Segment Information | Segment Information The Company is organized into four geographical operating segments that are based on management responsibilities: Northern North America; Latin America; Europe, Middle East & Africa; and Asia Pacific. The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three reportable segments: Americas, International, and Corporate. The Americas segment is comprised of our operations in Northern North American and Latin American geographies. The International segment is comprised of our operations in all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived. The Company's sales are allocated to each segment based primarily on the country destination of the end-customer. Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income (loss) excluding restructuring charges, currency exchange (gains) losses, product liability expense, loss on divestiture of Mine Safety Appliances Company, LLC ("MSA LLC"), net cost for product related legal matter, transaction costs and acquisition-related amortization. Adjusted operating margin is defined as adjusted operating income (loss) divided by segment net sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization. Adjusted EBITDA margin is defined as adjusted EBITDA divided by segment net sales to external customers. The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the unaudited condensed consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. Reportable segment information is presented in the following table: (In thousands, except percentages) Americas International Corporate Consolidated Three Months Ended June 30, 2024 Net sales to external customers $ 314,711 $ 147,752 $ — $ 462,463 Operating income 99,944 Restructuring charges (Note 3) 1,543 Currency exchange gains, net (603) Net cost for product related legal matter 5,000 Amortization of acquisition-related intangible assets 2,306 Adjusted operating income (loss) 98,468 24,285 (14,563) 108,190 Adjusted operating margin % 31.3 % 16.4 % Depreciation and amortization 13,741 Adjusted EBITDA 108,230 28,052 (14,351) 121,931 Adjusted EBITDA margin % 34.4 % 19.0 % Three Months Ended June 30, 2023 Net sales to external customers $ 308,378 $ 138,921 $ — $ 447,299 Operating income 95,008 Restructuring charges (Note 3) 3,350 Currency exchange losses, net 3,110 Amortization of acquisition-related intangible assets 2,315 Adjusted operating income (loss) 94,816 21,743 (12,776) 103,783 Adjusted operating margin % 30.7 % 15.7 % Depreciation and amortization 12,574 Adjusted EBITDA 103,977 24,949 (12,569) 116,357 Adjusted EBITDA margin % 33.7 % 18.0 % (In thousands, except percentages) Americas International Corporate Consolidated Six Months Ended June 30, 2024 Net sales to external customers $ 610,249 $ 265,516 $ — $ 875,765 Operating income 180,056 Restructuring charges (Note 3) 4,560 Currency exchange losses, net 1,730 Net cost for product related legal matter 5,000 Amortization of acquisition-related intangible assets 4,620 Transaction costs (a) 234 Adjusted operating income (loss) 184,688 37,770 (26,258) 196,200 Adjusted operating margin % 30.3 % 14.2 % Depreciation and amortization 26,985 Adjusted EBITDA 203,923 45,097 (25,835) 223,185 Adjusted EBITDA margin % 33.4 % 17.0 % Six Months Ended June 30, 2023 Net sales to external customers $ 588,645 $ 256,916 $ — $ 845,561 Operating income 34,947 Restructuring charges (Note 3) 5,097 Currency exchange losses, net 7,285 Loss on divestiture of MSA LLC (Note 17) 129,211 Product liability expense (Note 17) 3 Amortization of acquisition-related intangible assets 4,620 Adjusted operating income (loss) 166,510 37,522 (22,869) 181,163 Adjusted operating margin % 28.3 % 14.6 % Depreciation and amortization 24,841 Adjusted EBITDA 184,471 44,007 (22,474) 206,004 Adjusted EBITDA margin % 31.3 % 17.1 % (a) Transaction costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during acquisitions and divestitures. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Operations. Total sales by product group was as follows: Three Months Ended June 30, 2024 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Fire Service (a) $ 172,269 37% $ 118,487 38% $ 53,782 37% Detection (b) 170,848 37% 111,405 35% 59,443 40% Industrial PPE and Other (c) 119,346 26% 84,819 27% 34,527 23% Total $ 462,463 100% $ 314,711 100% $ 147,752 100% Three Months Ended June 30, 2023 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Fire Service (a) $ 166,490 37% $ 121,157 39% $ 45,333 33% Detection (b) 158,242 35% 104,374 34% 53,868 39% Industrial PPE and Other (c) 122,567 28% 82,847 27% 39,720 28% Total $ 447,299 100% $ 308,378 100% $ 138,921 100% Six Months Ended June 30, 2024 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Fire Service (a) $ 335,962 39% $ 240,738 39% $ 95,224 36% Detection (b) 310,064 35% 207,700 34% 102,364 38% Industrial PPE and Other (c) 229,739 26% 161,811 27% 67,928 26% Total $ 875,765 100% $ 610,249 100% $ 265,516 100% Six Months Ended June 30, 2023 Consolidated Americas International (In thousands, except percentages) Dollars Percent Dollars Percent Dollars Percent Fire Service (a) $ 305,878 36% $ 223,213 38% $ 82,665 32% Detection (b) 304,843 36% 203,685 35% 101,158 39% Industrial PPE and Other (c) 234,840 28% 161,747 27% 73,093 29% Total $ 845,561 100% $ 588,645 100% $ 256,916 100% (a) Fire Service includes Breathing Apparatus and Firefighter Helmets and Protective Apparel. (b) Detection includes Fixed Gas and Flame Detection and Portable Gas detection. (c) Industrial PPE and Other includes Industrial Head Protection, Fall Protection and Non-Core. |