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Segment Information | 6 Months Ended
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Jul. 02, 2023
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. The Company 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 includes 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 (“AOI”), which includes allocations of corporate selling, general and administrative expenses. AOI excludes nora purchase accounting amortization; Thailand plant closure inventory write-down; Cyber Event impact; property casualty loss; and restructuring, asset impairment, severance and other charges. Intersegment revenues for the three and six months ended July 2, 2023, were $24.7 million and $47.3 million, respectively, and intersegment revenues for the three and six months ended July 3, 2022, were $19.4 million and $36.7 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 for the three and six months ended July 2, 2023 and July 3, 2022 is presented in the following table:
| Three Months Ended |  | Six Months Ended
| July 2, 2023 |  | July 3, 2022 |  | July 2, 2023 |  | July 3, 2022
| (in thousands)
Net sales |  |  |  |  |  |  |
AMS | $ | 201,281 |  |  | $ | 206,810 |  |  | $ | 370,522 |  |  | $ | 363,319 |
EAAA | 128,301 |  |  | 139,795 |  |  | 254,852 |  |  | 271,288 |
Total net sales | $ | 329,582 |  |  | $ | 346,605 |  |  | $ | 625,374 |  |  | $ | 634,607 |
Segment AOI |  |  |  |  |  |  |
AMS | $ | 24,034 |  |  | $ | 28,389 |  |  | $ | 35,303 |  |  | $ | 49,527 |
EAAA | 3,827 |  |  | 10,131 |  |  | 7,756 |  |  | 19,635 |
Depreciation and amortization |  |  |  |  |  |  |
AMS | $ | 4,424 |  |  | $ | 4,183 |  |  | $ | 8,817 |  |  | $ | 8,241 |
EAAA | 5,731 |  |  | 5,983 |  |  | 11,329 |  |  | 12,595 |
Total depreciation and amortization | $ | 10,155 |  |  | $ | 10,166 |  |  | $ | 20,146 |  |  | $ | 20,836 |
A reconciliation of the Company’s total operating segment assets to the corresponding consolidated amounts follows:
| July 2, 2023 |  | January 1, 2023
| (in thousands)
Assets |  |  |
AMS | $ | 568,933 |  |  | $ | 588,110 |
EAAA | 636,037 |  |  | 652,921 |
Total segment assets | 1,204,970 |  |  | 1,241,031 |
Corporate assets | 106,931 |  |  | 110,495 |
Eliminations | (91,947) |  |  | (85,023) |
Total reported assets | $ | 1,219,954 |  |  | $ | 1,266,503 |
Reconciliations of operating income to income before income tax expense and segment AOI are presented as follows:
| Three Months Ended |  | Six Months Ended
| July 2, 2023 |  | July 3, 2022 |  | July 2, 2023 |  | July 3, 2022
| (in thousands)
AMS operating income | $ | 24,752 |  |  | $ | 28,413 |  |  | $ | 33,467 |  |  | $ | 49,663 |
EAAA operating income | 4,156 |  |  | 6,112 |  |  | 4,918 |  |  | 12,282 |
Consolidated operating income | 28,908 |  |  | 34,525 |  |  | 38,385 |  |  | 61,945 |
Interest expense | 8,318 |  |  | 7,190 |  |  | 16,823 |  |  | 14,040 |
Other (income) expense, net | (528) |  |  | 1,394 |  |  | 972 |  |  | 1,564 |
Income before income tax expense | $ | 21,118 |  |  | $ | 25,941 |  |  | $ | 20,590 |  |  | $ | 46,341 |
| Three Months Ended July 2, 2023 |  | Three Months Ended July 3, 2022
| AMS |  | EAAA |  | AMS |  | EAAA
| (in thousands)
Operating income | $ | 24,752 |  |  | $ | 4,156 |  |  | $ | 28,413 |  |  | $ | 6,112 |
Purchase accounting amortization | — |  |  | 1,301 |  |  | — |  |  | 1,271 |
Thailand plant closure inventory write-down | — |  |  | — |  |  | — |  |  | 938 |
Cyber Event impact | 264 |  |  | 173 |  |  | — |  |  | — |
Property casualty loss(1) | (1,300) |  |  | — |  |  | — |  |  | — |
Restructuring, asset impairment, severance and other charges | 318 |  |  | (1,803) |  |  | (24) |  |  | 1,810 |
AOI | $ | 24,034 |  |  | $ | 3,827 |  |  | $ | 28,389 |  |  | $ | 10,131 |
(1) Represents insurance recovery of loss recognized in the first quarter of 2023.
| Six Months Ended July 2, 2023 |  | Six Months Ended July 3, 2022
| AMS |  | EAAA |  | AMS |  | EAAA
| (in thousands)
Operating income | $ | 33,467 |  |  | $ | 4,918 |  |  | $ | 49,663 |  |  | $ | 12,282 |
Purchase accounting amortization | — |  |  | 2,584 |  |  | — |  |  | 2,613 |
Thailand plant closure inventory write-down | — |  |  | — |  |  | — |  |  | 2,053 |
Cyber Event impact | 492 |  |  | 373 |  |  | — |  |  | — |
Restructuring, asset impairment, severance and other charges | 1,344 |  |  | (119) |  |  | (136) |  |  | 2,687 |
AOI | $ | 35,303 |  |  | $ | 7,756 |  |  | $ | 49,527 |  |  | $ | 19,635 |

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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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