SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2018

The Company’s business consists of the Water Systems, Distribution, and Fueling Systems reportable segments, based on the principal end market served. Within the Water Systems segment, North America Water Systems and International Water Systems have been identified as operating segments. For reportable segment purposes, the Company aggregates North America Water Systems and International Water Systems into the Water Systems segment, as they meet the aggregation criteria in FASB ASC 280. The Company includes unallocated corporate expenses and inter-company eliminations in an “Intersegment Eliminations/Other” segment that together with the Water Systems, Distribution, and Fueling Systems segments, represent the Company.

The Water Systems segment designs, manufactures and sells motors, pumps, electronic controls and related parts and equipment primarily for use in submersible water and other fluid system applications. The Fueling Systems segment designs, manufactures and sells pumps, electronic controls and related parts and equipment primarily for use in submersible fueling system applications. The Fueling Systems segment integrates and sells motors and electronic controls produced by the Water Systems segment. The Distribution segment sells to and provides pre sale support and specifications to the installing contractors. The Distribution segment sells products produced by the Water Systems segment. In the prior year, the Company reported certain product transfers between Water and Fueling as intersegment revenue. The Company is now reporting these product transfers between Water and Fueling as inventory transfers as a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Company continues to report intersegment transfers from Water to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water and Distribution segments. Segment operating income is a key financial performance measure. Operating income by segment is based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other segments of the Company. The Company has retrospectively revised segment results in prior periods to conform with current period presentations. There is no impact on the Company's previously reported consolidated financial position, results of operations, or cash flows.

The accounting policies of the Company’s reportable segments are the same as those described in Note 1 (Summary of Significant Accounting Policies). Performance is evaluated based on the sales and operating income of the segments and a variety of ratios to measure performance. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented.

Financial information by reportable business segment is included in the following summary:



Net Sales
(In millions)	2018			2017			2016
Water Systems
External sales
United States & Canada	$	354.1		$	308.5		$	343.1
Latin America	120.9			130.0			127.5
Europe, Middle East & Africa	184.3			177.7			167.3
Asia Pacific	81.0			86.3			85.3
Intersegment sales
United States & Canada	56.2			40.8			—
Total sales	796.5			743.3			723.2
Distribution
External sales
United States & Canada	269.6			176.7			—
Intersegment sales	—			—			—
Total sales	269.6			176.7			—
Fueling Systems
External sales
United States & Canada	160.5			145.4			139.3
All other	127.7			100.3			87.4
Intersegment sales	—			—			—
Total Sales	288.2			245.7			226.7

Intersegment Eliminations/Other	(56.2		)	(40.8		)	—
Consolidated	$	1,298.1		$	1,124.9		$	949.9

Operating income (loss)
	2018			2017			2016
Water Systems	$	112.9		$	102.0		$	108.2
Distribution	3.4			3.7			—
Fueling Systems	70.4			60.0			56.3
Intersegment Eliminations/Other	(54.7		)	(58.5		)	(52.4		)
Consolidated	$	132.0		$	107.2		$	112.1



	Total assets						Depreciation
	2018		2017		2016		2018		2017		2016
Water Systems	$	679.7	$	695.4	$	671.5	$	20.4	$	20.9	$	19.5
Distribution	165.1		153.1		—		2.2		1.3		—
Fueling Systems	275.7		265.7		251.1		2.2		2.2		2.3
Other	61.9		71.2		117.3		4.9		5.5		5.3
Consolidated	$	1,182.4	$	1,185.4	$	1,039.9	$	29.7	$	29.9	$	27.1

	Amortization						Capital expenditures
	2018		2017		2016		2018		2017		2016
Water Systems	$	6.5	$	6.2	$	6.4	$	18.2	$	19.1	$	31.8
Distribution	0.5		0.4		—		2.0		1.1		—
Fueling Systems	1.8		1.9		1.9		2.2		11.0		2.1
Other	0.1		0.1		0.1		1.0		2.2		3.7
Consolidated	$	8.9	$	8.6	$	8.4	$	23.4	$	33.4	$	37.6

Property, plant and equipment is the major asset group in “Other” of total assets for the fiscal years end December 31, 2018 and December 31, 2017. Cash is the major asset group in “Other” of total assets for the fiscal year ended December 31, 2016.

Financial information by geographic region is as follows:



	Net sales						Long-lived assets
(In millions)	2018		2017		2016		2018		2017		2016
United States	$	738.2	$	596.6	$	446.9	$	372.6	$	326.1	$	349.2
Foreign	559.9		528.3		503.0		221.2		261.2		202.3
Consolidated	$	1,298.1	$	1,124.9	$	949.9	$	593.8	$	587.3	$	551.5

Net sales are attributed to geographic regions based upon the ship to location of the customer. Long-lived assets are attributed to geographic regions based upon the country of domicile.

The Company offers a large array of products and systems to multiple markets and customers. Product sales information is tracked regionally and products are categorized differently between regions based on local needs and reporting requirements. However, net sales by segment are representative of the Company’s sales by major product category. The Company sells its products through various distribution channels including wholesale and retail distributors, specialty distributors, industrial and petroleum equipment distributors, as well as major oil and utility companies and original equipment manufacturers.

No single customer accounted for more than 10 percent of the Company’s consolidated sales in 2018, 2017, or 2016. No single customer accounted for more than 10 percent of the Company’s gross accounts receivable in 2018 or 2017.