Segment Information

9 Months Ended

Sep. 27, 2015

Segment Information

Segment Information

8.Segment Information

The Company operates in three geographic segments: Americas, EMEA, and Asia-Pacific. AERCO is included in the Americas segment results for the third quarter and the first nine months ended September 27, 2015.  Each of these segments is managed separately and has separate financial results that are reviewed by the Company’s chief operating decision-maker. All intercompany sales transactions have been eliminated. Sales by region are based upon location of the entity recording the sale. The accounting policies for each segment are the same as those described in the summary of significant accounting policies.

The following is a summary of the Company’s significant accounts and balances by segment, reconciled to the consolidated totals:

	Third Quarter Ended						Nine Months Ended
	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
	(in millions)
Net sales
Americas	$	245.0		$	228.6		$	745.2		$	689.5
EMEA	110.9			136.4			332.1			419.4
Asia-Pacific	10.4			11.0			32.1			28.3
Consolidated net sales	$	366.3		$	376.0		$	1,109.4		$	1,137.2
Operating income (loss)
Americas	$	30.3		$	33.4		$	90.6		$	85.0
EMEA	10.9			15.1			25.7			37.1
Asia-Pacific	1.2			1.7			0.9			4.7
Subtotal reportable segments	42.4			50.2			117.2			126.8
Corporate (*)	(72.6		)	(7.5		)	(89.8		)	(21.7		)
Consolidated operating (loss) income	(30.2		)	42.7			27.4			105.1
Interest income	0.3			0.1			0.7			0.4
Interest expense	(6.2		)	(4.8		)	(18.0		)	(14.6		)
Other income (expense), net	0.2			(1.6		)	0.8			(1.9		)
(Loss) Income before income taxes	$	(35.9	)	$	36.4		$	10.9		$	89.0
Capital expenditures
Americas	$	4.6		$	2.5		$	12.8		$	7.4
EMEA	1.8			2.7			5.6			7.8
Asia-Pacific	0.3			0.3			0.8			0.9
Consolidated capital expenditures	$	6.7		$	5.5		$	19.2		$	16.1
Depreciation and amortization
Americas	$	8.0		$	4.8		$	22.1		$	14.5
EMEA	5.3			6.4			15.9			19.8
Asia-Pacific	0.5			0.5			1.7			1.5
Consolidated depreciation and amortization	$	13.8		$	11.7		$	39.7		$	35.8
Identifiable assets (at end of period)
Americas							$	1,033.6		$	696.7
EMEA							744.1			840.8
Asia-Pacific							80.6			139.2
Consolidated identifiable assets							$	1,858.3		$	1,676.7
Property, plant and equipment, net (at end of period)
Americas							$	86.3		$	82.8
EMEA							86.9			105.8
Asia-Pacific							11.9			13.5
Consolidated property, plant and equipment, net							$	185.1		$	202.1

*   Corporate expenses are primarily for administrative compensation expense, internal controls costs, professional fees, including corporate-related legal and audit expenses, shareholder services and benefit administration costs. Included in Corporate’s operating loss for the three and nine months ended September 27, 2015 is a $59.7 million charge related to the Company’s settlement of its Pension Plan and SERP benefit obligations. Refer to Note 12 Defined Benefit Plans for further discussion.

The above operating segments are presented on a basis consistent with the presentation included in the Company’s December 31, 2014 consolidated financial statements included in its Annual Report on Form 10-K. The EMEA segment was significantly impacted by foreign currency translation in the first nine months of 2015 compared to the first nine months of 2014.

The U.S. property, plant and equipment of the Company’s Americas segment was $82.8 million and $78.5 million at September 27, 2015 and September 28, 2014, respectively.  The following includes U.S. net sales of the Company’s Americas segment:

	Third Quarter Ended				Nine Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
	(in millions)
U.S. net sales	$	227.8	$	207.8	$	693.6	$	631.5

The following includes intersegment sales for Americas, EMEA and Asia-Pacific:

	Third Quarter Ended				Nine Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
	(in millions)
Intersegment Sales
Americas	$	2.1	$	1.5	$	5.8	$	4.6
EMEA	2.3		3.3		7.8		10.7
Asia-Pacific	27.9		36.5		91.0		116.9
Intersegment sales	$	32.3	$	41.3	$	104.6	$	132.2