Segment information (Tables)

12 Months Ended

Jan. 02, 2021

Schedule of net sales by operating segment

Sales between reporting segments and the impact of such sales on Adjusted EBITDA for each segment are not included in internal reports presented to the CEO and have therefore not been included below.


	For the year ended
(dollars in millions)		January 2, 2021		December 28, 2019		December 29, 2018
Power Transmission		$	1,800.2	$	1,945.7	$	2,098.8
Fluid Power		992.8		1,141.4		1,248.8
Net sales		$	2,793.0	$	3,087.1	$	3,347.6

Adjusted EBITDA by segment was as follows:


	For the year ended
(dollars in millions)		January 2, 2021		December 28, 2019		December 29, 2018
Power Transmission		$	353.0	$	412.6	$	492.2
Fluid Power		153.6		198.4		263.6
Adjusted EBITDA		$	506.6	$	611.0	$	755.8

Reconciliation of Adjusted EBITDA to net income from continuing operations

Reconciliation of net income from continuing operations to Adjusted EBITDA:


	For the year ended
(dollars in millions)		January 2, 2021		December 28, 2019		December 29, 2018
Net income from continuing operations		$	90.3	$	694.7	$	271.7
Income tax (benefit) expense		(19.3)		(495.9)		31.8
Income from continuing operations before taxes		71.0		198.8		303.5
Interest expense		154.3		157.8		175.9
Other (income) expenses		(14.2)		(9.8)		17.4
Operating income from continuing operations		211.1		346.8		496.8
Depreciation and amortization		218.6		222.2		218.5
Transaction-related expenses (1)		5.2		2.6		6.7
Asset impairments		5.2		0.7		0.6
Restructuring expenses		37.3		6.0		6.4
Share-based compensation expense		19.8		15.0		6.0
Sponsor fees (included in other operating (income) expenses)		1.9		6.5		8.0
Impact of fair value adjustment on inventory (included in cost of sales)		—		—		0.3
Inventory impairments and adjustments (included in cost of sales)		1.4		1.2		1.2
Duplicate expenses incurred on facility relocation		—		—		5.2
Severance expenses (included in cost of sales)		1.0		4.0		1.7
Other primarily severance expenses (included in SG&A)		8.0		3.4		4.4
Other items not directly related to current operations		(2.9)		2.6		—
Adjusted EBITDA		$	506.6	$	611.0	$	755.8

(1) Transaction-related expenses relate primarily to advisory fees and other costs recognized in respect of major corporate transactions, including the acquisition of businesses and debt refinancings.

Schedule of net sales by key geographic regions and markets

The following table summarizes our net sales by key geographic region of origin:


	For the year ended
	January 2, 2021				December 28, 2019				December 29, 2018
(dollars in millions)	Power Transmission		Fluid Power		Power Transmission		Fluid Power		Power Transmission		Fluid Power
U.S.	$	538.3	$	513.9	$	580.4	$	590.0	$	606.3	$	671.7
North America, excluding U.S.	147.3		146.9		165.3		175.9		159.3		185.6
United Kingdom (“U.K.”)	44.3		28.2		43.6		37.3		55.0		39.9
EMEA(1), excluding U.K.	487.4		151.0		509.9		173.6		584.5		172.8
East Asia and India	251.8		60.5		288.6		74.3		311.7		87.5
Greater China	279.5		66.9		288.4		57.8		310.7		59.0
South America	51.6		25.4		69.5		32.5		71.3		32.3
Net sales	$	1,800.2	$	992.8	$	1,945.7	$	1,141.4	$	2,098.8	$	1,248.8

(1) Europe, Middle East and Africa (“EMEA”).

The following table summarizes our net sales into emerging and developed markets:


	For the year ended
(dollars in millions)	January 2, 2021		December 28, 2019		December 29, 2018
Developed	$	1,787.8	$	2,013.4	$	2,157.4
Emerging	1,005.2		1,073.7		1,190.2
Net sales	$	2,793.0	$	3,087.1	$	3,347.6


(dollars in millions)	As of January 2, 2021		As of December 28, 2019
Property, plant and equipment, net by geographic location
U.S.	$	184.4	$	199.2
Rest of North America	121.5		117.3
U.K.	31.8		32.6
Rest of EMEA	161.4		154.4
East Asia and India	54.9		65.6
Greater China	134.9		138.4
South America	16.1		20.4
	$	705.0	$	727.9