Segment Reporting

9 Months Ended

Apr. 30, 2019

Segment Reporting, Measurement Disclosures [Abstract]

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 elected to be non-allocable to the segments, such as interest expense.

The Company has an internal measurement system to evaluate performance and allocate resources. The Company’s manufacturing facilities serve both reporting segments. Therefore, the Company uses an allocation methodology to assign costs and assets to the segments. Segment assets assigned are primarily accounts receivable, inventories, property, plant and equipment and goodwill.

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,
	2019			2018			2019			2018
Net sales
Engine Products segment	$	489.4		$	472.3		$	1,439.3		$	1,356.8
Industrial Products segment	223.4			227.7			678.6			652.7
Total	$	712.8		$	700.0		$	2,117.9		$	2,009.5

Earnings before income taxes ⁽¹⁾
Engine Products segment	$	71.5		$	67.3		$	188.6		$	183.9
Industrial Products segment	32.7			34.4			101.5			95.7
Corporate and Unallocated	(4.7		)	(2.7		)	(13.7		)	(19.5		)
Total	$	99.5		$	99.0		$	276.4		$	260.1


(1)	Prior period amounts have been reclassified to conform with the adoption of ASU 2017-07. Refer to Note 1 for further information on the adoption.

There were no customers that accounted for over 10% of net sales for the three and nine months ended April 30, 2019 or 2018. There were no customers that accounted for over 10% of gross accounts receivable as of April 30, 2019 or July 31, 2018.