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 the years ended December 31, 2017, 2016 and 2015 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 years ended December 31, 2017, 2016 and 2015 based on the Company’s current reportable segments are as follows (in millions):



Years Ended December 31,	North America		South America		Europe/ Middle East		Asia/Pacific/Africa			Consolidated
2017
Net sales	$	1,876.7	$	1,063.5	$	4,614.3	$	752.0		$	8,306.5
Income from operations	64.7		14.5		500.0		48.8			628.0
Depreciation	61.5		30.5		113.0		17.8			222.8
Assets	1,064.1		752.1		2,074.4		499.4			4,390.0
Capital expenditures	59.1		43.0		92.9		8.9			203.9
2016
Net sales	$	1,807.7	$	917.5	$	4,089.7	$	595.6		$	7,410.5
Income from operations	39.1		19.9		409.4		19.7			488.1
Depreciation	62.5		22.9		116.6		21.4			223.4
Assets	978.5		739.4		1,635.2		426.3			3,779.4
Capital expenditures	45.3		56.0		90.1		9.6			201.0
2015
Net sales	$	1,965.0	$	949.0	$	4,037.6	$	515.7		$	7,467.3
Income (loss) from operations	123.4		34.4		401.3		(12.2		)	546.9
Depreciation	62.7		20.9		120.3		13.5			217.4
Assets	984.4		495.7		1,732.9		396.5			3,609.5
Capital expenditures	48.6		28.6		95.4		38.8			211.4

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



	2017			2016			2015
Segment income from operations	$	628.0		$	488.1		$	546.9
Corporate expenses	(120.9		)	(119.7		)	(109.2		)
Stock compensation expense	(35.6		)	(16.9		)	(11.6		)
Restructuring expenses	(11.2		)	(11.9		)	(22.3		)
Amortization of intangibles	(57.0		)	(51.2		)	(42.7		)
Consolidated income from operations	$	403.3		$	288.4		$	361.1

Segment assets	$	4,390.0		$	3,779.4		$	3,609.5
Cash and cash equivalents	367.7			429.7			426.7
Investments in affiliates	409.0			414.9			392.9
Deferred tax assets, other current and noncurrent assets	614.6			560.7			446.4
Intangible assets, net	649.0			607.3			507.7
Goodwill	1,541.4			1,376.4			1,114.5
Consolidated total assets	$	7,971.7		$	7,168.4		$	6,497.7

Net sales by customer location for the years ended December 31, 2017, 2016 and 2015 were as follows (in millions):



	2017		2016		2015
Net sales:
United States	$	1,445.7	$	1,404.6	$	1,624.0
Canada	296.9		286.7		233.6
Germany	997.4		891.2		913.2
France	815.7		746.9		762.6
United Kingdom and Ireland	512.6		440.7		414.5
Finland and Scandinavia	721.3		677.7		637.0
Other Europe	1,396.0		1,127.9		1,077.7
South America	1,046.0		898.2		932.3
Middle East and Algeria	171.3		205.4		232.8
Africa	138.1		116.2		113.6
Asia	366.4		266.8		201.0
Australia and New Zealand	247.4		212.6		201.1
Mexico, Central America and Caribbean	151.7		135.6		123.9
	$	8,306.5	$	7,410.5	$	7,467.3

Net sales by product for the years ended December 31, 2017, 2016 and 2015 were as follows (in millions):



	2017		2016		2015
Net sales:
Tractors	$	4,785.2	$	4,225.1	$	4,244.1
Replacement parts	1,305.0		1,211.3		1,204.4
Grain storage and protein production systems	1,049.6		892.5		766.2
Other machinery	582.5		521.6		629.6
Combines	349.0		302.8		331.9
Application equipment	235.2		257.2		291.1
	$	8,306.5	$	7,410.5	$	7,467.3

Property, plant and equipment and amortizable intangible assets by country as of December 31, 2017 and 2016 was as follows (in millions):



	2017		2016
United States	$	647.9	$	594.6
Germany	405.5		344.8
Brazil	217.9		210.4
Finland	149.9		145.9
China	127.7		130.0
Denmark	125.7		119.6
Italy	123.0		106.7
France	66.0		59.9
Other	182.1		172.3
	$	2,045.7	$	1,884.2