Segment and Geographic Information

The structure of our internal organization is divided into the following reportable segments, which are also our operating segments: E&C, D&S, and BioMedical. Our reportable segments are business units that are each managed separately because they manufacture, offer, and distribute distinct products with different production processes. The E&C and D&S segments manufacture products used primarily in energy-related and industrial applications, such as the separation, liquefaction, distribution, and storage of hydrocarbon and industrial gases. The BioMedical segment supplies cryogenic and other equipment used in the medical, biological research, and animal breeding industries. Intersegment sales are not material. Corporate includes operating expenses for executive management, accounting, tax, treasury, corporate development, human resources, information technology, investor relations, legal, internal audit, and risk management. Corporate support functions are not currently allocated to the segments.

We evaluate performance and allocates resources based on operating income or loss from continuing operations before interest expense, net, loss on extinguishment of debt, financing costs amortization, foreign currency loss (gain), income tax (benefit) expense, net, and income (loss) attributable to noncontrolling interests, net of taxes. The accounting policies of the reportable segments are the same as those described in Note 2.

Segment Financial Information



	Year Ended December 31, 2017
	Energy & Chemicals		Distribution & Storage		BioMedical		Corporate			Total
Sales to external customers	$	225.6	$	540.3	$	222.9	$	—		$	988.8
Depreciation and amortization expense	15.3		18.8		5.6		2.2			41.9
Operating income (loss) ^{(1) (2)}	5.1		66.1		35.5		(64.7		)	42.0
Total assets	782.9		685.2		165.9		90.7			1,724.7
Capital expenditures	15.5		14.4		3.0		2.3			35.2



	Year Ended December 31, 2016
	Energy & Chemicals		Distribution & Storage		BioMedical		Corporate			Total
Sales to external customers	$	154.3	$	497.1	$	207.8	$	—		$	859.2
Depreciation and amortization expense	10.0		18.4		6.0		3.1			37.5
Operating income (loss) ^{(1) (3)}	13.3		50.4		42.0		(48.3		)	57.4
Total assets	177.5		657.6		178.7		219.2			1,233.0
Capital expenditures	3.3		11.7		2.3		0.5			17.8



	Year Ended December 31, 2015
	Energy & Chemicals			Distribution & Storage		BioMedical			Corporate			Total
Sales to external customers	$	331.0		$	487.6	$	221.6		$	—		$	1,040.2
Depreciation and amortization expense	11.8			18.3		12.0			3.3			45.4
Operating (loss) income ^{(1) (4)}	(10.0		)	39.5		(165.3		)	(47.4		)	(183.2		)
Total assets	251.8			689.1		224.4			34.8			1,200.1
Capital expenditures	4.1			36.8		3.9			2.3			47.1

_______________


⁽¹⁾	Includes restructuring costs of $15.6, $10.9 and $12.2 for the years ended December 31, 2017, 2016 and 2015, respectively.


⁽²⁾	Includes acquisition-related expenses of $10.1 for the year ended December 31, 2017.

⁽³⁾

During the third quarter of 2016, we recovered for breaches of representations and warranties primarily related to warranty costs for certain product lines acquired in the 2012 acquisition of AirSep under the related representation and warranty insurance. For the year ended December 31, 2016, this reduced BioMedical segment’s cost of sales by $15.2 and Corporate SG&A expenses by $0.3, net of associated legal fees recorded in 2016. The 2016 operating income also includes asset impairment charges of $1.2 attributed to D&S.


⁽⁴⁾	Includes asset impairment charges of $255.1 for the year ended December 31, 2015, attributed to E&C – $68.8, D&S – $2.0, and BioMedical – $184.3.

Product Sales Information



	Year Ended December 31,
	2017		2016		2015
Energy & Chemicals
Natural gas processing (including petrochemical) applications	$	152.9	$	105.4	$	180.9
Liquefied natural gas applications	29.5		38.2		136.1
Industrial gas applications	22.4		10.7		14.0
HVAC, power and refining	20.8		—		—
Total Energy & Chemicals	225.6		154.3		331.0
Distribution & Storage
Bulk industrial gas applications	221.9		227.6		203.9
Packaged gas industrial applications	180.7		159.7		167.8
Liquefied natural gas applications	137.7		109.8		115.9
Total Distribution & Storage	540.3		497.1		487.6
BioMedical
Respiratory therapy	124.4		118.9		132.3
Cryobiological storage	77.0		70.6		64.6
On-site generation systems	21.5		18.3		24.7
Total BioMedical	222.9		207.8		221.6
Total	$	988.8	$	859.2	$	1,040.2

In 2017 and 2015, no one customer accounted for more than 10% of our consolidated sales. In 2016, one customer, Airgas “an Air Liquide company” and Air Liquide, accounted for more than 10% of our consolidated sales. Total sales from this customer represented approximately $98.9 of our 2016 consolidated sales and is attributable to our E&C, D&S and BioMedical segments.

Geographic Information

Net sales by geographic area are reported by the destination of sales. Net property, plant and equipment by geographic area are reported by country of domicile.



	Sales for the Year Ended December 31,
	2017		2016		2015
United States	$	526.7	$	426.0	$	513.7
Foreign
China	110.0		147.7		110.0
Other foreign countries	352.1		285.5		416.5
Total Foreign	462.1		433.2		526.5
Total	$	988.8	$	859.2	$	1,040.2



	Property, plant and equipment, net as of December 31,
	2017		2016
United States	$	177.9	$	145.0
Foreign
China	82.9		75.4
Czech Republic	20.7		18.5
Germany	13.4		11.5
Other foreign countries	2.7		0.6
Total Foreign	119.7		106.0
Total	$	297.6	$	251.0