Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information

Segment Information

(16) Segment Information

The Company operates in three geographic segments: Americas, EMEA, and Asia-Pacific. Each of these segments sells similar products 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:

	Year Ended December 31,
	2016		2015		2014
	(in millions)
Net Sales
Americas	$	900.9	$	978.5	$	926.8
EMEA		442.3		445.5		546.4
Asia-Pacific		55.2		43.7		40.5
Consolidated net sales	$	1,398.4	$	1,467.7	$	1,513.7
Operating income (loss)
Americas	$	127.1	$	109.9	$	110.3
EMEA		40.8		(98.6)		37.5
Asia-Pacific		14.3		(0.5)		(6.5)
Subtotal reportable segments		182.2		10.8		141.3
Corporate(*)		(37.2)		(100.9)		(35.9)
Consolidated operating income (loss)		145.0		(90.1)		105.4
Interest income		(1.0)		(1.0)		(0.7)
Interest expense		22.6		24.3		19.9
Other (income) expense, net		(4.4)		(2.4)		3.1
Income (loss) before income taxes	$	127.8	$	(111.0)	$	83.1
Identifiable assets (at end of period)
Americas	$	1,093.7	$	970.7	$	1,014.8
EMEA		582.0		607.7		787.5
Asia-Pacific		124.6		112.4		145.7
Consolidated identifiable assets	$	1,800.3	$	1,690.8	$	1,948.0
Property, plant and equipment, net (at end of period)
Americas	$	106.2	$	88.6	$	90.1
EMEA		75.9		82.3		100.1
Asia-Pacific		7.6		13.5		13.1
Consolidated long-lived assets	$	189.7	$	184.4	$	203.3
Capital Expenditures
Americas	$	25.7	$	19.0	$	10.9
EMEA		9.2		7.5		11.6
Asia-Pacific		1.1		1.2		1.2
Consolidated capital expenditures	$	36.0	$	27.7	$	23.7
Depreciation and Amortization
Americas	$	28.8	$	29.0	$	20.1
EMEA		19.4		21.1		25.8
Asia-Pacific		3.0		2.3		2.2
Consolidated depreciation and amortization	$	51.2	$	52.4	$	48.1

*     Corporate expenses are primarily for administrative compensation expense, compliance costs, professional fees, including corporate-related legal and audit expenses, shareholder services and benefit administration costs. Included in Corporate’s operating loss for 2015 is a $59.7 million charge related to the Company’s settlement of its Pension Plan and SERP benefit obligations. Refer to Note 13 Defined Benefit Plans for further discussion.

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

	December 31,
	2016		2015		2014
	(in millions)
U.S. net sales	$	839.2	$	909.2	$	849.0
U.S. property, plant and equipment, net (at end of year)	$	102.5	$	85.2	$	86.0

The following includes intersegment sales for Americas, EMEA and Asia-Pacific:

	December 31,
	2016		2015		2014
	(in millions)
Intersegment Sales
Americas	$	12.0	$	8.2	$	6.3
EMEA		11.8		9.8		13.3
Asia-Pacific		77.9		110.9		155.3
Intersegment sales	$	101.7	$	128.9	$	174.9

The Company sells its products into various end markets around the world and groups net sales to third parties into four product categories. Net sales to third parties for the four product categories are as follows:

	Year Ended December 31,
	2016		2015		2014
	(in millions)
Net Sales
Residential & commercial flow control	$	779.2	$	831.1	$	930.3
HVAC & gas		408.1		425.1		356.2
Drains & water re-use		132.3		131.0		144.0
Water quality		78.8		80.5		83.2
Consolidated net sales	$	1,398.4	$	1,467.7	$	1,513.7