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Segment Results
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Results Segment Results
A description of the Company’s two reportable segments is presented below.
In the Industrial Technologies and Services segment, the Company designs, manufactures, markets and services a broad range of compression and vacuum equipment as well as fluid transfer equipment, loading systems, power tools and lifting equipment. The Company’s compression and vacuum products are used worldwide in industrial manufacturing, transportation, chemical processing, food and beverage production, energy, environmental and other applications. In addition to equipment sales, the Company offers a broad portfolio of service options tailored to customer needs and complete range of aftermarket parts, air treatment equipment, controls and other accessories. The Company’s engineered loading systems and fluid transfer equipment ensure the safe handling and transfer of crude oil, liquefied natural gas, compressed natural gas, chemicals, and bulk materials. The Company’s power tools and lifting equipment are used by customers in industrial manufacturing, vehicle maintenance, energy and other markets for precision fastening, bolt removal, grinding, sanding, drilling, demolition and the safe and efficient lifting, positioning and movement of loads. The Company sells its products primarily through independent distributors worldwide and also sells directly to the customer.
In the Precision and Science Technologies segment, the Company designs, manufactures and markets a broad range of specialized positive displacement pumps, fluid management equipment and aftermarket parts for medical, laboratory, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture and other markets. The Company’s products are used for a diverse set of applications including precision dosing of chemicals and supplements, blood dialysis, oxygen therapy, food processing, fluid transfer and dispensing, spray finishing and coating, mixing, high-pressure air and gas management and others. The Company sells primarily through a broad global network of specialized and national distributors and original equipment manufacturers (“OEM”) who integrate the Company’s products into their devices and systems.
The Chief Operating Decision Maker (“CODM”) evaluates the performance of the Company’s reportable segments based on, among other measures, Segment Adjusted EBITDA. Management closely monitors the Segment Adjusted EBITDA of each reportable segment to evaluate past performance and actions required to improve profitability. Inter-segment sales and transfers are not significant. Administrative expenses related to the Company’s corporate offices and shared service centers in North America and Europe, which includes transaction processing, accounting and other business support functions, are allocated to the business segments. Certain administrative expenses, including senior management compensation, treasury, internal audit, tax compliance, certain information technology, and other corporate functions, are not allocated to the business segments.
The following table provides summarized information about the Company’s operations by reportable segment and reconciles Segment Adjusted EBITDA to Income from Continuing Operations Before Income Taxes for the three and six month periods ended June 30, 2022 and 2021.
For the Three Month Period Ended June 30,For the Six Month Period Ended June 30,
2022202120222021
Revenue
Industrial Technologies and Services$1,150.5 $1,047.5 $2,190.1 $1,961.3 
Precision and Science Technologies289.4 231.6 586.8 447.3 
Total Revenue$1,439.9 $1,279.1 $2,776.9 $2,408.6 
Segment Adjusted EBITDA
Industrial Technologies and Services$292.0 $258.6 $539.4 $470.1 
Precision and Science Technologies77.7 71.1 162.8 138.3 
Total Segment Adjusted EBITDA$369.7 $329.7 $702.2 $608.4 
Less items to reconcile Segment Adjusted EBITDA to Income from Continuing Operations Before Income Taxes:
Corporate expenses not allocated to segments$34.8 $37.6 $63.7 $72.3 
Interest expense23.2 22.7 42.2 45.8 
Depreciation and amortization expense (a)
103.7 101.3 211.2 205.8 
Restructuring and related business transformation costs (b)
9.5 6.7 23.7 9.4 
Acquisition and other transaction related expenses and non-cash charges (c)
5.4 14.3 14.9 24.8 
Stock-based compensation22.4 21.5 42.2 43.1 
Foreign currency transaction losses (gains), net(1.8)3.4 (5.6)(14.7)
Loss on extinguishment of debt1.1 — 1.1 — 
Gain on settlement of post-acquisition contingencies (d)
— (30.1)— (30.1)
Other adjustments (e)
(9.1)0.8 (14.3)(0.2)
Income from Continuing Operations Before Income Taxes180.5 151.5 323.1 252.2 
Provision for income taxes41.9 12.5 74.3 23.1 
Loss on equity method investments(0.8)(0.7)(5.1)(0.7)
Income from Continuing Operations137.8 138.3 243.7 228.4 
Income (loss) from discontinued operations, net of tax1.5 96.3 0.1 (83.9)
Net Income$139.3 $234.6 $243.8 $144.5 
a)Depreciation and amortization expense excludes $0.8 million and $1.0 million of depreciation of rental equipment for the three month periods ended June 30, 2022 and 2021, respectively, and excludes $1.8 million and $2.0 million for the six month periods ended June 30, 2022 and 2021, respectively.
b)Restructuring and related business transformation costs consist of the following.
For the Three Month Period Ended June 30,For the Six Month Period Ended June 30,
2022202120222021
Restructuring charges$8.9 $6.8 $21.4 $9.2 
Facility reorganization, relocation and other costs0.6 — 2.3 — 
Other, net— (0.1)— 0.2 
Total restructuring and related business transformation costs$9.5 $6.7 $23.7 $9.4 
c)Represents costs associated with successful and abandoned acquisitions, including third-party expenses, post-closure integration costs and non-cash charges and credits arising from fair value purchase accounting adjustments.
d)Represents a gain on settlement of post-acquisition contingencies outside of the measurement period related to adjustments to the transaction price for retirement plan funding and net working capital.
e)Includes (i) pension and other postemployment (“OPEB”) plan costs other than service cost, (ii) interest income from short term investments and bank deposits and (iii) other miscellaneous adjustments.