Segment Reporting

9 Months Ended

Apr. 30, 2018

Segment Reporting, Measurement Disclosures [Abstract]

Segment Reporting

Segment Reporting

The Company has identified two reportable segments: Engine Products and Industrial Products. Segment determination is based on the internal organization structure, management of operations and performance evaluation by management and the Company’s Board of Directors. Corporate and Unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest income and interest expense.

The Company has an internal measurement system to evaluate performance and allocate resources based on earnings before income taxes. The Company’s manufacturing facilities serve both reporting segments. Therefore, the Company uses an allocation methodology to assign costs and assets to the segments. A certain amount of costs and assets relate to general corporate purposes and are not assigned to either segment.

The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the earnings before income taxes and other financial information shown below.

Segment detail is summarized as follows (in millions):

	Three Months Ended April 30,						Nine Months Ended April 30,
	2018			2017			2018			2017
Net sales
Engine Products segment	$	472.3		$	405.6		$	1,356.8		$	1,121.4
Industrial Products segment	227.7			202.6			652.7			590.4
Total	$	700.0		$	608.2		$	2,009.5		$	1,711.8
Earnings before income taxes
Engine Products segment	$	67.8		$	63.1		$	185.9		$	157.2
Industrial Products segment	34.8			31.9			97.0			94.5
Corporate and Unallocated	(3.6		)	(10.7		)	(22.8		)	(21.4		)
Total	$	99.0		$	84.3		$	260.1		$	230.3

There were no customers that accounted for over 10% of net sales for the three or nine months ended April 30, 2018 or 2017. There were no customers that accounted for over 10% of gross accounts receivable as of April 30, 2018 or July 31, 2017.