Business Segment, Geographic and Customer Information
The Company is a pure-play water management business that designs, procures, manufactures and markets what the Company believes to be the broadest sustainable product portfolio of specification-driven water management solutions to improve health, hydration, human safety and the environment. The Company’s product portfolio includes professional grade water safety and control products, flow systems products, hygienic and environmental products and filtered drinking water products. Revenue is primarily generated in the United States and the Company manages and evaluates its operations on a consolidated basis as one operating and reporting segment due to similarities of its products, processes, customer base and methods of distribution. The Company’s accounting policies are described in Note 2, Significant Accounting Policies.
The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The CODM assesses the Company’s performance and makes capital allocation decisions based on Net income from continuing operations as reported in the consolidated statement of operations. This metric is used to monitor forecasted to actual and budgeted results and benchmarking to our peers. The following table includes segment revenue, significant expense items and segment profit as viewed by the CODM for the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended |
| | December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| Net sales | | $ | 1,695.9 | | | $ | 1,566.5 | | | $ | 1,530.5 | |
| Less: | | | | | | |
| Cost of sales | | 931.1 | | | 859.5 | | | 882.4 | |
| Selling, general and administrative expenses | | 417.6 | | | 389.8 | | | 371.3 | |
| Other segment items (1) | | 154.8 | | | 158.3 | | | 172.6 | |
| Segment profit (Net income from continuing operations) | | $ | 192.4 | | | $ | 158.9 | | | $ | 104.2 | |
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(1)Other segment items include restructuring and other similar charges, amortization of intangible assets, interest expense, net, actuarial gain on pension and other postretirement benefit obligations, other income (expense), net, provision for income taxes, and other non-recurring charges.
Segment net sales, amortization, interest expense, net, income before income taxes and income tax expense are included on the consolidated statement of operations. Segment assets are included on the consolidated balance sheets and segment depreciation, stock-based compensation expense, non-cash restructuring charges, and expenditures for plant, property and equipment are included on the consolidated statement of cash flows. Interest income for the years ended December 31, 2025, 2024, and 2023 was $7.6 million, $7.8 million, and $4.9 million, respectively.
Net sales to third parties and long-lived assets by geographic region are as follows (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net Sales | | Long-lived Assets |
| | Year Ended December 31, 2025 | | Year Ended December 31, 2024 | | Year Ended December 31, 2023 | | December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| United States | $ | 1,520.5 | | | $ | 1,394.8 | | | $ | 1,368.8 | | | $ | 141.9 | | | $ | 148.0 | | | $ | 160.6 | |
| Canada | 151.7 | | | 145.8 | | | 133.8 | | | 9.6 | | | 10.2 | | | 11.7 | |
| Rest of World | 23.7 | | | 25.9 | | | 27.9 | | | 6.1 | | | 5.8 | | | 8.0 | |
| $ | 1,695.9 | | | $ | 1,566.5 | | | $ | 1,530.5 | | | $ | 157.6 | | | $ | 164.0 | | | $ | 180.3 | |
Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for long-lived assets are based on the location of the entity that holds such assets. Long-lived assets include property, plant and equipment, net which includes finance lease ROU assets and excludes net intangible assets and goodwill.
The Company’s largest customer accounted for 18%, 19% and 20% of consolidated net sales for the years ended December 31, 2025, 2024, and 2023, respectively. No other customers account for more than 10% of consolidated net sales for the years ended December 31, 2025, 2024, or 2023.