Business Segments

12 Months Ended

Dec. 31, 2016

Segment Disclosures [Abstract]

Segment Reporting Disclosure [Text Block]

The Company’s reportable operating segments are organized by geography as follows: (i) North America, (ii) EMEA, (iii) Asia/Pacific and (iv) South America. Operating earnings, excluding indirect operating expenses, for the Company’s reportable operating segments is comprised of revenues less costs of goods sold and SG&A directly related to the respective region’s product sales. The indirect operating expenses consist of SG&A not directly attributable to the product sales of each respective reportable operating segment. Other items not specifically identified with the Company’s reportable operating segments include interest expense, interest income, license fees from non-consolidated affiliates, amortization expense and other income (expense).

The following tables present information about the performance of the Company’s reportable operating segments for the years ended December 31,2016, 2015 and 2014:

		2016		2015		2014
Net sales
	North America	$	336,174	$	344,248	$	334,400
	EMEA		200,917		179,717		195,309
	Asia/Pacific		179,131		181,056		185,974
	South America		30,443		32,534		50,177
Total net sales		$	746,665	$	737,555	$	765,860

		2016		2015		2014
Operating earnings, excluding indirect operating expenses
	North America	$	77,492	$	79,791	$	68,296
	EMEA		33,634		27,979		32,589
	Asia/Pacific		45,866		45,107		43,847
	South America		1,386		1,785		4,292
Total operating earnings, excluding indirect operating expenses			158,378		154,662		149,024
Non-operating charges			(68,632)		(69,602)		(67,110)
Restructuring and related activities			439		(6,790)		—
Depreciation of corporate assets and amortization			(7,134)		(7,010)		(4,558)
Consolidated operating income			83,051		71,260		77,356
Other income (expense), net			1,810		(69)		767
Interest expense			(2,889)		(2,585)		(2,371)
Interest income			2,037		1,624		2,541
Consolidated income before taxes and equity in net income of
	associated companies	$	84,009	$	70,230	$	78,293

The following tables present information regarding the Company’s reportable segments’ assets and long-lived assets as of December 31, 2016, 2015 and 2014:

		2016		2015		2014
Segment assets
	North America (including Corporate)	$	321,404	$	317,082	$	340,139
	EMEA		147,021		162,647		123,916
	Asia/Pacific		200,218		181,389		170,444
	South America		23,385		19,609		29,877
	Total segment assets	$	692,028	$	680,727	$	664,376

During the fourth quarter of 2016, the Company early adopted an accounting standard update regarding the classification of deferred taxes on the balance sheet.  The Company applied the guidance in this accounting standard update retrospectively. See Note 2 of Notes to Consolidated Financial Statements. As a result of adopting this guidance, the Company revised its December 31, 2015 and 2014 segment asset detail, decreasing its previously published amounts in North America by approximately $3.2 million and $0.2 million, respectively, in EMEA by approximately $1.1 million and $0.4 million, respectively, in Asia/Pacific by approximately $0.3 million and $0.1 million, respectively, and in South America by approximately $0.2 million and $0.4 million, respectively.

		2016		2015		2014
Segment long-lived assets
	North America (including Corporate)	$	86,775	$	87,421	$	92,319
	EMEA		25,630		27,101		20,634
	Asia/Pacific		22,040		23,096		24,392
	South America		2,858		2,573		3,911
	Total segment long-lived assets	$	137,303	$	140,191	$	141,256

The following tables present information regarding the Company’s reportable segments’ capital expenditures and depreciation as of December 31, 2016, 2015 and 2014:

		2016		2015		2014
Capital expenditures
	North America (including Corporate)	$	2,918	$	4,166	$	3,658
	EMEA		3,263		3,081		4,811
	Asia/Pacific		3,269		3,169		3,202
	South America		504		617		1,381
	Total segment capital expenditures	$	9,954	$	11,033	$	13,052

		2016		2015		2014
Depreciation
	North America	$	5,672	$	5,577	$	5,231
	EMEA		3,323		2,975		3,069
	Asia/Pacific		2,765		2,812		2,713
	South America		672		832		1,060
	Total segment depreciation	$	12,432	$	12,196	$	12,073

The following table presents information regarding the Company’s product lines that represent more than 10% of consolidated revenues for the years ended December 31, 2016, 2015 and 2014, with the remaining product sales being impractical to present:

	2016		2015		2014
Rolling lubricants	19.0	%	18.6	%	20.1	%
Machining and grinding compounds	14.9	%	15.3	%	16.3	%
Hydraulic fluids	12.0	%	12.6	%	13.0	%
Corrosion preventives	11.8	%	12.0	%	12.5	%
Specialty greases	10.1	%	8.5	%	5.3	%

During the years ended December 31, 2016, 2015 and 2014, the North American segment had approximately $35.8 million, $34.0 million and $35.5 million of net sales, respectively, which were attributable to non-domestic operations. At December 31, 2016, 2015 and 2014, the North American segment had approximately $4.9 million, $2.7 million and $3.1 million of long-lived assets, respectively, which were attributable to non-domestic operations.

Inter-segment revenue for the years ended December 31, 2016, 2015 and 2014 was $8.3 million, $9.1 million and $8.0 million for North America, $18.1 million, $17.8 million and $22.3 million for EMEA, $0.7 million, $1.0 million and $0.4 million for Asia/Pacific and less than $0.1 million for the years ended December 31,2016, 2015 and 2014for South America, respectively. However, all inter-segment transactions have been eliminated from each reportable operating segment’s net sales and earnings for all periods presented in the above tables.