Segment information (Tables)

3 Months Ended

Mar. 28, 2020

Segment Reporting [Abstract]

Schedule of net sales by operating segment

Sales between reporting segments and the impact of such sales on Adjusted EBITDA for each segment are not included in internal reports presented to the CEO and have therefore not been included below.

	Net Sales
	Three months ended
(dollars in millions)	March 28, 2020		March 30, 2019
Power Transmission	$	441.2	$	499.5
Fluid Power	268.9		305.4
Continuing operations	$	710.1	$	804.9

Adjusted EBITDA by segment was as follows:

	Adjusted EBITDA
	Three months ended
(dollars in millions)	March 28, 2020		March 30, 2019
Power Transmission	$	79.5	$	109.9
Fluid Power	41.3		55.6
Continuing operations	$	120.8	$	165.5

Schedule of net sales by key geographic regions and markets

The following table summarizes our net sales by key geographic region of origin:

	Net Sales
	Three months ended
	March 28, 2020				March 30, 2019
(dollars in millions)	Power Transmission		Fluid Power		Power Transmission		Fluid Power
U.S.	$	137.7	$	139.7	$	152.9	$	157.1
North America, excluding U.S.	40.3		41.7		42.0		46.6
United Kingdom (“U.K.”)	11.4		6.9		11.7		10.8
EMEA(1), excluding U.K.	129.2		44.0		133.3		47.2
East Asia and India	65.2		17.4		73.6		20.5
Greater China	44.3		13.0		68.9		15.1
South America	13.1		6.2		17.1		8.1
Net Sales	$	441.2	$	268.9	$	499.5	$	305.4

⁽¹⁾ Europe, Middle East and Africa (“EMEA”).

The following table summarizes our net sales into emerging and developed markets:

	Net Sales
	Three months ended
(dollars in millions)	March 28, 2020		March 30, 2019
Developed	$	475.8	$	543.7
Emerging	234.3		261.2
Net Sales	$	710.1	$	804.9

Reconciliation of Adjusted EBITDA to net income from continuing operations

Reconciliation of net income from continuing operations to Adjusted EBITDA:

	Three months ended
(dollars in millions)	March 28, 2020		March 30, 2019
Net income from continuing operations	$	39.9	$	605.1
Income tax benefit	(16.1)		(539.7)
Income from continuing operations before taxes	23.8		65.4
Interest expense	36.7		38.1
Other income	(2.1)		(3.3)
Operating income from continuing operations	58.4		100.2
Depreciation and amortization	54.9		56.1
Transaction-related (income) expenses (1)	(0.2)		0.4
Restructuring expenses	1.9		3.3
Share-based compensation expense	2.9		2.6
Sponsor fees (included in other operating expenses)	1.7		1.8
Severance-related expenses (included in cost of sales)	0.1		—
Severance-related expenses (benefits) (included in SG&A)	0.5		(0.2)
Other items not directly related to current operations	0.6		1.3
Adjusted EBITDA	$	120.8	$	165.5

⁽¹⁾ Transaction-related (income) expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses and debt refinancings.