Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.24.2.u1
Segment Reporting
 6 Months Ended
Jun. 29, 2024
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 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. 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, cold plunge pools 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 six months ended June 29, 2024, the unallocated costs totaled $16.7 and included certain corporate costs not deemed to be allocable to either business segment of $0.5, amortization of acquisition-related intangible assets of $15.7 and other acquisition and integration-related costs of $0.5. 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

 

 

Six Months Ended

 

 

 

June 29, 2024

 

 

July 1, 2023

 

 

June 29, 2024

 

 

July 1, 2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

145.7

 

 

$

152.4

 

 

$

288.1

 

 

$

300.1

 

Electronics

 

 

74.2

 

 

 

75.2

 

 

 

143.8

 

 

 

140.7

 

Total

 

$

219.9

 

 

$

227.6

 

 

$

431.9

 

 

$

440.8

 

Operating income

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

23.9

 

 

$

27.0

 

 

$

45.7

 

 

$

55.0

 

Electronics

 

 

10.3

 

 

 

12.0

 

 

 

17.4

 

 

 

19.5

 

Corporate and other

 

 

(8.2

)

 

 

(9.5

)

 

 

(16.7

)

 

 

(20.2

)

Total

 

$

26.0

 

 

$

29.5

 

 

$

46.4

 

 

$

54.3

 

Capital expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Hydraulics

 

$

6.5

 

 

$

8.0

 

 

$

9.8

 

 

$

14.9

 

Electronics

 

 

1.5

 

 

 

2.5

 

 

 

3.8

 

 

 

4.7

 

Total

 

$

8.0

 

 

$

10.5

 

 

$

13.6

 

 

$

19.6

 

 

 

 

 

June 29, 2024

 

 

December 30, 2023

 

Total assets

 

 

 

 

 

 

Hydraulics

 

$

969.4

 

 

$

976.6

 

Electronics

 

 

600.7

 

 

 

600.0

 

Corporate

 

 

10.8

 

 

 

13.8

 

Total

 

$

1,580.9

 

 

$

1,590.4

 

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

 

 

Six Months Ended

 

 

 

June 29, 2024

 

 

July 1, 2023

 

 

June 29, 2024

 

 

July 1, 2023

 

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

117.3

 

 

$

123.8

 

 

$

231.2

 

 

$

236.8

 

EMEA

 

 

51.8

 

 

 

58.3

 

 

 

103.8

 

 

 

114.4

 

APAC

 

 

50.8

 

 

 

45.5

 

 

 

96.9

 

 

 

89.6

 

Total

 

$

219.9

 

 

$

227.6

 

 

$

431.9

 

 

$

440.8

 

 

 

 

June 29, 2024

 

 

December 30, 2023

 

Tangible long-lived assets

 

 

 

 

 

 

Americas

 

$

142.2

 

 

$

145.6

 

EMEA

 

 

38.8

 

 

 

37.1

 

APAC

 

 

18.2

 

 

 

19.4

 

Total

 

$

199.2

 

 

$

202.1