XML 28 R16.htm IDEA: XBRL DOCUMENT v3.20.1
Segment Information
 3 Months Ended
Mar. 29, 2020
Segment Reporting [Abstract]  
Segment Information Segment Information

Our Chief Operating Decision Maker evaluates segment operating performance using segment operating income. Segment operating income is defined as GAAP operating income excluding intangible amortization and amortization of fair value step-ups of inventory and fixed assets from acquisitions completed subsequent to December 31, 2011, the impact of restructuring related inventory write-offs, impairment charges and special charges or gains. The Company also refers to this measure as adjusted operating income. The Company uses this measure because it helps management understand and evaluate the segments’ core operating results and serves as the basis for determining incentive compensation achievement.

During the quarter ended March 29, 2020, we divested our I&S business, which was previously part of the Energy segment. See Note 5, Special and Restructuring Recoveries, net for additional information on this divestiture. In light of this divestiture, effective March 29, 2020, we realigned our segments by eliminating the Energy segment and moving the remaining businesses into the Industrial segment. The new reporting segments are Industrial and Aerospace & Defense. The current and prior periods are reported under this new segment structure.

The following table presents certain reportable segment information (in thousands):
 
Three Months Ended
 
March 29, 2020
 
March 31, 2019
Net revenues
 
 
 
Aerospace & Defense
$
65,493

 
$
61,240

Industrial
126,720

 
177,615

Consolidated net revenues
$
192,213

 
$
238,855

Results from continuing operations before income taxes
 
 
 
Aerospace & Defense - Segment Operating Income
$
12,494

 
$
9,374

Industrial - Segment Operating Income
5,169

 
22,581

Corporate expenses
(6,588
)
 
(8,522
)
Segment Operating Income
11,075

 
23,433

Impairment charge
116,182

 
—

Restructuring charges, net
2,883

 
358

Special recoveries, net
(45,175
)
 
(8,200
)
Special and restructuring recoveries, net
(42,292
)
 
(7,842
)
Restructuring related inventory charges
(602
)
 
325

Acquisition amortization
10,218

 
12,077

Acquisition depreciation
974

 
1,123

Acquisition amortization and other costs, net
10,590

 
13,525

Consolidated operating (loss) income
(73,405
)
 
17,750

Interest expense, net
9,011

 
13,094

Other income, net
(2,680
)
 
(2,148
)
(Loss) income from continuing operations before income taxes
$
(79,736
)
 
$
6,804

 
 
 
 
 
Three Months Ended
 
March 29, 2020
 
March 31, 2019
Capital expenditures
 
 
 
Aerospace & Defense
$
640

 
$
788

Industrial
2,225

 
1,676

Corporate
198

 
387

Consolidated capital expenditures
$
3,063

 
$
2,851

 
 
 
 
Depreciation and amortization
 
 
 
Aerospace & Defense
$
3,093

 
$
2,673

Industrial
12,419

 
15,199

Corporate
125

 
164

Consolidated depreciation and amortization
$
15,637

 
$
18,036

 
 
 
 
Identifiable assets
March 29, 2020
 
March 31, 2019
Aerospace & Defense
$
463,744

 
$
406,064

Industrial
1,650,963

 
2,288,645

Corporate
(805,630
)
 
(975,375
)
Consolidated identifiable assets
$
1,309,077

 
$
1,719,334



The total assets for each reportable segment have been reported as the Identifiable Assets for that segment, including inter-segment intercompany receivables, payables and investments in other CIRCOR companies. Identifiable assets reported in Corporate include both corporate assets, such as cash, deferred taxes, prepaid and other assets, fixed assets, as well as the elimination of all inter-segment intercompany assets. The elimination of intercompany assets results in negative amounts
reported in Corporate for Identifiable Assets. Corporate Identifiable Assets excluding intercompany assets were $87.7 million and $27.8 million as of March 29, 2020 and March 31, 2019, respectively.