Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Segment Information

(16) Segment Information

        The Company operates in three geographic segments: North America, EMEA, and Asia. Each of these segments sells similar products, is managed separately and has separate financial results that are reviewed by the Company's chief operating decision-maker. All intercompany sales transactions have been eliminated. Sales by region are based upon location of the entity recording the sale. The accounting policies for each segment are the same as those described in the summary of significant accounting policies (see Note 2).

        The following is a summary of the Company's significant accounts and balances by segment, reconciled to its consolidated totals:

	Years Ended December 31,
	2012			2011			2010
	(in millions)
Net Sales
North America	$	835.0		$	810.9		$	785.5
EMEA		583.8			595.5			468.3
Asia		26.8			21.7			20.8
Consolidated net sales	$	1,445.6		$	1,428.1		$	1,274.6
Operating income (loss)
North America	$	96.5		$	111.6		$	106.4
EMEA		52.6			28.7			43.7
Asia		6.5			12.2			(0.5	)
Subtotal reportable segments		155.6			152.5			149.6
Corporate(*)		(32.2	)		(35.8	)		(35.4	)
Consolidated operating income		123.4			116.7			114.2
Interest income		0.7			1.0			1.0
Interest expense		(24.6	)		(25.8	)		(22.8	)
Other income (expense), net		0.8			(0.8	)		2.1
Income from continuing operations before income taxes	$	100.3		$	91.1		$	94.5
Identifiable Assets (at end of period)
North America	$	810.9		$	814.3		$	871.8
EMEA		813.8			773.2			692.8
Asia		84.3			92.5			79.7
Discontinued operations		—			14.0			1.8
Consolidated identifiable assets	$	1,709.0		$	1,694.0		$	1,646.1
Long-Lived Assets (at end of period)
North America	$	80.6		$	74.8		$	77.4
EMEA		128.2			133.3			104.6
Asia		14.8			15.0			15.5
Consolidated long-lived assets	$	223.6		$	223.1		$	197.5
Capital Expenditures
North America	$	17.9		$	8.3		$	9.1
EMEA		10.8			13.6			14.8
Asia		1.9			0.7			0.7
Consolidated capital expenditures	$	30.6		$	22.6		$	24.6
Depreciation and Amortization
North America	$	19.6		$	18.7		$	17.9
EMEA		27.7			30.2			24.9
Asia		2.1			2.0			2.0
Consolidated depreciation and amortization	$	49.4		$	50.9		$	44.8

*

Corporate expenses are primarily for administrative compensation expense, internal controls costs, professional fees, including legal and audit expenses, shareholder services and benefit administration costs. These costs are not allocated to the geographic segments as they are viewed as corporate functions that support all activities.

        The following includes U.S. net sales and U.S. property, plant and equipment of the Company's North American segment:

	Years Ended December 31,
	2012		2011		2010
	(in millions)
U.S. net sales	$	747.4	$	732.9	$	712.2
U.S. property, plant and equipment, net (at end of period)	$	75.1	$	69.9	$	72.4

The following includes intersegment sales for North America, EMEA and Asia:

	Years Ended December 31,
	2012		2011		2010
	(in millions)
Intersegment Sales
North America	$	5.3	$	3.3	$	3.6
EMEA		10.9		8.4		7.6
Asia		139.0		132.9		115.8
Intersegment sales	$	155.2	$	144.6	$	127.0

        The Company sells its products into various end markets around the world and groups net sales to third parties into four product categories. Because many of the Company's sales are through distributors and third-party manufacturers' representatives, a portion of the product categorization is based on management's understanding of final product use and, as such, allocations have been made to align sales into a product category. Net sales to third parties for the four product categories are as follows:

	Years Ended December 31,
	2012		2011		2010
	(in millions)
Net Sales
Residential & commercial flow control	$	785.9	$	751.3	$	652.2
HVAC & gas		448.5		471.3		433.4
Drains & water re-use		138.8		135.3		122.2
Water quality		72.4		70.2		66.8
Consolidated net sales	$	1,445.6	$	1,428.1	$	1,274.6