Segment Information (Tables)

12 Months Ended

Dec. 31, 2018

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 Income (Loss) Before Income Taxes for the years ended December 31, 2018, 2017 and 2016.

	2018			2017			2016
Revenue
Industrials	$	1,303.3		$	1,130.7		$	1,082.3
Energy		1,121.1			1,014.5			628.4
Medical		265.4			230.2			228.7
Total Revenue	$	2,689.8		$	2,375.4		$	1,939.4
Segment Adjusted EBITDA
Industrials	$	288.2		$	242.7		$	217.6
Energy		337.8			296.1			143.8
Medical		75.0			62.4			61.9
Total Segment Adjusted EBITDA		701.0			601.2			423.3
Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes:
Corporate expenses not allocated to segments⁽¹⁾		19.2			39.7			22.6
Interest expense		99.6			140.7			170.3
Depreciation and amortization expense		180.4			173.8			172.7
Impairment other intangible assets⁽²⁾		-			1.6			25.3
KKR fees and expenses⁽³⁾		-			17.3			4.8
Restructuring and related business transformation costs⁽⁴⁾		38.8			24.7			78.7
Acquisition related expenses and non-cash charges⁽⁵⁾		16.7			4.1			4.3
Environmental remediation loss reserve⁽⁶⁾		-			0.9			5.6
Expenses related to public stock offerings⁽⁷⁾		2.9			4.1			-
Establish public company financial reporting compliance⁽⁸⁾		4.3			8.1			0.2
Stock-based compensation⁽⁹⁾		(2.3	)		194.2			-
Loss on extinguishment of debt⁽¹⁰⁾		1.1			84.5			-
Foreign currency transaction (gains) losses, net		(1.9	)		9.3			(5.9	)
Shareholder litigation settlement recoveries⁽¹¹⁾		(9.5	)		-			-
Other adjustments⁽¹²⁾		2.2			10.9			7.9
Income (Loss) Before Income Taxes	$	349.5		$	(112.7	)	$	(63.2	)

⁽¹⁾

Includes insurance recoveries of asbestos legal fees of $8.2 million in the year ended December 31, 2018.

⁽²⁾

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

⁽³⁾

Represents management fees and expenses paid to KKR.

⁽⁴⁾

Restructuring and related business transformation costs consist of the following.

	Year Ended December 31,
	2018			2017		2016
Restructuring charges	$	12.7		$	5.3	$	32.9
Severance, sign-on, relocation and executive search costs		4.1			3.5		22.4
Facility reorganization, relocation and other costs		3.1			5.3		8.7
Information technology infrastructure transformation		0.8			5.2		2.3
(Gains) losses on asset and business disposals		(1.1	)		0.8		0.1
Consultant and other advisor fees		14.1			1.7		9.7
Other, net		5.1			2.9		2.6
Total restructuring and related business transformation costs	$	38.8		$	24.7	$	78.7

⁽⁵⁾

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

⁽⁶⁾

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

⁽⁷⁾

Represents expenses related to the Company’s initial stock offering and subsequent secondary offerings.

⁽⁸⁾

Represents third party expenses to comply with the requirements of Sarbanes-Oxley in 2018 and the accelerated adoption of the new accounting standards (ASC 606 – Revenue from Contracts with Customers and ASC 842 – Leases) in the first quarter of 2018 and 2019, respectively, one year ahead of the required adoption dates for a private company.

⁽⁹⁾

Represents stock-based compensation expense recognized for stock options outstanding for the year ended December 31, 2018 of $2.8 million, reduced by $5.1 million primarily due to a decrease in the estimated accrual for employer taxes related to DSUs as a result of a lower per share stock price. See Note 16 “Stock-Based Compensation Plans.”

Represents stock-based compensation expense recognized for the year ended December 31, 2017 for stock options outstanding of $77.6 million and DSUs granted to employees at the date of the initial public offering of $97.4 million and employer taxes related to DSUs granted to employees at the date of the initial public offering of $19.2 million.

⁽¹⁰⁾

Represents losses on extinguishment of the senior notes, extinguishment of a portion of the U.S. Term Loan, refinancing of the Original Dollar Term Loan Facility and the Original Euro Term Loan Facility and losses reclassified from AOCI into income related to the amendment of the interest rate swaps in conjunction with the debt repayment.

⁽¹¹⁾

Represents insurance recoveries of the Company’s shareholder litigation settlement in 2014.

⁽¹²⁾

Includes (i) the non-cash impact of net LIFO reserve adjustments, (ii) effects of amortization of prior service costs and amortization of losses 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

	2018		2017		2016
Industrials	$	2,108.1	$	2,029.4	$	1,943.6
Energy		1,661.9		1,681.5		1,501.0
Medical		488.9		511.1		486.3
Total		4,258.9		4,222.0		3,930.9
General corporate (unallocated)		228.2		399.2		385.1
Total identifiable assets	$	4,487.1	$	4,621.2	$	4,316.0

Depreciation and Amortization Expense

	2018		2017		2016
Industrials	$	99.8	$	94.5	$	96.0
Energy		57.1		56.7		55.5
Medical		23.5		22.6		21.2
Total depreciation and amortization expense	$	180.4	$	173.8	$	172.7

Capital Expenditures

	2018		2017		2016
Industrials	$	24.7	$	26.7	$	44.7
Energy		22.7		21.1		21.4
Medical		4.8		9.0		8.3
Total	$	52.2	$	56.8	$	74.4

Property, Plant, and Equipment by Geographic Region

The following table presents property, plant and equipment by geographic region for the years ended December 31, 2018, 2017 and 2016.

	Property, Plant and Equipment, net
	2018		2017		2016
United States	$	199.9	$	198.4	$	197.9
Other Americas		6.3		6.8		7.2
Total Americas		206.2		205.2		205.1
EMEA⁽¹⁾		126.3		132.3		125.3
Asia Pacific		24.1		25.7		28.0
Total	$	356.6	$	363.2	$	358.4

⁽¹⁾

Europe, Middle East and Africa (“EMEA”)