Quarterly report pursuant to Section 13 or 15(d)

Segment and Geographical Information

v3.20.2
Segment and Geographical Information
9 Months Ended
Jun. 30, 2020
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 operating 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 June 30, 2020, 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 June 30, 2020, the Company has reported the results of operations of Milacron from the acquisition date through June 30, 2020 as a separate reportable segment.

The Company records the direct costs of business operations to the reportable operating 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 June 30, Nine Months Ended June 30,
  2020 2019 2020 2019
Net revenue    
Process Equipment Group $ 281.3    $ 315.3    $ 899.0    $ 924.2   
Milacron 186.3    —    518.6    —   
Batesville 139.9    131.3    405.7    397.3   
Total $ 607.5    $ 446.6    $ 1,823.3    $ 1,321.5   
Adjusted EBITDA (1)
   
Process Equipment Group $ 57.6    $ 54.9    $ 166.6    $ 156.6   
Milacron 38.1    —    96.4    —   
Batesville 36.4    25.3    91.4    83.6   
Corporate (11.1)   (10.7)   (30.9)   (31.7)  
Net revenue (2)
   
United States $ 292.1    $ 222.1    $ 853.0    $ 669.3   
Germany 151.2    145.4    495.2    398.3   
All other foreign business units 164.2    79.1    475.1    253.9   
Total $ 607.5    $ 446.6    $ 1,823.3    $ 1,321.5   
 
(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 income (loss) below.
(2)The Company attributes net revenue to a geography based upon the location of the business that consummates the external sale.
  June 30,
2020
September 30,
2019
Total assets assigned    
Process Equipment Group $ 1,710.4    $ 1,729.1   
Milacron 1,988.0    —   
Batesville 228.7    186.1   
Corporate 102.8    313.4   
Total $ 4,029.9    $ 2,228.6   
Tangible long-lived assets, net(1)
   
United States $ 208.0    $ 75.8   
Germany 103.2    40.2   
China 51.4    4.4   
All other foreign business units 130.4    19.9   
Total $ 493.0    $ 140.3   
(1)Tangible long-lived assets, net includes operating lease right-of-use assets as of June 30, 2020 due to the adoption of ASU 2016-02 in the current year.
The following schedule reconciles reportable segment adjusted EBITDA to consolidated net income (loss):
  Three Months Ended
June 30,
Nine Months Ended
June 30,
2020 2019 2020 2019
Adjusted EBITDA:
Process Equipment Group $ 57.6    $ 54.9    $ 166.6    $ 156.6   
Milacron 38.1    —    96.4    —   
Batesville 36.4    25.3    91.4    83.6   
Corporate (11.1)   (10.7)   (30.9)   (31.7)  
Less:    
Interest income (0.6)   (0.3)   (2.5)   (0.7)  
Interest expense 19.7    5.2    55.3    16.1   
Income tax expense 28.3    11.6    17.7    39.9   
Depreciation and amortization 33.9    15.1    98.4    44.3   
Impairment charges —    —    82.5    —   
Business acquisition, disposition, and integration costs 5.5    3.8    67.3    4.9   
Restructuring and restructuring-related charges 3.6    2.4    6.7    3.6   
Inventory step-up 3.6    —    40.7    0.2   
Net loss on divestiture —    —    3.0    —   
Other 2.0    —    2.4    —   
Consolidated net income (loss) $ 25.0    $ 31.7    $ (48.0)   $ 100.2