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Business Segment Information | 12 Months Ended
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Dec. 31, 2023
Segment Reporting [Abstract] |
Business Segment Information |
18. | Business Segment Information
We aggregate our operating businesses into two reportable segments, Sealing Technologies and Advanced Surface Technologies. Factors considered in determining our reportable segments include the economic similarity of the businesses, the nature of products sold, or solutions provided, the production processes and the types of customers and distribution methods. Our Sealing Technologies segment engineers and manufactures value-added products and solutions that safeguard a variety of critical environments, including: metallic, non-metallic and composite material gaskets; dynamic seals; compression packing; elastomeric components; custom-engineered mechanical seals used in diverse applications; hydraulic components; test, measurement and sensing applications; sanitary gaskets; hoses and fittings for hygienic process industries; fluid transfer products for the pharmaceutical and biopharmaceutical industries; and commercial vehicle solutions used in wheel-end and suspension components that customers rely upon to ensure safety on our roadways. These products are used in a variety of markets, including chemical and petrochemical processing, nuclear energy, hydrogen, natural gas, food and biopharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, commercial vehicle, aerospace (including commercial space), medical, filtration and semiconductor fabrication. In all these industries, the performance and durability of our proprietary products and solutions are vital for the safety and environmental protection of our customers’ processes. Many of our products and solutions are used in highly demanding applications, often in harsh environments, where the cost of failure is extremely high relative to the cost of our offerings to our customers. These environments include those where extreme temperatures, extreme pressures, corrosive agents, strict tolerances, or worn equipment create challenges for product performance. Sealing Technologies offers customers widely recognized applied engineering, innovation, process know- how and enduring reliability, driving a lasting aftermarket for many of our products and solutions. Our Advanced Surface Technologies (AST) segment applies proprietary technologies, processes, and capabilities to deliver a highly differentiated suite of products and solutions for challenging applications in high-growth markets. The segment’s products and solutions are used in demanding environments requiring performance, precision and repeatability, with a low tolerance for failure. AST’s products and solutions include: (i) cleaning, coating, testing, refurbishment and verification for critical components and assemblies used in semiconductor manufacturing equipment, with meaningful exposures to state-of-the-art advanced node chip applications; (ii) designing, manufacturing and selling specialized optical filters and proprietary thin-film coatings for the most challenging applications in the industrial technology, life sciences, and semiconductor markets; (iii) engineering and manufacturing complex front-end wafer processing sub-systems and new and refurbished electrostatic chuck pedestals for the semiconductor equipment industry; and (iv) engineering and manufacturing edge-welded metal bellows for the semiconductor equipment industry and critical applications in the space, aerospace and defense markets. In many instances, AST capabilities drive products and solutions that enable the performance of our customers’ high-value processes through an entire life cycle. We measure operating performance based on segment earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted Segment EBITDA"), which is segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring costs, impairment charges, non-controlling interest compensation, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization. Adjusted Segment EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies. Corporate expenses include general corporate administrative costs. Expenses not directly attributable to the segments, corporate expenses, net interest expense, gains and losses related to the sale of assets, and income taxes are not included in the computation of Adjusted Segment EBITDA. The accounting policies of the reportable segments are the same as those for Enpro. Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisitions of LeanTeq and Alluxa being subject to reduction for certain types of employment terminations of the sellers. This expense was recorded in selling, general, and administrative expenses on our Consolidated Statements of Operations and is directly related to the terms of the acquisitions. In the fourth quarter of 2022, Enpro acquired all of the LeanTeq non-controlling interests. Segment operating results and other financial data for the years ended December 31, 2023, 2022, and 2021 were as follows:
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in millions)
Sales |  |  |  |  |
Sealing Technologies | $ | 658.4 |  |  | $ | 624.3 |  |  | $ | 599.8 |
Advanced Surface Technologies | 401.2 |  |  | 476.1 |  |  | 247.3 |
| 1,059.6 |  |  | 1,100.4 |  |  | 847.1 |
Intersegment sales | (0.3) |  |  | (1.2) |  |  | (6.7) |
Total sales | $ | 1,059.3 |  |  | $ | 1,099.2 |  |  | $ | 840.4 |
