Business Segment Information

12 Months Ended

Mar. 31, 2020

The Company's results of operations are reported in two business segments, consisting of the Process & Motion Control platform and the Water Management platform. The Process & Motion Control platform designs, manufactures, markets and services a comprehensive range of specified, highly-engineered mechanical components used within complex systems where customers' reliability requirements and costs of failure or downtime are high. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components, and related value-added services. Products and services are marketed and sold globally under widely recognized brand names, including Rexnord®, Rex®, Addax®, Euroflex®, Falk®, FlatTop®, Cambridge®, Link-Belt®, Omega®, PSI®, Shafer®, Stearns®, Highfield®, Thomas®, Centa®, and Tollok^TM. Process & Motion Control products and services are sold into a diverse group of attractive end markets, including food and beverage, aerospace, mining, petrochemical, energy and power generation, cement and aggregates, forest and wood products, agriculture, and general industrial and automation applications. The Water Management platform designs, procures, manufactures, and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing, and site works products for primarily nonresidential buildings. Products are marketed and sold under widely recognized brand names, including Zurn®, Wilkins®, Green Turtle®, World Dryer®, StainlessDrains.com^TM and JUST®. The financial information of the Company's segments is regularly evaluated by the chief operating decision maker in determining resource allocation and assessing performance. Management evaluates the performance of each business segment based on its operating results. The same accounting policies are used throughout the organization. See Note 1, Basis of Presentation and Significant Accounting Policies for further information.

During fiscal 2019, the Company sold its VAG business included within the Water Management platform and in accordance with the authoritative guidance, the operating results of the VAG business are reported as discontinued operations in all periods presented. See Note 4, Discontinued Operations, for further information.

Business Segment Information:

(in Millions)


	Years Ended
	March 31, 2020		March 31, 2019		March 31, 2018
Net sales by product
Process & Motion Control:
Original equipment manufacturers/ end-users	$	766.8	$	768.5	$	690.5
Maintenance, repair, and operations	591.4		612.1		550.7
Total Process & Motion Control	1,358.2		1,380.6		1,241.2
Water Management:
Water safety, quality, flow control and conservation	661.0		624.4		566.9
Water infrastructure	49.1		45.9		43.5
Total Water Management	710.1		670.3		610.4
Consolidated net sales	2,068.3		2,050.9		1,851.6
Income (loss) from operations
Process & Motion Control	228.4		226.1		191.3
Water Management	163.1		139.7		125.7
Corporate	(57.2)		(60.2)		(50.6)
Consolidated income from operations	334.3		305.6		266.4
Non-operating expense:
Interest expense, net	(58.6)		(69.9)		(75.1)
Gain (loss) on the extinguishment of debt	1.0		4.3		(11.9)
Actuarial (loss) gain on pension and postretirement benefit obligations	(36.6)		0.4		3.3
Other (expense) income, net	(3.8)		(1.6)		4.4
Income from continuing operations before income taxes	236.3		238.8		187.1
(Provision) benefit for income taxes	(54.1)		(53.4)		19.5
Equity method investment income	—		3.6		—
Net income from continuing operations	182.2		189.0		206.6
Loss from discontinued operations, net of tax	(1.8)		(154.7)		(130.6)
Net income	180.4		34.3		76.0
Non-controlling interest income	0.3		—		0.1
Net income attributable to Rexnord	180.1		34.3		75.9
Dividends on preferred stock	(14.4)		(23.2)		(23.2)
Net income attributable to Rexnord common stockholders	$	165.7	$	11.1	$	52.7

Depreciation and Amortization
Process & Motion Control	$	59.6	$	63.0	$	56.0
Water Management	26.5		24.9		23.7
Corporate	0.5		—		—
Consolidated	$	86.6	$	87.9	$	79.7
Capital Expenditures
Process & Motion Control	$	34.6	$	36.3	$	34.2
Water Management	6.8		6.2		3.8
Consolidated	$	41.4	$	42.5	$	38.0

	March 31, 2020		March 31, 2019		March 31, 2018
Total Assets
Process & Motion Control	$	2,953.0	$	2,677.7	$	2,598.8
Water Management	656.7		576.8		820.9
Corporate	17.4		5.2		4.0
Consolidated	$	3,627.1	$	3,259.7	$	3,423.7

Net sales to third parties and long-lived assets by geographic region are as follows (in millions):


	Net Sales										Long-lived Assets
	Year Ended March 31, 2020		Year Ended March 31, 2019		Year Ended March 31, 2018		March 31, 2020		March 31, 2019		March 31, 2018
United States	1,472.7		1,460.6		1,361.6		$	264.7	$	260.7	$	260.9
Europe	298.9		327.5		255.5		72.9		78.9		91.2
Rest of World	296.7		262.8		234.5		41.2		43.4		44.4
	$	2,068.3	$	2,050.9	$	1,851.6	$	378.8	$	383.0	$	396.5

Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for long-lived assets are based on the location of the entity that holds such assets. In accordance with ASC 280, Segment Reporting, long-lived assets includes movable assets and excludes net intangible assets and goodwill.