| Segment Information |
Segment Information Beginning in the first quarter of 2013, the Controls segment (consisting of the Barksdale and Crane Environmental businesses) is now included in the Fluid Handling segment. Prior period amounts have been reclassified to the new reporting structure for comparative purposes. The Company’s segments are reported on the same basis used internally for evaluating performance and for allocating resources. The Company has four reporting segments: Aerospace & Electronics, Engineered Materials, Merchandising Systems, and Fluid Handling. In accordance with ASC Topic 280, “Segment Reporting”, for purposes of segment performance measurement, the Company does not allocate to the business segments items that are of a non-operating nature, including charges which occur from time to time related to the Company’s asbestos liability and its legacy environmental liabilities, as such items are not related to current business activities; or corporate organizational and functional expenses of a governance nature. “Corporate expenses-before asbestos and environmental charges” consist of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, deferred tax assets, insurance receivables, certain property, plant and equipment, and certain other assets. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices. Financial information by reportable segment is set forth below: | | | | | | | | | | | | | | (in thousands) | | 2013 |
| | 2012 |
| | 2011 |
| Aerospace & Electronics | | | | | | | Net sales | | $ | 693,783 |
| | $ | 701,208 |
| | $ | 677,663 |
| Operating profit | | 159,976 |
| | 156,015 |
| | 145,624 |
| Assets | | 511,676 |
| | 509,672 |
| | 514,240 |
| Goodwill | | 202,799 |
| | 203,595 |
| | 203,516 |
| Capital expenditures | | 6,523 |
| | 6,851 |
| | 15,049 |
| Depreciation and amortization | | 13,319 |
| | 14,713 |
| | 15,635 |
| Engineered Materials | | | | | | | Net sales | | $ | 232,298 |
| | $ | 216,503 |
| | $ | 220,071 |
| Operating profit(a) | | 34,347 |
| | 24,522 |
| | 29,754 |
| Assets | | 233,214 |
| | 237,478 |
| | 245,350 |
| Goodwill | | 171,553 |
| | 171,533 |
| | 171,489 |
| Capital expenditures | | 1,822 |
| | 2,163 |
| | 1,840 |
| Depreciation and amortization | | 6,020 |
| | 7,191 |
| | 7,959 |
| Merchandising Systems | | | | | | | Net sales | | $ | 380,576 |
| | $ | 371,901 |
| | $ | 373,907 |
| Operating profit(b) | | 34,822 |
| | 33,771 |
| | 30,337 |
| Assets | | 1,383,007 |
| | 408,702 |
| | 408,857 |
| Goodwill | | 635,759 |
| | 201,866 |
| | 197,719 |
| Capital expenditures | | 4,670 |
| | 4,263 |
| | 4,652 |
| Depreciation and amortization | | 17,537 |
| | 14,226 |
| | 15,283 |
| Fluid Handling | | | | | | | Net sales | | $ | 1,288,624 |
| | $ | 1,289,456 |
| | $ | 1,228,728 |
| Operating profit(c) | | 194,879 |
| | 160,980 |
| | 161,031 |
| Assets | | 996,101 |
| | 993,275 |
| | 973,427 |
| Goodwill | | 239,205 |
| | 236,798 |
| | 248,101 |
| Capital expenditures | | 16,296 |
| | 15,385 |
| | 12,761 |
| Depreciation and amortization | | 15,641 |
| | 19,411 |
| | 22,273 |
|
| | (a) | Includes restructuring charges of $2,338 in 2012. |