Adjusted Segment EBITDA |  |  |  |  |
Sealing Technologies | $ | 192.3 |  |  | $ | 159.1 |  |  | $ | 141.9 |
Advanced Surface Technologies | 95.5 |  |  | 141.5 |  |  | 73.2 |
Total Adjusted Segment EBITDA | $ | 287.8 |  |  | $ | 300.6 |  |  | $ | 215.1 |
Reconciliation of Adjusted Segment EBITDA to income from continuing operations before income taxes |  |  |  |  |
Income from continuing operations before income taxes | $ | 37.7 |  |  | $ | 28.3 |  |  | $ | 66.0 |
Acquisition and divestiture expenses | 1.1 |  |  | 0.5 |  |  | 0.4 |
Non-controlling interest compensation allocation | (0.3) |  |  | (0.6) |  |  | 5.3 |
Amortization of fair value adjustment to acquisition date inventory | — |  |  | 13.3 |  |  | 9.9 |
Restructuring and impairment expense | 4.0 |  |  | 1.9 |  |  | 2.4 |
Depreciation and amortization expense | 94.3 |  |  | 102.8 |  |  | 63.5 |
Corporate expenses | 49.5 |  |  | 47.0 |  |  | 64.9 |
Interest expense, net | 30.1 |  |  | 33.9 |  |  | 13.7 |
Goodwill impairment | 60.8 |  |  | 65.2 |  |  | — |
Other expense (income), net | 10.6 |  |  | 8.3 |  |  | (11.0) |
Adjusted Segment EBITDA | $ | 287.8 |  |  | $ | 300.6 |  |  | $ | 215.1 |
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in millions)
Net Sales by Geographic Area |  |  |  |  |
United States | $ | 640.3 |  |  | $ | 687.4 |  |  | $ | 445.7 |
Europe | 149.6 |  |  | 139.7 |  |  | 132.7 |
Other foreign | 269.4 |  |  | 272.1 |  |  | 262.0 |
Total | $ | 1,059.3 |  |  | $ | 1,099.2 |  |  | $ | 840.4 |
Net sales are attributed to countries based on location of the customer. Due to the diversified nature of our business and the wide array of products that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third-party sales by major end market with which we did business for the years ended December 31, 2023, 2022 and 2021:
| Year Ended December 31, 2023
| (in millions)
| Sealing Technologies |  | Advanced Surface Technologies |  | Total
Aerospace | $ | 47.5 |  |  | $ | 10.8 |  |  | $ | 58.3 |
Chemical and material processing | 84.6 |  |  | — |  |  | 84.6 |
Food and pharmaceutical | 65.4 |  |  | — |  |  | 65.4 |
General industrial | 151.6 |  |  | 19.8 |  |  | 171.4 |
Commercial vehicle | 198.4 |  |  | — |  |  | 198.4 |
Oil and gas | 19.8 |  |  | 8.0 |  |  | 27.8 |
Power generation | 68.3 |  |  | — |  |  | 68.3 |
Semiconductors | 8.3 |  |  | 355.2 |  |  | 363.5 |
Other | 14.5 |  |  | 7.1 |  |  | 21.6 |
Total third-party sales | $ | 658.4 |  |  | $ | 400.9 |  |  | $ | 1,059.3 |
| Year Ended December 31, 2022
| (in millions)
| Sealing Technologies |  | Advanced Surface Technologies |  | Total
Aerospace | $ | 41.2 |  |  | $ | 6.1 |  |  | $ | 47.3 |
Chemical and material processing | 77.6 |  |  | — |  |  | 77.6 |
Food and pharmaceutical | 70.8 |  |  | — |  |  | 70.8 |
General industrial | 162.3 |  |  | 28.4 |  |  | 190.7 |
Commercial vehicle | 191.2 |  |  | — |  |  | 191.2 |
Oil and gas | 21.4 |  |  | 5.2 |  |  | 26.6 |
Power generation | 43.1 |  |  | 0.1 |  |  | 43.2 |
Semiconductors | 6.1 |  |  | 430.9 |  |  | 437.0 |
Other | 9.7 |  |  | 5.1 |  |  | 14.8 |
Total third-party sales | $ | 623.4 |  |  | $ | 475.8 |  |  | $ | 1,099.2 |
| Year Ended December 31, 2021
| (in millions)
| Sealing Technologies |  | Advanced Surface Technologies |  | Total
Aerospace | $ | 32.1 |  |  | $ | 9.8 |  |  | $ | 41.9 |
Chemical and material processing | 72.5 |  |  | — |  |  | 72.5 |
Food and pharmaceutical | 65.1 |  |  | — |  |  | 65.1 |
General industrial | 161.8 |  |  | 25.7 |  |  | 187.5 |
Commercial vehicle | 174.3 |  |  | — |  |  | 174.3 |
Oil and gas | 19.0 |  |  | 4.6 |  |  | 23.6 |
Power generation | 43.6 |  |  | 0.2 |  |  | 43.8 |
Semiconductors | 14.6 |  |  | 203.6 |  |  | 218.2 |
Other | 10.2 |  |  | 3.3 |  |  | 13.5 |
Total third-party sales | $ | 593.2 |  |  | $ | 247.2 |  |  | $ | 840.4 |
Sales to one customer of our Sealing Technologies and Advanced Surface Technologies segments represented approximately $270.3 million, $296.5 million, and $166.4 million of our consolidated sales for the years ended December 31, 2023, 2022, and 2021, respectively.
| Years Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in millions)
Capital Expenditures |  |  |  |  |
Sealing Technologies | $ | 17.1 |  |  | $ | 8.2 |  |  | $ | 6.3 |
Advanced Surface Technologies | 16.8 |  |  | 21.2 |  |  | 8.6 |
Total capital expenditures | $ | 33.9 |  |  | $ | 29.4 |  |  | $ | 14.9 |
Depreciation and Amortization Expense |  |  |  |  |
Sealing Technologies | $ | 25.1 |  |  | $ | 26.1 |  |  | $ | 30.6 |
Advanced Surface Technologies | 69.2 |  |  | 76.7 |  |  | 32.9 |
Corporate | 0.2 |  |  | 0.3 |  |  | 0.3 |
Total depreciation and amortization | $ | 94.5 |  |  | $ | 103.1 |  |  | $ | 63.8 |
| As of December 31,
| 2023 |  | 2022
| (in millions)
Assets |  |  |
Sealing Technologies | $ | 687.1 |  |  | $ | 689.6 |
Advanced Surface Technologies | 1,385.9 |  |  | 1,519.6 |
Corporate | 426.5 |  |  | 422.7 |
Discontinued Operations | — |  |  | 15.9 |
| $ | 2,499.5 |  |  | $ | 2,647.8 |
Long-Lived Assets |  |  |
United States | $ | 154.9 |  |  | $ | 152.7 |
France | 7.9 |  |  | 7.4 |
Other Europe | 1.2 |  |  | 0.9 |
Other foreign | 29.8 |  |  | 24.2 |
Total | $ | 193.8 |  |  | $ | 185.2 |
Corporate assets include all of our cash and cash equivalents and long-term deferred income taxes. Long-lived assets consist of property, plant and equipment.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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