Business Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

Our business segments, defined below, share a focus on industrial flow control technology and have a high number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively.

We conduct our operations through these three business segments based on type of product and how we manage the business:

• EPD for long lead time, custom and other highly-engineered pumps and pump systems, mechanical seals, auxiliary systems and replacement parts and related services;

• IPD for engineered and pre-configured industrial pumps and pump systems and related products and services; and

• FCD for engineered and industrial valves, control valves, actuators and controls and related services.

For decision-making purposes, our Chief Executive Officer ("CEO") and other members of senior executive management use financial information generated and reported at the reportable segment level. Our corporate headquarters does not constitute a separate division or business segment. On January 11, 2012, a new unified operational leadership structure was announced resulting in the creation of a Chief Operating Officer position. The creation of this position did not impact how we have defined the above three business segments or our assessment of our CEO as the chief operating decision maker.

We evaluate segment performance and allocate resources based on each reportable segment’s operating income. Amounts classified as "Eliminations and All Other" include corporate headquarters costs and other minor entities that do not constitute separate segments. Intersegment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation.

The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2013, 2012 and 2011 reconciled to the amounts reported in the consolidated financial statements.

							Subtotal—Reportable Segments		Eliminations and All Other(1)			Consolidated Total
	EPD		IPD		FCD
	(Amounts in thousands)
Year Ended December 31, 2013:
Sales to external customers		$2,473,731	$	873,389	$	1,607,499	$	4,954,619	$	—		$	4,954,619
Intersegment sales	63,365		76,779		8,213		148,357		(148,357		)	—
Segment operating income	423,339		115,658		307,967		846,964		(86,681		)	760,283
Depreciation and amortization	46,494		14,122		36,590		97,206		9,186			106,392
Identifiable assets	2,260,961		827,155		1,520,085		4,608,201		428,532			5,036,733
Capital expenditures	75,379		17,445		40,205		133,029		6,061			139,090

							Subtotal—Reportable Segments		Eliminations and All Other(1)			Consolidated Total
	EPD		IPD		FCD
	(Amounts in thousands)
Year Ended December 31, 2012:
Sales to external customers	$	2,338,527	$	863,941	$	1,548,871	$	4,751,339	$	—		$	4,751,339
Intersegment sales	64,621		89,957		8,206		162,784		(162,784		)	—
Segment operating income	396,082		99,526		253,398		749,006		(73,228		)	675,778
Depreciation and amortization	48,007		13,408		36,418		97,833		9,393			107,226
Identifiable assets	2,223,791		745,276		1,485,686		4,454,753		356,205			4,810,958
Capital expenditures	64,038		17,351		46,239		127,628		7,911			135,539

							Subtotal—Reportable Segments		Eliminations and All Other(1)			Consolidated Total
	EPD		IPD		FCD
	(Amounts in thousands)
Year Ended December 31, 2011:
Sales to external customers	$	2,239,405	$	802,864	$	1,467,932	$	4,510,201	$	—		$	4,510,201
Intersegment sales	81,978		75,337		5,414		162,729		(162,729		)	—
Segment operating income	395,184		62,906		233,329		691,419		(72,742		)	618,677
Depreciation and amortization	41,199		13,864		40,912		95,975		11,586			107,561
Identifiable assets	2,055,600		740,179		1,406,531		4,202,310		420,304			4,622,614
Capital expenditures	44,714		12,834		43,797		101,345		6,622			107,967

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(1) The changes in identifiable assets for "Eliminations and All Other" in 2013, 2012 and 2011 are primarily a result of changes in cash balances.

Geographic Information — We attribute sales to different geographic areas based on the facilities’ locations. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes, goodwill and intangible assets. Prior period information has been updated to conform to current year presentation. Sales and long-lived assets by geographic area are as follows:

	Year Ended December 31, 2013
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,699,053	34.3	%	$	374,125	41.5	%
EMA(1)	2,102,428		42.4	%	287,071		31.8	%
Asia(2)	552,383		11.2	%	124,619		13.8	%
Other(3)	600,755		12.1	%	115,904		12.9	%
Consolidated total	$	4,954,619	100.0	%	$	901,719	100.0	%

	Year Ended December 31, 2012
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,597,737	33.6	%	$	332,667	39.6	%
EMA(1)	2,054,809		43.2	%	273,274		32.5	%
Asia(2)	548,589		11.6	%	122,911		14.6	%
Other(3)	550,204		11.6	%	111,257		13.3	%
Consolidated total	$	4,751,339	100.0	%	$	840,109	100.0	%

	Year Ended December 31, 2011
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,507,209	33.4	%	$	314,405	40.9	%
EMA(1)	1,954,212		43.3	%	262,083		34.1	%
Asia(2)	517,375		11.5	%	99,278		12.9	%
Other(3)	531,405		11.8	%	92,092		12.1	%
Consolidated total	$	4,510,201	100.0	%	$	767,858	100.0	%

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(1) "EMA" includes Europe, the Middle East and Africa. No individual country within this group represents 10% or more of consolidated totals for any period presented.

(2) "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented.

(3) "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented.

Net sales to international customers, including export sales from the U.S., represented approximately 71% of total sales in 2013, 71% in 2012 and 73% in 2011.

Major Customer Information — We have a large number of customers across a large number of manufacturing and service facilities and do not believe that we have sales to any individual customer that represent 10% or more of consolidated sales for any of the years presented.