SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

Sep. 30, 2019

The accounting policies of the operating segments are the same as those described in Note 1 of the Company's Form 10-K. Revenue is recognized based on the invoice price at the point in time when the customer obtains control of the product, which is typically upon shipment to the customer. The Water and Fueling segments include manufacturing operations and supply certain components and finished goods, both between segments and to the Distribution segment. The Company reports 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 reports 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. During the first quarter of 2019, the Company changed management reporting for transfers of certain products between the Water and Fueling segments. This reclassification resulted in $1.0 million of sales and $0.0 million of operating income for the third quarter ended September 30, 2018 and $2.8 million of sales and $0.2 million of operating income for the nine months ended September 30, 2018 being reclassified between the Fueling segment and the Water segment. Additionally, the changes to management reporting had an impact on how the Company reviews and summarizes sales of geographical components within a

segment. The Company has updated the sales of geographical components of the Water Systems segment from prior year to align with current management reporting. The changes resulted in sales reclassifications from Latin America, Asia Pacific, and Europe, Middle East, and Africa ("EMEA") to the U.S. and Canada for both the third quarter and nine months ended September 30, 2018. This resulted in $3.4 million and $10 million of sales to be reclassified to the U.S. and Canada for the third quarter and nine months ended September 30, 2018, respectively. There is no impact on the Company's previously reported consolidated financial position, results of operations, or cash flows.

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



	Third Quarter Ended						Nine Months Ended
(In millions)	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	Net sales
Water Systems
External sales
United States & Canada	$	94.9		$	97.0		$	284.8		$	280.0
Latin America	30.6			31.0			90.5			89.0
Europe, Middle East & Africa	40.8			40.8			117.5			132.2
Asia Pacific	17.0			17.3			57.9			57.1
Intersegment sales
United States & Canada	16.5			13.2			42.5			45.0
Total sales	199.8			199.3			593.2			603.3
Distribution
External sales
United States & Canada	87.0			78.0			227.4			213.7
Intersegment sales	—			—			—			—
Total sales	87.0			78.0			227.4			213.7
Fueling Systems
External sales
United States & Canada	48.3			43.7			129.3			113.2
All other	29.8			34.1			87.1			96.3
Intersegment sales	—			—			—			—
Total sales	78.1			77.8			216.4			209.5

Intersegment Eliminations/Other	(16.5		)	(13.2		)	(42.5		)	(45.0		)
Consolidated	$	348.4		$	341.9		$	994.5		$	981.5

	Third Quarter Ended						Nine Months Ended
	September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
	Operating income/(loss)
Water Systems	$	28.4		$	28.4		$	78.5		$	85.7
Distribution	5.9			3.1			6.1			6.3
Fueling Systems	21.6			20.9			55.6			53.6
Intersegment Eliminations/Other	(13.2		)	(12.3		)	(41.7		)	(42.3		)
Consolidated	$	42.7		$	40.1		$	98.5		$	103.3



	September 30, 2019		December 31, 2018
	Total assets
Water Systems	$	690.2	$	679.7
Distribution	199.0		165.1
Fueling Systems	294.0		275.7
Other	53.7		61.9
Consolidated	$	1,236.9	$	1,182.4

Other Assets are generally Corporate assets that are not allocated to the segments and are comprised primarily of cash and property, plant and equipment.