Segment Reporting

3 Months Ended

Oct. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 18. Segment Reporting

The Company’s reportable segments are: Mobile Solutions, Industrial Solutions and Life Sciences. The organizational structure also includes Corporate and Unallocated which includes interest expense and certain corporate expenses determined to be non-allocable to the segments, such as restructuring charges and business development expenses. The Company determines its operating segments consistent with the manner in which it manages its operations and evaluates performance for internal review and decision-making. For the three months ended October 31, 2022, Corporate and Unallocated also included non-recurring charges of $7.6 million, see Note 19.

The Mobile Solutions segment is organized based on a combination of customers and products and consists of the Off-Road, On-Road and Aftermarket business units. Within these business units, products consist of replacement filters for both air and liquid filtration applications and filtration housings for new equipment production and systems related to exhaust and emissions. Applications include air filtration systems, fuel, lube and hydraulic systems, emissions systems and sensors, indicators and monitoring systems. Mobile Solutions sells to original equipment manufacturers (OEMs) in the construction, mining, agriculture and transportation end markets and to independent distributors and OEM dealer networks.

The Industrial Solutions segment is organized based on product type and consists of the Industrial Air Filtration, Industrial Gasses, Industrial Hydraulics, Power Generation and Aerospace and Defense business units. Within our Industrial Solutions portfolio, Donaldson provides a wide product offering in the market to industrial customers consisting of equipment, ancillary components, replacement parts, performance monitoring and service globally, that cost-effectively enhances productivity and manufacturing efficiency. Industrial Air Filtration, Industrial Gasses and Industrial Hydraulics products consist of dust, fume and mist collectors, compressed air and industrial gasses purification systems, hydraulic and lubricated rotating filtration applications as well as gas and liquid filtration for industrial processes. Power Generation products consist of air inlet systems and filtration sold to gas compression, power generation and natural gas liquification industries. Aerospace and Defense products consist of air, fuel, lubrication and hydraulic filtration for fixed-wing and rotorcraft aerospace applications and ground defense vehicle and naval platforms. Industrial Solutions businesses sell through multiple channels which include OEMs, distributors and direct-to-consumer in some markets.

The Life Sciences segment is organized by end market, including the Bioprocessing, Food and Beverage, Medical Device, Vehicle Electrification, Microelectronics and Disk Drive business units. Our products include gas and liquid filtration bioprocessing equipment (including bioreactors, fermenters and filtration skids), bioprocessing consumables (including membrane chromatography devices, reagents and filters) and specialized air and gas filtration systems for hard disk drive, semiconductor and electric vehicle applications. Life Sciences primarily sells to large OEMs and directly to various end users requiring cell growth, separation, purification, high purity filtration and device protection.

The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report earnings before income taxes and other financial information as stated below.

Segment details were as follows (in millions):

	Three Months Ended October 31,
	2023		2022
Net sales
Mobile Solutions	$	540.0	$	555.0
Industrial Solutions	246.2		229.6
Life Sciences	60.1		62.7
Total Company	$	846.3	$	847.3
Earnings (loss) before income taxes
Mobile Solutions	$	92.2	$	80.3
Industrial Solutions	43.3		37.6
Life Sciences	(4.2)		10.8
Corporate and unallocated	(8.4)		(12.1)
Total Company	$	122.9	$	116.6

Assets by segment were as follows (in millions):

	October 31, 2023		July 31, 2023
Mobile Solutions	$	1,266.4	$	1,243.8
Industrial Solutions	770.8		788.1
Life Sciences	509.6		513.8
Corporate and unallocated	221.8		224.8
Total assets	$	2,768.6	$	2,770.5

Net sales by business unit were as follows (in millions):

	Three Months Ended October 31,
	2023		2022
Mobile Solutions segment
Off-Road	$	94.7	$	103.7
On-Road	37.8		36.0
Aftermarket	407.5		415.3
Total Mobile Solutions segment	540.0		555.0
Industrial Solutions segment
Industrial Filtration Solutions	210.6		196.0
Aerospace and Defense	35.6		33.6
Total Industrial Solutions segment	246.2		229.6
Life Sciences segment
Total Life Sciences segment	60.1		62.7
Total Company	$	846.3	$	847.3

Concentrations

There were no customers that accounted for over 10% of net sales for the three months ended October 31, 2023 or 2022. There were no customers that accounted for over 10% of gross accounts receivable as of October 31, 2023 or July 31, 2023.