Segment Information

12 Months Ended

Dec. 31, 2011

Segment Information

Segment Information

(16) Segment Information

        The Company operates in three geographic segments: North America, Europe, and Asia. Each of these segments sells similar products, is managed separately and has separate financial results that are reviewed by the Company's chief operating decision-maker. All intercompany sales transactions have been eliminated. Sales by region are based upon location of the entity recording the sale. The accounting policies for each segment are the same as those described in the summary of significant accounting policies (see Note 2).

        The following is a summary of the Company's significant accounts and balances by segment, reconciled to its consolidated totals:

	December 31,
	2011			2010			2009
	(in millions)
Net Sales
North America	$	819.4		$	785.5		$	738.5
Europe		595.5			468.3			466.5
Asia		21.7			20.8			20.9
Consolidated net sales	$	1,436.6		$	1,274.6		$	1,225.9
Operating income (loss)
North America	$	112.0		$	106.4		$	78.6
Europe		28.7			43.7			51.0
Asia		12.2			(0.5	)		(6.6	)
Subtotal reportable segments		152.9			149.6			123.0
Corporate (*)		(35.8	)		(35.4	)		(30.8	)
Consolidated operating income		117.1			114.2			92.2
Interest income		1.0			1.0			0.9
Interest expense		(25.8	)		(22.8	)		(22.0	)
Other		(0.8	)		2.1			1.2
Income from continuing operations before income taxes	$	91.5		$	94.5		$	72.3
Identifiable Assets (at end of period)
North America	$	831.8		$	871.8		$	804.7
Europe		773.2			692.8			686.0
Asia		92.5			79.7			85.4
Discontinued operations		—			1.8			23.1
Consolidated identifiable assets	$	1,697.5		$	1,646.1		$	1,599.2
Long-Lived Assets (at end of period)
North America	$	78.4		$	77.4		$	81.5
Europe		133.3			104.6			108.5
Asia		15.0			15.5			16.5
Consolidated long-lived assets	$	226.7		$	197.5		$	206.5
Capital Expenditures
North America	$	8.4		$	9.1		$	9.3
Europe		13.6			14.8			14.4
Asia		0.7			0.7			0.5
Consolidated capital expenditures	$	22.7		$	24.6		$	24.2
Depreciation and Amortization
North America	$	19.2		$	17.9		$	17.9
Europe		30.2			24.9			23.1
Asia		2.0			2.0			5.8
Consolidated depreciation and amortization	$	51.4		$	44.8		$	46.8

*

Corporate expenses are primarily for compensation expense, Sarbanes-Oxley compliance, professional fees, including legal and audit expenses, shareholder services and benefit administration costs. These costs are not allocated to the geographic segments as they are viewed as corporate functions that support all activities. Corporate costs in 2011 include $6.3 million in charges related to the separation agreement with the Company's former CEO.

        The following includes U.S. net sales and U.S. property, plant and equipment of the Company's North American segment:

	December 31,
	2011		2010		2009
	(in millions)
U.S. net sales	$	741.4	$	712.2	$	672.6
U.S. property, plant and equipment, net (at end of period)	$	73.5	$	72.4	$	74.8

        The following includes intersegment sales for North America, Europe and Asia:

	December 31,
	2011		2010		2009
	(in millions)
Intersegment Sales
North America	$	3.3	$	3.6	$	3.6
Europe		8.4		7.6		5.8
Asia		132.9		115.8		110.4
Intersegment sales	$	144.6	$	127.0	$	119.8

        The Company sells its products into various end markets around the world and groups net sales to third parties into four product categories. Because many of the Company's sales are through distributors and third-party manufacturers' representatives, a portion of the product categorization is based on management's understanding of final product use and, as such, allocations have been made to align sales into a product category. Net sales to third parties for the four product categories are as follows:

	December 31,
	2011		2010		2009
	(in millions)
Net Sales
Residential & commercial flow control	$	755.4	$	652.2	$	623.4
HVAC & gas		475.7		433.4		423.5
Drains & water re-use		135.2		122.2		117.6
Water quality		70.3		66.8		61.4
Consolidated net sales	$	1,436.6	$	1,274.6	$	1,225.9