INFORMATION ON REPORTABLE SEGMENTS

9 Months Ended

Oct. 01, 2022

Segment Reporting [Abstract]

INFORMATION ON REPORTABLE SEGMENTS

INFORMATION ON REPORTABLE SEGMENTS

We are a global supplier of highly specialized, engineered solutions with operations in 15 countries and sales in over 100 countries around the world.

We have aggregated our operating segments into the following two reportable segments: HVAC and Detection and Measurement. The factors considered in determining our aggregated segments are the economic similarity of the businesses, the nature of products sold or services provided, production processes, types of customers, distribution methods, and regulatory environment. In determining our reportable segments, we apply the threshold criteria of the Segment Reporting Topic of the Accounting Standards Codification (“Codification”). Operating income or loss for each of our reportable segments is determined before considering, if applicable, impairment and special charges, long-term incentive compensation, certain other operating income/expense, and other indirect corporate expenses. This is consistent with the way our Chief Operating Decision Maker evaluates the results of each segment.

HVAC Reportable Segment

Our HVAC reportable segment engineers, designs, manufactures, installs and services package and process cooling products and engineered air movement solutions for the HVAC industrial and power generation markets, as well as boilers and comfort heating and ventilation products for the residential and commercial markets. The primary distribution channels for the segment’s products are direct to customers, independent manufacturing representatives, third-party distributors, and retailers. The segment serves a customer base in North America, Europe, and Asia.

Detection and Measurement Reportable Segment

Our Detection and Measurement reportable segment engineers, designs, manufactures, services, and installs underground pipe and cable locators, inspection and rehabilitation equipment, robotic systems, bus fare collection systems, communication technologies, and obstruction lighting. The primary distribution channels for the segment’s products are direct to customers and third-party distributors. The segment serves a global customer base, with a strong presence in North America, Europe, Africa and Asia.

Corporate Expense

Corporate expense generally relates to the cost of our Charlotte, North Carolina corporate headquarters.

Financial data for our reportable segments for the three and nine months ended October 1, 2022 and October 2, 2021 are presented below:

	Three months ended				Nine months ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Revenues:
HVAC reportable segment	$	227.8	$	179.3	$	639.6	$	540.3
Detection and Measurement reportable segment	142.7		106.4		392.0		329.2
Consolidated revenues	$	370.5	$	285.7	$	1,031.6	$	869.5
Income:
HVAC reportable segment	$	30.9	$	23.0	$	71.7	$	71.2
Detection and Measurement reportable segment	25.7		9.9		63.2		41.3
Total income for reportable segments	56.6		32.9		134.9		112.5
Corporate expense	17.2		11.9		50.2		39.9
Long-term incentive compensation expense	2.1		3.4		7.7		9.4
Impairment of goodwill and intangible assets	—		24.3		—		24.3
Special charges, net	—		(0.1)		0.1		0.7
Other operating (income) expense, net	—		(24.3)		1.0		(21.6)
Consolidated operating income	$	37.3	$	17.7	$	75.9	$	59.8