SEGMENT AND GEOGRAPHIC INFORMATION

12 Months Ended

Dec. 31, 2019

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 Company reports these product transfers between Water and Fueling as inventory transfers since a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Distribution segment sells to and provides presale support and specifications to the installing contractors. The Distribution segment sells products produced by the Water Systems segment. The Company reports intersegment transfers from Water Systems to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water System 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 $3.6 million and $0.9 million of sales for the years ended December 31, 2018 and December 31, 2017, respectively, being reclassified between the Fueling Systems segment and Water

Systems segment. Additionally, $0.2 million of operating income for the year ended December 31, 2018 was reclassified between the Fueling Systems segment and Water Systems segment. There was no change to operating income for the year ended December 31, 2017. 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 geographic components of the Water Systems segment from the 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 the years ended December 31, 2018 and December 31, 2017. This resulted in $14.3 million and $12.5 million of sales to be reclassified to the U.S. and Canada for the years ended December 31, 2018 and December 31, 2017, respectively. 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)	2019		2018		2017
Water Systems
External sales
United States & Canada	$	367.6	$	372.0	$	321.9
Latin America	124.2		120.2		129.4
Europe, Middle East & Africa	155.6		170.9		165.8
Asia Pacific	81.8		80.8		86.3
Intersegment sales
United States & Canada	52.3		56.2		40.8
Total sales	781.5		800.1		744.2
Distribution
External sales
United States & Canada	291.8		269.6		176.7
Intersegment sales	—		—		—
Total sales	291.8		269.6		176.7
Fueling Systems
External sales
United States & Canada	173.5		156.9		144.5
All other	120.1		127.7		100.3
Intersegment sales	—		—		—
Total Sales	293.6		284.6		244.8

Intersegment Eliminations/Other	(52.3)		(56.2)		(40.8)
Consolidated	$	1,314.6	$	1,298.1	$	1,124.9

Operating income (loss)
	2019		2018		2017
Water Systems	$	103.0	$	112.7	$	102.0
Distribution	3.6		3.4		3.7
Fueling Systems	75.8		70.6		60.0
Intersegment Eliminations/Other	(55.3)		(54.7)		(58.5)
Consolidated	$	127.1	$	132.0	$	107.2


	Total assets										Depreciation
	2019		2018		2017		2019		2018		2017
Water Systems	$	658.3	$	679.7	$	695.4	$	19.0	$	20.4	$	20.9
Distribution	180.2		165.1		153.1		2.8		2.2		1.3
Fueling Systems	283.8		275.7		265.7		2.1		2.2		2.2
Other	72.4		61.9		71.2		3.7		4.9		5.5
Consolidated	$	1,194.7	$	1,182.4	$	1,185.4	$	27.6	$	29.7	$	29.9

	Amortization										Capital expenditures
	2019		2018		2017		2019		2018		2017
Water Systems	$	6.9	$	6.5	$	6.2	$	15.1	$	18.2	$	19.1
Distribution	0.5		0.5		0.4		3.9		2.0		1.1
Fueling Systems	1.9		1.8		1.9		1.9		2.2		11.0
Other	0.1		0.1		0.1		1.2		1.0		2.2
Consolidated	$	9.4	$	8.9	$	8.6	$	22.1	$	23.4	$	33.4

Cash and property, plant and equipment are the major asset groups in “Other” of total assets for the fiscal year ended December 31, 2019. Property, plant and equipment is the major asset group in "Other" of total assets for the fiscal years ended December 31, 2018, and December 31, 2017.

Financial information by geographic region is as follows:


	Net sales										Long-lived assets
(In millions)	2019		2018		2017		2019		2018		2017
United States	$	776.6	$	752.5	$	609.1	$	394.7	$	372.6	$	326.1
Foreign	538.0		545.6		515.8		223.4		221.2		261.2
Consolidated	$	1,314.6	$	1,298.1	$	1,124.9	$	618.1	$	593.8	$	587.3

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 2019, 2018, or 2017. No single customer accounted for more than 10 percent of the Company’s gross accounts receivable in 2019 or 2018.