Segment Reporting

6 Months Ended

Jun. 30, 2019

SEGMENT REPORTING

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 generally 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 six months ended June 30, 2019 and 2018 and assets as of June 30, 2019 and December 31, 2018 based on the Company’s reportable segments were as follows (in millions):



Three Months Ended June 30,	North America		South America			Europe/Middle East		Asia/Pacific/Africa		Consolidated
2019
Net sales	$	618.9	$	185.8		$	1,457.2	$	160.7	$	2,422.6
Income (loss) from operations	51.4		(7.1		)	208.8		7.0		260.1
Depreciation	16.1		8.2			26.4		3.4		54.1
Capital expenditures	11.6		5.0			35.4		2.0		54.0
2018
Net sales	$	600.5	$	219.6		$	1,545.2	$	172.3	$	2,537.6
Income (loss) from operations	37.6		(16.7		)	208.5		4.6		234.0
Depreciation	16.8		7.3			28.4		3.4		55.9
Capital expenditures	10.1		7.3			24.3		2.0		43.7



Six Months Ended June 30,	North America		South America			Europe/ Middle East		Asia/ Pacific/Africa		Consolidated
2019
Net sales	$	1,115.1	$	341.9		$	2,667.8	$	293.6	$	4,418.4
Income (loss) from operations	82.0		(15.6		)	336.5		10.4		413.3
Depreciation	31.7		16.7			52.4		6.3		107.1
Capital expenditures	29.9		17.1			64.9		3.0		114.9
2018
Net sales	$	1,103.4	$	401.7		$	2,708.9	$	331.1	$	4,545.1
Income (loss) from operations	64.4		(33.3		)	307.5		9.3		347.9
Depreciation	34.0		15.3			58.4		7.4		115.1
Capital expenditures	22.2		14.2			49.4		4.0		89.8
Assets
As of June 30, 2019	$	1,244.6	$	873.4		$	2,392.4	$	519.9	$	5,030.3
As of December 31, 2018	1,032.1		736.1			1,905.8		501.1		4,175.1

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 June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Segment income from operations	$	260.1		$	234.0		$	413.3		$	347.9
Corporate expenses	(32.9		)	(32.5		)	(64.7		)	(65.9		)
Stock compensation expense	(12.2		)	(12.5		)	(24.2		)	(20.9		)
Restructuring expenses	—			(2.7		)	(1.7		)	(8.6		)
Amortization of intangibles	(15.4		)	(18.2		)	(30.7		)	(33.9		)
Consolidated income from operations	$	199.6		$	168.1		$	292.0		$	218.6



	June 30, 2019		December 31, 2018
Segment assets	$	5,030.3	$	4,175.1
Cash and cash equivalents	279.9		326.1
Investments in affiliates	404.7		400.0
Deferred tax assets, other current and noncurrent assets	664.6		656.6
Intangible assets, net	541.6		573.1
Goodwill	1,494.0		1,495.5
Consolidated total assets	$	8,415.1	$	7,626.4