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.

The Company has an internal measurement system to evaluate performance and allocate resources based on earnings before income taxes. Many of the Company’s manufacturing facilities serve both reporting segments. Therefore, the Company uses an allocation methodology to assign costs and assets to the segments. Segment allocated assets are primarily accounts receivable, inventories, property, plant and equipment and goodwill.

Corporate and Unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest expense. Assets included in Corporate and Unallocated are principally cash and cash equivalents, certain prepaid expenses, other assets and assets allocated to general corporate purposes. 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 2018
Net sales	$	1,849.0	$	885.2		$	—		$	2,734.2
Depreciation and amortization	50.8		24.7			1.2			76.7
Equity earnings (loss) in unconsolidated affiliates	3.7		(0.1		)	—			3.6
Earnings (loss) before income taxes	261.3		137.1			(34.8		)	363.6
Assets	1,110.3		631.9			234.4			1,976.6
Equity investments in unconsolidated affiliates	17.8		3.9			—			21.7
Capital expenditures	64.6		31.4			1.5			97.5
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

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



	Year Ended July 31,
	2018		2017		2016
Engine Products segment:
Off-Road	$	327.4	$	252.1	$	216.6
On-Road	154.2		110.7		127.2
Aftermarket	1,261.9		1,086.2		951.5
Aerospace and Defense	105.5		104.3		96.0
Total Engine Products segment	1,849.0		1,553.3		1,391.3
Industrial Products segment:
Industrial Filtration Solutions	594.3		533.2		517.9
Gas Turbine Systems	115.5		122.9		149.6
Special Applications	175.4		162.5		161.5
Total Industrial Products segment	885.2		818.6		829.0
Total net sales	$	2,734.2	$	2,371.9	$	2,220.3

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 2018
United States	$	1,120.8	$	188.1
Europe, Middle East and Africa	791.5		181.1
Asia Pacific	599.2		53.4
Latin America	222.7		86.7
Total	$	2,734.2	$	509.3

Fiscal 2017
United States	$	990.4	$	193.5
Europe, Middle East and Africa	679.1		170.0
Asia Pacific	500.5		55.3
Latin America	201.9		65.8
Total	$	2,371.9	$	484.6

Fiscal 2016
United States	$	937.7	$	193.5
Europe, Middle East and Africa	665.5		154.6
Asia Pacific	449.9		60.1
Latin America	167.2		61.6
Total	$	2,220.3	$	469.8


(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, 2018, 2017 or 2016. There were no customers that accounted for over 10% of gross accounts receivable at July 31, 2018 or July 31, 2017.