Segment Reporting

3 Months Ended

Apr. 30, 2016

Segment Reporting

Segment Reporting

Note 11.Segment Reporting

The Company is organized based on the products and services it offers. As a result of the ESG acquisitions, the Company determined that ESG met the requirements of a reportable segment operating in a single line of business. The Company’s ASG reportable segment, which is also an operating segment, is comprised of consumables management and is in a single line of business. The segments regularly report their results of operations and makes requests for capital expenditures and acquisition funding to the Company’s chief operational decision-making group (“CODM”). This group is comprised of the Chairman and Chief Executive Officer and the President and Chief Operating Officer. As a result, the CODM has determined the Company has two reportable segments.

The following table presents revenues and operating earnings (losses) by reportable segment:

	THREE MONTHS ENDED
	APRIL 30,		APRIL 30,
Revenues:	2016		2015
Aerospace Solutions Group	$	331.1	$	348.0
Energy Services Group		37.1		83.5
Total revenues		368.2		431.5
Operating earnings (loss) (1)
Aerospace Solutions Group		59.9		60.8
Energy Services Group		(30.8)		(13.3)
Total operating earnings		29.1		47.5
Interest expense		18.9		18.6
Earnings before income taxes	$	10.2	$	28.9

(1) Operating earnings (loss) include an allocation of employee benefits and general and administrative costs based on the proportion of each segment’s number of employees for the three months ended April 30, 2016 and revenues for the three months ended April 30, 2015.

The following table presents capital expenditures by reportable segment:

	THREE MONTHS ENDED
	APRIL 30,		APRIL 30,
	2016		2015
Aerospace Solutions Group	$	2.8	$	5.4
Energy Services Group		16.4		30.2
	$	19.2	$	35.6

Corporate capital expenditures have been allocated to the above segments based on each segment’s percentage of total capital expenditures.

The following table presents goodwill by reportable segment:

	April 30,		January 31,
	2016		2016
Aerospace Solutions Group	$	968.0	$	952.4
Energy Services Group		-		2.5
	$	968.0	$	954.9

The following table presents total assets by reportable segment:

	April 30,		January 31,
	2016		2016
Aerospace Solutions Group	$	3,464.4	$	3,422.8
Energy Services Group		256.3		268.2
	$	3,720.7	$	3,691.0

Corporate assets (primarily cash and cash equivalents) of $592.7and $559.5 at April 30, 2016 and January 31, 2016, respectively, have been allocated to the above segments based on each segment’s percentage of total assets.