Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Information

17. Segment Information

The Company's businesses are aligned around its key end markets to better focus on growth strategies, provide increased opportunities to leverage Dover's scale and capitalize on productivity initiatives. Operating segments are defined as the components of an enterprise for which separate financial information is available and regularly evaluated by the entity's chief operating decision maker, or decision-making group, in making resource allocation decisions and evaluating performance. Based on this guidance, the Company has four operating segments, which are also its reportable segments, as follows:

• The Engineered Systems segment is comprised of two platforms, Printing & Identification and Industrials, and is focused on the design, manufacture and service of critical equipment, consumables and components serving the fast-moving consumer goods, digital textile printing, vehicle service, environmental solutions and industrials end markets.

• The Fluids segment, serving the Fueling & Transport, Pumps and Hygienic & Pharma end markets, is focused on the safe handling of critical fluids across the retail fueling, chemical, hygienic, oil and gas and industrial end markets. In the first quarter of 2017, we aligned our financial reporting around these key end markets to provide more detailed information after acquiring four companies in the retail fueling market in 2016.

• The Refrigeration & Food Equipment segment is a provider of innovative and energy efficient equipment and systems serving the commercial Refrigeration and Food Equipment end markets.

• The Energy segment, serving the Drilling & Production, Bearings & Compression and Automation end markets, is a provider of customer-driven solutions and services for safe and efficient production and processing of fuels worldwide and has a strong presence in the bearings and compression components and automation markets.

Segment financial information and a reconciliation of segment results to consolidated results follows:

	Years Ended December 31,
	2017			2016			2015
Revenue:
Engineered Systems	$	2,576,288		$	2,366,283		$	2,342,913
Fluids	2,250,830			1,700,574			1,399,273
Refrigeration & Food Equipment	1,599,105			1,620,339			1,731,430
Energy	1,406,201			1,108,438			1,483,680
Intra-segment eliminations	(1,988		)	(1,292		)	(985		)
Total consolidated revenue	$	7,830,436		$	6,794,342		$	6,956,311
Earnings:
Segment earnings: (1)
Engineered Systems	$	590,430		$	391,829		$	376,961
Fluids	305,108			200,921			262,117
Refrigeration & Food Equipment	193,822			283,628			221,299
Energy	188,427			55,336			173,190
Total segment earnings	1,277,787			931,714			1,033,567
Corporate expense / other (2)	167,238			112,740			105,700
Interest expense	145,208			136,401			131,676
Interest income	(8,502		)	(6,759		)	(4,419		)
Earnings before provision for income taxes	973,843			689,332			800,610
Provision for income taxes	162,178			180,440			204,729
Net earnings	$	811,665		$	508,892		$	595,881
Segment margins:
Engineered Systems	22.9		%	16.6		%	16.1		%
Fluids	13.6		%	11.8		%	18.7		%
Refrigeration & Food Equipment	12.1		%	17.5		%	12.8		%
Energy	13.4		%	5.0		%	11.7		%
Total Segments	16.3		%	13.7		%	14.9		%
Net earnings	10.4		%	7.5		%	8.6		%
Depreciation and amortization:
Engineered Systems	$	81,419		$	73,947		$	59,914
Fluids	120,120			85,224			56,078
Refrigeration & Food Equipment	57,207			65,017			66,074
Energy	130,996			131,420			141,779
Corporate	4,498			5,131			3,244
Consolidated total	$	394,240		$	360,739		$	327,089
Capital expenditures:
Engineered Systems	$	35,028		$	31,121		$	37,109
Fluids	81,080			62,368			45,605
Refrigeration & Food Equipment	32,541			23,651			33,511
Energy	40,061			32,938			33,692
Corporate	8,025			15,127			4,334
Consolidated total	$	196,735		$	165,205		$	154,251

(1) Segment earnings includes non-operating income and expense directly attributable to the segments. Non-operating income and expense includes Gain on sale of businesses and Other expense (income), net.

(2) Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses and various administrative expenses relating to the corporate headquarters. For the year ended December 31, 2017, one-time transaction costs associated with the Wellsite spin-off were $15.3 million.

Selected financial information by market segment (continued): 

Total assets at December 31:	2017		2016
Engineered Systems	$	2,985,920	$	3,002,629
Fluids	3,163,767		3,134,838
Refrigeration & Food Equipment	1,284,117		1,324,037
Energy	2,250,721		2,209,230
Corporate (3)	973,128		445,257
Consolidated total	$	10,657,653	$	10,115,991

(3) The significant portion of corporate assets are principally Cash and cash equivalents.

	Revenue						Long-Lived Assets
	Years Ended December 31,						At December 31,
	2017		2016		2015		2017		2016
United States	$	4,424,030	$	3,910,733	$	4,270,061	$	658,109	$	640,802
Europe	1,504,798		1,261,232		1,059,413		238,942		211,238
Other Americas	735,368		594,838		637,533		40,334		28,288
Asia	774,918		675,995		626,761		57,016		56,614
Other	391,322		351,544		362,543		5,371		8,728
Consolidated total	$	7,830,436	$	6,794,342	$	6,956,311	$	999,772	$	945,670

Revenue is attributed to regions based on the location of the Company’s customer, which in some instances is an intermediary and not necessarily the end user. Long-lived assets are comprised of net property, plant and equipment. The Company’s businesses are based primarily in the United States, Europe and Asia. The Company’s businesses serve thousands of customers, none of which accounted for more than 10% of consolidated revenue.