NOTE 21 – BUSINESS SEGMENTS:

The Corporation organizes its business into two operating segments—Forged and Cast Engineered Products and Air and Liquid Processing. Summarized financial information concerning the Corporation’s reportable segments is shown in the following tables. Corporate assets included under Identifiable Assets represent primarily cash and cash equivalents and other items not allocated to reportable segments. Long-lived assets exclude deferred income tax assets. Corporate costs are comprised of operating costs of the corporate office and other costs not allocated to the segments. The segment information for the Forged and Cast Engineered Products includes information for Åkers and ASW beginning as of December 31, 2016, and from their respective dates of acquisition. The accounting policies are the same as those described in Note 1.

	Net Sales						(Loss) Income Before Income Taxes and Equity Gains (Losses) in Joint Venture
	2017		2016		2015		2017			2016			2015
Forged and Cast Engineered Products⁽¹⁾	$	344,529	$	247,652	$	152,267	$	(1,826	)	$	(42,878	)	$	(3,444	)
Air and Liquid Processing⁽¹⁾		87,872		84,214		86,213		10,427			5,123			23,166
Total Reportable Segments		432,401		331,866		238,480		8,601			(37,755	)		19,722
Corporate costs, including other income (expense)	0		0		0			(22,294	)		(19,765	)		(15,202	)
Consolidated total	$	432,401	$	331,866	$	238,480	$	(13,693	)	$	(57,520	)	$	4,520

	Capital Expenditures						Depreciation and Amortization Expense						Identifiable Assets⁽²⁾
	2017		2016		2015		2017		2016		2015		2017		2016		2015
Forged and Cast Engineered Products	$	14,165	$	9,440	$	8,608	$	21,124	$	19,166	$	10,468	$	414,227	$	348,331	$	228,718
Air and Liquid Processing		560		385		494		1,072		1,183		1,262		132,341		173,017		183,024
Corporate		174		741		305		191		114		57		19,031		44,541		94,414
	$	14,899	$	10,566	$	9,407	$	22,387	$	20,463	$	11,787	$	565,599	$	565,889	$	506,156

	Net Sales⁽³⁾						Long-Lived Assets⁽⁴⁾						(Loss) Income Before Income Taxes and Equity Gains (Losses) in Joint Venture
Geographic Areas:	2017		2016		2015		2017		2016		2015		2017			2016			2015
United States	$	236,856	$	159,531	$	126,417	$	235,646	$	206,460	$	236,707	$	(18,122	)	$	(25,906	)	$	5,855
Foreign		195,545		172,335		112,063		88,116		133,141		29,198	$	4,429			(31,614	)		(1,335	)
	$	432,401	$	331,866	$	238,480	$	323,762	$	339,601	$	265,905	$	(13,693	)	$	(57,520	)	$	4,520

	Net Sales by Product Line⁽⁵⁾
	2017		2016		2015
Forged and cast mill rolls	$	254,638	$	230,531	$	129,499
Forged engineered products		89,891		17,121		22,768
Heat exchange coils		28,998		28,139		32,745
Centrifugal pumps		35,607		36,359		33,120
Air handling systems		23,267		19,716		20,348
	$	432,401	$	331,866	$	238,480

(1)

(Loss) income before income taxes and equity gains (losses) in joint venture for the Forged and Cast Engineered Products segment for 2016 includes a pre-tax charge of $26,676 principally for the write-off of goodwill associated with the Forged and Cast Engineered Products reporting unit deemed to be impaired. (Loss) income before income taxes and equity gains (losses) in joint venture for the Air and Liquid Processing segment for 2016 includes pre-tax charge of $4,565 for estimated costs of asbestos-related litigation through 2026 net of estimated insurance recoveries and a settlement with an insurance carrier for an amount greater than originally estimated, and 2015 includes pre-tax asbestos-related proceeds of $14,333 received from two insurance carriers in rehabilitation.

(2)

Identifiable assets for the Forged and Cast Engineered Products segment include investments in joint ventures of $2,175, $2,019 and $3,097 at December 31, 2017, 2016 and 2015, respectively. The change in the identifiable assets of the Air and Liquid Processing segment relates primarily to the movement in asbestos-related insurance receivables, the balances of which equaled $100,342, $115,945 and $125,423 at December 31, 2017, 2016 and 2015, respectively.

(3)	Net sales are attributed to countries based on location of the customer. Sales to individual countries were less than 10% of consolidated net sales each of the years.

(4)	Foreign long-lived assets represent primarily assets of the U.K., Åkers and ASW operations. Long-lived assets of the U.S. include noncurrent asbestos-related insurance receivables of $87,342, $102,945 and $108,423 for 2017, 2016 and 2015, respectively.

(5)

For 2017, no customers within the Forged and Cast Engineered Products or the Air and Liquid Processing segments exceeded 10% of its net sales. For the Forged and Cast Engineered Product segment, two customers accounted for 24% and 33% of its net sales for 2016 and 2015, respectively. For the Air and Liquid Processing segment, one customer accounted for 10% of its net sales for 2016 and no customers exceeded 10% of net sales for 2015. One customer accounted for 11% of the Corporation’s consolidated sales in 2016.