XML 67 R48.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2017
Segment Information [Abstract]  
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 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
 
Revenues and Property, Plant, and Equipment by Geographic Region
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”)