Note 20:

Segment Information

A description of the Company’s three reportable segments, including the specific products manufactured and sold follows below.

In the Industrials segment, the Company designs, manufactures, markets and services a broad range of air compression, vacuum and blower products across a wide array of technologies and applications. Almost every manufacturing and industrial facility, and many service and process industries, use air compression and vacuum products in a variety of applications such as operation of pneumatic air tools, vacuum packaging of food products and aeration of waste water. The Company maintains a leading position in its markets and serves customers globally. The Company offers comprehensive aftermarket parts and an experienced direct and distributor-based service network world-wide to complement all of its products.

In the Energy segment, the Company designs, manufactures, markets and services a diverse range of positive displacement pumps, liquid ring vacuum pumps and compressors, and engineered loading systems and fluid transfer equipment, consumables, and associated aftermarket parts and services. It serves customers in the upstream, midstream, and downstream oil and gas markets, and various other markets including petrochemical processing, power generation, transportation, and general industrial. The Company is one of the largest suppliers in these markets and has long-standing customer relationships. Its positive displacement pumps are used in the oilfield for drilling, hydraulic fracturing, completion and well servicing. Its liquid ring vacuum pumps and compressors are used in many power generation, mining, oil and gas refining and processing, chemical processing and general industrial applications including flare gas and vapor recovery, geothermal gas removal, vacuum de-aeration, enhanced oil recovery, water extraction in mining and paper and chlorine compression in petrochemical operations. Its engineered loading systems and fluid transfer equipment ensure the safe handling and transfer of crude oil, liquefied natural gas, compressed natural gas, chemicals, and bulk materials.

In the Medical segment, the Company designs, manufactures and markets a broad range of highly specialized gas, liquid and precision syringe pumps and compressors primarily for use in the medical, laboratory and biotechnology end markets. The Company’s customers are mainly medium and large durable medical equipment suppliers that integrate the Company’s products into their final equipment for use in applications such as oxygen therapy, blood dialysis, patient monitoring, wound treatment, and others. Further, with the recent acquisitions, the Company has expanded into liquid handling components and systems used in biotechnology applications including clinical analysis instrumentation. The Company also has a broad range of end use deep vacuum products for laboratory science applications.

The Chief Operating Decision Maker (“CODM”) evaluates the performance of its reportable segments based on, among other measures, Segment Adjusted EBITDA. Management closely monitors the Segment Adjusted EBITDA of each reportable segment to evaluate past performance and actions required to improve profitability. Inter-segment sales and transfers are not significant. Administrative expenses related to the Company’s corporate offices and shared service centers in the United States and Europe, which includes transaction processing, accounting and other business support functions, are allocated to the business segments. Certain administrative expenses, including senior management compensation, treasury, internal audit, tax compliance, certain information technology, and other corporate functions, are not allocated to the business segments.

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 years ended December 31, 2017, 2016 and 2015.

	2017			2016			2015
Revenue
Industrials	$	1,130.7		$	1,082.3		$	1,149.7
Energy		1,014.5			628.4			753.5
Medical		230.2			228.7			223.7
Total Revenue	$	2,375.4		$	1,939.4		$	2,126.9
Segment Adjusted EBITDA
Industrials	$	242.7		$	217.6		$	197.6
Energy		296.1			143.8			186.8
Medical		62.4			61.9			59.5
Total Segment Adjusted EBITDA		601.2			423.3			443.9
Less items to reconcile Segment Adjusted EBITDA to
Loss Before Income Taxes⁽¹⁾:
Corporate expenses not allocated to segments		39.7			22.6			25.0
Interest expense		140.7			170.3			162.9
Depreciation and amortization expense		173.8			172.7			163.0
Impairment of goodwill and other intangible assets^(a)		1.6			25.3			421.4
Sponsor fees and expenses^(b)		17.3			4.8			4.6
Restructuring and related business transformation costs^(c)		24.7			78.7			31.4
Acquisition related expenses and non-cash charges^(d)		4.1			4.3			4.8
Environmental remediation loss reserve^(e)		0.9			5.6			-
Expenses related to public stock offerings^(f)		4.1			-			-
Establish public company financial reporting compliance^(g)		8.1			0.2			-
Stock-based compensation^(h)		194.2			-			-
Loss on extinguishment of debt⁽ⁱ⁾		84.5			-			-
Foreign currency transaction losses (gains), net		9.3			(5.9	)		1.1
Other adjustments^(j)		10.9			7.9			(3.6	)
Loss Before Income Taxes	$	(112.7	)	$	(63.2	)	$	(366.7	)

⁽¹⁾

In the fourth quarter of fiscal 2017, the Company provided greater detail in presenting reconciling items from Loss Before Income Taxes. The reconciling items for the years ended December 31, 2016 and 2015 have been restated to conform to the methodology used in the year ended December 31, 2017, and include the following.

