Number of wholesale distributors (more than)

[Table of Contents](#i90c0b6fc77a94e699123e3f505f83787_7)2. Revenue Recognition (continued)Disaggregation of Net Sales The Company is comprised of two reporting segments: North America and Rest of World. The Rest of World segment is primarily comprised of China, Europe and India. Both segments manufacture and market comprehensive lines of residential and commercial gas and electric water heaters, boilers, tanks and water treatment products. Both segments primarily manufacture and market in their respective regions of the world.As each segment manufactures and markets products in its respective region of the world, the Company has determined that geography is the primary factor in reporting its sales. The Company further disaggregates its North America segment sales by major product line as each of North America’s major product lines is sold through distinct distribution channels and these product lines may be impacted differently by certain economic factors. Within the Rest of World segment, particularly in China and India, the Company’s major customers purchase across the Company’s product lines, utilizing the same distribution channels regardless of product type. In addition, the impact of economic factors is unlikely to be differentiated by product line in the Rest of World segment.The North America segment's major product lines are defined as the following:Water heaters The Company’s water heaters are open water heating systems that heat potable water. Typical applications for water heaters include residences, restaurants, hotels, office buildings, laundries, car washes and small businesses. The Company sells residential and commercial water heater products and related parts through its wholesale distribution channel, which includes more than 1,100 independent wholesale plumbing distributors. The Company also sells residential water heaters and related parts through retail and maintenance, repair and operations (MRO) channels. A significant portion of the Company’s water heater sales in the North America segment is derived from the replacement of existing products.Boilers The Company’s boilers are closed loop water heating systems used primarily for space heating or hydronic heating. The Company’s boilers are primarily used in applications in commercial settings for hospitals, schools, hotels and other large commercial buildings while residential boilers are used in homes, apartments and condominiums. The Company’s boiler distribution channel is comprised primarily of manufacturer representative firms, with the remainder of its boilers distributed through wholesale channels. The Company’s boiler sales in the North America segment are derived from a combination of replacement of existing products and new construction.Water treatment products The Company’s water treatment products range from point-of-entry water softeners, solutions for problem well water, and whole-home water filtration products to on-the-go filtration bottles and point-of-use carbon and reverse osmosis products. Typical applications for the Company’s water treatment products include residences, restaurants, hotels and offices. The Company sells water treatment products through its retail and wholesale distribution channels, similar to water heater products and related parts. The Company’s water treatment products are also sold through independent water quality dealers as well as directly to consumers including through internet sales channels. A portion of the Company’s sales of water treatment products in the North America segment is comprised of replacement filters.The following table disaggregates the Company’s net sales by segment. As described above, the Company’s North America segment sales are further disaggregated by major product line. In addition, the Company’s Rest of World segment sales are disaggregated by China and all other Rest of World:

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| (dollars in millions) | Three Months EndedJune 30, |  | Six Months EndedJune 30, |
|  | 2022 |  | 2021 |  | 2022 |  | 2021 |
| North America |  |  |  |  |  |  |  |
| Water heaters and related parts | $ | 613.9  |  |  | $ | 498.1  |  |  | $ | 1,229.7  |  |  | $ | 955.8  |  |
| Boilers and related parts | 70.4  |  |  | 55.5  |  |  | 127.9  |  |  | 102.0  |  |
| Water treatment products | 59.8  |  |  | 50.0  |  |  | 116.6  |  |  | 98.7  |  |
| Total North America | 744.1  |  |  | 603.6  |  |  | 1,474.2  |  |  | 1,156.5  |  |
| Rest of World |  |  |  |  |  |  |  |
| China | $ | 201.5  |  |  | $ | 238.8  |  |  | $ | 429.8  |  |  | $ | 438.0  |  |
| All other Rest of World | 28.4  |  |  | 24.4  |  |  | 56.1  |  |  | 47.5  |  |
| Total Rest of World | 229.9  |  |  | 263.2  |  |  | 485.9  |  |  | 485.5  |  |
| Inter-segment sales | (8.1) |  |  | (7.0) |  |  | (16.5) |  |  | (13.2) |  |
| Total Net Sales | $ | 965.9  |  |  | $ | 859.8  |  |  | $ | 1,943.6  |  |  | $ | 1,628.8  |  |

  
  
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