Segment information (Tables)

3 Months Ended

Apr. 03, 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.


	Three months ended
(dollars in millions)	April 3, 2021		March 28, 2020
Power Transmission	$	559.5	$	441.2
Fluid Power	321.8		268.9
Continuing operations	$	881.3	$	710.1

Adjusted EBITDA by segment was as follows:


	Three months ended
(dollars in millions)	April 3, 2021		March 28, 2020
Power Transmission	$	132.7	$	79.5
Fluid Power	63.6		41.3
Continuing operations	$	196.3	$	120.8

Schedule of net sales by key geographic regions and markets

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


	Three months ended April 3, 2021			Three months ended March 28, 2020
(dollars in millions)		Power Transmission		Fluid Power		Power Transmission		Fluid Power
U.S.		$	155.9	$	152.7	$	137.7	$	139.7
North America, excluding U.S.		46.7		49.4		40.3		41.7
United Kingdom (“U.K.”)		12.7		14.7		11.4		6.9
EMEA(1), excluding U.K.		162.8		49.6		129.2		44.0
East Asia and India		82.9		23.5		65.2		17.4
Greater China		81.9		24.0		44.3		13.0
South America		16.6		7.9		13.1		6.2
Net sales		$	559.5	$	321.8	$	441.2	$	268.9

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

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


	Three months ended
(dollars in millions)	April 3, 2021		March 28, 2020
Developed	$	555.0	$	475.8
Emerging	326.3		234.3
Net sales	$	881.3	$	710.1

Reconciliation of Adjusted EBITDA to net income from continuing operations

Reconciliation of net income from continuing operations to Adjusted EBITDA:


	Three months ended
(dollars in millions)	April 3, 2021		March 28, 2020
Net income from continuing operations	$	76.5	$	39.9
Income tax expense (benefit)	18.9		(16.1)
Income from continuing operations before taxes	95.4		23.8
Interest expense	34.4		36.7
Other income	(1.2)		(2.1)
Operating income from continuing operations	128.6		58.4
Depreciation and amortization	55.8		54.9
Transaction-related expenses (income) (1)	2.4		(0.2)

Restructuring expenses	2.9		1.9

Share-based compensation expense	6.3		2.9
Sponsor fees (included in other operating expense)	—		1.7



Severance expenses (included in cost of sales)	—		0.1
Severance expenses (included in SG&A)	0.3		0.5
Other items not directly related to current operations	—		0.6
Adjusted EBITDA	$	196.3	$	120.8

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