part iI / item 8 Note 14 – Segment Information The Company’s segments are reported on the same basis used internally for evaluating performance and for allocating resources. The Company has five reporting segments: Aerospace & Electronics, Engineered Materials, Merchandising Systems, Fluid Handling and Con- trols. In accordance with ASC Topic 280, “Segment Reporting”, for purposes of segment performance measurement, the Company does not allocate to the business segments items that are of a non-operating nature, including charges which occur from time to time related to the Company’s asbestos liability and its legacy environmental liabilities, as such items are not related to current business activities; or corporate organizational and functional expenses of a governance nature. “Corporate expenses-before asbestos and environmental charg- es” consist of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs. Assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, deferred tax assets, insurance receivables, certain property, plant and equipment, and certain other assets. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices. Financial information by reportable segment is set forth below: 61 (in thousands) 2012 2011 2010 Aerospace & Electronics Net sales $ 701,208 $ 677,663 $ 577,164 Operating profit(a) 156,015 145,624 109,228 Assets 509,672 514,240 498,775 Goodwill 203,595 203,516 202,481 Capital expenditures 6,851 15,049 7,756 Depreciation and amortization 14,713 15,635 15,804 Engineered Materials Net sales $ 216,503 $ 220,071 $ 212,280 Operating profit(b) 24,522 29,754 30,143 Assets 237,478 245,350 255,340 Goodwill 171,533 171,489 171,491 Capital expenditures 2,163 1,840 1,052 Depreciation and amortization 7,191 7,959 8,090 Merchandising Systems Net sales $ 371,901 $ 373,907 $ 298,040 Operating profit(c) 33,771 30,337 16,729 Assets 408,702 408,857 419,704 Goodwill 201,866 197,719 197,453 Capital expenditures 4,263 4,652 3,490 Depreciation and amortization 14,226 15,283 11,811 Fluid Handling Net sales $1,195,501 $1,140,315 $1,007,745 Operating profit(d) 148,167 149,803 121,494 Assets 954,633 909,265 829,523 Goodwill 221,745 220,111 210,695 Capital expenditures 14,871 12,097 7,622 Depreciation and amortization 17,948 19,003 18,534 Controls Net sales $ 93,955 $ 88,413 $ 84,201 Operating profit(e) 12,813 11,228 5,077 Assets 38,642 64,162 66,744 Goodwill 15,053 27,990 28,165 Capital expenditures 514 664 523 Depreciation and amortization 1,463 3,270 3,726 (a) Includes restructuring charges of $269 in 2010. (b) Includes restructuring charges of $2,338 in 2012 and $238 in 2010. (c) Includes $1,276 of transaction costs associated with the acquisition of Money Controls in 2010 and restructuring charges of $3,355 in 2012 and $3,224 in 2010. (d) Includes restructuring charges of $12,745 in 2012 and $2,964 in 2010. (e) Includes restructuring gains of $19 in 2010.