Business Segment Information

12 Months Ended

Dec. 31, 2021

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 two business segments based on type of product and how we manage the business:

•FPD for custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and

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

Our corporate headquarters does not constitute a separate division or business segment. 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 our reportable segments as of and for the years ended December 31, 2021, 2020 and 2019 reconciled to the amounts reported in the consolidated financial statements.

				Subtotal—Reportable Segments		Eliminations and All Other		Consolidated Total
	FPD	FCD
	(Amounts in thousands)
Year Ended December 31, 2021:
Sales to external customers	$2,468,098	$	1,072,962	$	3,541,060	$	—	$	3,541,060
Intersegment sales	2,750	2,924		5,674		(5,674)		—
Segment operating income (loss)	243,203	119,651		362,854		(92,095)		270,759
Depreciation and amortization	51,094	21,286		72,380		27,442		99,822
Identifiable assets	2,927,346	1,223,316		4,150,662		599,106		4,749,768
Capital expenditures	21,575	12,283		33,858		21,078		54,936

				Subtotal—Reportable Segments		Eliminations and All Other		Consolidated Total
	FPD	FCD
	(Amounts in thousands)
Year Ended December 31, 2020:
Sales to external customers	$2,673,705	$	1,054,429	$	3,728,134	$	—	$	3,728,134
Intersegment sales	1,965	3,120		5,085		(5,085)		—
Segment operating income (loss)	270,960	125,573		396,533		(146,256)		250,277
Depreciation and amortization	52,390	21,949		74,339		26,414		100,753
Identifiable assets	3,039,069	1,308,136		4,347,205		967,472		5,314,677
Capital expenditures	21,714	14,043		35,757		21,648		57,405

					Subtotal—Reportable Segments		Eliminations and All Other		Consolidated Total
	FPD		FCD
	(Amounts in thousands)
Year Ended December 31, 2019:
Sales to external customers	$	2,704,445	$	1,235,252	$	3,939,697	$	—	$	3,939,697
Intersegment sales	1,833		3,631		5,464		(5,464)		—
Segment operating income (loss)	343,514		191,945		535,459		(148,836)		386,623
Depreciation and amortization	50,845		23,577		74,422		31,482		105,904
Identifiable assets	2,974,161		1,333,926		4,308,087		630,190		4,938,277
Capital expenditures	26,450		14,449		40,899		34,817		75,716

Geographic Information — We attribute sales to different geographic areas based on our 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. Sales and long-lived assets by geographic area are as follows:

	Year Ended December 31, 2021
	Sales		Percentage		Long-Lived Assets(a)		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,376,771	38.9	%	$	476,176	49.2	%
EMA(1)	1,270,326		35.9	%	298,426		30.8	%
Asia(2)	557,314		15.7	%	141,810		14.6	%
Other(3)	336,649		9.5	%	51,688		5.4	%
Consolidated total	$	3,541,060	100.0	%	$	968,100	100.0	%

	Year Ended December 31, 2020
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,463,680	39.3	%	$	455,622	46.2	%
EMA(1)	1,385,245		37.2	%	336,577		34.1	%
Asia(2)	535,440		14.4	%	138,947		14.1	%
Other(3)	343,769		9.1	%	55,278		5.6	%
Consolidated total	$	3,728,134	100.0	%	$	986,424	100.0	%

	Year Ended December 31, 2019
	Sales		Percentage		Long-Lived Assets		Percentage
	(Amounts in thousands, except percentages)
United States	$	1,632,582	41.4	%	$	481,474	48.0	%
EMA(1)	1,397,308		35.5	%	312,668		31.2	%
Asia(2)	551,759		14.0	%	143,848		14.3	%
Other(3)	358,048		9.1	%	64,846		6.5	%
Consolidated total	$	3,939,697	100.0	%	$	1,002,836	100.0	%

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(1)"EMA" includes Europe, the Middle East and Africa. Germany accounted for approximately 6% for 2021, 7% for 2020 and 6% for 2019, of consolidated long-lived assets. No other 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 67% of total sales in 2021, 65% of total sales in 2020 and 63% of total sales in 2019.

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