(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:
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Year Ended December 31,
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2016
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2015
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2014
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(in millions)
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Net Sales
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Americas
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$
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900.9
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$
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978.5
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$
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926.8
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EMEA
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442.3
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445.5
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546.4
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Asia-Pacific
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55.2
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43.7
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40.5
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Consolidated net sales
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$
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1,398.4
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$
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1,467.7
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$
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1,513.7
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Operating income (loss)
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Americas
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$
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127.1
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$
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109.9
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$
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110.3
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EMEA
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40.8
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(98.6)
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37.5
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Asia-Pacific
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14.3
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(0.5)
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(6.5)
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Subtotal reportable segments
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182.2
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10.8
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141.3
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Corporate(*)
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(37.2)
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(100.9)
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(35.9)
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Consolidated operating income (loss)
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145.0
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(90.1)
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105.4
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Interest income
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(1.0)
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(1.0)
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(0.7)
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Interest expense
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22.6
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24.3
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19.9
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Other (income) expense, net
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(4.4)
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(2.4)
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3.1
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Income (loss) before income taxes
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$
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127.8
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$
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(111.0)
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$
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83.1
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Identifiable assets (at end of period)
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Americas
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$
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1,093.7
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$
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970.7
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$
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1,014.8
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EMEA
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582.0
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607.7
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787.5
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Asia-Pacific
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124.6
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112.4
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145.7
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Consolidated identifiable assets
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$
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1,800.3
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$
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1,690.8
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$
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1,948.0
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Property, plant and equipment, net (at end of period)
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Americas
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$
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106.2
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$
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88.6
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$
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90.1
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EMEA
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75.9
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82.3
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100.1
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Asia-Pacific
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7.6
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13.5
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13.1
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Consolidated long-lived assets
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$
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189.7
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$
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184.4
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$
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203.3
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Capital Expenditures
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Americas
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$
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25.7
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$
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19.0
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$
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10.9
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EMEA
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9.2
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7.5
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11.6
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Asia-Pacific
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1.1
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1.2
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1.2
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Consolidated capital expenditures
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$
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36.0
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$
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27.7
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$
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23.7
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Depreciation and Amortization
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Americas
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$
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28.8
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$
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29.0
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$
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20.1
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EMEA
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19.4
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21.1
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25.8
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Asia-Pacific
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3.0
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2.3
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2.2
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Consolidated depreciation and amortization
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$
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51.2
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$
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52.4
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$
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48.1
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* 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 $59.7 million charge related to the Company’s settlement of its Pension Plan and SERP benefit obligations. Refer to Note 13 Defined Benefit Plans for further discussion.
The following includes U.S. net sales and U.S. property, plant and equipment of the Company’s Americas segment:
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December 31,
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2016
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2015
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2014
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(in millions)
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U.S. net sales
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$
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839.2
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$
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909.2
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$
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849.0
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U.S. property, plant and equipment, net (at end of year)
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$
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102.5
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$
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85.2
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$
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86.0
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The following includes intersegment sales for Americas, EMEA and Asia-Pacific:
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December 31,
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2016
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2015
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2014
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(in millions)
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Intersegment Sales
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Americas
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$
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12.0
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$
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8.2
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$
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6.3
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EMEA
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11.8
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9.8
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13.3
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Asia-Pacific
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77.9
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110.9
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155.3
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Intersegment sales
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$
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101.7
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$
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128.9
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$
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174.9
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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:
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Year Ended December 31,
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2016
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2015
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2014
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(in millions)
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Net Sales
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Residential & commercial flow control
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$
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779.2
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$
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831.1
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$
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930.3
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HVAC & gas
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408.1
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425.1
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356.2
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Drains & water re-use
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132.3
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131.0
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144.0
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Water quality
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78.8
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80.5
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83.2
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Consolidated net sales
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$
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1,398.4
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$
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1,467.7
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$
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1,513.7
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