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INFORMATION ON REPORTABLE SEGMENTS
 3 Months Ended
Apr. 02, 2016
Segment Reporting [Abstract]  
INFORMATION ON REPORTABLE SEGMENTS
INFORMATION ON REPORTABLE SEGMENTS
We are a global supplier of highly specialized, engineered solutions with operations in over 20 countries and sales in over 100 countries around the world.
As indicated in Note 1, during the third quarter of 2015, we realigned our segment reporting structure. Under the realigned structure, we have aggregated our operating segments into the following three reportable segments: HVAC, Detection and Measurement, and Power. The factors considered in determining our aggregated segments are the economic similarity of the businesses, the nature of products sold or services provided, production processes, types of customers, distribution methods, and regulatory environment. In determining our segments, we apply the threshold criteria of the Segment Reporting Topic of the Codification to operating income or loss of each segment before considering gains/losses on sales of businesses, impairment and special charges, pension and postretirement expense/income, long-term incentive compensation and other indirect corporate expenses. This is consistent with the way our CODM evaluates the results of each segment.
HVAC Reportable Segment
Our HVAC reportable segment engineers, designs, manufactures, installs and services cooling products for the HVAC and industrial markets, as well as boilers, comfort heating and ventilation products for the residential and commercial markets. The primary distribution channels for the segment’s products are direct to customers, independent manufacturing representatives, third-party distributors, and retailers. The segment primarily serves a North American customer base.
Detection and Measurement Reportable Segment
Our Detection and Measurement reportable segment engineers, designs, manufactures and installs underground pipe and cable locators and inspection equipment, bus fare collection systems, communication technologies, and specialty lighting. The primary distribution channels for the segment’s products are direct to customers and third-party distributors. The segment serves a global customer base, with a strong presence in North America, Europe and Asia.
Power Reportable Segment
Our Power reportable segment engineers, designs, manufactures, installs and services evaporative and hybrid cooling systems, rotating and stationary heat exchangers, and pollution control systems for the power generation market, and transformers for the power transmission and distribution market. The primary distribution channels for the segment’s products are direct to customers and third-party representatives. The segment serves a global customer base, with a strong presence in North America, Europe, Asia Pacific, and South Africa.
Corporate Expense
Corporate expense generally relates to the cost of our Charlotte, NC corporate headquarters. Corporate expense for the three months ended March 28, 2015 also included costs related to our former Asia Pacific center in Shanghai, China, which was part of the Spin-Off, costs that were previously allocated to the FLOW Business that do not meet the requirements to be presented within discontinued operations, and the cost of corporate employees who became employees of SPX FLOW at the time of the Spin-Off.
Financial data for our reportable segments for the three months ended April 2, 2016 and March 28, 2015 are presented below:
 
Three months ended
 
April 2,
2016
 
March 28,
2015
Revenues:(1)
 

 
 

HVAC segment
$
111.6

 
$
107.7

Detection and Measurement segment
55.4

 
51.9

Power segment
222.3

 
216.7

Consolidated revenues
$
389.3

 
$
376.3

 
 
 
 
Income (Loss):
 

 
 

HVAC segment
$
15.9

 
$
12.9

Detection and Measurement segment
11.0

 
8.9

Power segment
(5.5
)
 
(11.4
)
Total income for segments
21.4

 
10.4

 
 
 
 
Corporate expense
(10.9
)
 
(30.7
)
Long-term incentive compensation expense
(2.8
)
 
(21.0
)
Pension and postretirement expense
(1.0
)
 
(0.5
)
Special charges, net
(0.3
)
 
(2.8
)
Impairment of intangible assets
(4.0
)
 
—

Gain on sale of dry cooling business
17.9

 
—

 
 
 
 
Consolidated operating income (loss)
$
20.3

 
$
(44.6
)
___________________________
(1) 
Under the percentage-of-completion method, we recognized revenues of $126.0 and $125.4 in the three months ended April 2, 2016 and March 28, 2015, respectively. Costs and estimated earnings in excess of billings on uncompleted contracts accounted for under the percentage-of-completion method were $90.6 and $106.3 as of April 2, 2016 and December 31, 2015, respectively, and are reported as a component of ‘‘Accounts receivable, net’’ in the condensed consolidated balance sheets. Billings in excess of costs and estimated earnings on uncompleted contracts accounted for under the percentage-of-completion method were $85.4 and $116.3 as of April 2, 2016 and December 31, 2015, respectively, and are reported as a component of ‘‘Accrued expenses’’ in the condensed consolidated balance sheets.