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Segment Results
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Results Segment Results
A description of the Company’s two reportable segments is presented below. During the first quarter of 2021, the Company agreed to sell a majority interest in the business comprising its High Pressure Solutions segment. This sale was substantially completed on April 1, 2021. During the second quarter of 2021, the Company agreed to sell the business comprising its Specialty Vehicle Technologies segment. This sale was substantially completed on June 1, 2021. The HPS and SVT businesses are presented as a discontinued operation in current and prior periods and has been excluded from the segment information below unless otherwise noted. Refer to Note 2 “Discontinued Operations” for further discussion of the sale of majority interest in the High Pressure Solutions business and of the Specialty Vehicle Technologies business.
In the Industrial Technologies and Services segment, the Company designs, manufactures, markets and services a broad range of compression and vacuum equipment as well as fluid transfer equipment, loading systems, power tools and lifting equipment. The Company’s compression and vacuum products are used worldwide in industrial manufacturing, transportation, chemical processing, food and beverage production, energy, environmental and other applications. In addition to equipment sales, the Company offers a broad portfolio of service options tailored to customer needs and complete range of aftermarket parts, air treatment equipment, controls and other accessories. The Company’s 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. The Company’s power tools and lifting equipment are used by customers in industrial manufacturing, vehicle maintenance, energy and other markets for precision fastening, bolt removal, grinding, sanding, drilling, demolition and the safe and efficient lifting, positioning and movement of loads. The Company sells its products primarily through independent distributors worldwide and also sells directly to the customer.
In the Precision and Science Technologies segment, the Company designs, manufactures and markets a broad range of specialized positive displacement pumps, fluid management equipment and aftermarket parts for medical, laboratory, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture and other markets. The Company’s products are used for a diverse set of applications including precision dosing of chemicals and supplements, blood dialysis, oxygen therapy, food processing, fluid transfer and dispensing, spray finishing and coating, mixing, high-pressure air and gas management and others. The Company sells primarily through a broad global network of specialized and national distributors and original equipment manufacturers (“OEM”) who integrate the Company’s products into their devices and systems.
The Chief Operating Decision Maker (“CODM”) evaluates the performance of the Company’s 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 North America 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 Income (Loss) from Continuing Operations Before Income Taxes for the three and nine month periods ended September 30, 2021 and 2020.
For the Three Month Period Ended September 30,For the Nine Month Period Ended September 30,
2021202020212020
Revenue
Industrial Technologies and Services$1,070.7 $902.6 $3,032.0 $2,236.2 
Precision and Science Technologies254.3 209.9 701.6 518.5 
Total Revenue$1,325.0 $1,112.5 $3,733.6 $2,754.7 
Segment Adjusted EBITDA
Industrial Technologies and Services$272.9 $216.8 $743.0 $495.4 
Precision and Science Technologies75.5 64.5 213.8 156.7 
Total Segment Adjusted EBITDA$348.4 $281.3 $956.8 $652.1 
Less items to reconcile Segment Adjusted EBITDA to Income (Loss) Before Income Taxes:
Corporate expenses not allocated to segments$34.7 $29.6 $107.0 $70.7 
Interest expense22.5 28.8 68.3 86.7 
Depreciation and amortization expense (a)
101.5 116.8 307.3 294.7 
Impairment of intangible assets— 19.9 — 19.9 
Restructuring and related business transformation costs (b)
3.1 10.0 12.5 79.6 
Acquisition and other transaction related expenses and non-cash charges (c)
14.4 14.7 39.2 194.5 
Stock-based compensation (d)
29.8 11.9 72.9 26.8 
Foreign currency transaction losses (gains), net 1.1 5.8 (13.6)12.7 
Loss on extinguishment of debt (e)
9.0 — 9.0 2.0 
Gain on settlement of post-acquisition contingencies (f)
— — (30.1)— 
Other adjustments (g)
(3.6)1.0 (3.8)3.4 
Income (Loss) from Continuing Operations Before Income Taxes135.9 42.8 388.1 (138.9)
Provision for income taxes2.7 12.8 25.8 24.3 
Loss on equity method investments(2.2)— (2.9)— 
Income (Loss) from Continuing Operations131.0 30.0 359.4 (163.2)
Loss from discontinued operations, net of tax(4.2)(0.1)(88.1)(20.3)
Net Income (Loss)$126.8 $29.9 $271.3 $(183.5)
a)Depreciation and amortization expense excludes $1.0 million and $0.5 million of depreciation of rental equipment for the three month periods ended September 30, 2021 and 2020, respectively, and excludes $3.0 million and $1.4 million for the nine month periods ended September 30, 2021 and 2020, respectively.
b)Restructuring and related business transformation costs consist of the following.
For the Three Month Period Ended September 30,For the Nine Month Period Ended September 30,
2021202020212020
Restructuring charges$1.1 $10.0 $10.3 $77.4 
Facility reorganization, relocation and other costs2.0 — 2.0 0.5 
Other, net— — 0.2 1.7 
Total restructuring and related business transformation costs$3.1 $10.0 $12.5 $79.6 
c)Represents costs associated with successful and/or abandoned acquisitions and divestitures, 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.
d)Represents stock-based compensation expense recognized for the three and nine month periods ended September 30, 2021 of $21.9 million and $65.0 million, respectively, and increased by $7.9 million for the three and nine month periods ended September 30, 2021, due to costs associated with employer taxes related to the All-Employee Equity Grant.
Represents stock-based compensation expense recognized for the three and nine month periods ended September 30, 2020 of $11.9 million and $27.3 million, respectively, and decreased by $0.5 million for the nine month period ended September 30, 2020, due to costs associated with employer taxes.
e)Represents a loss on extinguishment of a portion of the U.S. term loan and the amendment of the revolving credit facility.
f)Represents a gain on settlement of post-acquisition contingencies outside of the measurement period related to adjustments to the transaction price for retirement plan funding and net working capital.
g)Includes (i) effects of amortization of prior service costs and amortization of losses in pension and other postemployment (“OPEB”) expense, (ii) certain legal and compliance costs and (iii) other miscellaneous adjustments.