Segment Results (Tables)

6 Months Ended

Jun. 30, 2017

Summarized Financial Information on Operations by Reportable Segment

The following table provides summarized information about the Company’s operations by reportable segment and reconciles Segment Adjusted EBITDA to Loss Before Income Taxes for the three month and six month periods ended June 30, 2017 and 2016:

	For the Three Month Period Ended June 30,						For the Six Month Period Ended June 30,
	2017			2016 ⁽¹⁾			2017			2016 ⁽¹⁾

Revenue
Industrials	$	282.8		$	280.8		$	530.8		$	537.9
Energy		239.5			123.5			417.7			248.0
Medical		56.8			57.7			112.3			113.1
Total Revenue	$	579.1		$	462.0		$	1,060.8		$	899.0
Segment Adjusted EBITDA
Industrials	$	63.4		$	54.6		$	110.6		$	100.6
Energy		62.2			24.5			100.6			48.2
Medical		15.4			13.9			30.1			28.2
Total Segment Adjusted EBITDA	$	141.0		$	93.0		$	241.3		$	177.0
Less items to reconcile Segment Adjusted EBITDA to Loss Before Income Taxes:
Corporate expenses not allocated to segments	$	8.9		$	6.4		$	17.1		$	13.6
Interest expense		39.5			42.7			85.3			85.8
Depreciation and amortization expense		43.8			42.7			83.5			84.0
Impairment of goodwill and other intangible assets (a)		-			1.5			-			1.5
Sponsor fees and expenses (b)		16.2			1.0			17.3			2.0
Restructuring and related business transformation costs (c)		5.6			18.7			14.2			28.0
Acquisition related expenses and non-cash charges (d)		1.2			0.8			1.9			1.6
Environmental remediation loss reserve (e)		(0.1	)		-			0.9			-
Expenses related to initial public offering (f)		3.9			-			6.5			-
Stock-based compensation (g)		156.2			-			156.2			-
Loss on extinguishment of debt (h)		50.4			-			50.4			-
Other adjustments (i)		5.6			(5.8	)		6.8			(1.4	)
Loss Before Income Taxes:	$	(190.2	)	$	(15.0	)	$	(198.8	)	$	(38.1	)

⁽¹⁾

In the fourth quarter of fiscal 2016, the Company modified its methodology for presenting reconciling items from Loss Before Income Taxes. The reconciling items for the three and six month periods ended June 30, 2016 have been restated to conform to the methodology used in the three and six month periods ended June 30, 2017, and included the following:

(a)

Represents non-cash charges for impairment of goodwill and other intangible assets.

(b)

Represents management fees and expenses paid to KKR, including a monitoring agreement termination fee of $16.2 million paid in the three month period ending June 30, 2017.

(c)

Restructuring and related business transformation costs consist of the following:

	For the Three Month Period Ended June 30,					For the Six Month Period Ended June 30,
	2017			2016		2017		2016

Restructuring charges	$	0.4		$	10.9	$	2.1	$	12.3
Severance, sign-on, relocation and executive search costs		0.6			1.8		1.6		7.0
Facility reorganization, relocation and other costs		1.8			2.9		2.9		3.6
Information technology infrastructure transformation		2.0			0.3		2.7		0.4
(Gains) losses on asset and business disposals		(0.5	)		-		2.5		-
Consultant and other advisor fees		0.8			2.2		1.2		3.7
Other, net		0.5			0.6		1.2		1.0
Total restructuring and related business transformation costs	$	5.6		$	18.7	$	14.2	$	28.0

(d)

Represents costs associated with successful and/or abandoned acquisitions, including third-party expenses, post-closure integration costs and non-cash charges and credits arising from fair value purchase accounting adjustments.

(e)

Represents estimated environmental remediation costs and losses relating to a former production facility.

(f)

Represents expenses related to the Company’s initial public offering.

(g)

Represents stock-based compensation expense recognized for stock options outstanding ($61.4 million) and DSUs granted to employees at the date of the initial public offering ($94.8 million) under the 2013 Stock Incentive Plan.

(h)

Represents losses on extinguishment of the senior notes and a portion of the U.S. term loan.

(i)

Includes (i) foreign exchange gains and losses, (ii) effects of amortization of prior service costs and amortization of gains in pension and other postretirement benefits (OPEB) expense, (iii) certain legal and compliance costs and (iv) other miscellaneous adjustments.