Business Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

Our business segments 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:

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

• 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 Chief Executive Officer ("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.

During the first quarter of 2015, we made composition changes to our EPD and IPD reportable segments to take into consideration the acquisition of SIHI that was closed on January 7, 2015. Effective January 1, 2015, certain activities, primarily related to engineered pumps and seals, that were previously included in the IPD business segment are now reported in the EPD business segment. These changes did not materially impact segment results or segment assets. We did not change our business segments, management structure, chief operating decision maker or how we evaluate segment performance and allocate resources. Prior periods were retrospectively adjusted to conform to the new reportable segment composition. The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2015, 2014 and 2013 reconciled to the amounts reported in the consolidated financial statements.

							Subtotal—Reportable Segments		Eliminations and All Other			Consolidated Total
	EPD		IPD		FCD
	(Amounts in thousands)
Year Ended December 31, 2015:
Sales to external customers		$2,213,048	$	937,756	$	1,410,226	$	4,561,030	$	—		$	4,561,030
Intersegment sales	46,948		44,137		5,276		96,361		(96,361		)	—
Segment operating income	328,952		30,194		234,407		593,553		(67,985		)	525,568
Depreciation and amortization	50,289		36,826		30,404		117,519		9,568			127,087
Identifiable assets	2,295,209		1,070,412		1,377,135		4,742,756		361,094			5,103,850
Capital expenditures	88,496		19,446		63,569		171,511		10,350			181,861

							Subtotal—Reportable Segments		Eliminations and All Other			Consolidated Total
	EPD		IPD		FCD
	(Amounts in thousands)
Year Ended December 31, 2014:
Sales to external customers		$2,507,707	$	760,924	$	1,609,254	$	4,877,885	$	—		$	4,877,885
Intersegment sales	56,940		44,958		6,474		108,372		(108,372		)	—
Segment operating income	447,183		107,008		322,845		877,036		(87,204		)	789,832
Depreciation and amortization	51,047		14,718		35,458		101,223		9,054			110,277
Identifiable assets	2,383,734		642,093		1,467,756		4,493,583		474,437			4,968,020
Capital expenditures	69,107		15,165		37,496		121,768		10,851			132,619

				Subtotal—Reportable Segments	Eliminations and All Other		Consolidated Total
	EPD	IPD	FCD
	(Amounts in thousands)
Year Ended December 31, 2013:
Sales to external customers	2,594,735	752,385	1,607,499	4,954,619	—		4,954,619
Intersegment sales	55,635	46,028	8,213	109,876	(109,876	)	—
Segment operating income	445,241	94,776	307,967	847,984	(87,701	)	760,283
Depreciation and amortization	48,463	12,153	36,590	97,206	9,186		106,392
Identifiable assets	2,390,626	698,513	1,520,085	4,609,224	427,509		5,036,733
Capital expenditures	77,900	14,924	40,205	133,029	6,061		139,090

Geographic Information — We attribute sales to different geographic areas based on the facilities’ locations. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes, goodwill and intangible assets. Prior period information has been updated to conform to current year presentation. Sales and long-lived assets by geographic area are as follows:

	Year Ended December 31, 2015
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,790,119	39.3	%	$	351,367	35.4	%
EMA(1)	1,773,281		38.9	%	326,728		32.9	%
Asia(2)	562,792		12.3	%	143,767		14.5	%
Other(3)	434,838		9.5	%	171,169		17.2	%
Consolidated total	$	4,561,030	100.0	%	$	993,031	100.0	%

	Year Ended December 31, 2014
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,724,392	35.4	%	$	386,489	41.6	%
EMA(1)	1,991,638		40.8	%	268,334		28.9	%
Asia(2)	571,195		11.7	%	126,878		13.7	%
Other(3)	590,660		12.1	%	147,145		15.8	%
Consolidated total	$	4,877,885	100.0	%	$	928,846	100.0	%

	Year Ended December 31, 2013
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,699,053	34.3	%	$	374,125	41.5	%
EMA(1)	2,102,428		42.4	%	287,071		31.8	%
Asia(2)	552,383		11.2	%	124,619		13.8	%
Other(3)	600,755		12.1	%	115,904		12.9	%
Consolidated total	$	4,954,619	100.0	%	$	901,719	100.0	%

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(1) "EMA" includes Europe, the Middle East and Africa. No individual country within this group represents 10% or more of consolidated totals for any period presented.

(2) "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented.

(3) "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented.

Net sales to international customers, including export sales from the U.S., represented approximately 66% of total sales in 2015, 68% in 2014 and 71% in 2013.

Major Customer Information — We have a large number of customers across a large number of manufacturing and service facilities and do not believe that we have sales to any individual customer that represent 10% or more of consolidated sales for any of the years presented.