SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company is comprised of four operating segments: Commercial Systems, Industrial Systems, Climate Solutions and Motion Control Solutions.

Commercial Systems segment designs and 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 designs and produces integral motors, automatic transfer switches, 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 designs and produces small motors, electronic variable speed controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters and commercial refrigeration.

Motion Control Solutions segment designs, produces and services mounted and unmounted bearings, conveyor products, conveying automation solutions, couplings, mechanical power transmission drives and components, gearboxes and gear motors, aerospace components, special components products and industrial powertrain components and solutions serving a broad range of markets including food and beverage, bulk handling, eCommerce/warehouse distribution, energy, aerospace and general industrial.

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 the three and six months ended June 30, 2022 and July 3, 2021 (in millions):

	Three Months Ended
June 30, 2022	Commercial Systems		Industrial Systems		Climate Solutions		Motion Control Solutions		Eliminations		Total
External Sales	$	301.9	$	154.7	$	293.5	$	599.3	$	—	$	1,349.4
Intersegment Sales	26.1		7.9		4.4		2.3		(40.7)		—
Total Sales	328.0		162.6		297.9		601.6		(40.7)		1,349.4
Gross Profit	82.1		44.0		74.6		232.8		—		433.5
Operating Expenses	40.4		22.8		30.3		145.1		—		238.6
Total Operating Expenses	40.4		22.8		30.3		145.1		—		238.6
Income from Operations	41.7		21.2		44.3		87.7		—		194.9
Depreciation and Amortization	7.4		3.4		4.4		63.2		—		78.4
Capital Expenditures	5.2		2.7		4.6		6.7		—		19.2
July 3, 2021
External Sales	$	269.3	$	145.2	$	257.3	$	215.1	$	—	$	886.9
Intersegment Sales	19.9		7.3		5.1		0.8		(33.1)		—
Total Sales	289.2		152.5		262.4		215.9		(33.1)		886.9
Gross Profit*	69.5		27.4		75.5		85.3		—		257.7
Operating Expenses	40.3		23.1		27.0		49.8		—		140.2
Asset Impairments	1.8		—		0.5		—		—		2.3
Total Operating Expenses	42.1		23.1		27.5		49.8		—		142.5
Income from Operations*	27.4		4.3		48.0		35.5		—		115.2
Depreciation and Amortization	7.8		5.7		3.6		13.4		—		30.5
Capital Expenditures	4.5		3.3		3.0		2.8		—		13.6

	Six Months Ended
June 30, 2022	Commercial Systems		Industrial Systems		Climate Solutions		Motion Control Solutions		Eliminations		Total
External Sales	$	595.2	$	299.4	$	567.4	$	1,185.9	$	—	$	2,647.9
Intersegment Sales	54.3		15.2		9.2		4.2		(82.9)		—
Total Sales	649.5		314.6		576.6		1,190.1		(82.9)		2,647.9
Gross Profit	176.4		75.3		157.8		445.9		—		855.4
Operating Expenses	81.8		46.2		62.0		300.6		—		490.6
Total Operating Expenses	81.8		46.2		62.0		300.6		—		490.6
Income from Operations	94.6		29.1		95.8		145.3		—		364.8
Depreciation and Amortization	15.1		7.0		8.8		125.4		—		156.3
Capital Expenditures	8.8		4.2		8.9		10.7		—		32.6
July 3, 2021
External Sales	$	506.3	$	281.6	$	496.4	$	416.7	$	—	$	1,701.0
Intersegment Sales	37.4		11.0		9.4		1.5		(59.3)		—
Total Sales	543.7		292.6		505.8		418.2		(59.3)		1,701.0
Gross Profit*	136.3		55.4		150.9		164.9		—		507.5
Operating Expenses	78.3		46.2		57.7		106.3		—		288.5
Asset Impairments	1.8		—		0.5		—		—		2.3
Total Operating Expenses	80.1		46.2		58.2		106.3		—		290.8
Income from Operations*	56.2		9.2		92.7		58.6		—		216.7
Depreciation and Amortization	15.6		11.6		8.1		27.0		—		62.3
Capital Expenditures	7.8		5.7		6.2		4.6		—		24.3

The following table presents identifiable assets information attributable to the Company's operating segments as of June 30, 2022 and January 1, 2022 (in millions):

	Commercial Systems		Industrial Systems		Climate Solutions		Motion Control Solutions		Total
Identifiable Assets as of June 30, 2022	$	1,314.9	$	874.0	$	1,028.6	$	7,241.0	$	10,458.5
Identifiable Assets as of January 1, 2022*	1,264.0		859.9		982.7		7,260.8		10,367.4

*Includes the retrospective effect of changing accounting methods for valuing certain inventories to the FIFO cost method from the LIFO cost method. See Note 2 for additional information.