Segment and Geographic Data

12 Months Ended

Dec. 31, 2019

Segment Reporting Information [Line Items]

Our business has three reportable segments: Water Infrastructure, Applied Water and Measurement & Control Solutions. When determining the reportable segments, the Company aggregated operating segments based on their similar economic and operating characteristics. The Water Infrastructure segment focuses on the transportation and treatment of water, offering a range of products including water, wastewater and storm water pumps, treatment equipment, and controls and systems. The Applied Water segment serves many of the primary uses of water and focuses on the residential, commercial and industrial markets. The Applied Water segment's major products include pumps, valves, heat exchangers, controls and dispensing equipment. The Measurement & Control Solutions segment focuses on developing advanced technology solutions that enable intelligent use and conservation of critical water and energy resources as well as analytical instrumentation used in the testing of water. The Measurement & Control Solutions segment's major products include smart metering, networked communications, measurement and control technologies, critical infrastructure technologies, software and services including cloud-based analytics, remote monitoring and data management, leak detection and pressure monitoring solutions and testing equipment.

Additionally, we have Regional selling locations, which consist primarily of selling and marketing organizations and related support services, that offer products and services across our reportable segments. Corporate and other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as environmental matters, that are managed at a corporate level and are not included in the business segments in evaluating performance or allocating resources.

The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1, "Summary of Significant Accounting Policies"). The following tables contain financial information for each reportable segment:



	Year Ended December 31,
(in millions)	2019			2018			2017
Revenue:
Water Infrastructure	$	2,177		$	2,176		$	2,004
Applied Water	1,541			1,534			1,421
Measurement & Control Solutions	1,531			1,497			1,282
Total	$	5,249		$	5,207		$	4,707
Operating income:
Water Infrastructure	$	365		$	359		$	312
Applied Water	241			236			194
Measurement & Control Solutions	(67		)	118			110
Corporate and other	(53		)	(59		)	(64		)
Total operating income	486			654			552
Interest expense	67			82			82
Other non-operating (expense) income, net	(4		)	13			6
Gain (loss) on sale of businesses	1			—			(10		)
Income before taxes	$	416		$	585		$	466
Depreciation and amortization:
Water Infrastructure	$	61		$	66		$	64
Applied Water	24			22			23
Measurement & Control Solutions	144			144			122
Regional selling locations (a)	18			20			17
Corporate and other	10			9			8
Total	$	257		$	261		$	234
Capital expenditures:
Water Infrastructure	$	79		$	84		$	58
Applied Water	19			28			20
Measurement & Control Solutions	100			101			69
Regional selling locations (b)	19			16			18
Corporate and other	9			8			5
Total	$	226		$	237		$	170


(a)	Depreciation and amortization expense incurred by the Regional selling locations was included in an overall allocation of Regional selling location costs to the segments; however, a certain portion of that expense was not specifically identified to a segment. That expense is captured in this Regional selling location line.


(b)	Represents capital expenditures incurred by the Regional selling locations not allocated to the segments.

The following table illustrates revenue by product category, net of intercompany revenue:



	Year Ended December 31,
(in millions)	2019		2018		2017
Pumps, accessories, parts and service	$	3,324	$	3,322	$	2,998
Other (a)	1,925		1,885		1,709
Total	$	5,249	$	5,207	$	4,707


(a)	Other includes treatment equipment, analytical instrumentation, heat exchangers, valves, controls and smart meters.

The following table contains the total assets for each reportable segment as of December 31, 2019, 2018 and 2017:



	Total Assets
(in millions)	2019		2018		2017
Water Infrastructure	$	1,268	$	1,233	$	1,232
Applied Water	1,016		1,051		1,002
Measurement & Control Solutions	3,497		3,576		3,198
Regional selling locations (a)	1,375		1,181		1,119
Corporate and other (b)	554		181		309
Total	$	7,710	$	7,222	$	6,860


(a)	The Regional selling locations have assets that consist primarily of cash, accounts receivable and inventory which are not allocated to the segments.


(b)	Corporate and other consists of items pertaining to our corporate headquarters function, which principally consist of cash, deferred tax assets, pension assets and certain plant and equipment.

Geographical Information

Revenue is attributed to countries based upon the location of the customer. Property, Plant & Equipment is attributed to countries based upon the location of the assets:



	Revenue
	Year Ended December 31,
(in millions)	2019		2018		2017
United States	$	2,554	$	2,424	$	2,161
Europe	1,380		1,449		1,335
Asia Pacific	659		660		611
Other	656		674		600
Total	$	5,249	$	5,207	$	4,707



	Property, Plant & Equipment
	December 31,
(in millions)	2019		2018		2017
United States	$	274	$	281	$	258
Europe	249		250		259
Asia Pacific	67		66		85
Other	68		59		41
Total	$	658	$	656	$	643