| Reporting Segments |
Reportable Segments The structure of the Company’s internal organization is divided into the following three reportable segments, which are also the Company's operating segments: Energy and Chemicals (“E&C”), Distribution and Storage (“D&S”) and BioMedical. The Company’s reportable segments are business units that are each managed separately because they manufacture, offer and distribute distinct products with different production processes and sales and marketing approaches. The E&C segment sells brazed aluminum and air-cooled heat exchangers, cold boxes and liquefied natural gas vacuum-insulated pipe to natural gas, petrochemical processing and industrial gas companies who use them for the liquefaction and separation of natural and industrial gases. The D&S segment sells cryogenic bulk storage systems, cryogenic packaged gas systems, cryogenic systems and components, beverage liquid CO2 systems, cryogenic flow meter systems and cryogenic services to various companies for the storage and transportation of both industrial and natural gases. The BioMedical segment sells medical respiratory products, biological storage systems and other oxygen products. Due to the nature of the products that each segment sells, there are no intersegment sales. Corporate includes operating expenses for executive management, accounting, tax, treasury, human resources, information technology, legal, internal audit, risk management and stock-based compensation expenses that are not allocated to the reporting segments. The Company evaluates performance and allocates resources based on operating income or loss from continuing operations before net interest expense, financing costs amortization expense, foreign currency gain or loss, income taxes and noncontrolling interest. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in Note A. | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2011 | | Reportable Segments | | Energy and Chemicals | | Distribution and Storage | | BioMedical | | Corporate | | Total | Sales from external customers | $ | 205,033 |
| | $ | 390,332 |
| | $ | 199,220 |
| | $ | — |
| | $ | 794,585 |
| Depreciation and amortization expense | 7,417 |
| | 11,767 |
| | 7,588 |
| | 1,143 |
| | 27,915 |
| Operating income (loss) | 27,489 |
| | 61,415 |
| | 35,911 |
| | (34,821 | ) | | 89,994 |
| Total assets(A)(B) | 203,067 |
| | 556,688 |
| | 226,729 |
| | 187,729 |
| | 1,174,213 |
| Capital expenditures | 5,228 |
| | 7,808 |
| | 6,692 |
| | 2,652 |
| | 22,380 |
|
| | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2010 | | Reportable Segments | | Energy and Chemicals | | Distribution and Storage | | BioMedical | | Corporate | | Total | Sales from external customers | $ | 137,801 |
| | $ | 269,293 |
| | $ | 148,361 |
| | $ | — |
| | $ | 555,455 |
| Depreciation and amortization expense | 7,338 |
| | 10,474 |
| | 5,197 |
| | 568 |
| | 23,577 |
| Operating income (loss) | 6,121 |
| | 41,934 |
| | 30,698 |
| | (31,249 | ) | | 47,504 |
| Total assets(A)(C) | 188,407 |
| | 513,215 |
| | 227,138 |
| | 26,079 |
| | 954,839 |
| Capital expenditures | 973 |
| | 8,563 |
| | 4,594 |
| | 2,809 |
| | 16,939 |
|
| | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2009 | | Reportable Segments | | Energy and Chemicals | | Distribution and Storage | | BioMedical | | Corporate | | Total | Sales from external customers | $ | 255,074 |
| | $ | 252,197 |
| | $ | 90,187 |
| | $ | — |
| | $ | 597,458 |
| Depreciation and amortization expense | 7,335 |
| | 10,104 |
| | 3,591 |
| | 382 |
| | 21,412 |
