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SEGMENT AND GEOGRAPHIC INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHIC INFORMATION
The Company’s business consists of the Water Systems, Distribution, and Energy Systems reportable segments, based on the principal end market served. The Company includes unallocated corporate expenses and intercompany eliminations that are not part of a reportable segment in its reconciliations to consolidated results.

The accounting policies of the operating segments are the same as those described in Note 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Revenue is recognized based on the invoice price at the point in time when the customer obtains control of the product, which is typically upon shipment to the customer. The Water Systems and Energy Systems segments include manufacturing operations and supply certain components and finished goods, both between segments and to the Distribution segment. The Company reports these product transfers between Water Systems and Energy Systems as inventory transfers as a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Company reports intersegment transfers from Water Systems to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water Systems and Distribution segments.

The Company's chief operating decision maker is its Chief Executive Officer. Performance is evaluated based on the sales and operating income of the segments. Operating income and margin are used to evaluate income generated from segment assets in deciding whether to reinvest profits into each segment or other parts of the entity. Operating income is also used to monitor budget versus actual results, for purposes of determining portions of management compensation and for benchmarking against similar measures used by peers and competitors. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented as corporate expenses are not allocated to segments. Interest expense, other income, net, foreign exchange expense and income tax expense are also not allocated to each segment.
Financial information by reportable business segment is included in the following summary:
March 31, 2025Water SystemsDistributionEnergy SystemsTotal
(In millions)
External sales$246.5 $141.9 $66.8 $455.2 
Intersegment sales40.8 — — 40.8 
$287.3 $141.9 $66.8 $496.0 
Elimination of intersegment sales$(40.8)
Total consolidated sales$455.2 
Cost of sales$191.3 $102.4 $34.3 
Selling, general and administrative expenses52.6 37.2 10.6 
Restructuring expense— 0.2 — 
Segment operating income$43.4 $2.1 $21.9 $67.4 
Reconciliation of segment operating income to income before income taxes
Deferred intersegment profit$(4.1)
Corporate general and administrative expenses(19.2)
Interest expense(1.8)
Other income, net0.8 
Foreign exchange expense(1.3)
Consolidated income before income taxes$41.8 
March 31, 2024Water SystemsDistributionEnergy SystemsTotal
(In millions)
External sales$251.8 $147.0 $62.1 $460.9 
Intersegment sales34.8 — — 34.8 
$286.6 $147.0 $62.1 $495.7 
Elimination of intersegment sales$(34.8)
Total consolidated sales$460.9 
Cost of sales$189.3 $107.4 $32.7 
Selling, general and administrative expenses50.2 37.8 10.6 
Restructuring expense— — — 
Segment operating income$47.1 $1.8 $18.8 $67.7 
Reconciliation of segment operating income to income before income taxes
Deferred intersegment profit$(2.7)
Corporate general and administrative expenses(17.1)
Interest expense(1.4)
Other income, net0.7 
Foreign exchange expense(4.9)
Consolidated income before income taxes$42.3 
(In millions)March 31, 2025March 31, 2024
Depreciation and amortization
Water Systems$10.2 $9.6 
Distribution2.3 2.3 
Energy Systems1.1 1.1 
Total segment depreciation and amortization$13.6 $13.0 
Corporate0.8 0.8 
Total depreciation and amortization$14.4 $13.8 
Capital Expenditures
Water Systems3.2 3.8 
Distribution1.7 2.6 
Energy Systems0.8 0.5 
Total segment capital expenditure$5.7 $6.9 
Corporate0.4 0.8 
Total capital expenditures$6.1 $7.7 
Assets
Water Systems$1,228.5 $1,053.7 
Distribution383.6 402.2 
Energy Systems255.6 254.5 
Total segment assets1,867.7 1,710.4 
Corporate61.2 62.7 
Total assets$1,928.9 $1,773.1 

Cash and property, plant and equipment are the major asset groups in “Corporate” of total assets for the quarters ended March 31, 2025 and March 31, 2024.
The following table disaggregates the Company's net sales from contracts with customers by segment:
First Quarter Ended
(In millions)March 31, 2025March 31, 2024
Net sales
Water Systems
External sales
United States & Canada$134.9 $137.9 
Latin America39.5 41.3 
Europe, Middle East & Africa51.5 52.3 
Asia Pacific20.6 20.3 
Intersegment sales
United States & Canada40.8 34.8 
Total sales287.3 286.6 
Distribution
External sales
United States & Canada141.9 147.0 
Intersegment sales— — 
Total sales141.9 147.0 
Energy Systems
External sales
United States & Canada52.2 46.8 
All other14.6 15.3 
Intersegment sales— — 
Total sales66.8 62.1 
Intersegment Eliminations/Other(40.8)(34.8)
Consolidated$455.2 $460.9