Segment Information

12 Months Ended

Sep. 30, 2019

Segment Reporting Disclosure [Text Block]

Segment Information

Our operations consist of two reportable segments: Infrastructure and Technologies. These segments are organized primarily based on products sold and customers served and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision maker. Infrastructure manufactures valves for water and gas systems including butterfly, iron gate, tapping, check, knife, plug, automatic control and ball valves and dry-barrel and wet-barrel fire hydrants and pipe repair products. Technologies offers metering, leak detection, pipe condition assessment and other products and services for the water infrastructure industry.

Segment results are not reflective of their results on a stand-alone basis. Intersegment sales and transfers are made at selling prices generally intended to cover costs. Infrastructure personnel provide certain administrative services, including management of accounts payable and accounts receivable, without any allocation of cost to Technologies. We do not believe the costs of such administrative services are material to the segments’ results. The determination of segment results excludes certain expenses designated as Corporate because they are not directly attributable to segment operations. Interest expense, loss on early extinguishment of debt and income taxes are not allocated to the segments. Corporate expenses include those costs incurred by our corporate function, such as accounting, treasury, risk management, human resources, legal, tax and other administrative functions and also costs associated with assets and liabilities retained following the sales of U.S. Pipe and Anvil. Corporate assets principally consist of our cash and certain real property previously owned by U.S. Pipe and Anvil. Business segment assets consist primarily of receivables, inventories, property, plant and equipment, intangible assets and other noncurrent assets.

Our top customers are Ferguson and Core & Main. Information regarding concentrations of our net sales and accounts receivable is presented below.



	2019		2018		2017
Percentage of gross sales:
10 largest customers	53	%	54	%	53	%
2 largest customers	34	%	34	%	34	%
Ferguson percentage of gross sales:
Consolidated	18	%	19	%	18	%
Infrastructure	17	%	18	%	17	%
Technologies	30	%	28	%	24	%
Core & Main percentage of gross sales:
Consolidated	16	%	15	%	16	%
Infrastructure	18	%	17	%	17	%



	September 30,
	2019		2018
	(in millions)
Customer receivables:
Ferguson:	$	25.8	$	29.7
Core & Main:	31.9		31.7

Geographical area information is presented below.



	United States		Canada		Other		Total
	(in millions)
Property, plant and equipment, net:
September 30, 2019	$	201.3	$	3.6	$	12.2	$	217.1
September 30, 2018	144.8		3.4		2.7		150.9



	Year ended
	September 30,
	2019		2018
	(in millions)
Infrastructure disaggregated net revenues:
Central	$	214.2	$	204.2
Northeast	183.1		173.2
Southeast	162.7		146.1
West	212.8		205.0
United States	$	772.8	$	728.5
Canada	69.0		76.2
Other international locations	29.2		14.1
	$	871.0	$	818.8
Technologies disaggregated net revenues:
Central	$	27.8	$	17.8
Northeast	20.4		19.9
Southeast	33.5		43.8
West	10.3		11.4
United States	$	92.0	$	92.9
Canada and other international locations	5.0		4.3
	$	97.0	$	97.2

Summarized financial information for our segments is presented below.



	Infrastructure		Technologies			Corporate			Total
	(in millions)
Net sales:
2019	$	871.0	$	97.0		$	—		$	968.0
2018	818.8		97.2			—			916.0
2017	739.9		86.1			—			826.0
Operating income (loss):
2019	$	182.3	$	(8.7	)	$	(49.3	)	$	124.3
2018	180.1		(24.4		)	(34.0		)	121.7
2017	163.8		(20.3		)	(41.4		)	102.1
Depreciation and amortization:
2019	$	44.8	$	7.9		$	0.3		$	53.0
2018	37.4		6.1			0.2			43.7
2017	36.3		5.2			0.4			41.9
Total pension settlement and other charges:
2019	$	1.7	$	—		$	14.6		$	16.3
2018	0.1		0.1			10.3			10.5
2017	2.7		0.7			7.0			10.4
Capital expenditures:
2019	$	80.4	$	5.5		$	0.7		$	86.6
2018	47.3		8.3			0.1			55.7
2017	28.5		11.4			0.7			40.6
Total assets:
September 30, 2019	$	1,107.8	$	100.3		$	129.2		$	1,337.3
September 30, 2018	843.9		87.1			360.9			1,291.9
Intangible assets, net:
September 30, 2019	$	508.2	$	21.2		$	—		$	529.4
September 30, 2018	396.9		23.3			—			420.2