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Segment Results (Tables)

3 Months Ended

Mar. 31, 2020

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) Income Before Income Taxes for the three month periods ended March 31, 2020 and 2019.

	For the Three Month Period Ended March 31,
	2020			2019⁽¹⁾
Revenue
Industrial Technologies and Services	$	504.0		$	405.1
Precision and Science Technologies		112.9			79.3
High Pressure Solutions		96.4			135.9
Specialty Vehicle Technologies		86.6			-
Total Revenue	$	799.9		$	620.3
Segment Adjusted EBITDA
Industrial Technologies and Services	$	94.8		$	85.5
Precision and Science Technologies		32.9			23.1
High Pressure Solutions		23.5			41.8
Specialty Vehicle Technologies		14.1			-
Total Segment Adjusted EBITDA	$	165.3		$	150.4
Less items to reconcile Segment Adjusted EBITDA to (Loss)
Income Before Income Taxes
Corporate expenses not allocated to segments	$	17.5		$	11.4
Interest expense		27.1			22.4
Depreciation and amortization expense^(a)		71.1			45.5
Restructuring and related business transformation costs^(b)		42.2			4.1
Acquisition related expenses and non-cash charges^(c)		96.1			1.6
Establish public company financial reporting compliance^(d)		-			0.6
Stock-based compensation^(e)		3.0			8.7
Foreign currency transaction losses, net		2.6			3.1
Loss on extinguishment of debt^(f)		2.0			-
Shareholder litigation settlement recoveries^(g)		-			(6.0	)
Other adjustments^(h)		(0.6	)		(0.1	)
(Loss) Income Before Income Taxes	$	(95.7	)	$	59.1

⁽¹⁾

For the three month period ended March 31, 2020, as a result of the acquisition of Ingersoll Rand Industrial, the Company changed its measurement methodology of Segment Adjusted EBITDA. Segment Adjusted EBITDA and the reconciliation to (Loss) Income Before Income Taxes was revised to conform to the methodology used for the three month period ended March 31, 2020.

^(a)

Depreciation and amortization expense excludes $1.2 million of depreciation of rental equipment.

^(b)

Restructuring and related business transformation costs consist of the following.

	For the Three Month Period Ended March 31,
	2020		2019
Restructuring charges	$	41.6	$	2.0
Facility reorganization, relocation and other costs		0.4		0.6
Other, net		0.2		1.5
Total restructuring and related business transformation costs	$	42.2	$	4.1

^(c)

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 purchase accounting adjustments.

^(d)

Represents third party expenses to comply with the requirements of Sarbanes-Oxley and the accelerated adoption of the new accounting standard (ASC 842 - Leases) in the first quarter of 2019, one year ahead of the required adoption dates for a private company.

^(e)

Represents stock-based compensation expense recognized for the three month period ended March 31, 2020 of $3.5 million decreased by $0.5 million due to the reduction of an accrual related to employer taxes. Represents stock-based compensation expense of $7.5 million increased by $1.2 million due to costs associated with employer taxes for the three month period ended March 31, 2019.

^(f)

Represents losses on the extinguishment of the Company’s Original Dollar Term Loan and Original Euro Term Loan as a result of Amendment No. 5 to the Senior Secured Credit Facility.

^(g)

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

^(h)

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