Business Segments and Geographic Information

12 Months Ended

Dec. 31, 2012

Business Segments and Geographic Information

11. Business Segments and Geographic Information

IDEX has three reportable business segments: Fluid & Metering Technologies, Health & Science Technologies and Fire & Safety/Diversified Products. Reporting units in the Fluid & Metering Technologies segment consist of: Banjo; Energy; CFP; DDPT and WST. Reporting units in the Health & Science Technologies segment consist of: IH&S; IOP; Containment; Gast; Micropump and MPT. Reporting units in the Fire & Safety/Diversified Products segment consist of: Fire Suppression; Rescue; Band-It; and Dispensing Equipment.

The Fluid & Metering Technologies segment designs, produces and distributes positive displacement pumps, flow meters, injectors, and other fluid-handling pump modules and systems and provides flow monitoring and other services for the water and wastewater industries. The Health & Science Technologies segment designs, produces and distributes a wide range of precision fluidics, rotary lobe pumps, centrifugal and positive displacement pumps, roll compaction and drying systems used in beverage, food processing, pharmaceutical and cosmetics, pneumatic components and sealing solutions, including very high precision, low-flow rate pumping solutions required in analytical instrumentation, clinical diagnostics and drug discovery, high performance molded and extruded, biocompatible medical devices and implantables, air compressors used in medical, dental and industrial applications, optical components and coatings for applications in the fields of scientific research, defense, biotechnology, aerospace, telecommunications and electronics manufacturing, laboratory and commercial equipment used in the production of micro and nano scale materials, precision photonic solutions used in life sciences, research and defense markets, and precision gear and peristaltic pump technologies that meet exacting original equipment manufacturer specifications. The Fire & Safety/Diversified Products segment produces firefighting pumps and controls, rescue tools, lifting bags and other components and systems for the fire and rescue industry, engineered stainless steel banding and clamping devices used in a variety of industrial and commercial applications, and precision equipment for dispensing, metering and mixing colorants and paints used in a variety of retail and commercial businesses around the world.

Information on the Company’s business segments is presented below, based on the nature of products and services offered. The Company evaluates performance based on several factors, of which operating income is the primary financial measure. Intersegment sales are accounted for at fair value as if the sales were to third parties. Certain prior year amounts have been revised to include the Dispensing Equipment segment as part of the Fire & Safety/Diversified Products segment and to reflect the movement of our Trebor business unit from the Health & Science Technologies segment to the Fluid & Metering Technologies segment.

	2012			2011			2010
	(In thousands)
NET SALES
Fluid & Metering Technologies:
External customers	$	829,320		$	830,821		$	717,579
Intersegment sales		3,968			466			712
Total segment sales		833,288			831,287			718,291
Health & Science Technologies:
External customers		689,574			606,247			405,135
Intersegment sales		5,661			1,653			3,717
Total segment sales		695,235			607,900			408,852
Fire & Safety/Diversified Products:
External customers		435,364			401,383			390,359
Intersegment sales		1,689			1,042			462
Total segment sales		437,053			402,425			390,821
Intersegment eliminations		(11,318	)		(3,161	)		(4,891	)
Total net sales	$	1,954,258		$	1,838,451		$	1,513,073
OPERATING INCOME(1)
Fluid & Metering Technologies(2)	$	146,650		$	164,818		$	131,018
Health & Science Technologies(2)		(62,835	)		106,037			83,258
Fire & Safety/Diversified Products		96,120			85,901			82,334
Corporate office and other(3)		(51,717	)		(52,100	)		(47,494	)
Total operating income		128,218			304,656			249,116
Interest expense		42,250			29,332			16,150
Other income (expense)-net		236			(1,443	)		(1,092	)
Income before taxes	$	86,204		$	273,881		$	231,874

	2012		2011		2010
	(In thousands)
ASSETS
Fluid & Metering Technologies	$	1,023,143	$	1,072,023	$	1,065,953
Health & Science Technologies		1,102,868		1,178,653		693,532
Fire & Safety/Diversified Products		488,886		442,400		484,107
Corporate office and other(3)		170,493		143,031		138,103
Total assets	$	2,785,390	$	2,836,107	$	2,381,695
DEPRECIATION AND AMORTIZATION(4)
Fluid & Metering Technologies	$	29,637	$	32,368	$	31,893
Health & Science Technologies		39,981		30,055		17,253
Fire & Safety/Diversified Products		7,107		8,516		8,638
Corporate office and other		1,587		1,447		324
Total depreciation and amortization	$	78,312	$	72,386	$	58,108
CAPITAL EXPENDITURES
Fluid & Metering Technologies	$	13,535	$	12,543	$	17,314
Health & Science Technologies		13,140		12,938		7,510
Fire & Safety/Diversified Products		6,654		5,644		4,642
Corporate office and other		2,191		3,423		3,303
Total capital expenditures	$	35,520	$	34,548	$	32,769

(1) Segment operating income excludes net unallocated corporate operating expenses.

(2) Segment operating income includes asset impairment charge in 2012 for $27.7 million within the Fluid & Metering Technologies segment and $170.8 within the Health & Science Technologies segment.

(3) Includes intersegment eliminations.

(4) Excludes amortization of debt issuance expenses.

Information about the Company’s operations in different geographical regions for the years ended December 31, 2012, 2011 and 2010 is shown below. Net sales were attributed to geographic areas based on location of the customer, and no country outside the U.S. was greater than 10% of total revenues.

	2012		2011		2010
	(In thousands)
NET SALES
U.S.	$	963,137	$	857,990	$	766,067
Europe		479,744		492,125		402,056
Other countries		511,377		488,336		344,950
Total net sales	$	1,954,258	$	1,838,451	$	1,513,073
LONG-LIVED ASSETS — PROPERTY, PLANT AND EQUIPMENT
U.S.	$	127,425	$	124,102	$	108,951
Europe		64,137		63,433		68,756
Other countries		27,599		26,182		10,855
Total long-lived assets — net	$	219,161	$	213,717	$	188,562