Business Segments

The Company identifies its segments using the “management approach,” which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company's reportable segments. Management organizes the business based on geography, and has designated the regions Americas, EMEA, and APAC as reportable segments.

The accounting policies of the Company's reportable segments are the same as those described in the summary of accounting policies in Note 2, "Summary of Significant Accounting Policies and Basis of Presentation," except that certain corporate-level expenses are not allocated to the segments. These unallocated expenses include corporate overhead, stock-based compensation expense, amortization expense of intangible assets with definite lives, separation expense, restructuring expense and other non-operating expenses. For the period prior to the Spin-Off, certain additional MTW corporate overhead expenses that were allocated to the Company were also not allocated to the segments.

The Company evaluates segment performance based upon earnings before interest, taxes, other expense (income) - net, depreciation and amortization expense and is adjusted for certain other non-cash or non-recurring items, including gain or loss from impairment or disposal of assets, restructuring, separation charges and loss on early extinguishment of debt ("Adjusted Operating EBITDA"). Adjusted Operating EBITDA is a non-GAAP measure, and the Company's presentation of Adjusted Operating EBITDA may not be comparable to similar measures used by other companies. Beginning in January 2017, the Company updated its performance measure and definition of Adjusted Operating EBITDA (previously titled "Operating EBITA") to additionally exclude at the segment level depreciation expense, gain or loss from impairment or disposal of assets, restructuring, separation charges and loss on early extinguishment of debt. All prior segment information has been recast to reflect these changes for consistency of presentation.

Financial information relating to the Company's reportable segments as of and for the years ended December 31, 2017, 2016 and 2015 respectively is as follows:



	Years Ended December 31,
(in millions, except percentage data)	2017			2016			2015
Net sales:
Americas	$	1,166.8		$	1,186.6		$	1,323.7
EMEA	296.5			287.6			281.6
APAC	190.2			190.9			191.1
Elimination of intersegment sales	(208.1		)	(208.5		)	(226.3		)
Total net sales	$	1,445.4		$	1,456.6		$	1,570.1

Segment Adjusted Operating EBITDA:
Americas	$	240.7		$	233.6		$	215.6
EMEA	55.2			44.3			27.0
APAC	22.7			24.7			25.3
Total Segment Adjusted Operating EBITDA	318.6			302.6			267.9
Corporate and unallocated	(43.2		)	(42.6		)	(38.2		)
Amortization expense	(31.2		)	(31.2		)	(31.4		)
Depreciation expense	(16.7		)	(17.3		)	(19.6		)
Separation expense	(1.6		)	(6.5		)	(4.3		)
Restructuring expense	(10.8		)	(2.5		)	(4.6		)
Gain (loss) from impairment or disposal of assets — net	4.0			(3.3		)	(9.9		)
Earnings from operations	219.1			199.2			159.9
Interest expense	(86.9		)	(85.2		)	(1.4		)
Interest (expense) income on notes with MTW — net	—			(0.1		)	15.8
Loss on early extinguishment of debt	(4.4		)	—			—
Other (expense) income — net	(9.0		)	(9.1		)	22.1
Earnings before income taxes	$	118.8		$	104.8		$	196.4

Adjusted Operating EBITDA % by segment ⁽¹⁾:
Americas	20.6		%	19.7		%	16.3		%
EMEA	18.6		%	15.4		%	9.6		%
APAC	11.9		%	12.9		%	13.2		%
⁽¹⁾Adjusted Operating EBITDA % in the section above is calculated by dividing the dollar amount of Adjusted Operating EBITDA by net sales for each respective segment.

Capital expenditures:
Americas	$	17.2		$	12.4		$	8.4
EMEA	2.0			0.9			1.5
APAC	1.0			1.8			1.4
Corporate	0.5			0.9			1.9
Total capital expenditures	$	20.7		$	16.0		$	13.2

Depreciation:
Americas	$	11.5		$	12.1		$	14.3
EMEA	2.4			2.5			2.6
APAC	1.9			2.0			2.1
Corporate	0.9			0.7			0.6
Total depreciation	$	16.7		$	17.3		$	19.6

As of December 31, 2017 and December 31, 2016, total assets by reportable segment are as follows:



(in millions)	2017		2016
Total assets by segment:
Americas	$	1,445.6	$	1,463.7
EMEA	112.1		102.6
APAC	128.7		110.8
Corporate	154.0		92.0
Total assets	$	1,840.4	$	1,769.1

Net sales by product class are categorized into commercial foodservice whole goods and aftermarket parts and service. Net sales by product class for the years ended December 31, 2017, 2016 and 2015 are as follows:



(in millions)	2017		2016		2015
Commercial foodservice whole goods	$	1,173.3	$	1,191.0	$	1,277.2
Aftermarket parts and support	272.1		265.6		292.9
Total net sales	$	1,445.4	$	1,456.6	$	1,570.1

Net sales information by geographic area for the years ended December 31, 2017, 2016 and 2015 are as follows:



(in millions)	2017		2016		2015
Net sales by geographic area⁽¹⁾:
United States	$	945.6	$	945.7	$	1,066.7
Other Americas	95.0		104.3		106.6
EMEA	239.2		242.0		237.2
APAC	165.6		164.6		159.6
Total net sales by geographic area	$	1,445.4	$	1,456.6	$	1,570.1

⁽¹⁾Net sales in the section above are attributed to geographic regions based on location of customer.

The Company sells primarily through distributors and dealers ("direct customers"), who ultimately sell to end customers. No single direct customer represented 10.0% or greater of the Company's net sales for the years ended December 31, 2017, 2016 or 2015.

As of December 31, 2017 and December 31, 2016, "Property, plant and equipment - net" information by geographic area is as follows:



(in millions)	2017		2016
Property, plant and equipment - net by geographic area:
United States	$	68.1	$	68.1
Other Americas	19.5		17.1
EMEA	11.6		10.8
APAC	13.0		13.1
Total property, plant, equipment - net by geographic area	$	112.2	$	109.1