Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographical Information

v3.19.3.a.u2
Segment and Geographical Information
 3 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segment and Geographical Information
Segment and Geographical Information

Prior to completing the acquisition of Milacron on November 21, 2019, the Company conducted operations through two reportable business segments: the Process Equipment Group and Batesville. Upon completing the acquisition, the Company has been undertaking a planning process of assessing its management and organizational structure. As of December 31, 2019, the Company is still assessing changes in its internal management reporting structure to incorporate Milacron and the effects it may have on the Company’s reportable segments, if any. Because this process was not complete as of December 31, 2019, the Company has reported the results of operations of Milacron from the acquisition date through December 31, 2019 as a separate reportable segment.

The Company records the direct costs of business operations to the reportable business segments, including stock-based compensation, asset impairments, restructuring activities, and business acquisition costs.  Corporate provides management and administrative services to each reportable segment.  These services include treasury management, human resources, legal, business development, and other public company support functions such as internal audit, investor relations, financial reporting, and tax compliance.  With limited exception for certain professional services and back-office and technology costs, the Company does not allocate these types of corporate expenses to the reportable segments.

The following tables present financial information for the Company’s reportable segments and significant geographical locations:
 
Three Months Ended
December 31,
 
2019
 
2018
Net revenue
 

 
 

Process Equipment Group
$
306.6

 
$
282.2

Milacron
133.3

 
—

Batesville
127.0

 
128.1

Total
$
566.9

 
$
410.3

 
 
 
 
Adjusted EBITDA (1)
 

 
 

Process Equipment Group
$
51.5

 
$
46.2

Milacron
26.3

 
—

Batesville
23.0

 
26.7

Corporate
(8.9
)
 
(8.8
)
 
 
 
 
Net revenue (2)
 

 
 

United States
$
272.9

 
$
214.8

Germany
155.4

 
111.3

All other foreign business units
138.6

 
84.2

Total
$
566.9

 
$
410.3

 
 
(1) 
Adjusted EBITDA is a non-GAAP measure used by management to measure segment performance and make operating decisions. See the Operating Performance Measures section of Management’s Discussion and Analysis for further information on adjusted EBITDA, which is reconciled to consolidated net (loss) income below.
(2) 
The Company attributes net revenue to a geography based upon the location of the business that consummates the external sale.

 
December 31,
2019
 
September 30,
2019
Total assets assigned
 

 
 

Process Equipment Group
$
1,791.7

 
$
1,729.1

Milacron
2,347.7

 
—

Batesville
227.7

 
186.1

Corporate
53.6

 
313.4

Total
$
4,420.7

 
$
2,228.6

 
 
 
 
Tangible long-lived assets, net(1)
 

 
 

United States
$
238.5

 
$
75.8

Germany
106.9

 
40.2

China
63.4

 
4.4

All other foreign business units
161.8

 
19.9

Total
$
570.6

 
$
140.3


 
(1) 
Tangible long-lived assets, net includes operating lease right-of-use assets as of December 31, 2019 due to the adoption of ASU 2016-02 in the current year.

The following schedule reconciles reportable segment adjusted EBITDA to consolidated net income.
 
Three Months Ended
December 31,
 
2019
 
2018
Adjusted EBITDA:
 
 
 
Process Equipment Group
$
51.5

 
$
46.2

Milacron
26.3

 
—

Batesville
23.0

 
26.7

Corporate
(8.9
)
 
(8.8
)
Less:
 

 
 

Interest income
(1.3
)
 
(0.2
)
Interest expense
14.7

 
5.5

Income tax (benefit) expense
(12.4
)
 
14.5

Depreciation and amortization
25.9

 
14.1

Business acquisition, development, and integration costs
53.8

 
0.6

Restructuring and restructuring related charges
2.4

 
0.5

     Inventory step-up
9.6

 
0.1

Consolidated net (loss) income
$
(0.8
)
 
$
29.0