Segment Information

12 Months Ended

Dec. 27, 2019

Segment Reporting, Measurement Disclosures [Abstract]

B. Segment Information

The Company has six operating segments which are aggregated into three reportable segments: Industrial, Process and Contractor.

The Industrial segment includes our Industrial Products and Applied Fluid Technologies divisions. The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids. Markets served include automotive and vehicle assembly and components production, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries.

The Process segment includes our Process, Oil and Natural Gas, and Lubrication divisions. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids. Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, electronics, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications.

The Contractor segment markets sprayers for architectural coatings for painting, corrosion control, texture and line striping.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The cost of manufacturing for each segment is based on product cost, and expenses are based on actual costs incurred along with cost allocations of shared and centralized functions based on activities performed, sales or space utilization. Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset, and is then allocated to segments on the same basis as other expenses within that cost center. Reportable segments are defined by product. Segments are responsible for development, manufacturing, marketing and sales of their products. This allows for focused marketing and efficient product development. The segments share common purchasing, certain manufacturing, distribution and administration functions.

Segments information follows (in thousands):



	2019			2018			2017
Net Sales
Industrial	$	747,396		$	781,029		$	691,978
Process	344,930			337,953			294,652
Contractor	553,719			534,310			488,114
Total	$	1,646,045		$	1,653,292		$	1,474,744
Operating Earnings
Industrial	$	247,216		$	271,307		$	237,700
Process	76,367			68,514			52,216
Contractor	128,282			120,905			113,898
Unallocated corporate (expense)	(27,409		)	(24,299		)	(25,069		)
Total	$	424,456		$	436,427		$	378,745
Assets
Industrial	$	615,486		$	640,683
Process	387,216			350,306
Contractor	368,832			283,727
Unallocated corporate	320,676			198,025
Total	$	1,692,210		$	1,472,741

Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses and asset impairments. Unallocated corporate (expense) includes such items as stock compensation, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses. Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital and other assets.

Geographic information follows (in thousands):



	2019		2018		2017
Net Sales (based on customer location)
United States	$	840,659	$	806,127	$	743,344
Other countries	805,386		847,165		731,400
Total	$	1,646,045	$	1,653,292	$	1,474,744
Long-lived Assets
United States	$	268,864	$	178,331
Other countries	56,682		50,964
Total	$	325,546	$	229,295

Sales to Major Customers. Worldwide sales to one customer in the Contractor and Industrial segments individually represented over 10 percent of the Company’s consolidated sales in 2019, 2018 and 2017.