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Segment Information | 6 Months Ended
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Jun. 30, 2013
Segment Information |
Segment Information | 7. Segment Information The Company operates in three geographic segments: North America, EMEA, and Asia. Each of these segments 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. The following is a summary of the Company’s significant accounts and balances by segment, reconciled to the consolidated totals:
|  | Second Quarter Ended |  | Six Months Ended |
|  | June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012 |
|  | (in millions) |
Net Sales |  |  |  |  |  |  |  |  |
North America |  | $ | 224.4 |  | $ | 218.1 |  | $ | 437.4 |  | $ | 425.1 |
EMEA |  | 138.6 |  | 142.8 |  | 281.0 |  | 292.0 |
Asia |  | 8.3 |  | 6.5 |  | 15.0 |  | 11.5 |
Consolidated net sales |  | $ | 371.3 |  | $ | 367.4 |  | $ | 733.4 |  | $ | 728.6 |
Operating income (loss) |  |  |  |  |  |  |  |  |
North America |  | $ | 31.5 |  | $ | 26.2 |  | $ | 55.5 |  | $ | 46.1 |
EMEA |  | 9.8 |  | 12.0 |  | 20.4 |  | 24.8 |
Asia |  | 2.4 |  | 2.1 |  | 5.3 |  | 3.5 |
Subtotal reportable segments |  | 43.7 |  | 40.3 |  | 81.2 |  | 74.4 |
Corporate (*) |  | (8.1 | ) | (7.1 | ) | (17.3 | ) | (14.6 | )
Consolidated operating income |  | 35.6 |  | 33.2 |  | 63.9 |  | 59.8 |
Interest income |  | 0.2 |  | 0.2 |  | 0.3 |  | 0.4 |
Interest expense |  | (5.5 | ) | (6.1 | ) | (11.5 | ) | (12.3 | )
Other income (expense), net |  | (1.4 | ) | — |  | (1.4 | ) | 0.9 |
Income from continuing operations before income taxes |  | $ | 28.9 |  | $ | 27.3 |  | $ | 51.3 |  | $ | 48.8 |
Capital Expenditures |  |  |  |  |  |  |  |  |
North America |  | $ | 4.6 |  | $ | 1.8 |  | $ | 12.8 |  | $ | 4.4 |
EMEA |  | 2.1 |  | 2.4 |  | 4.3 |  | 4.6 |
Asia |  | 0.3 |  | 0.5 |  | 0.9 |  | 0.6 |
Consolidated capital expenditures |  | $ | 7.0 |  | $ | 4.7 |  | $ | 18.0 |  | $ | 9.6 |
Depreciation and Amortization |  |  |  |  |  |  |  |  |
North America |  | $ | 5.1 |  | $ | 4.9 |  | $ | 10.1 |  | $ | 9.7 |
EMEA |  | 6.6 |  | 6.8 |  | 13.3 |  | 14.1 |
Asia |  | 0.6 |  | 0.5 |  | 1.3 |  | 1.0 |
Consolidated depreciation and amortization |  | $ | 12.3 |  | $ | 12.2 |  | $ | 24.7 |  | $ | 24.8 |
Identifiable Assets (at end of period) |  |  |  |  |  |  |  |  |
North America |  |  |  |  |  | $ | 743.0 |  | $ | 779.1 |
EMEA |  |  |  |  |  | 812.7 |  | 750.5 |
Asia. |  |  |  |  |  | 80.1 |  | 90.8 |
Discontinued operations |  |  |  |  |  | — |  | 10.9 |
Consolidated identifiable assets |  |  |  |  |  | $ | 1,635.8 |  | $ | 1,631.3 |
Property, plant and equipment, net (at end of period) |  |  |  |  |  |  |  |  |
North America |  |  |  |  |  | $ | 86.0 |  | $ | 73.7 |
EMEA |  |  |  |  |  | 121.1 |  | 123.9 |
Asia |  |  |  |  |  | 14.6 |  | 14.5 |
Consolidated property, plant and equipment, net |  |  |  |  |  | $ | 221.7 |  | $ | 212.1 |
* Corporate expenses are primarily for administrative compensation expense, internal controls costs, 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. The above operating segments are presented on a basis consistent with the presentation included in the Company’s December 31, 2012 consolidated financial statements included in its Annual Report on Form 10-K. The following includes U.S. net sales and U.S. property, plant and equipment of the Company’s North America segment:
|  | Second Quarter Ended |  | Six Months Ended |
|  | June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012 |
|  | (in millions) |
U.S. net sales |  | $ | 201.6 |  | $ | 196.0 |  | $ | 394.4 |  | $ | 383.0 |
U.S. property, plant and equipment (at end of period) |  |  |  |  |  | $ | 81.0 |  | $ | 68.2 |
The following includes intersegment sales for North America, EMEA and Asia:
|  | Second Quarter Ended |  | Six Months Ended |
|  | June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012 |
|  | (in millions) |
Intersegment Sales |  |  |  |  |  |  |  |  |
North America |  | $ | 1.3 |  | $ | 1.2 |  | $ | 2.6 |  | $ | 2.6 |
EMEA |  | 2.4 |  | 2.0 |  | 5.1 |  | 4.6 |
Asia |  | 47.5 |  | 35.3 |  | 89.1 |  | 66.4 |
Intersegment sales |  | $ | 51.2 |  | $ | 38.5 |  | $ | 96.8 |  | $ | 73.6 |
The North America segment includes $3.8 million in assets held for sale at July 1, 2012. 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:
|  | Second Quarter Ended |  | Six Months Ended |
|  | June 30, 2013 |  | July 1, 2012 |  | June 30, 2013 |  | July 1, 2012 |
|  | (in millions) |
Net Sales |  |  |  |  |  |  |  |  |
Residential & commercial flow control |  | $ | 209.2 |  | $ | 207.5 |  | $ | 409.6 |  | $ | 405.7 |
HVAC & gas |  | 107.0 |  | 106.9 |  | 214.7 |  | 216.6 |
Drains & water re-use |  | 36.3 |  | 35.0 |  | 70.2 |  | 68.8 |
Water quality |  | 18.8 |  | 18.0 |  | 38.9 |  | 37.5 |
Consolidated net sales |  | $ | 371.3 |  | $ | 367.4 |  | $ | 733.4 |  | $ | 728.6 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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