| | (b) | Includes acquisition related inventory and backlog amortization of $4,654 and acquisition costs of $1.1 million in 2013 both of which are associated with the acquisition of MEI and restructuring charges of $3,355 in 2012. |
| | (c) | Includes restructuring charges of $12,745 in 2012. |
Information by reportable segment (continued): | | | | | | | | | | | | | | (in thousands) | | 2013 |
| | 2012 |
| | 2011 |
| TOTAL NET SALES | | $ | 2,595,281 |
| | $ | 2,579,068 |
| | $ | 2,500,369 |
| Operating profit (loss) from Continuing Operations | | | | | | | Reporting segments | | $ | 424,024 |
| | $ | 375,288 |
| | $ | 366,746 |
| Corporate — before asbestos and environmental charges (a) (b) | | (76,148 | ) | | (64,847 | ) | | (58,201 | ) | Corporate expense — asbestos charge | | — |
| | — |
| | (241,647 | ) | Corporate expense — environmental charges | | — |
| | — |
| | (30,327 | ) | TOTAL OPERATING PROFIT FROM CONTINUING OPERATIONS | | $ | 347,876 |
| | $ | 310,441 |
| | $ | 36,571 |
| Interest income | | 1,867 |
| | 1,879 |
| | 1,635 |
| Interest expense | | (26,460 | ) | | (26,831 | ) | | (26,255 | ) | Miscellaneous — net | | 2,733 |
| | (884 | ) | | 2,810 |
| INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | | $ | 326,016 |
| | $ | 284,605 |
| | $ | 14,761 |
| Assets | | | | | | | Reporting segments | | $ | 3,123,998 |
| | $ | 2,149,127 |
| | $ | 2,141,874 |
| Corporate | | 435,609 |
| | 740,751 |
| | 701,657 |
| TOTAL ASSETS | | $ | 3,559,607 |
| | $ | 2,889,878 |
| | $ | 2,843,531 |
| Goodwill | | | | | | | Reporting segments | | $ | 1,249,316 |
| | $ | 813,792 |
| | $ | 820,824 |
| Capital expenditures | | | | | | | Reporting segments | | $ | 29,311 |
| | $ | 28,662 |
| | $ | 34,302 |
| Corporate | | 150 |
| | 646 |
| | 435 |
| TOTAL CAPITAL EXPENDITURES | | $ | 29,461 |
| | $ | 29,308 |
| | $ | 34,737 |
| Depreciation and amortization | | | | | | | Reporting segments | | $ | 52,517 |
| | $ | 55,541 |
| | $ | 61,151 |
| Corporate | | 2,320 |
| | 1,722 |
| | 1,792 |
| TOTAL DEPRECIATION AND AMORTIZATION | | $ | 54,837 |
| | $ | 57,263 |
| | $ | 62,943 |
|
(a) Includes $21,700 and $3,874 of acquisition costs associated with the acquisition of MEI in 2013 and 2012, respectively. (b) Includes restructuring charges of $25 in 2012. Information by geographic region: | | | | | | | | | | | | | | (in thousands) December 31, | | 2013 |
| | 2012 |
| | 2011 |
| Net sales* | | | | | | | United States | | $ | 1,522,988 |
| | $ | 1,522,135 |
| | $ | 1,419,662 |
| Canada | | 292,688 |
| | 299,955 |
| | 271,825 |
| Europe | | 634,425 |
| | 612,163 |
| | 656,816 |
| Other international | | 145,180 |
| | 144,815 |
| | 152,066 |
| TOTAL NET SALES | | $ | 2,595,281 |
| | $ | 2,579,068 |
| | $ | 2,500,369 |
| Assets* | | | | | | | United States | | $ | 1,692,799 |
| | $ | 1,165,233 |
| | $ | 1,203,644 |
| Canada | | 206,113 |
| | 219,770 |
| | 211,663 |
| Europe | | 755,970 |
| | 634,711 |
| | 615,200 |
| Other international | | 469,116 |
| | 129,413 |
| | 111,367 |
| Corporate | | 435,609 |
| | 740,751 |
| | 701,657 |
| TOTAL ASSETS | | $ | 3,559,607 |
| | $ | 2,889,878 |
| | $ | 2,843,531 |
|
* Net sales and assets by geographic region are based on the location of the business unit. |