Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.23.3
Segment Reporting
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

13. SEGMENT REPORTING

The Company has two reportable segments: Hydraulics and Electronics. These segments are organized primarily based on the similar nature of products offered for sale, the types of customers served and the methods of distribution and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision maker.

The Company evaluates performance and allocates resources based primarily on segment operating income. Certain costs were not allocated to the business segments as they are not used in evaluating the results of, or in allocating resources to the Company’s segments. These costs are presented in the Corporate and other line item. For the nine months ended September 30, 2023, the unallocated costs totaled $29.1 and included certain corporate costs not deemed to be allocable to either business segment of $1.0, amortization of acquisition-related intangible assets of $24.7 and other acquisition and integration-related costs of $3.4. The accounting policies of the Company’s operating segments are the same as those used to prepare the accompanying Consolidated, Unaudited Financial Statements.

The following table presents financial information by reportable segment:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2023

 

 

October 1, 2022

 

 

September 30, 2023

 

 

October 1, 2022

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

132.0

 

 

$

131.2

 

 

$

432.1

 

 

$

411.1

 

Electronics

 

 

69.4

 

 

 

76.0

 

 

 

210.1

 

 

 

278.3

 

Total

 

$

201.4

 

 

$

207.2

 

 

$

642.2

 

 

$

689.4

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

18.4

 

 

$

29.4

 

 

$

73.3

 

 

$

92.1

 

Electronics

 

 

4.2

 

 

 

11.0

 

 

 

23.8

 

 

 

51.8

 

Corporate and other

 

 

(8.8

)

 

 

(9.6

)

 

 

(29.1

)

 

 

(27.3

)

Total

 

$

13.8

 

 

$

30.7

 

 

$

68.0

 

 

$

116.6

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

4.5

 

 

$

5.6

 

 

$

19.5

 

 

$

13.9

 

Electronics

 

 

1.3

 

 

 

2.9

 

 

 

6.0

 

 

 

8.0

 

Total

 

$

5.8

 

 

$

8.4

 

 

$

25.5

 

 

$

21.9

 

 

 

 

September 30, 2023

 

 

December 31, 2022

 

Total assets

 

 

 

 

 

 

Hydraulics

 

$

962.6

 

 

$

874.8

 

Electronics

 

 

605.1

 

 

 

567.1

 

Corporate

 

 

22.9

 

 

 

21.8

 

Total

 

$

1,590.6

 

 

$

1,463.7

 

Geographic Region Information

Net sales are measured based on the geographic destination of sales to the Americas, Europe, the Middle East and Africa (“EMEA”) and Asia Pacific (“APAC”). Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude right-of-use assets. The following table presents financial information by region:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30, 2023

 

 

October 1, 2022

 

 

September 30, 2023

 

 

October 1, 2022

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

115.1

 

 

$

114.7

 

 

$

351.9

 

 

$

365.6

 

EMEA

 

 

44.5

 

 

 

49.0

 

 

 

158.9

 

 

 

175.0

 

APAC

 

 

41.8

 

 

 

43.5

 

 

 

131.4

 

 

 

148.8

 

Total

 

$

201.4

 

 

$

207.2

 

 

$

642.2

 

 

$

689.4

 

 

 

 

September 30, 2023

 

 

December 31, 2022

 

Tangible long-lived assets

 

 

 

 

 

 

Americas

 

$

145.8

 

 

$

105.7

 

EMEA

 

 

33.9

 

 

 

33.1

 

APAC

 

 

18.3

 

 

 

17.7

 

Total

 

$

198.0

 

 

$

156.5