Segment Information

12 Months Ended

Dec. 31, 2012

Segment Information

Note 20: Segment Information

The Company evaluates the performance of its reportable segments based on, among other measures, operating income, which is defined as income before interest expense, other income, net, and income taxes. Reportable segment operating income and segment operating margin (defined as segment operating income divided by segment revenues) are indicative of short-term operational performance and ongoing profitability. Management closely monitors the operating income and operating margin of each reportable segment to evaluate past performance and actions required to improve profitability. Certain assets attributable to corporate activity are not allocated to the segments. General corporate assets (unallocated assets) consist of cash and equivalents and deferred tax assets. Inter-segment sales and transfers are not significant. The accounting policies of the segments are the same as those described in Note 1 “Summary of Significant Accounting Policies.”

In the Industrial Products Group, the Company designs, manufactures, markets and services the following products and related aftermarket parts for industrial and commercial applications: rotary screw, reciprocating, and sliding vane air and gas compressors; positive displacement, centrifugal, and side channel blowers; and vacuum pumps primarily serving manufacturing, transportation and general industry and selected OEM and engineered system applications. The Company also markets and services complementary ancillary products. Stationary air compressors are used in manufacturing, process applications and materials handling, and to power air tools and equipment. Blowers are used primarily in pneumatic conveying, wastewater aeration, numerous applications in industrial manufacturing and engineered vacuum systems. The markets served by the Industrial Products Group are primarily located in Europe, the U.S. and Asia.

In the Engineered Products Group, the Company designs, manufactures, markets and services a diverse group of pumps, compressors, liquid ring vacuum pumps, water jetting and loading arm systems and related aftermarket parts. These products are used in well drilling, well servicing and production of oil and natural gas; industrial, commercial and transportation applications; and in industrial cleaning and maintenance. Liquid ring pumps are used in many different applications such as water removal, distilling, reacting, flare gas recovery, efficiency improvement, lifting and handling, and filtering, principally in the pulp and paper, industrial manufacturing, petrochemical and power industries. This segment also designs, manufactures, markets and services other engineered products and components and equipment for the chemical, petroleum and food industries. The markets served by the Engineered Products Group are primarily located in the U.S., Europe, Canada and Asia.

The following tables provide summarized information about the Company’s operations by reportable segment.

	Revenues						Operating Income									Identifiable Assets at December, 31
	2012		2011		2010		2012			2011			2010			2012		2011		2010
Industrial Products Group	$	1,293,685		1,256,010		1,099,812	$	134,431			140,457			93,107		$	1,361,693		1,350,980		1,082,299
Engineered Products Group		1,061,840		1,114,893		795,292		238,313			260,254			159,303			854,629		852,169		761,259
Total	$	2,355,525		2,370,903		1,895,104		372,744			400,711			252,410			2,216,322		2,203,149		1,843,558
Interest expense								14,706			15,397			23,424
Other income, net								(3,524	)		(1,667	)		(2,865	)
Income (loss) before income taxes							$	361,562			386,981			231,851
General corporate (unallocated)																	273,870		162,419		183,540
Total assets																$	2,490,192		2,365,568		2,027,098

	LIFO Liquidation Income (before tax)						Depreciation and Amortization Expense						Capital Expenditures
	2012		2011		2010		2012		2011		2010		2012		2011		2010
Industrial Products Group	$	—		—		87	$	44,446		40,190		40,778	$	18,518		23,334		18,459
Engineered Products Group		190		204		667		19,332		20,094		19,470		31,232		32,354		14,580
Total	$	190		204		754	$	63,778		60,284		60,248	$	49,750		55,688		33,039

The following table presents revenues and property, plant and equipment by geographic region. Revenues have been attributed based on the products’ shipping destination.

	Revenues						Property, Plant and Equipment, net at December 31,
	2012		2011		2010		2012		2011		2010
United States	$	876,073		918,738		654,461	$	119,717		110,780		99,214
Canada		78,514		69,782		71,122		872		514		620
Brazil		46,441		50,040		33,401		6,872		8,147		9,931
Other		51,884		46,402		40,032		113		139		—
Total Americas		1,052,912		1,084,962		799,016		127,574		119,580		109,765
Germany		207,590		229,815		194,636		56,943		61,527		71,159
United Kingdom		105,213		109,771		106,782		39,831		40,249		45,764
France		79,351		81,262		68,361		5,956		6,519		7,006
Italy		70,798		52,487		41,876		21,276		21,531		8,221
Africa		48,258		50,922		56,084		1,845		2,171		2,904
Other		342,143		266,963		248,502		15,204		15,730		14,178
Total Europe – Middle East - Africa		853,353		791,220		716,241		141,055		147,727		149,232
China		182,792		194,060		158,150		23,048		20,138		23,407
Australia		72,520		88,863		68,666		2,576		2,990		3,546
Other		193,948		211,798		153,031		991		477		613
Total AsiaPac		449,260		494,721		379,847		26,615		23,605		27,566
Total	$	2,355,525		2,370,903		1,895,104	$	295,244		290,912		286,563