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Segments
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segments

18. Segments

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by the Chief Executive Officer, who is also the Company’s Chief Operating Decision Maker (“CODM”), for making decisions about the allocation of resources and assessing performance as the source of the Company’s reportable operating segments.

The Company has three reportable segments: Americas, EURAF, and MEAP. The Americas operating segment includes the North America and South America continents. The EURAF operating segment includes Europe and Africa continents, excluding the Middle East region. The MEAP operating segment includes the Asia and Australia continents and the Middle East region. The results of the acquired Aspen business are included in the Americas segment.

The CODM evaluates the performance of its reportable segments based on net sales and operating income. Segment net sales are recognized in the geographic region the product is sold. Operating income for each segment includes net sales to third parties, cost of sales directly attributable to the segment, and operating expenses directly attributable to the segment. Manufacturing variances generated within each operating segment are maintained in each segment’s operating income. Operating income for each segment excludes other income and expense and certain expenses managed outside the operating segments. Costs excluded from segment operating income include various corporate expenses such as stock-based compensation expenses, income taxes, nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany sales between segments for management reporting purposes. The Company’s operating segments were identified as its reportable segments.

The following table shows information by reportable segment for the three and nine months ended September 30, 2021 and 2020:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

190.6

 

 

$

150.7

 

 

$

516.0

 

 

$

456.5

 

EURAF

 

 

150.0

 

 

 

154.7

 

 

 

485.3

 

 

 

413.1

 

MEAP

 

 

63.9

 

 

 

50.2

 

 

 

221.1

 

 

 

143.5

 

Total

 

$

404.5

 

 

$

355.6

 

 

$

1,222.4

 

 

$

1,013.1

 

Segment Operating
   Income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

15.3

 

 

$

7.5

 

 

$

44.2

 

 

$

21.4

 

EURAF

 

 

(5.4

)

 

 

7.3

 

 

 

6.6

 

 

 

2.5

 

MEAP

 

 

6.5

 

 

 

7.8

 

 

 

23.1

 

 

 

20.7

 

Total

 

$

16.4

 

 

$

22.6

 

 

$

73.9

 

 

$

44.6

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

3.6

 

 

$

3.8

 

 

$

10.9

 

 

$

11.8

 

EURAF

 

 

4.9

 

 

 

4.1

 

 

 

14.8

 

 

 

11.8

 

MEAP

 

 

0.6

 

 

 

0.5

 

 

 

1.6

 

 

 

1.5

 

Corporate

 

 

0.7

 

 

 

0.8

 

 

 

2.2

 

 

 

2.2

 

Total

 

$

9.8

 

 

$

9.2

 

 

$

29.5

 

 

$

27.3

 

Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

Americas

 

$

2.9

 

 

$

0.9

 

 

$

5.8

 

 

$

2.4

 

EURAF

 

 

3.7

 

 

 

5.6

 

 

 

15.4

 

 

 

12.0

 

MEAP

 

 

0.3

 

 

 

0.8

 

 

 

1.0

 

 

 

0.9

 

Corporate

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

—

 

Total

 

$

6.9

 

 

$

7.3

 

 

$

22.3

 

 

$

15.3

 

 

A reconciliation of the Company’s segment operating income to operating income in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2021 and 2020 are summarized as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Segment operating income

 

$

16.4

 

 

$

22.6

 

 

$

73.9

 

 

$

44.6

 

Unallocated corporate expenses

 

 

(9.1

)

 

 

(7.2

)

 

 

(29.2

)

 

 

(25.1

)

Unallocated restructuring
   expense

 

 

—

 

 

 

(3.7

)

 

 

—

 

 

 

(3.7

)

Total operating income

 

$

7.3

 

 

$

11.7

 

 

$

44.7

 

 

$

15.8

 

Net sales by geographic area for the three and nine months ended September 30, 2021 and 2020 are summarized as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

United States

 

$

158.7

 

 

$

135.2

 

 

$

445.2

 

 

$

411.4

 

Europe

 

 

147.4

 

 

 

150.8

 

 

 

472.3

 

 

 

403.8

 

Other

 

 

98.4

 

 

 

69.6

 

 

 

304.9

 

 

 

197.9

 

Total net sales

 

$

404.5

 

 

$

355.6

 

 

$

1,222.4

 

 

$

1,013.1

 

 

Net sales by product for the three and nine months ended September 30, 2021 and 2020 are summarized as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

New equipment sales

 

$

304.2

 

 

$

260.2

 

 

$

898.6

 

 

$

737.9

 

Used equipment sales,
   aftermarket parts and
   other sales*

 

 

100.3

 

 

 

95.4

 

 

 

323.8

 

 

 

275.2

 

Total net sales

 

$

404.5

 

 

$

355.6

 

 

$

1,222.4

 

 

$

1,013.1

 

*Other sales consist of miscellaneous services such as training and field service work.