Segment Information

3 Months Ended

Mar. 31, 2013

Segment Information

Segment Information

7. 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
	March 31, 2013			April 1, 2012
	(in millions)
Net Sales
North America	$	213.0		$	207.0
EMEA	142.4			149.2
Asia	6.7			5.0
Consolidated net sales	$	362.1		$	361.2
Operating income (loss)
North America	$	24.0		$	19.9
EMEA	10.6			12.8
Asia	2.9			1.4
Subtotal reportable segments	37.5			34.1
Corporate (*)	(9.2		)	(7.5		)
Consolidated operating income	28.3			26.6
Interest income	0.1			0.2
Interest expense	(6.0		)	(6.2		)
Other income, net	—			0.9
Income from continuing operations before income taxes	$	22.4		$	21.5
Capital Expenditures
North America	$	8.2		$	2.6
EMEA	2.2			2.2
Asia	0.6			0.1
Consolidated capital expenditures	$	11.0		$	4.9
Depreciation and Amortization
North America	$	5.0		$	4.7
EMEA	6.7			7.3
Asia	0.7			0.5
Consolidated depreciation and amortization	$	12.4		$	12.5
Identifiable Assets (at end of period)
North America	810.8			847.2
EMEA	795.5			808.3
Asia	91.8			79.1
Discontinued operations	—			14.3
Consolidated identifiable assets	$	1,698.1		$	1,748.9
Property, plant and equipment, net (at end of period)
North America	$	85.2		$	75.2
EMEA	122.2			134.1
Asia	14.8			14.7
Consolidated property, plant and equipment, net	$	222.2		$	224.0

* 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, 2012 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 America segment:

	First Quarter Ended
	March 31, 2013		April 1, 2012
	(in millions)
U.S. net sales	$	192.8	$	187.0
U.S. property, plant and equipment (at end of period)	$	79.9	$	69.2

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

	First Quarter Ended
	March 31, 2013		April 1, 2012
	(in millions)
Intersegment Sales
North America	$	1.3	$	1.4
EMEA	2.7		2.6
Asia	41.6		31.1
Intersegment sales	$	45.6	$	35.1

The North America segment includes $4.4 million in assets held for sale at April 1, 2012.

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
	March 31, 2013		April 1, 2012
	(in millions)
Net Sales
Residential & commercial flow control	$	200.4	$	198.2
HVAC & gas	107.7		109.7
Drains & water re-use	33.9		33.8
Water quality	20.1		19.5
Consolidated net sales	$	362.1	$	361.2