Segment Information

12 Months Ended

Jan. 01, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's four operating segments are: Commercial Systems, Industrial Systems, Climate Solutions and Motion Control Solutions.

Commercial Systems segment designs and produces fractional to approximately 5 horsepower AC and DC motors, electronic variable speed controls, fans, and blowers for commercial applications. These products serve markets including commercial building ventilation and HVAC, pool and spa, irrigation, dewatering, agriculture, and general commercial equipment.

Industrial Systems segment designs and produces integral motors, automatic transfer switches, alternators and switchgear for industrial applications, along with aftermarket parts and kits to support such products. These products serve markets including agriculture, marine, mining, oil and gas, food and beverage, data centers, healthcare, prime and standby power, and general industrial equipment.

Climate Solutions segment designs and produces small motors, electronic variable speed controls and air moving solutions serving markets including residential and light commercial HVAC, water heaters and commercial refrigeration.

Motion Control Solutions segment designs, produces and services mounted and unmounted bearings, conveyor products, conveying automation solutions, couplings, mechanical power transmission drives and components, gearboxes and gear motors, aerospace components, special components products and industrial powertrain components and solutions serving a broad range of markets including food and beverage, bulk handling, eCommerce/warehouse distribution, energy, aerospace and general industrial.

The effect of the change in accounting policy related to LIFO as discussed in Note 3 for fiscal 2020 and 2019 on a per quarter basis is as follows (in millions):

	Commercial Systems
	2019 Fiscal Quarter								2019		2020 Fiscal Quarter
	1st		2nd		3rd		4th		Total		1st		2nd		3rd
Gross Profit As Reported	$	65.5	$	65.2	$	53.6	$	48.6	$	232.9	$	50.7	$	42.3	$	61.4
Adjustment for Change in Accounting Principle	1.6		(1.2)		0.3		3.0		3.7		(0.4)		—		(0.7)
Gross Profit Adjusted for Change in Accounting Principle	$	67.1	$	64.0	$	53.9	$	51.6	$	236.6	$	50.4	$	42.3	$	60.7
Income from Operations as Adjusted for Change in Accounting Principle	$	59.4	$	19.6	$	16.9	$	10.9	$	106.8	$	12.1	$	6.2	$	24.6
	Industrial Systems
	2019 Fiscal Quarter								2019		2020 Fiscal Quarter
	1st		2nd		3rd		4th		Total		1st		2nd		3rd
Gross Profit As Reported	$	23.9	$	27.8	$	23.7	$	24.0	$	99.3	$	22.6	$	24.9	$	31.2
Adjustment for Change in Accounting Principle	(1.6)		1.2		(0.3)		(3.0)		(3.7)		0.4		—		0.7
Gross Profit Adjusted for Change in Accounting Principle	$	22.3	$	29.0	$	23.4	$	21.0	$	95.6	$	23.0	$	24.8	$	31.9
Income (Loss) from Operations as Adjusted for Change in Accounting Principle	$	(5.9)	$	(0.1)	$	(2.6)	$	(4.4)	$	(13.0)	$	(0.1)	$	3.2	$	7.3

The Company evaluates performance based on the segment's income from operations. Corporate costs have been allocated to each segment based on the net sales of each segment. The reported external net sales of each segment are from external customers.

The following sets forth certain financial information attributable to the Company's operating segments for fiscal 2021, fiscal 2020 and fiscal 2019, respectively (in millions):

	Commercial Systems		Industrial Systems		Climate Solutions		Motion Control Solutions		Eliminations		Total
Fiscal 2021
External Sales	$	1,032.1	$	576.3	$	1,030.6	$	1,171.3	$	—	$	3,810.3
Intersegment Sales	88.7		26.6		19.1		4.1		(138.5)		—
Total Sales	1,120.8		602.9		1,049.7		1,175.4		(138.5)		3,810.3
Gross Profit	262.4		106.9		305.1		411.3		—		1,085.7
Operating Expenses	161.1		88.0		115.5		350.1		—		714.7
Goodwill Impairment	—		33.0		—		—		—		33.0
Asset Impairments	1.8		—		0.5		3.3		—		5.6
Income (Loss) from Operations	99.5		(14.1)		189.1		57.9		—		332.4
Depreciation and Amortization	29.9		23.2		16.5		101.0		—		170.6
Capital Expenditures	17.8		9.5		11.7		15.5		—		54.5
Fiscal 2020
External Sales	$	820.2	$	528.8	$	846.8	$	711.2	$	—	$	2,907.0
Intersegment Sales	62.5		27.7		18.8		2.5		(111.5)		—
Total Sales	882.7		556.5		865.6		713.7		(111.5)		2,907.0
Gross Profit	212.7		97.8		246.8		251.4		—		808.7
Operating Expenses	144.9		91.6		115.5		160.9		—		512.9
Goodwill Impairment	—		10.5		—		—		—		10.5
Gain on Sale of Business	(0.1)		—		—		—		—		(0.1)
Asset Impairments	2.8		0.2		1.3		1.0		—		5.3
Income (Loss) from Operations	65.1		(4.5)		130.0		89.5		—		280.1
Depreciation and Amortization	32.6		23.9		19.6		55.3		—		131.4
Capital Expenditures	15.3		8.1		12.1		12.0		—		47.5
Fiscal 2019
External Sales	$	905.3	$	575.4	$	968.5	$	788.8	$	—	$	3,238.0
Intersegment Sales	46.9		35.9		17.4		4.3		(104.5)		—
Total Sales	952.2		611.3		985.9		793.1		(104.5)		3,238.0
Gross Profit	236.6		95.6		269.8		258.7		—		860.7
Operating Expenses	162.4		107.6		110.6		163.7		—		544.3
Asset Impairments	6.7		0.9		1.3		1.1		—		10.0
(Gain) Loss on Sale of Businesses	(39.3)		0.1		(6.0)		0.5		—		(44.7)
Income (Loss) from Operations	106.8		(13.0)		163.9		93.4		—		351.1
Depreciation and Amortization	34.6		24.4		19.8		55.7		—		134.5
Capital Expenditures	29.9		21.0		23.3		18.2		—		92.4

The following table presents identifiable assets information attributable to the Company's operating segments. The table presents identifiable assets information as of January 1, 2022 and January 2, 2021 (in millions):

	Commercial Systems		Industrial Systems		Climate Solutions		Motion Control Solutions		Total
Identifiable Assets as of January 1, 2022	$	1,229.1	$	832.6	$	971.6	$	7,248.3	$	10,281.6
Identifiable Assets as of January 2, 2021	1,319.6		837.5		890.4		1,541.5		4,589.0

The following sets forth net sales by country in which the Company operates for fiscal 2021, fiscal 2020 and fiscal 2019, respectively (in millions):

	Net Sales
	2021		2020		2019
United States	$	2,364.7	$	1,885.1	$	2,071.9
Rest of the World	1,445.6		1,021.9		1,166.1
Total	$	3,810.3	$	2,907.0	$	3,238.0

U.S. net sales for fiscal 2021, fiscal 2020 and fiscal 2019 represented 62.1%, 64.8% and 64.0% of total net sales, respectively. No individual foreign country represented a material portion of total net sales for any of the years presented.

The following sets forth net property, plant and equipment by country in which the Company operates for fiscal 2021 and fiscal 2020, respectively (in millions):

	Long-lived Assets
	2021		2020
United States	$	363.6	$	200.5
Mexico	204.6		141.2
China	91.2		85.7
Rest of the World	249.1		128.1
Total	$	908.5	$	555.5

No other individual foreign country represented a material portion of net property, plant and equipment for any of the years presented.