SEGMENT REPORTING

Effective January 1, 2017, the Company modified its system of reporting, resulting from changes to its internal management and organizational structure, which changed its reportable segments from North America; South America; Europe/Africa/Middle East; and Asia/Pacific to North America; South America; Europe/Middle East; and Asia/Pacific/Africa. The Asia/Pacific/Africa reportable segment includes the regions of Africa, Asia, Australia and New Zealand, and the Europe/Middle East segment no longer includes certain markets in Africa. Effective January 1, 2017, these reportable segments are reflective of how the Company’s chief operating decision maker reviews operating results for the purposes of allocating resources and assessing performance. Disclosures for both the three and nine months ended September 30, 2017 and 2016, as well as the year ended December 31, 2016, have been adjusted to reflect the change in reportable segments.

The Company’s four reportable segments distribute a full range of agricultural equipment and related replacement parts. The Company evaluates segment performance primarily based on income from operations. Sales for each segment are based on the location of the third-party customer. The Company’s selling, general and administrative expenses and engineering expenses are charged to each segment based on the region and division where the expenses are incurred. As a result, the components of income from operations for one segment may not be comparable to another segment. Segment results for the three and nine months ended September 30, 2017 and 2016 and assets as of September 30, 2017 and December 31, 2016 based on the Company’s reportable segments are as follows (in millions):



Three Months Ended September 30,	North America		South America		Europe/ Middle East		Asia/ Pacific/Africa		Consolidated
2017
Net sales	$	483.5	$	273.5	$	1,017.7	$	211.6	$	1,986.3
Income from operations	27.2		9.0		98.9		15.4		150.5
Depreciation	15.5		8.0		26.7		6.1		56.3
Capital expenditures	12.1		10.9		22.8		1.3		47.1
2016
Net sales	$	453.0	$	261.8	$	883.3	$	163.5	$	1,761.6
Income from operations	21.1		5.9		75.8		7.1		109.9
Depreciation	14.4		6.2		29.5		5.0		55.1
Capital expenditures	11.3		26.7		22.8		—		60.8




Nine Months Ended September 30,	North America		South America		Europe/ Middle East		Asia/ Pacific/Africa		Consolidated
2017
Net sales	$	1,344.9	$	747.6	$	3,179.7	$	506.9	$	5,779.1
Income from operations	52.7		13.8		336.6		23.2		426.3
Depreciation	45.4		22.7		83.4		13.7		165.2
Capital expenditures	43.2		31.0		59.3		5.9		139.4
2016
Net sales	$	1,360.3	$	609.4	$	2,950.4	$	396.4	$	5,316.5
Income from operations	44.0		6.3		287.4		8.4		346.1
Depreciation	46.5		16.1		90.7		13.7		167.0
Capital expenditures	31.1		41.1		56.4		4.2		132.8
Assets
As of September 30, 2017	$	1,083.6	$	875.9	$	2,093.4	$	511.0	$	4,563.9
As of December 31, 2016	$	978.5	$	739.4	$	1,635.2	$	426.3	$	3,779.4

A reconciliation from the segment information to the consolidated balances for income from operations and total assets is set forth below (in millions):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Segment income from operations	$	150.5		$	109.9		$	426.3		$	346.1
Corporate expenses	(28.3		)	(29.3		)	(86.2		)	(90.3		)
Stock compensation expense	(7.9		)	(7.2		)	(29.1		)	(18.0		)
Restructuring expenses	(3.0		)	(1.5		)	(8.5		)	(5.5		)
Amortization of intangibles	(14.3		)	(12.9		)	(41.5		)	(35.3		)
Consolidated income from operations	$	97.0		$	59.0		$	261.0		$	197.0



	September 30, 2017		December 31, 2016
Segment assets	$	4,563.9	$	3,779.4
Cash and cash equivalents	312.7		429.7
Investments in affiliates	465.5		414.9
Deferred tax assets, other current and noncurrent assets	664.2		560.7
Intangible assets, net	653.4		607.3
Goodwill	1,514.7		1,376.4
Consolidated total assets	$	8,174.4	$	7,168.4