Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

In the first quarter of 2023, the Company realigned its internal organization to align with the Company’s strategy, resulting in changes to the Company’s operating segments. Historically, the Company operated through one reportable segment comprised of two operating segments: (i) Mobility Technologies and (ii) Diagnostics and Repair Technologies. Subsequent to the realignment, the Company now operates through three reportable segments which align to the Company’s three operating segments: (i) Mobility Technologies, (ii) Repair Solutions and (iii) Environmental & Fueling Solutions. The Company’s Global Traffic Technologies and Coats (Hennessy) businesses, which are currently held for sale as further discussed in Note 13. Assets and Liabilities Held for Sale, are presented in Other.

Segment operating profit is used as a performance metric by the chief operating decision maker (“CODM”) in determining how to allocate resources and assess performance. Segment operating profit represents total segment sales less operating costs attributable to the segment, which does not include unallocated corporate costs and other operating costs not allocated to the reportable segments as part of the CODM’s assessment of reportable segment operating performance, including stock-based compensation expense, amortization of intangible assets, restructuring costs, transaction- and deal-related costs, and other costs not indicative of the segment’s core operating performance. As part of the CODM’s assessment of the Repair Solutions segment, a capital charge based on the segment’s financing receivables portfolio is assessed by Corporate (the “Repair Solutions Capital Charge”). The unallocated corporate and other operating costs are presented in Corporate & other unallocated costs in the reconciliation to earnings before income taxes below. Intersegment amounts are not significant and have been eliminated.

The Company’s CODM does not review any information regarding total assets on a segment basis.

Prior period segment results have been presented in conformity with the Company’s new reportable segments. Segment results for the periods indicated were as follows:

	Three Months Ended
($ in millions)	March 31, 2023		April 1, 2022
Sales:
Mobility Technologies	$	245.9	$	207.6
Repair Solutions(a)	181.4		164.4
Environmental & Fueling Solutions	313.8		328.2
Other	35.3		47.9
Total	$	776.4	$	748.1
Segment operating profit:
Mobility Technologies	$	47.9	$	41.1
Repair Solutions(b)	47.3		47.0
Environmental & Fueling Solutions	80.7		82.0
Other	3.8		5.1
Segment operating profit	179.7		175.2
Corporate & other unallocated costs(b)	(45.9)		(40.4)
Operating profit	133.8		134.8
Interest expense, net	(24.0)		(12.9)
Gain on previously held equity interests from combination of business	—		32.7
Unrealized gain on equity securities measured at fair value	—		163.0
Other non-operating expense, net	(0.9)		(0.1)
Earnings before income taxes	$	108.9	$	317.5
Depreciation expense:
Mobility Technologies	$	6.1	$	6.0
Repair Solutions	0.4		0.4
Environmental & Fueling Solutions	3.6		3.6
Other	—		0.4
Corporate	0.3		0.2
Total	$	10.4	$	10.6

(a) Includes interest income related to financing receivables of $19.8 million and $18.4 million for the three months ended March 31, 2023 and April 1, 2022, respectively.

(b) Includes the Repair Solutions Capital Charge of $10.2 million and $9.9 million for the three months ended March 31, 2023 and April 1, 2022, respectively.