Segment Information

12 Months Ended

Dec. 31, 2019

19. Segment Information

Effective October 1, 2019, Dover transitioned from a three-segment to a five-segment structure as a result of a change to its management structure and operating model. The Company's businesses are structured around similar business models, go-to market strategies and manufacturing practices which increases management efficiency and better aligns Dover's operations with its strategic initiatives and capital allocation priorities, and provide greater transparency about performance. Operating segments are defined as the components of an enterprise for which separate financial information is available and regularly evaluated by the entity's chief operating decision maker ("CODM") or decision-making group, which is composed of Dover's executive leadership team, in making resource allocation decisions and evaluating performance.

The Company categorizes its operating companies into five reportable segments based on how the CODM analyze performance, allocate capital and make strategic and operational decisions. The five reportable segments are as follows:

•Engineered Products segment is a provider of a wide range of products, software and services that have broad customer applications across a number of markets, including aftermarket vehicle service, solid waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing.

•Fueling Solutions segment is focused on providing components, equipment and software and service solutions enabling safe transport of fuels and other hazardous fluids along the supply chain, as well as the safe and efficient operation of retail fueling and vehicle wash establishments.

•Imaging & Identification segment supplies precision marking and coding, product traceability and digital textile printing equipment, as well as related consumables, software and services.

•Pumps & Process Solutions segment manufactures specialty pumps, fluid handling components, plastics and polymer processing equipment, and highly engineered components for rotating and reciprocating machines.

•Refrigeration & Food Equipment segment is a provider of innovative and energy-efficient equipment and systems that serve the commercial refrigeration, heating and cooling and food equipment markets.

Segment financial information and a reconciliation of segment results to consolidated results follows:


	Years Ended December 31,
	2019			2018			2017
Revenue:
Engineered Products	$	1,697,557		$	1,633,147		$	1,626,856
Fueling Solutions	1,620,177			1,465,590			1,338,062
Imaging & Identification	1,084,471			1,109,843			1,041,188
Pumps & Process Solutions	1,338,528			1,331,893			1,217,235
Refrigeration & Food Equipment	1,396,617			1,453,093			1,599,105
Intra-segment eliminations	(953)			(1,448)			(1,560)
Total consolidated revenue	$	7,136,397		$	6,992,118		$	6,820,886
Earnings from continuing operations:
Segment earnings (EBIT): ⁽¹⁾
Engineered Products	$	291,848		$	252,368		$	437,079
Fueling Solutions	231,873			152,255			159,180
Imaging & Identification	229,484			198,902			167,404
Pumps & Process Solutions ⁽²⁾	240,081			237,549			209,451
Refrigeration & Food Equipment	118,832			136,119			193,822
Total segment earnings (EBIT)	1,112,118			977,193			1,166,936
Corporate expense / other ⁽³⁾	124,274			129,724			154,664
Interest expense	125,818			130,972			144,948
Interest income	(4,526)			(8,881)			(8,491)
Loss on extinguishment of debt	23,543			—			—
Earnings before provision for income taxes and discontinued operations	843,009			725,378			875,815
Provision for income taxes	165,091			134,233			129,152
Earnings from continuing operations	$	677,918		$	591,145		$	746,663
Segment margins:
Engineered Products	17.2		%	15.5		%	26.9		%
Fueling Solutions	14.3		%	10.4		%	11.9		%
Imaging & Identification	21.2		%	17.9		%	16.1		%
Pumps & Process Solutions ⁽²⁾	17.9		%	17.8		%	17.2		%
Refrigeration & Food Equipment	8.5		%	9.4		%	12.1		%
Total Segments	15.6		%	14.0		%	17.1		%
Earnings from continuing operations	9.5		%	8.5		%	10.9		%
Depreciation and amortization:
Engineered Products	$	41,032		$	44,995		$	48,271
Fueling Solutions	75,045			68,463			67,835
Imaging & Identification	30,530			30,882			37,176
Pumps & Process Solutions	67,584			71,982			67,986
Refrigeration & Food Equipment	51,360			60,477			57,207
Corporate	6,736			5,781			4,803
Consolidated total	$	272,287		$	282,580		$	283,278
Capital expenditures:
Engineered Products	$	38,049		$	34,016		$	25,762
Fueling Solutions	21,780			37,232			40,702
Imaging & Identification	18,593			13,029			11,733
Pumps & Process Solutions	50,442			49,333			49,923
Refrigeration & Food Equipment	51,052			32,482			32,541
Corporate	6,888			4,902			9,407
Consolidated total	$	186,804		$	170,994		$	170,068

⁽¹⁾ Segment earnings (EBIT) includes non-operating income and expense directly attributable to the segments. Non-operating income and expense includes gain on sale of businesses and other income, net.

⁽²⁾ For the year ended December 31, 2019 includes a $46,946 loss on assets held for sale for Finder.

⁽³⁾Certain expenses are maintained at the corporate level and not allocated to the segments. These expenses include executive and functional compensation costs, non-service pension costs, non-operating insurance expenses, shared business services overhead costs, deal related expenses and various administrative expenses relating to the corporate headquarters.

Selected financial information by segment (continued):


Total assets at December 31:	2019		2018
Engineered Products	$	1,431,948	$	1,477,671
Fueling Solutions	2,107,045		1,895,308
Imaging & Identification	1,673,689		1,592,349
Pumps & Process Solutions	1,553,836		1,562,845
Refrigeration & Food Equipment	1,302,618		1,252,870
Corporate ⁽⁴⁾	600,341		584,728


Total assets	$	8,669,477	$	8,365,771

⁽⁴⁾The significant portion of corporate assets are principally cash and cash equivalents.


	Revenue										Long-Lived Assets
	Years Ended December 31,										At December 31,
	2019		2018		2017		2019		2018
United States	$	3,806,033	$	3,619,717	$	3,654,102	$	491,732	$	480,780
Europe	1,571,901		1,572,788		1,476,686		261,170		239,070
Asia	863,050		867,268		754,845		60,601		59,550
Other Americas	625,707		631,164		621,831		24,174		24,872
Other	269,706		301,181		313,422		4,641		2,225
Consolidated total	$	7,136,397	$	6,992,118	$	6,820,886	$	842,318	$	806,497

The majority of revenue from our Engineered Products, Fueling Systems, Imaging & Identification. Pumps & Process Solutions, and Refrigeration & Food Equipment segments is generated from sales to customers within the United States, Europe and Asia. Each segment also generates revenue across the other geographies, with no significant concentration of any segment’s remaining revenue.

Revenue is attributed to regions based on the location of the Company’s customer, which in some instances is an intermediary and not necessarily the end user. Long-lived assets are comprised of net property, plant and equipment. The Company’s businesses are based primarily in the United States, Europe and Asia. The Company’s businesses serve thousands of customers, none of which accounted for more than 10% of consolidated revenue.