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Segment Information
 6 Months Ended
Jul. 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 and six months ended July 4, 2021 were $20.6 million and $36.3 million, respectively, and intersegment revenues for the three and six months ended July 5, 2020 were $21.1 million and $40.6 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 EndedSix Months Ended
July 4, 2021July 5, 2020July 4, 2021July 5, 2020
(in thousands)
Net Sales
AMS$156,665 $151,222 $283,632 $309,313 
EAAA138,120 108,282 264,413 238,360 
Total net sales$294,785 $259,504 $548,045 $547,673 
 
Segment AOI
AMS$21,098 $23,942 $33,011 $47,492 
EAAA 9,960 3,530 17,971 9,330 
 
Depreciation and Amortization
AMS$4,504 $3,966 $9,227 $7,873 
EAAA7,232 6,842 14,443 13,875 
Total depreciation and amortization$11,736 $10,808 $23,670 $21,748 
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
July 4, 2021January 3, 2021
(in thousands)
Assets
AMS$834,446 $800,068 
EAAA692,208 682,295 
Total segment assets1,526,654 1,482,363 
Corporate assets128,701 111,073 
Eliminations(333,141)(287,425)
Total reported assets$1,322,214 $1,306,011 
Reconciliations of operating income to income (loss) before income tax expense and segment AOI are presented as follows:
Three Months EndedSix Months Ended
July 4, 2021July 5, 2020July 4, 2021July 5, 2020
(in thousands)
AMS operating income$21,101 $17,189 $32,748 $37,287 
EAAA operating income (loss)8,123 204 13,342 (113,406)
Consolidated operating income (loss)29,224 17,393 46,090 (76,119)
Interest expense7,289 4,965 14,545 10,595 
Other expense617 5,139 1,332 6,630 
Income (loss) before income tax expense$21,318 $7,289 $30,213 $(93,344)
Three Months Ended July 4, 2021Three Months Ended July 5, 2020
AMSEAAAAMSEAAA
(in thousands)
Operating income$21,101 $8,123 $17,189 $204 
Purchase accounting amortization— 1,441 — 1,316 
Restructuring, asset impairment, severance and other charges(3)396 6,753 2,010 
AOI$21,098 $9,960 $23,942 $3,530 
Six Months Ended July 4, 2021Six Months Ended July 5, 2020
AMSEAAAAMSEAAA
(in thousands)
Operating income (loss)$32,748 $13,342 $37,287 $(113,406)
Purchase accounting amortization— 2,862 — 2,631 
Goodwill and intangible asset impairment— — 2,695 118,563 
Impact of change in equity award forfeiture accounting— — 757 650 
Restructuring, asset impairment, severance and other charges263 1,767 6,753 892 
AOI$33,011 $17,971 $47,492 $9,330