Segment Information

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Segment Information

14. Segment Information

The Company categorizes its operating companies into five reportable segments as follows:

•Engineered Products segment provides a wide range of equipment, components, software, solutions and services to the vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-markets.

•Clean Energy & Fueling segment provides components, equipment, software, solutions and services enabling safe and reliable storage, transport and dispensing of traditional and clean fuels (including liquefied natural gas, hydrogen, and electric vehicle charging), cryogenic gases, and other hazardous substances along the supply chain, and safe and efficient operation of convenience retail, retail fueling and vehicle wash establishments.

•Imaging & Identification segment supplies precision marking and coding, product traceability, brand protection and digital textile printing equipment, as well as related consumables, software and services to the global packaged and consumer goods, pharmaceutical, industrial manufacturing, textile and other end-markets.

•Pumps & Process Solutions segment manufactures specialty pumps and flow meters, highly engineered precision components for rotating and reciprocating machines, fluid connecting solutions and plastics and polymer processing equipment, serving single-use biopharmaceutical production, diversified industrial manufacturing, chemical production, plastics and polymer processing, midstream and downstream oil and gas and other end-markets.

•Climate & Sustainability Technologies segment is a provider of innovative and energy-efficient equipment, components and parts for the commercial refrigeration, equipment and systems, heating and cooling and beverage can-making equipment markets.

Management uses segment earnings to evaluate segment performance and allocate resources. Segment earnings is defined as earnings before purchase accounting expenses, restructuring and other costs (benefits), loss (gain) on dispositions, corporate expenses/other, interest expense, interest income and provision for income taxes.

In the second quarter of 2022, the segment measure of profit and loss used by the Company's Chief Operating Decision Maker ("CODM") was changed to segment earnings from segment earnings (EBIT), defined as earnings before corporate expenses/other, interest expense, interest income and provision for income taxes. This change in segment measure allows the CODM to better assess operating results over time and is consistent with how the CODM evaluates our businesses. Accordingly, we have updated our segment earnings for the three months ended March 31, 2022 to conform to the new presentation.

Segment financial information and a reconciliation of segment results to consolidated results were as follows:

	Three Months Ended March 31,
	2023		2022
Revenue:
Engineered Products	$	497,549	$	487,647
Clean Energy & Fueling	430,729		458,395
Imaging & Identification	283,091		272,255
Pumps & Process Solutions	413,881		435,195
Climate & Sustainability Technologies	455,325		399,078
Intersegment eliminations	(1,552)		(669)
Total consolidated revenue	$	2,079,023	$	2,051,901
Net earnings:
Segment earnings:
Engineered Products	$	84,275	$	71,130
Clean Energy & Fueling	73,605		72,962
Imaging & Identification	68,315		58,598
Pumps & Process Solutions	115,244		146,617
Climate & Sustainability Technologies	73,778		53,609
Total segment earnings	415,217		402,916
Purchase accounting expenses (1)	42,679		53,286
Restructuring and other costs (2)	14,053		10,552
Loss on dispositions (3)	—		194
Corporate expense / other (4)	40,072		37,404
Interest expense	34,214		26,552
Interest income	(2,091)		(775)
Earnings before provision for income taxes	286,290		275,703
Provision for income taxes	57,716		49,550
Net earnings	$	228,574	$	226,153

(1) Purchase accounting expenses are primarily comprised of amortization of intangible assets and charges related to fair value step-ups for acquired inventory sold during the period.

(2) Restructuring and other costs relate to actions taken for headcount reductions, facility consolidations and site closures, product line exits, and other asset charges. Restructuring and other costs consist of the following:

	Three Months Ended March 31,
	2023		2022
Restructuring	$	12,476	$	8,157
Other costs, net	1,577		2,395
Restructuring and other costs	$	14,053	$	10,552

(3) Loss on dispositions includes working capital adjustments related to dispositions.

(4) Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services and digital overhead costs, deal-related expenses and various administrative expenses relating to the corporate headquarters.

The following table presents revenue disaggregated by geography based on the location of the Company's customers:

	Three Months Ended March 31,
Revenue by geography	2023		2022
United States	$	1,171,364	$	1,151,500
Europe	432,841		447,565
Asia	214,850		229,386
Other Americas	172,185		151,592
Other	87,783		71,858
Total	$	2,079,023	$	2,051,901