A.O. Smith Corporation manufactures and markets comprehensive lines of residential and commercial gas, gas tankless, and electric water heaters. Supplementary products include water heating equipment, condensing and noncondensing boilers, and water system tanks. The company’s two operating segments are by geographic region: North America (majority of total revenue) and Rest of World. A material portion of sales in North America derive from replacing existing products, and the company utilizes a wholesale distribution channel and multiple selling locations. The Rest of World segment sells primarily to Asian countries, and operates sales offices to expand distribution and market its product portfolio.