Segment Reporting

The Company has identified two reportable segments: Engine Products and Industrial Products. Segment determination is based on the internal organization structure, management of operations and performance evaluation by management and the Company’s Board of Directors.

The Engine Products segment sells to OEMs in the construction, mining, agriculture, aerospace, defense and truck end markets and to independent distributors, OEM dealer networks, private label accounts and large equipment fleets. Products include replacement filters for both air and liquid filtration applications, air filtration systems, liquid filtration systems for fuel, lube and hydraulic applications, and exhaust and emissions systems.

The Industrial Products segment sells to various dealers, distributors, OEMs of gas-fired turbines and OEMs and end users requiring clean air filtration solutions and replacement filters. Products include dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines, PTFE membrane-based products and specialized air and gas filtration systems for applications including hard disk drives and semi-conductor manufacturing.

Corporate and Unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest income and interest expense. Assets included in Corporate and Unallocated are principally cash and cash equivalents, inventory reserves, certain prepaids, certain investments, other assets and assets allocated to general corporate purposes.

The Company has an internal measurement system to evaluate performance and allocate resources based on earnings before income taxes. The Company’s manufacturing facilities serve both reporting segments. Therefore, the Company uses an allocation methodology to assign costs and assets to the segments. A certain amount of costs and assets relate to general corporate purposes and are not assigned to either segment. The accounting policy applied to inventory for the reportable segments differs from that described in the summary of significant accounting policies. The reportable segments account for inventory on a standard cost basis, which is consistent with the Company's internal reporting.

Segment allocated assets are primarily accounts receivable, inventories, property, plant and equipment and goodwill. Reconciling items included in Corporate and Unallocated are created based on accounting differences between segment reporting and the consolidated external reporting as well as internal allocation methodologies.

The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the earnings before income taxes and other financial information shown below.

Segment detail is summarized as follows (in millions):



	Engine Products		Industrial Products		Corporate and Unallocated			Total Company
Fiscal 2017
Net sales	$	1,553.3	$	818.6	$	—		$	2,371.9
Depreciation and amortization	33.9		26.7		14.6			75.2
Equity earnings in unconsolidated affiliates	4.4		0.6		—			5.0
Earnings (loss) before income taxes	219.7		129.1		(26.8		)	322.0
Assets	849.6		638.3		491.8			1,979.7
Equity investments in unconsolidated affiliates	14.8		4.2		—			19.0
Capital expenditures	29.7		23.4		12.8			65.9
Fiscal 2016
Net sales	$	1,391.3	$	829.0	$	—		$	2,220.3
Depreciation and amortization	38.5		28.1		8.3			74.9
Equity earnings in unconsolidated affiliates	1.0		1.2		—			2.2
Earnings (loss) before income taxes	163.5		119.0		(25.1		)	257.4
Assets	841.4		646.9		298.7			1,787.0
Equity investments in unconsolidated affiliates	14.3		4.4		—			18.7
Capital expenditures	37.5		27.3		8.1			72.9
Fiscal 2015
Net sales	$	1,484.1	$	887.1	$	—		$	2,371.2
Depreciation and amortization	43.3		26.4		4.6			74.3
Equity earnings in unconsolidated affiliates	4.1		1.0		—			5.1
Earnings (loss) before income taxes	186.3		123.3		(21.0		)	288.6
Assets	887.7		634.0		285.8			1,807.5
Equity investments in unconsolidated affiliates	15.1		3.2		—			18.3
Capital expenditures	54.6		33.4		5.8			93.8

Net sales by product group within the Engine Products segment and Industrial Products segment is summarized as follows (in millions):



	Year Ended July 31,
	2017		2016		2015
Engine Products segment:
Off-Road	$	252.1	$	216.6	$	261.1
On-Road	110.7		127.2		138.4
Aftermarket	1,086.2		951.5		980.7
Aerospace and Defense	104.3		96.0		103.9
Total Engine Products segment	1,553.3		1,391.3		1,484.1
Industrial Products segment:
Industrial Filtration Solutions	533.2		517.9		529.0
Gas Turbine Systems	122.9		149.6		186.9
Special Applications	162.5		161.5		171.2
Total Industrial Products segment	818.6		829.0		887.1
Total Company	$	2,371.9	$	2,220.3	$	2,371.2

Net sales by origination and property, plant and equipment by geographic region are summarized as follows (in millions):



	Net Sales (1)		Property, Plant and Equipment, Net
Fiscal 2017
United States	$	990.1	$	192.7
Europe	638.1		163.3
Asia Pacific	500.5		55.3
Other	243.2		73.3
Total	$	2,371.9	$	484.6

Fiscal 2016
United States	$	937.3	$	192.9
Europe	632.7		148.1
Asia Pacific	449.9		60.1
Other	200.4		68.7
Total	$	2,220.3	$	469.8

Fiscal 2015
United States	$	1,007.3	$	209.0
Europe	671.3		141.7
Asia Pacific	470.7		63.8
Other	221.9		56.1
Total	$	2,371.2	$	470.6


(1)	Net sales by origination is based on the country of the Company's legal entity where the customer's order was placed.

Concentrations There were no customers that accounted for over 10% of net sales during the years ended July 31, 2017, 2016 or 2015. There were no customers that accounted for over 10% of gross accounts receivable at July 31, 2017 or July 31, 2016.