Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Segment Information

Segment Information

Our business segments, defined below, share a focus on industrial flow control technology and have a high number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively.

We conduct our operations through these three business segments based on type of product and how we manage the business:

• Engineered Product Division ("EPD") for long lead-time, custom and other highly-engineered pumps and pump systems, mechanical seals, auxiliary systems and replacement parts and related services;

• Industrial Product Division ("IPD") for engineered and pre-configured industrial pumps and pump systems and related products and services; and

• FCD for engineered and industrial valves, control valves, actuators and controls and related services.

For decision-making purposes, our CEO and other members of senior executive management use financial information generated and reported at the reportable segment level. Our corporate headquarters does not constitute a separate division or business segment. We evaluate segment performance and allocate resources based on each reportable segment’s operating income. Amounts classified as "Eliminations and All Other" include corporate headquarters costs and other minor entities that do not constitute separate segments. Intersegment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation.

The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements:

							Subtotal–		Eliminations
Three Months Ended March 31, 2013							Reportable		and All			Consolidated
(Amounts in thousands)	EPD		IPD		FCD		Segments		Other			Total
Sales to external customers	$	523,775	$	190,946	$	381,875	$	1,096,596	$	—		$	1,096,596
Intersegment sales	15,916		20,354		2,154		38,424		(38,424		)	—
Segment operating income	84,603		21,354		87,169		193,126		(22,647		)	170,479
							Subtotal–		Eliminations
Three Months Ended March 31, 2012							Reportable		and All			Consolidated
(Amounts in thousands)	EPD		IPD		FCD		Segments		Other			Total
Sales to external customers	$	519,842	$	193,382	$	361,756	$	1,074,980	$	—		$	1,074,980
Intersegment sales	14,966		19,804		2,135		36,905		(36,905		)	—
Segment operating income	92,177		17,351		55,693		165,221		(22,698		)	142,523