Segments

9 Months Ended

Sep. 30, 2019

14. Segments

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by the Chief Executive Officer, who is also the Company’s Chief Operating Decision Maker (“CODM”), for making decisions about the allocation of resources and assessing performance as the source of the Company’s reportable operating segments.

The Company has three reportable segments: Americas, EURAF, and MEAP. The Americas operating segment includes the North America and South America continents. The EURAF operating segment includes the Europe and Africa continents, excluding the Middle East region. The MEAP operating segment includes the Asia and Australia continents and the Middle East region.

The CODM evaluates the performance of the Company’s reportable segments based on net sales and operating income. Segment net sales are recognized in the geographic region the product is sold. Operating income for each segment includes net sales to third parties within the respective region, cost of sales directly attributable to the segment, and operating expenses directly attributable to the segment. Manufacturing variances generated within each reportable segment are maintained in each segment’s operating income. Operating income for each segment excludes other income and expense and certain expenses managed outside the reportable operating segments. Costs excluded from segment operating income include various corporate expenses such as stock-based compensation expense, income taxes, non-recurring charges and other separately managed general and administrative costs. The Company does not include intercompany sales between segments for management reporting purposes.

The following table shows information by reportable segment for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net Sales
Americas	$	251.0	$	224.1	$	721.7	$	614.3
EURAF		139.2		152.9		476.0		498.3
MEAP		57.8		73.1		173.0		218.9
Total	$	448.0	$	450.1	$	1,370.7	$	1,331.5
Segment Operating Income
Americas	$	34.5	$	17.8	$	85.4	$	35.2
EURAF		1.9		1.6		7.0		13.1
MEAP		5.9		6.2		18.3		24.8
Total	$	42.3	$	25.6	$	110.7	$	73.1
Depreciation
Americas	$	3.7	$	3.5	$	10.8	$	10.6
EURAF		3.9		3.8		11.3		11.4
MEAP		0.5		0.9		1.9		2.9
Corporate		0.8		0.8		2.3		2.3
Total	$	8.9	$	9.0	$	26.3	$	27.2
Capital Expenditures
Americas	$	5.3	$	2.4	$	11.3	$	7.3
EURAF		6.2		2.1		8.6		9.1
MEAP		1.2		0.9		2.5		2.6
Corporate		—		0.8		—		2.4
Total	$	12.7	$	6.2	$	22.4	$	21.4

A reconciliation of the Company’s segment operating income to operating income in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2019 and 2018 are summarized as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2018			2019			2018
Segment operating income	$	42.3		$	25.6		$	110.7		$	73.1
Unallocated corporate expenses		(9.8	)		(8.3	)		(20.0	)		(26.5	)
Unallocated restructuring expense		—			(0.4	)		(0.1	)		(3.9	)
Total operating income	$	32.5		$	16.9		$	90.6		$	42.7

Net sales by geographic area for the three and nine months ended September 30, 2019 and 2018 are summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
United States	$	226.6	$	208.5	$	644.3	$	556.3
Europe		134.8		147.6		458.0		486.6
Other		86.6		94.0		268.4		288.6
Total	$	448.0	$	450.1	$	1,370.7	$	1,331.5

Net sales by product for the three and nine months ended September 30, 2019 and 2018 are summarized as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Cranes	$	365.4	$	362.3	$	1,116.9	$	1,079.0
Aftermarket parts and other*		82.6		87.8		253.8		252.5
Total net sales	$	448.0	$	450.1	$	1,370.7	$	1,331.5

*Other revenue consists of revenue related to CraneCare services such as training and

field service work.