XML 30 R15.htm IDEA: XBRL DOCUMENT v3.20.4
Segment Information
 12 Months Ended
Jan. 02, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company's four operating segments are: Commercial Systems, Industrial Systems, Climate Solutions and Power Transmission Solutions.
Commercial Systems segment produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, fans, and blowers for commercial applications. These products serve markets including commercial building ventilation and HVAC, pool and spa, irrigation, dewatering, agriculture, and general commercial equipment.
Industrial Systems segment produces integral motors, generators, alternators and switchgear for industrial applications, along with aftermarket parts and kits to support such products. These products serve markets including agriculture, marine, mining, oil and gas, food and beverage, data centers, healthcare, prime and standby power, and general industrial equipment.
Climate Solutions segment produces small motors, electronic variable speed controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters and commercial refrigeration.
Power Transmission Solutions segment produces, sells and services belt and chain drives, helical and worm gearing, mounted and unmounted bearings, couplings, modular plastic belts, conveying chains and components, hydraulic pump drives, large open gearing and specialty mechanical products serving markets including e-commerce, alternative energy, beverage, bulk handling, metals, special machinery, energy, aerospace and general industrial.
The effect of the change in accounting policy related to LIFO as discussed in Note 3 for fiscal 2020 and 2019 on a per quarter basis is as follows (in millions):

Commercial Systems
2019 Fiscal Quarter20192020 Fiscal Quarter
1st2nd3rd4thTotal1st2nd3rd
Gross Profit As Reported$65.5 $65.2 $53.6 $48.6 $232.9 $50.7 $42.3 $61.4 
Adjustment for Change in Accounting Principle1.6 (1.2)0.3 3.0 3.7 (0.4)— (0.7)
Gross Profit Adjusted for Change in Accounting Principle$67.1 $64.0 $53.9 $51.6 $236.6 $50.4 $42.3 $60.7 
Income from Operations as Adjusted for Change in Accounting Principle$59.4 $19.6 $16.9 $10.9 $106.8 $12.1 $6.2 $24.6 
Industrial Systems
2019 Fiscal Quarter20192020 Fiscal Quarter
1st2nd3rd4thTotal1st2nd3rd
Gross Profit As Reported$23.9 $27.8 $23.7 $24.0 $99.3 $22.6 $24.9 $31.2 
Adjustment for Change in Accounting Principle(1.6)1.2 (0.3)(3.0)(3.7)0.4 — 0.7 
Gross Profit Adjusted for Change in Accounting Principle$22.3 $29.0 $23.4 $21.0 $95.6 $23.0 $24.8 $31.9 
Income (Loss) from Operations as Adjusted for Change in Accounting Principle$(5.9)$(0.1)$(2.6)$(4.4)$(13.0)$(0.1)$3.2 $7.3 

The Company evaluates performance based on the segment's income from operations. Corporate costs have been allocated to each segment based on the net sales of each segment. The reported external net sales of each segment are from external customers.
The following sets forth certain financial information attributable to the Company's operating segments for fiscal 2020, fiscal 2019 and fiscal 2018, respectively (in millions):
Commercial SystemsIndustrial SystemsClimate SolutionsPower Transmission SolutionsEliminationsTotal
Fiscal 2020
External Sales$820.2 $528.8 $846.8 $711.2 $— $2,907.0 
Intersegment Sales62.5 27.7 18.8 2.5 (111.5)— 
  Total Sales882.7 556.5 865.6 713.7 (111.5)2,907.0 
Gross Profit213.8 96.7 246.8 251.4 — 808.7 
Operating Expenses144.9 91.6 115.5 160.9 — 512.9 
Goodwill Impairment— 10.5 — — — 10.5 
Gain on Sale of Businesses(0.1)— — — — (0.1)
Asset Impairments2.8 0.2 1.3 1.0 — 5.3 
Income (Loss) from Operations66.2 (5.6)130.0 89.5 — 280.1 
Depreciation and Amortization32.6 23.9 19.6 55.3 — 131.4 
Capital Expenditures15.3 8.1 12.1 12.0 — 47.5 
Fiscal 2019
External Sales$905.3 $575.4 $968.5 $788.8 $— $3,238.0 
Intersegment Sales46.9 35.9 17.4 4.3 (104.5)— 
  Total Sales952.2 611.3 985.9 793.1 (104.5)3,238.0 
Gross Profit236.6 95.6 269.8 258.7 — 860.7 
Operating Expenses162.4 107.6 110.6 163.7 — 544.3 
Asset Impairments6.7 0.9 1.3 1.1 — 10.0 
(Gain) Loss on Sale of Businesses(39.3)0.1 (6.0)0.5 — (44.7)
Income (Loss) from Operations106.8 (13.0)163.9 93.4 — 351.1 
Depreciation and Amortization34.6 24.4 19.8 55.7 — 134.5 
Capital Expenditures29.9 21.0 23.3 18.2 — 92.4 
Fiscal 2018
External Sales$1,110.9 $671.1 $1,024.8 $838.8 $— $3,645.6 
Intersegment Sales47.3 31.9 22.1 24.1 (125.4)— 
  Total Sales1,158.2 703.0 1,046.9 862.9 (125.4)3,645.6 
Gross Profit287.0 136.4 262.7 278.5 — 964.6 
Operating Expenses184.8 111.6 128.9 174.1 — 599.4 
Goodwill Impairment— — 9.5 — — 9.5 
Asset Impairments — — 8.7 — — 8.7 
Income from Operations102.2 24.8 115.6 104.4 — 347.0 
Depreciation and Amortization40.3 26.7 21.0 54.4 — 142.4 
Capital Expenditures24.6 17.2 17.7 18.1 — 77.6 
The following table presents identifiable assets information attributable to the Company's operating segments. The identifiable assets as of the December 28, 2019 have been retrospectively adjusted to reflect the change in accounting principle related to LIFO inventories as discussed in Note 3. The changes reflected in assets as of December 28, 2019 are an increase of $5.4 million for Commercial Systems and a decrease of $5.4 million for Industrial Systems. The table presents identifiable assets information as of January 2, 2021 and December 28, 2019 (in millions):
Commercial SystemsIndustrial SystemsClimate SolutionsPower Transmission SolutionsTotal
Identifiable Assets as of January 2, 2021$1,319.6 $837.5 $890.4 $1,541.5 $4,589.0 
Identifiable Assets as of December 28, 20191,203.9 797.4 878.3 1,551.1 4,430.7 

The following sets forth net sales by country in which the Company operates for fiscal 2020, fiscal 2019 and fiscal 2018, respectively (in millions):
Net Sales
202020192018
United States$1,885.1 $2,071.9 $2,402.9 
Rest of the World1,021.9 1,166.1 1,242.7 
Total$2,907.0 $3,238.0 $3,645.6 

U.S. net sales for fiscal 2020, fiscal 2019 and fiscal 2018 represented 64.8%, 64.0% and 65.9% of total net sales, respectively. No individual foreign country represented a material portion of total net sales for any of the years presented.

The following sets forth long-lived assets (net property, plant and equipment) by country in which the Company operates for fiscal 2020 and fiscal 2019, respectively (in millions):
Long-lived Assets
20202019
United States$200.5 $237.6 
Mexico141.2 149.0 
China85.7 84.9 
Rest of the World128.1 133.5 
Total$555.5 $605.0 

No other individual foreign country represented a material portion of long-lived assets for any of the years presented.