has discrete financial information. Additionally, accounting standards require the utilization of a “management approach” to report the financial results of operating segments, which is based on information used by the CODM to assess performance and make operating and resource allocation decisions. In the first quarter of 2021, the Company largely completed its integration of the nora acquisition, and integration of its European and Asia-Pacific commercial areas and determined that it has two operating segments organized by geographical area – namely (a) Americas (“AMS”) and (b) Europe, Africa, Asia and Australia (collectively “EAAA”). The AMS operating segment is unchanged from prior year and continues to include the United States, Canada and Latin America geographic areas.
Pursuant to the management approach discussed above, the Company’s CODM, our chief executive officer, evaluates performance at the AMS and EAAA operating segment levels and makes operating and resource allocation decisions based on segment adjusted operating income or loss (“AOI”), which includes allocations of corporate selling, general and administrative expenses. AOI excludes nora purchase accounting amortization, goodwill and intangible asset impairment charges, changes in equity award forfeiture accounting, restructuring charges, asset impairment, severance and other charges. Intersegment revenues for the three months ended April 4, 2021 and April 5, 2020 were $15.7 million and $19.5 million, respectively. Intersegment revenues are eliminated from net sales presented below since these amounts are not included in the information provided to the CODM.
The Company has determined that it has two reportable segments – AMS and EAAA as each operating segment meets the quantitative thresholds defined in the accounting guidance.
Segment information below for fiscal year 2020 has been restated to reflect our new reportable segment structure.
Three Months Ended
April 4, 2021April 5, 2020
(in thousands)
Net Sales
AMS$126,967 $158,091 
EAAA126,293 130,078 
Total net sales$253,260 $288,169 
 
Segment AOI
AMS$11,913 $23,552 
EAAA 8,011 5,798 
 
Depreciation and Amortization
AMS$4,723 $3,907 
EAAA7,211 7,033 
Total depreciation and amortization$11,934 $10,940 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
April 4, 2021January 3, 2021
(in thousands)
Assets
AMS$795,007 $800,068 
EAAA679,240 682,295 
Total segment assets$1,474,247 $1,482,363 
Corporate assets129,199 111,073 
Eliminations(308,120)(287,425)
Total reported assets$1,295,326 $1,306,011 

A reconciliation of operating income to income (loss) before income tax expense and segment AOI is presented as follows:
Three Months Ended
April 4, 2021April 5, 2020
(in thousands)
AMS operating income$11,647 $20,100 
EAAA operating income (loss)5,219 (113,612)
Consolidated operating income (loss)$16,866 $(93,512)
Interest expense7,256 5,630 
Other expense715 1,491 
Income (loss) before income tax expense$8,895 $(100,633)
Three Months Ended April 4, 2021
AMSEAAA
(in thousands)
Operating income$11,647 $5,219 
Purchase accounting amortization— 1,421 
Restructuring, asset impairment, severance and other charges266 1,371 
AOI$11,913 $8,011 
Three Months Ended April 5, 2020
AMSEAAA
(in thousands)
Operating income (loss)$20,100 $(113,612)
Purchase accounting amortization— 1,315 
Goodwill and intangible asset impairment2,695 118,563 
Impact of change in equity award forfeiture accounting757 650 
Restructuring, asset impairment, severance and other charges— (1,118)
AOI$23,552 $5,798