Segment Information

12 Months Ended

Dec. 25, 2020

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, semiconductor fabrication, 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):


	2020		2019		2018
Net Sales
Industrial	$	677,680	$	747,396	$	781,029
Process	326,105		344,930		337,953
Contractor	646,330		553,719		534,310
Total	$	1,650,115	$	1,646,045	$	1,653,292
Operating Earnings
Industrial	$	226,575	$	247,216	$	271,307
Process	64,498		76,367		68,514
Contractor	164,549		128,282		120,905
Unallocated corporate (expense)	(28,675)		(27,409)		(24,299)
Impairment	(35,229)		—		—
Total	$	391,718	$	424,456	$	436,427
Assets
Industrial	$	632,165	$	615,486
Process	404,370		387,216
Contractor	438,067		368,832
Unallocated corporate	513,526		320,676
Total	$	1,988,128	$	1,692,210

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):


	2020		2019		2018
Net Sales (based on customer location)
United States	$	883,451	$	840,659	$	806,127
Other countries	766,664		805,386		847,165
Total	$	1,650,115	$	1,646,045	$	1,653,292
Long-lived Assets
United States	$	301,643	$	268,864
Other countries	49,107		56,682
Total	$	350,750	$	325,546

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 2020, 2019 and 2018.