INFORMATION ON REPORTABLE SEGMENTS

3 Months Ended

Mar. 30, 2024

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 Codification. Segment Income is determined before considering, if applicable, impairment and special charges, long-term incentive compensation, certain other operating income/expense, other indirect corporate expenses, intangible asset amortization expense, inventory step-up charges, and certain other acquisition-related costs. This is consistent with the way our Chief Operating Decision Maker (“CODM”) 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, commercial, data center, and power generation markets, as well as boilers and electrical 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 global 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, transportation systems, communication technologies, and aids to navigation. The primary distribution channels for the segment’s products are direct to customers and third-party distributors. The segment serves a global customer base in North America, Europe, Africa, and Asia.

Corporate Expense

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

Financial data for our reportable segments for the three months ended March 30, 2024 and April 1, 2023 are presented below:

	Three months ended
	March 30, 2024		April 1, 2023
Revenues:
HVAC reportable segment	$	302.4	$	251.6
Detection and Measurement reportable segment	162.8		148.2
Consolidated revenues	$	465.2	$	399.8
Income:
HVAC reportable segment	$	68.4	$	47.7
Detection and Measurement reportable segment	31.4		26.7
Total income for segments	99.8		74.4
Corporate expense	13.9		14.6
Acquisition-related and other costs (1)	2.6		0.6
Long-term incentive compensation expense	3.3		3.1
Amortization of acquired intangible assets	14.8		6.3
Special charges, net	0.6		—
Consolidated operating income	$	64.6	$	49.8

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(1)Represents certain acquisition-related costs incurred of $2.6 and $0.6 during the three months ended March 30, 2024 and April 1, 2023, respectively, including additional “Cost of products sold” related to the step-up of inventory (to fair value) acquired in connection with the Ingénia acquisition of $0.9 during the three months ended March 30, 2024.