| Operating income (loss) | 61,852 |
| | 39,888 |
| | 15,912 |
| | (23,318 | ) | | 94,334 |
| Total assets(A)(D) | 205,482 |
| | 486,620 |
| | 135,977 |
| | 98,424 |
| | 926,503 |
| Capital expenditures | 2,707 |
| | 7,168 |
| | 2,022 |
| | 1,293 |
| | 13,190 |
|
_______________ | | (A) | Corporate assets at December 31, 2011, 2010 and 2009 consist primarily of cash, cash equivalents, short term investments and deferred income taxes. |
| | (B) | Total assets at December 31, 2011 include goodwill of $83,215, $158,381 and $47,174 for the Energy and Chemicals, Distribution and Storage and BioMedical segments, respectively. |
| | (C) | Total assets at December 31, 2010 include goodwill of $83,215, $148,010 and $44,027 for the Energy and Chemicals, Distribution and Storage and BioMedical segments, respectively. |
| | (D) | Total assets at December 31, 2009 include goodwill of $83,215, $144,290 and $37,027 for the Energy and Chemicals, Distribution and Storage and BioMedical segments, respectively. |
A reconciliation of the total of the reportable segments’ operating income to consolidated income before income taxes and minority interest is presented below: | | | | | | | | | | | | | | Year Ended December 31, | | 2011 | | 2010 | | 2009 | Operating income | $ | 89,994 |
| | $ | 47,504 |
| | $ | 94,334 |
| Other expense (income): | | | | | | Interest expense, net | 23,371 |
| | 16,196 |
| | 15,817 |
| Amortization of deferred financing costs | 4,383 |
| | 3,063 |
| | 1,616 |
| Gain on acquisition of business | — |
| | (1,124 | ) | | (6,954 | ) | Foreign currency loss (gain) | (734 | ) | | 871 |
| | (687 | ) | Income before income taxes and minority interest | $ | 62,974 |
| | $ | 28,498 |
| | $ | 84,542 |
|
| | | | | | | | | | | | | | Year Ended December 31, | | 2011 | | 2010 | | 2009 | Product Sales Information: | | | | | | Energy and Chemicals Segment | | | | | | Heat exchangers | $ | 158,975 |
| | $ | 113,313 |
| | $ | 172,374 |
| Cold boxes and LNG VIP | 46,058 |
| | 24,488 |
| | 82,700 |
| | $ | 205,033 |
| | $ | 137,801 |
| | $ | 255,074 |
| Distribution and Storage Segment | | | | | | Cryogenic bulk storage systems | $ | 183,932 |
| | $ | 117,907 |
| | $ | 135,523 |
| Cryogenic packaged gas systems and beverage liquid CO2 systems | 147,526 |
| | 103,129 |
| | 80,278 |
| Cryogenic systems and components | 33,038 |
| | 20,221 |
| | 10,987 |
| Cryogenic services | 25,836 |
| | 28,036 |
| | 25,409 |
| | $ | 390,332 |
| | $ | 269,293 |
| | $ | 252,197 |
| BioMedical Segment | | | | | | Medical respiratory products | $ | 138,411 |
| | $ | 95,666 |
| | $ | 41,793 |
| Biological storage systems | 60,809 |
| | 52,695 |
| | 43,966 |
| Other | — |
| | — |
| | 4,428 |
| | 199,220 |
| | 148,361 |
| | 90,187 |
| Total Sales | $ | 794,585 |
| | $ | 555,455 |
| | $ | 597,458 |
|
| | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2011 | | Year Ended December 31, 2010 | | Year Ended December 31, 2009 | Geographic Information: | Sales | | Long-Lived Assets | | Sales | | Long-Lived Assets | | Sales | United States | $ | 503,011 |
| | $ | 326,439 |
| | $ | 391,691 |
| | $ | 391,428 |
| | $ | 441,583 |
| Czech Republic | 87,285 |
| | 78,921 |
| | 72,486 |
| | 86,680 |
| | 79,865 |
| China | 71,752 |
| | 73,469 |
| | 45,203 |
| | 69,243 |
| | 28,641 |
| Germany | 122,001 |
| | 95,932 |
| | — |
| | — |
| | — |
| Other Non-U.S. Countries | 10,536 |
| | 2,085 |
| | 46,075 |
| | 1,392 |
| | 47,369 |
| Total | $ | 794,585 |
| | $ | 576,846 |
| | $ | 555,455 |
| | $ | 548,743 |
| | $ | 597,458 |
|
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