SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

SEGMENT INFORMATION

19. SEGMENT INFORMATION

The Corporation manages and evaluates its operations based on the products and services it offers and the different markets it serves. Based on this approach, the Corporation has three reportable segments: Flow Control, Controls, and Surface Technologies. The Flow Control segment primarily designs, manufactures, distributes, and services a broad range of highly engineered flow control products including valves, pumps, motors, generators, instrumentation, and control electronics for severe service military and commercial applications. The Controls segment primarily designs, develops, and manufactures mechanical systems, drive systems, and mission-critical embedded computing products and sensors mainly for the aerospace and defense industries. Surface Technologies provides various metallurgical services, principally shot peening, laser peening, coatings, anodizing, heat treating and analytical services. The segment provides these services to a broad spectrum of customers in various industries, including aerospace, automotive, construction equipment, oil and gas, petrochemical, and metal working.

The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies. Interest expense and income taxes are not reported on an operating segment basis because they are not considered in the segments’ performance evaluation by the Corporation’s CEO, its chief operating decision-maker.

	December 31,
(In thousands)	2013			2012			2011
Net sales
Flow Control	$	1,299,697		$	1,095,349		$	1,060,785
Controls	904,170			735,085			714,309
Surface Technologies	314,497			277,430			247,989
Less: Intersegment Revenues	(7,593		)	(10,148		)	(6,341		)
Total Consolidated	$	2,510,771		$	2,097,716		$	2,016,742

Operating income (expense)
Flow Control	$	116,510		$	78,779		$	103,421
Controls	108,558			86,515			75,423
Surface Technologies	50,992			27,494			31,476
Corporate and Eliminations (1)	(42,441		)	(31,342		)	(23,466		)
Total Consolidated	$	233,619		$	161,446		$	186,854

Depreciation and amortization expense
Flow Control	$	53,205	$	42,091	$	37,617
Controls	45,524		31,968		30,724
Surface Technologies	18,338		17,459		18,099
Corporate	4,430		2,378		1,860
Total Consolidated	$	121,497	$	93,896	$	88,300

Segment assets
Flow Control	$	1,581,357	$	1,417,047	$	1,257,142
Controls	1,517,773		1,365,112		1,016,935
Surface Technologies	309,473		302,079		286,084
Corporate	49,671		30,350		75,386
Total Consolidated	$	3,458,274	$	3,114,588	$	2,635,547

Capital expenditures
Flow Control	$	30,789	$	27,612	$	34,655
Controls	16,993		25,199		32,839
Surface Technologies	21,243		24,405		14,572
Corporate	3,217		5,738		2,256
Total Consolidated	$	72,242	$	82,954	$	84,322

(1) Corporate and Eliminations includes pension expense, environmental remediation and administrative expenses, legal, foreign currency transactional gains and losses, and other expenses.

Reconciliations

	December 31,
(In thousands)	2013			2012			2011
Earnings before taxes:
Total segment operating income	$	276,060		$	192,788		$	210,320
Corporate and administrative	(42,441		)	(31,342		)	(23,466		)
Interest expense	(37,020		)	(26,329		)	(20,834		)
Other income, net	1,354			245			862
Total consolidated earnings before tax	$	197,953		$	135,362		$	166,882

Assets:
Total assets for reportable segments	$	3,408,603	$	3,084,238	$	2,560,161
Non-segment cash	2,862		550		227
Other assets	46,809		29,800		75,159
Total consolidated assets	$	3,458,274	$	3,114,588	$	2,635,547

Geographic Information

	December 31,
(In thousands)	2013		2012		2011
Revenues
United States of America	$	1,773,108	$	1,451,166	$	1,409,353
United Kingdom	143,121		153,093		139,002
Canada	83,965		83,027		81,498
Other foreign countries	510,577		410,430		386,889
Consolidated total	$	2,510,771	$	2,097,716	$	2,016,742

Long-Lived Assets
United States of America	$	365,691	$	352,615	$	327,989
United Kingdom	43,434		43,341		38,859
Canada	27,975		31,740		31,914
Other foreign countries	78,618		61,897		43,966
Consolidated total	$	515,718	$	489,593	$	442,728