Annual report pursuant to Section 13 and 15(d)

Segment Reporting

v3.24.0.1
Segment Reporting
 12 Months Ended
Dec. 30, 2023
Segment Reporting [Abstract]  
SEGMENT REPORTING

16. 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 Hydraulics segment provides the global capital goods industries with hydraulic components and systems used to transmit power and control force, speed and motion. There are two categories based on Hydraulic system architecture: motion control technology (“MCT”) and fluid conveyance technology (“FCT”). MCT includes components used to control the flow and pressure of fluids in a system including. FCT includes components used to convey fluids and fluid power through a system and are designed to grant maximum flexibility of design and reliability. MCT includes cartridge valve technology (“CVT”) and FCT includes quick release coupling solutions (“QRC”) products. CVT products provide functions important to a hydraulic system: to control rates and direction of fluid flow and to regulate and control pressures. QRC products allow users to connect and disconnect quickly from any hydraulic circuit without leakage and ensure high-performance under high temperature and pressure using one or multiple couplers. Engineered solutions that incorporate manifold solutions with CVT and QRC technologies are also provided to machine users, manufacturers or designers to fulfill complete system design requirements including electro-hydraulic, remote control, electronic control and programmable logic controller systems, as well as automation of existing equipment.

The Electronics segment provides complete, fully-tailored display and control solutions for engines, engine-driven equipment, specialty vehicles, therapy baths and traditional and swim spas. This broad range of products is complemented by extensive application expertise and unparalleled depth of software, embedded programming, hardware and sustaining engineering teams. Product categories include traditional mechanical and electronic gauge instrumentation, plug and go CAN-based instruments, robust environmentally sealed controllers, pumps and jets, hydraulic controllers, engineered panels and application specialists, process monitoring instrumentation, proprietary hardware and software development, printed circuit board assembly and wiring harness design and manufacturing and after-market support through global distribution.

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 year ended December 30, 2023, these unallocated costs totaled $38.1 and include certain corporate costs not deemed to be allocable to either business segment of $1.2, amortization of acquisition-related intangible assets of $32.9 and other acquisition and integration related costs of $4.0. The accounting policies of the Company’s operating segments are the same as those used to prepare the accompanying Consolidated Financial Statements.

The following table presents financial information by reportable segment for the last three fiscal years:

 

 

2023

 

 

2022

 

 

2021

 

Net sales:

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

565.8

 

 

$

551.3

 

 

$

516.4

 

Electronics

 

 

269.8

 

 

 

334.1

 

 

 

352.7

 

Total

 

$

835.6

 

 

$

885.4

 

 

$

869.2

 

Operating income:

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

93.3

 

 

$

122.7

 

 

$

119.8

 

Electronics

 

 

24.7

 

 

 

52.5

 

 

 

71.7

 

Corporate and other

 

 

(38.1

)

 

 

(37.9

)

 

 

(42.2

)

Total

 

$

79.9

 

 

$

137.3

 

 

$

149.3

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

25.7

 

 

$

21.5

 

 

$

17.5

 

Electronics

 

 

8.6

 

 

 

10.4

 

 

 

9.3

 

Total

 

$

34.3

 

 

$

31.9

 

 

$

26.8

 

Total assets:

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

976.6

 

 

$

874.8

 

 

$

821.8

 

Electronics

 

 

600.0

 

 

 

567.1

 

 

 

585.7

 

Corporate

 

 

13.8

 

 

 

21.8

 

 

 

7.8

 

Total

 

$

1,590.4

 

 

$

1,463.7

 

 

$

1,415.3

 

 

Geographic Region Information:

Net sales are measured based on the geographic destination of sales. Tangible long-lived assets are shown based on the physical location of the assets and primarily include net property, plant and equipment and exclude ROU assets. The following table presents financial information by region for the last three fiscal years:

 

 

2023

 

 

2022

 

 

2021

 

Net sales

 

 

 

 

 

 

 

 

 

Americas

 

$

460.9

 

 

$

470.4

 

 

$

425.5

 

EMEA

 

 

202.8

 

 

 

223.6

 

 

 

222.0

 

APAC

 

 

171.9

 

 

 

191.4

 

 

 

221.7

 

Total

 

$

835.6

 

 

$

885.4

 

 

$

869.2

 

 

 

 

 

 

 

 

 

 

 

Tangible long-lived assets

 

 

 

 

 

 

 

 

 

Americas

 

$

145.6

 

 

$

105.7

 

 

$

97.6

 

EMEA

 

 

37.1

 

 

 

33.1

 

 

 

35.8

 

APAC

 

 

19.4

 

 

 

17.7

 

 

 

18.0

 

Total

 

$

202.1

 

 

$

156.5

 

 

$

151.4