SEGMENT INFORMATION |
20. 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 Chairman and CEO, its chief operating decision-maker. During 2012, 2011, and 2010, the Corporation had no direct defense customer or commercial customer representing more than 10% of consolidated revenue. | | | December 31, | (In thousands) | | 2012 | | | 2011 | | | 2010 | | | | | | | | | | | Net sales | | | | | | | | | | Flow Control | | $ | 1,095,349 | | $ | 1,060,785 | | $ | 1,024,860 | Controls | | | 735,085 | | | 714,309 | | | 645,587 | Surface Technologies | | | 277,430 | | | 247,989 | | | 190,982 | Less: Intersegment Revenues | | | (10,148) | | | (6,341) | | | (6,916) | Total Consolidated | | $ | 2,097,716 | | $ | 2,016,742 | | $ | 1,854,513 |
Operating income (expense) | | | | | | | | | | Flow Control | | $ | 78,779 | | $ | 103,421 | | $ | 104,391 | Controls | | | 86,515 | | | 75,423 | | | 74,173 | Surface Technologies | | | 27,494 | | | 31,476 | | | 18,941 | Corporate and Eliminations (1) | | | (31,342) | | | (23,466) | | | (30,820) | Total Consolidated | | $ | 161,446 | | $ | 186,854 | | $ | 166,685 |
Depreciation and amortization expense | | | | | | | | | | Flow Control | | $ | 42,091 | | $ | 37,617 | | $ | 35,086 | Controls | | | 31,968 | | | 30,724 | | | 27,903 | Surface Technologies | | | 17,459 | | | 18,099 | | | 15,498 | Corporate | | | 2,378 | | | 1,860 | | | 1,459 | Total Consolidated | | $ | 93,896 | | $ | 88,300 | | $ | 79,946 |
Segment assets | | | | | | | | | | Flow Control | | $ | 1,417,047 | | $ | 1,257,142 | | $ | 1,102,417 | Controls | | | 1,365,112 | | | 1,016,935 | | | 864,197 | Surface Technologies | | | 302,079 | | | 286,084 | | | 233,356 | Corporate | | | 30,350 | | | 75,386 | | | 33,171 | Total Consolidated | | $ | 3,114,588 | | $ | 2,635,547 | | $ | 2,233,141 |
Capital expenditures | | | | | | | | | | Flow Control | | $ | 27,612 | | $ | 34,655 | | $ | 18,795 | Controls | | | 25,199 | | | 32,839 | | | 17,967 | Surface Technologies | | | 24,405 | | | 14,572 | | | 13,884 | Corporate | | | 5,738 | | | 2,256 | | | 2,123 | Total Consolidated | | $ | 82,954 | | $ | 84,322 | | $ | 52,769 | | | | | | | | | | | (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) | | 2012 | | | 2011 | | | 2010 | | | | | | | | | | | Earnings before taxes: | | | | | | | | | | Total segment operating income | | $ | 192,788 | | $ | 210,320 | | $ | 197,505 | Corporate and administrative | | | (31,342) | | | (23,466) | | | (30,820) | Interest expense | | | (26,329) | | | (20,834) | | | (22,107) | Other income, net | | | 245 | | | 862 | | | 575 | Total consolidated earnings before tax | | $ | 135,362 | | $ | 166,882 | | $ | 145,153 | | | | | | | | | | |
Assets: | | | | | | | | | | Total assets for reportable segments | | $ | 3,084,238 | | $ | 2,560,161 | | $ | 2,199,970 | Non-segment cash | | | 550 | | | 227 | | | 299 | Other assets | | | 29,800 | | | 75,159 | | | 32,872 | Total consolidated assets | | $ | 3,114,588 | | $ | 2,635,547 | | $ | 2,233,141 | | | | | | | | | | |
Geographic Information | | | | | | | | | | | | | December 31, | (In thousands) | | 2012 | | | 2011 | | | 2010 | | | | | | | | | | | Revenues | | | | | | | | | | United States of America | | $ | 1,451,166 | | $ | 1,409,353 | | $ | 1,302,133 | United Kingdom | | | 153,093 | | | 139,002 | | | 115,331 | Canada | | | 83,027 | | | 81,498 | | | 58,855 | Other foreign countries | | | 410,430 | | | 386,889 | | | 378,194 | Consolidated total | | $ | 2,097,716 | | $ | 2,016,742 | | $ | 1,854,513 |
Long-Lived Assets | | | | | | | | | | United States of America | | $ | 352,615 | | $ | 327,989 | | $ | 284,717 | United Kingdom | | | 43,341 | | | 38,859 | | | 39,479 | Canada | | | 31,740 | | | 31,914 | | | 33,578 | Other foreign countries | | | 61,897 | | | 43,966 | | | 39,188 | Consolidated total | | $ | 489,593 | | $ | 442,728 | | $ | 396,962 |
|