16. Segments

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by the CEO, who is also the Company’s Chief Operating Decision Maker, for making decisions about the allocation of resources and assessing performance as the source of the Company’s reportable operating segments.

Effective in the fourth quarter of 2017, the Company changed its operating segments, which are also the Company’s reportable segments, as a result of operational changes to flatten the organization and regionalize our sales approach. Prior to the operational changes, the Company had one reportable segment, Cranes. As a result of the operational changes, which were finalized and implemented in the fourth quarter of 2017, the business began to be managed on a regional basis. Under the regional operating structure, each geographic region is managed separately to better align with the location of the Company’s customers and the unique market dynamics of each geographic region. In the fourth quarter of fiscal 2017, the Company identified the Americas, EURAF, and MEAP as the reportable segments. The Americas operating segment includes the North American and South American continents. The EURAF operating segment includes the continents of Europe and Africa. The MEAP operating segment includes the Asia and Australian continents and the Middle East region. The accounting policies of the various segments are the same as those described in Note 2, “Summary of Significant Accounting Policies.”

The CODM evaluates the performance of its reportable segments based on net sales and operating income. Net sales for geographic segments are based on the geographic region that sells the products. Operating income for each segment includes net sales to third parties, cost of sales directly attributable to the segment, and operating expenses directly attributable to the segment. Manufacturing variances generated within each reportable segment are maintained in each segment’s operating income. Operating income for each segment excludes other income and expense and certain expenses managed outside the reportable operating segments. Costs excluded from segment operating income include various corporate expenses such as stock-based compensation expenses, income taxes, nonrecurring charges and other separately managed general and administrative costs. The Company does not include intercompany sales between segments for management reporting purposes.

The following table shows information by reportable segment for the years ended December 31, 2017, 2016 and 2015 (in millions):

	2017		2016			2015
Net Sales
Americas	$	693.6	$	736.3		$	941.3
EURAF		628.9		560.4			498.9
MEAP		258.8		316.4			425.5
Total	$	1,581.3	$	1,613.1		$	1,865.7
Segment Operating Income (Loss)
Americas	$	6.8	$	(37.1	)	$	22.5
EURAF		2.3		(36.5	)		(28.9	)
MEAP		32.9		44.8			60.5
Total	$	42.0	$	(28.8	)	$	54.1
Depreciation
Americas	$	18.6	$	24.5		$	28.4
EURAF		15.0		15.7			15.9
MEAP		3.8		4.6			5.4
Corporate		0.7		0.8			0.9
Total	$	38.1	$	45.6		$	50.6
Capital Expenditures
Americas	$	10.6	$	14.5		$	26.9
EURAF		14.3		26.9			23.4
MEAP		3.9		4.5			3.7
Corporate		0.1		—			0.9
Total	$	28.9	$	45.9		$	54.9

A reconciliation of the Company’s segment operating income (loss) to the consolidated statement of operations for the years ended December 31, 2017, 2016 and 2015 was as follows (in millions):

	2017			2016			2015
Segment operating income (loss)	$	42.0		$	(28.8	)	$	54.1
Unallocated corporate expenses		(36.9	)		(42.1	)		(62.8	)
Asset impairment expense		—			(77.4	)		—
Restructuring expense		(3.6	)		(2.0	)		(3.7	)
Other operating income (expense) - net		(0.4	)		(3.0	)		—
Total operating income (loss)	$	1.1		$	(153.3	)	$	(12.4	)

Net sales from continuing operations and long-lived asset information by geographic area as of and for the years ended December 31 are included below. Long-lived assets are defined as property, plant and equipment-net and other non-current assets, excluding goodwill, other intangible assets-net and deferred tax assets.

	Net Sales						Long-Lived Assets
(in millions)	2017		2016		2015		2017		2016
United States	$	618.5	$	641.3	$	784.5	$	119.1	$	152.9
Other North America		42.0		61.9		87.2		—		—
Europe		601.3		520.7		418.9		144.2		129.9
Asia		97.8		159.1		184.8		62.9		50.5
Middle East		102.6		119.6		193.8		1.3		1.4
Central and South America		27.1		24.9		63.7		9.3		10.8
Africa		27.6		39.7		80.0		—		—
Caribbean		6.0		8.2		5.9		—		—
Australia		58.4		37.7		46.9		0.3		0.4
Total	$	1,581.3	$	1,613.1	$	1,865.7	$	337.1	$	345.9

Net sales by product for 2017, 2016, and 2015 are as follows (in millions):

	2017		2016		2015
Cranes	$	1,270.5	$	1,311.1	$	1,564.3
Aftermarket parts and other*		310.8		302.0		301.4
Total net sales	$	1,581.3	$	1,613.1	$	1,865.7

*Other revenue consists of revenue related to miscellaneous CraneCare services such as trainings and field service work.