Segment Information

3 Months Ended

Mar. 31, 2020

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 in the 2019 Annual Report). The following tables contain financial information for each reportable segment:


	Three Months Ended
	March 31,
(in millions)	2020		2019
Revenue:
Water Infrastructure	$	438	$	482
Applied Water	338		379
Measurement & Control Solutions	347		376
Total	$	1,123	$	1,237
Operating Income:
Water Infrastructure	$	39	$	51
Applied Water	47		56
Measurement & Control Solutions	(12)		16
Corporate and other	(13)		(14)
Total operating income	$	61	$	109
Interest expense	$	16	18
Other non-operating (expense) income, net	(3)		2
Gain from sale of business	—		1
Income before taxes	$	42	$	94
Depreciation and Amortization:
Water Infrastructure	$	15	$	15
Applied Water	6		6
Measurement & Control Solutions	36		36
Regional selling locations (a)	4		4
Corporate and other	3		3
Total	$	64	$	64
Capital Expenditures:
Water Infrastructure	$	10	$	30
Applied Water	9		6
Measurement & Control Solutions	27		24
Regional selling locations (b)	4		4
Corporate and other	1		5
Total	$	51	$	69

(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.