Segment Information

3 Months Ended

Apr. 01, 2012

Segment Information

Segment Information

6.Segment Information

The Company operates in three geographic segments: North America, EMEA, and Asia. Each of these segments 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.

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

	First Quarter Ended
	April 1, 2012			April 3, 2011
	(in millions)
Net Sales
North America	$	210.0		$	202.1
EMEA	149.2			124.0
Asia	5.0			3.8
Consolidated net sales	$	364.2		$	329.9
Operating income (loss)
North America	$	20.2		$	26.7
EMEA	12.8			9.7
Asia	1.4			0.8
Subtotal reportable segments	34.4			37.2
Corporate (*)	(7.5		)	(14.3		)
Consolidated operating income	26.9			22.9
Interest income	0.2			0.3
Interest expense	(6.2		)	(5.9		)
Other	0.9			(0.1		)
Income before income taxes	$	21.8		$	17.2
Capital Expenditures
North America	$	2.6		$	3.4
EMEA	2.2			3.1
Asia	0.1			0.1
Consolidated capital expenditures	$	4.9		$	6.6
Depreciation and Amortization
North America	$	4.8		$	4.4
EMEA	7.3			6.4
Asia	0.5			0.5
Consolidated depreciation and amortization	$	12.6		$	11.3
Identifiable Assets (at end of period)
North America	$	861.6		$	823.5
EMEA	808.3			880.4
Asia	79.1			90.1
Discontinued operations	—			1.8
Consolidated identifiable assets	$	1,749.0		$	1,795.8
Property, plant and equipment, net (at end of period)
North America	$	78.7		$	77.9
EMEA	134.1			110.1
Asia	14.7			15.2
Consolidated long-lived assets	$	227.5		$	203.2

*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 above operating segments are presented on a basis consistent with the presentation included in the Company’s December 31, 2011 consolidated financial statements included in its Annual Report on Form 10-K.

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

	First Quarter Ended
	April 1, 2012		April 3, 2011
	(in millions)
U.S. net sales	$	190.0	$	182.9
U.S. property, plant and equipment, net (at end of period)	$	72.7	$	72.7

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

	First Quarter Ended
	April 1, 2012		April 3, 2011
	(in millions)
Intersegment Sales
North America	$	1.4	$	0.9
EMEA	2.6		1.9
Asia	31.1		30.7
Intersegment sales	$	35.1	$	33.5

The North American segment includes $4.4 million in assets held for sale at April 1, 2012. The North American segment and the Asia segment include $3.8 million and $6.2 million, respectively, in assets held for sale at April 3, 2011.

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:

	First Quarter Ended
	April 1, 2012		April 3, 2011
	(in millions)
Net Sales
Residential & commercial flow control	$	201.2	$	166.4
HVAC & gas	109.7		113.5
Drains & water re-use	33.8		31.1
Water quality	19.5		18.9
Consolidated net sales	$	364.2	$	329.9