^(a)

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

^(b)

Represents management fees and expenses paid to our Sponsor, including a monitoring agreement termination fee of $16.2 million paid in 2017 concurrent with our initial public offering on May 12, 2017.

^(c)

Restructuring and related business transformation costs consist of the following.

	Year Ended December 31,
(in millions)	2017		2016		2015
Restructuring charges	$	5.3	$	32.9	$	4.7
Severance, sign-on, relocation and executive search costs		3.5		22.4		18.4
Facility reorganization, relocation and other costs		5.3		8.7		1.6
Information technology infrastructure transformation		5.2		2.3		-
Losses (gains) on asset and business disposals		0.8		0.1		(4.5	)
Consultant and other advisor fees		1.7		9.7		10.1
Other, net		2.9		2.6		1.1
Total restructuring and related business transformation costs	$	24.7	$	78.7	$	31.4

^(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 stock offering and subsequent secondary offerings.

^(g)

Represents third party expenses to comply with the requirements of Sarbanes-Oxley in 2018 and the accelerated adoption of the new revenue recognition standard (ASC 606 – Revenue from Contracts with Customers) in the first quarter of 2018, one year ahead of the required adoption date for a private company. These expenses were previously included in ‘Expenses related to initial stock offering’ and prior periods have been restated to conform to the current period presentation.

^(h)

Represents stock-based compensation expense recognized for stock options outstanding for the year ended December 31, 2017 of ($77.6 million) and DSUs granted to employees at the date of the initial public offering for the year ended December 31, 2017 of ($97.4 million) and employer taxes related to DSUs granted to employees at the date of the initial public offering ($19.2 million). See Note 15 “Stock-Based Compensation.”

⁽ⁱ⁾

Represents losses on extinguishment of debt recognized on the redemption of the senior notes and pay down of a portion of the Original Dollar Term Loan Facility and proceeds from the initial public offering in May 2017 ($50.4 million) and in connection with the refinancing of the Original Dollar Term Loan Facility and Euro Term Loan Facility in August 2017 ($34.1 million).

^(j)

Includes (i) non-cash impact of net LIFO reserve adjustments, (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.

The following tables provide summarized information about the Company’s reportable segments.

Identifiable Assets

	2017		2016		2015
Industrials	$	2,029.4	$	1,943.6	$	2,078.9
Energy		1,681.5		1,501.0		1,572.8
Medical		511.1		486.3		469.6
Total		4,222.0		3,930.9		4,121.3
General corporate (unallocated)		399.2		385.1		340.7
Total identifiable assets	$	4,621.2	$	4,316.0	$	4,462.0

Depreciation and Amortization Expense

	2017		2016		2015
Industrials	$	94.5	$	96.0	$	89.1
Energy		56.7		55.5		53.8
Medical		22.6		21.2		20.1
Total depreciation and amortization expense	$	173.8	$	172.7	$	163.0

Capital Expenditures

	2017		2016		2015
Industrials	$	26.7	$	44.7	$	25.8
Energy		21.1		21.4		38.6
Medical		9.0		8.3		6.6
Total	$	56.8	$	74.4	$	71.0

The following table presents revenues and property, plant and equipment by geographic region. Revenues have been attributed based on the products’ shipping destination. No country other than the United States comprises greater than 10% of consolidated revenue. Aggregating global revenues by product is currently not practical.

	Revenues						Property, Plant and Equipment, net
	2017		2016		2015		2017		2016		2015
United States	$	1,048.5	$	695.8	$	865.7	$	198.4	$	197.9	$	187.2
Other Americas		161.5		106.2		140.2		6.8		7.2		5.8
Total Americas		1,210.0		802.0		1,005.9		205.2		205.1		193.0
EMEA⁽¹⁾		861.1		800.2		751.3		132.3		125.3		116.3
Asia Pacific		304.3		337.2		369.7		25.7		28.0		31.5
Total	$	2,375.4	$	1,939.4	$	2,126.9	$	363.2	$	358.4	$	340.8

⁽¹⁾

Europe, Middle East and Africa (“EMEA”)