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Segment Information | 9 Months Ended
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Oct. 03, 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, and an SEC settlement fine. Intersegment revenues for the three and nine months ended October 3, 2021 were $20.1 million and $56.4 million, respectively, and intersegment revenues for the three and nine months ended October 4, 2020 were $15.6 million and $56.2 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 |  | Nine Months Ended
| October 3, 2021 |  | October 4, 2020 |  | October 3, 2021 |  | October 4, 2020
| (in thousands)
Net Sales |  |  |  |  |  |  |
AMS | $ | 176,770 |  |  | $ | 142,858 |  |  | $ | 460,402 |  |  | $ | 452,171 |
EAAA | 135,937 |  |  | 135,784 |  |  | 400,350 |  |  | 374,144 |
Total net sales | $ | 312,707 |  |  | $ | 278,642 |  |  | $ | 860,752 |  |  | $ | 826,315 |
Segment AOI |  |  |  |  |  |  |
AMS | $ | 21,595 |  |  | $ | 20,279 |  |  | $ | 54,606 |  |  | $ | 67,771 |
EAAA | 8,586 |  |  | 7,821 |  |  | 26,557 |  |  | 17,151 |
Depreciation and Amortization |  |  |  |  |  |  |
AMS | $ | 4,365 |  |  | $ | 4,301 |  |  | $ | 13,592 |  |  | $ | 12,174 |
EAAA | 7,052 |  |  | 7,431 |  |  | 21,495 |  |  | 21,306 |
Total depreciation and amortization | $ | 11,417 |  |  | $ | 11,732 |  |  | $ | 35,087 |  |  | $ | 33,480 |
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
| October 3, 2021 |  | January 3, 2021
| (in thousands)
Assets |  |  |
AMS | $ | 808,015 |  |  | $ | 800,068 |
EAAA | 697,799 |  |  | 682,295 |
Total segment assets | 1,505,814 |  |  | 1,482,363 |
Corporate assets | 123,196 |  |  | 111,073 |
Eliminations | (339,768) |  |  | (287,425) |
Total reported assets | $ | 1,289,242 |  |  | $ | 1,306,011 |
Reconciliations of operating income (loss) to income (loss) before income tax expense and segment AOI are presented as follows:
| Three Months Ended |  | Nine Months Ended
| October 3, 2021 |  | October 4, 2020 |  | October 3, 2021 |  | October 4, 2020
| (in thousands)
AMS operating income | $ | 21,684 |  |  | $ | 14,857 |  |  | $ | 54,432 |  |  | $ | 52,144 |
EAAA operating income (loss) | 3,093 |  |  | 1,025 |  |  | 16,435 |  |  | (112,381) |
Consolidated operating income (loss) | 24,777 |  |  | 15,882 |  |  | 70,867 |  |  | (60,237) |
Interest expense | 7,727 |  |  | 5,426 |  |  | 22,272 |  |  | 16,021 |
Other expense | 887 |  |  | 2,921 |  |  | 2,219 |  |  | 9,551 |
Income (loss) before income tax expense | $ | 16,163 |  |  | $ | 7,535 |  |  | $ | 46,376 |  |  | $ | (85,809) |
| Three Months Ended October 3, 2021 |  | Three Months Ended October 4, 2020
| AMS |  | EAAA |  | AMS |  | EAAA
| (in thousands)
Operating income | $ | 21,684 |  |  | $ | 3,093 |  |  | $ | 14,857 |  |  | $ | 1,025 |
Purchase accounting amortization | — |  |  | 1,407 |  |  | — |  |  | 1,399 |
Restructuring, asset impairment, severance and other charges | (89) |  |  | 4,086 |  |  | 2,733 |  |  | 3,086 |
SEC fine | — |  |  | — |  |  | 2,689 |  |  | 2,311 |
AOI | $ | 21,595 |  |  | $ | 8,586 |  |  | $ | 20,279 |  |  | $ | 7,821 |
| Nine Months Ended October 3, 2021 |  | Nine Months Ended October 4, 2020
| AMS |  | EAAA |  | AMS |  | EAAA
| (in thousands)
Operating income (loss) | $ | 54,432 |  |  | $ | 16,435 |  |  | $ | 52,144 |  |  | $ | (112,381) |
Purchase accounting amortization | — |  |  | 4,269 |  |  | — |  |  | 4,030 |
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 charges | 174 |  |  | 5,853 |  |  | 9,486 |  |  | 3,978 |
SEC fine | — |  |  | — |  |  | 2,689 |  |  | 2,311 |
AOI | $ | 54,606 |  |  | $ | 26,557 |  |  | $ | 67,771 |  |  | $ | 17,151 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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