Business Segment Information

9 Months Ended

Sep. 30, 2019

BUSINESS SEGMENT INFORMATION

Operating segments for the Company are determined based on information used by the chief operating decision maker (CODM) in deciding how to evaluate performance and allocate resources to each of the segments. The Company’s CODM is the Chief Executive Officer (CEO). While there are many measures the CEO reviews in this capacity, the key segment measures reviewed include operating profit, operating profit margin, and EBITDA, adjusted when applicable, and EBITDA margins.

The Company's reportable segments are:


•	JBT FoodTech—designs, manufactures and services technologically sophisticated food processing systems used for, among other things, fruit juice production, frozen food production, in-container food production, automated systems and convenience food preparation by the food industry.


•	JBT AeroTech—designs, manufactures and services technologically sophisticated airport ground support and gate equipment and provides services for airport authorities; airlines, airfreight, and ground handling companies; the defense contractors and other industries.

Total revenue by segment includes intersegment sales, which are made at prices that reflect, as nearly as practicable, the market value of the transaction. Segment Operating profit is defined as total segment revenue less segment operating expense. The following items have been excluded in computing segment Operating profit: Corporate expense, Restructuring expense, Interest income and expense, and Income taxes. See the table below for further details on Corporate expense.

Segment operating profit is defined as total segment revenue less segment Operating expense. Business segment information was as follows:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In millions)	2019		2018			2019		2018
Revenue
JBT FoodTech	$	334.3	$	332.5		$	972.2	$	997.7
JBT AeroTech	155.0		149.5			427.8		384.6
Other revenue and intercompany eliminations	$	0.1	$	(0.1	)	$	0.2	$	0.1
Total revenue	$	489.4	$	481.9		$	1,400.2	$	1,382.4

Income before income taxes
Segment operating profit:
JBT FoodTech	$	42.5	$	41.9		$	132.5	$	110.8
JBT AeroTech	22.2		17.6			50.2		40.2
Total segment operating profit	64.7		59.5			182.7		151.0
Corporate items:
Corporate expense (1)	14.8		11.3			45.6		33.5
Restructuring expense (2)	1.3		11.6			11.5		32.8
Operating income	48.6		36.6			125.6		84.7

Pension expense, other than service cost	0.5		—			1.5		0.6
Interest expense, net	5.9		3.4			13.4		10.5
Income from continuing operations before income taxes	$	42.2	$	33.2		$	110.7	$	73.6


(1)	Corporate expense generally includes corporate staff-related expense, stock-based compensation, LIFO adjustments, certain foreign currency-related gains and losses, and the impact of unusual or strategic events not representative of segment operations.

(2)

Refer to Note 14. Restructuring for further information on restructuring expense.