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Segment Information
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment Information
Segment Information
We classify our operations into the following business segments based primarily on types of products offered and markets served:
•
Water Quality Systems — The Water Quality Systems segment designs, manufactures, markets and services innovative water system products and solutions to meet filtration and fluid management challenges in food and beverage, water, swimming pools and aquaculture applications.
•
Flow & Filtration Solutions — The Flow & Filtration Solutions segment designs, manufactures, markets and services solutions for the toughest filtration, separation, flow and fluid management challenges in agriculture, food and beverage processing, water supply and disposal and a variety of industrial applications.
•
Technical Solutions — The Technical Solutions segment designs, manufactures, markets and services products that guard and protect some of the world's most sensitive electrical and electronic equipment, as well as heat management solutions designed to provide thermal protection to temperature sensitive fluid applications and engineered electrical and fastening products for electrical, mechanical and civil applications.
•
Other — Other is primarily composed of unallocated corporate expenses, our captive insurance subsidiary and intermediate finance companies.
During the first quarter of 2017, we reorganized our business segments to reflect a new operating structure, resulting in a change to our reporting segments in 2017. All segment information presented in this note and throughout this Annual Report on Form 10-K was prepared based on the reporting segments in place during 2016, unless otherwise noted.
The accounting policies of our reporting segments are the same as those described in the summary of significant accounting policies. We evaluate performance based on the net sales and segment income (loss) and use a variety of ratios to measure performance of our reporting segments. 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. Segment income (loss) represents equity income of unconsolidated subsidiaries and operating income exclusive of intangible amortization, certain acquisition related expenses, costs of restructuring activities, "mark-to-market" gain/loss for pension and other post-retirement plans, impairments and other unusual non-operating items.
Financial information by reportable segment is included in the following summary:
 
2016
2015
2014
 
2016
2015
2014
In millions
Net sales
 
Segment income (loss)
Water Quality Systems
$
1,428.2

$
1,381.5

$
1,356.4

 
$
313.3

$
281.8

$
253.3

Flow & Filtration Solutions
1,363.1

1,441.6

1,603.1

 
180.7

187.2

201.3

Technical Solutions
2,116.0

1,809.3

1,728.1

 
447.2

395.0

378.1

Other
(17.3
)
(16.0
)
(20.8
)
 
(101.7
)
(108.8
)
(127.5
)
Consolidated
$
4,890.0

$
4,616.4

$
4,666.8

 
$
839.5

$
755.2

$
705.2

 
2016
2015
2014
 
2016
2015
2014
In millions
Identifiable assets (1)
 
Depreciation
Water Quality Systems
$
1,741.1

$
1,801.7

$
1,828.3

 
$
22.8

$
21.7

$
21.9

Flow & Filtration Solutions
1,724.4

1,822.8

2,040.0

 
24.0

23.6

23.7

Technical Solutions
4,419.3

4,488.4

2,117.3

 
31.6

27.6

24.2

Other
3,650.0

3,720.6

4,658.2

 
6.2

8.3

9.9

Consolidated
$
11,534.8

$
11,833.5

$
10,643.8

 
$
84.6

$
81.2

$
79.7

 
2016
2015
2014
In millions
Capital expenditures
Water Quality Systems
$
24.1

$
21.1

$
20.6

Flow & Filtration Solutions
16.7

20.4

24.9

Technical Solutions
74.5

47.4

24.0

Other
2.5

2.4

14.2

Consolidated
$
117.8

$
91.3

$
83.7

(1)
 All cash and cash equivalents and assets held for sale are included in "Other."
The following table presents a reconciliation of consolidated segment income to consolidated income from continuing operations before income taxes:
In millions
2016
2015
2014
Segment income
$
839.5

$
755.2

$
705.2

Deal related costs and expenses
—

(14.3
)
—

Inventory step-up
—

(35.7
)
—

Restructuring and other
(20.6
)
(42.5
)
(63.1
)
Intangible amortization
(96.4
)
(68.1
)
(60.6
)
Pension and other post-retirement mark-to-market (loss) gain
(4.2
)
23.0

(31.5
)
Trade name impairment
(13.3
)
—

—

Redomicile related expenses
—

—

(10.3
)
Loss on sale of businesses, net
(3.9
)
(3.2
)
(0.2
)
Interest expense, net

(140.1
)
(101.9
)
(68.6
)
Income from continuing operations before income taxes
$
561.0

$
512.5

$
470.9


The following tables present certain geographic information by region:
 
2016
2015
2014
 
2016
2015
2014
In millions
Net sales
 
Long-lived assets
U.S.
$
2,897.1

$
2,634.0

$
2,575.9

 
$
309.5

$
285.9

$
248.9

Western Europe
796.0

727.6

793.7

 
138.6

150.7

137.6

Developing (1)
704.0

731.6

796.0

 
65.2

60.3

76.0

Other Developed (2)
492.9

523.2

501.2

 
25.3

42.9

47.2

Consolidated
$
4,890.0

$
4,616.4

$
4,666.8

 
$
538.6

$
539.8

$
509.7

(1) - Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia.
(2) - Other Developed includes Australia, Canada and Japan.
Net sales are based on the geographic destination of the sale. Long-lived assets represent property, plant and equipment, net of related depreciation. Net sales shipped to and long-lived assets held in Ireland for each year presented above were not material.
We offer a broad array of products and systems to multiple markets and customers for which we do not have the information systems to track revenues by primary product category. However, our net sales by segment are representative of our sales by major product category. We sell our products through various distribution channels including wholesale and retail distributors, original equipment manufacturers and home centers. No customer accounted for more than 10% of net sales in 2016, 2015, or 2014.