XML 24 R15.htm IDEA: XBRL DOCUMENT v3.23.2
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
Effective during the first quarter of 2023, the Company realigned its four operating segments taking into account the change to its management structure and operating model following completion of the Altra Transaction. All prior periods have been recast to reflect the current segment presentation. The Company is comprised of four operating segments: Industrial Powertrain Solutions (IPS), Power Efficiency Solutions (PES), Automation & Motion Control (AMC) and Industrial Systems.
IPS consists of the majority of the Company's previous Motion Control Solutions (MCS) segment, excluding the conveying and aerospace business units, plus Altra's Power Transmission Technologies segment. The IPS segment designs, produces and services mounted and unmounted bearings, couplings, mechanical power transmission drives and components, gearboxes and
gear motors, clutches, brakes, 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, agricultural machinery, turf & garden and general industrial.
PES consists of the Company's previous Climate Solutions and Commercial Systems segments. The PES segment designs and produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, fans, and blowers for commercial applications and small motors, electronic variable speed controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters, commercial refrigeration, commercial building ventilation, pool and spa, irrigation, dewatering, agriculture, and general commercial equipment.
AMC consists of the Company's previous MCS aerospace and conveying business units, Altra's Automation & Specialty segment and the Thomson Power Systems business that was previously in the Company's Industrial Systems segment. The AMC segment designs, produces and services conveyor products, conveying automation subsystems, aerospace components, rotary precision motion solutions, high-efficiency miniature motors and motion control products, automation transfer switches, switchgear for industrial applications and automation systems that enable and control the transition of rotary motion to linear motion. These products are used in advanced material handling, aerospace and defense, factory automation, data centers, medical device, packaging, printing, semiconductor, robotic, industrial power tool, mobile off-highway, food & beverage processing and other applications.
Industrial Systems consists of the Company's previous Industrial Systems segment excluding the Thomson Power Systems business. The Industrial Systems segment designs and produces integral motors, alternators 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, prime and standby power, and general industrial equipment.
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, recast as described above, for the three and six months ended June 30, 2023 and June 30, 2022:
Three Months Ended
June 30, 2023Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsEliminationsTotal
External Sales$698.7 $460.1 $473.1 $136.7 $— $1,768.6 
Intersegment Sales4.4 3.5 5.9 0.7 (14.5)— 
  Total Sales703.1 463.6 479.0 137.4 (14.5)1,768.6 
Gross Profit224.4 133.8 176.2 29.4 — 563.8 
Operating Expenses184.2 74.0 127.6 26.4 — 412.2 
Total Operating Expenses184.2 74.0 127.6 26.4 — 412.2 
Income from Operations40.2 59.8 48.6 3.0 — 151.6 
Depreciation and Amortization74.4 11.8 47.6 3.2 — 137.0 
Capital Expenditures19.7 8.4 14.3 2.4 — 44.8 
June 30, 2022
External Sales$422.1 $595.4 $194.1 $137.8 $— $1,349.4 
Intersegment Sales1.8 2.2 1.7 0.5 (6.2)— 
  Total Sales423.9 597.6 195.8 138.3 (6.2)1,349.4 
Gross Profit167.7 156.7 70.6 38.5 — 433.5 
Operating Expenses98.9 70.7 48.4 20.6 — 238.6 
Total Operating Expenses98.9 70.7 48.4 20.6 — 238.6 
Income from Operations68.8 86.0 22.2 17.9 — 194.9 
Depreciation and Amortization44.1 11.8 18.9 3.6 — 78.4 
Capital Expenditures5.0 9.8 1.7 2.7 — 19.2 
Six Months Ended
June 30, 2023Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsEliminationsTotal
External Sales$1,113.1 $929.6 $676.3 $273.7 $— $2,992.7 
Intersegment Sales7.9 7.7 11.1 1.4 (28.1)— 
  Total Sales1,121.0 937.3 687.4 275.1 (28.1)2,992.7 
Gross Profit401.8 251.5 251.6 57.0 — 961.9 
Operating Expenses335.7 146.3 208.2 51.2 — 741.4 
Total Operating Expenses335.7 146.3 208.2 51.2 — 741.4 
Income from Operations66.1 105.2 43.4 5.8 — 220.5 
Depreciation and Amortization116.0 23.5 67.3 6.7 — 213.5 
Capital Expenditures25.1 17.1 17.4 3.9 — 63.5 
June 30, 2022
External Sales$838.4 $1,162.6 $378.4 $268.5 $— $2,647.9 
Intersegment Sales3.4 5.1 5.1 1.0 (14.6)— 
  Total Sales841.8 1,167.7 383.5 269.5 (14.6)2,647.9 
Gross Profit322.0 334.2 133.6 65.6 — 855.4 
Operating Expenses206.9 143.8 99.1 40.8 — 490.6 
Total Operating Expenses206.9 143.8 99.1 40.8 — 490.6 
Income from Operations115.1 190.4 34.5 24.8 — 364.8 
Depreciation and Amortization86.7 23.9 38.6 7.1 — 156.3 
Capital Expenditures7.5 17.7 3.3 4.1 — 32.6 

The following table presents identifiable assets information attributable to the Company's operating segments, recast as described above, as of June 30, 2023 and December 31, 2022:
Industrial Powertrain SolutionsPower Efficiency SolutionsAutomation & Motion ControlIndustrial SystemsTotal
Identifiable Assets as of June 30, 2023$8,139.0 $2,055.2 $4,980.8 $682.8 $15,857.8 
Identifiable Assets as of December 31, 20225,028.5 2,234.1 2,202.2 804.1 10,268.9