Business Segments

12 Months Ended

Dec. 31, 2017

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 COGS 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 expense, net.

The following tables present information about the performance of the Company’s reportable operating segments for the years ended December 31, 2017, 2016 and 2015:

		2017		2016		2015
Net sales
	North America	$	356,598	$	336,174	$	344,248
	EMEA		226,243		200,917		179,717
	Asia/Pacific		201,008		179,131		181,056
	South America		36,233		30,443		32,534
Total net sales		$	820,082	$	746,665	$	737,555

		2017		2016		2015
Operating earnings, excluding indirect operating expenses
	North America	$	77,694	$	77,833	$	80,239
	EMEA		35,350		33,810		28,236
	Asia/Pacific		48,342		45,866		45,107
	South America		3,927		1,386		1,785
Total operating earnings, excluding indirect operating expenses			165,313		158,895		155,367
Non-operating charges			(65,142)		(65,316)		(66,999)
Restructuring and related activities			—		439		(6,790)
Combination-related expenses			(29,938)		(1,531)		—
Depreciation of corporate assets and amortization			(7,489)		(7,134)		(7,010)
Operating income			62,744		85,353		74,568
Other expense, net			(718)		(492)		(3,377)
Interest expense			(3,892)		(2,889)		(2,585)
Interest income			2,534		2,037		1,624
Income before taxes and equity in net income of
	associated companies	$	60,668	$	84,009	$	70,230

The following tables present information regarding the Company’s reportable segments’ assets and long-lived assets as of December 31, 2017, 2016 and 2015:

		2017		2016		2015
Segment assets
	North America (including Corporate)	$	324,260	$	321,404	$	317,082
	EMEA		177,267		147,021		162,647
	Asia/Pacific		196,891		200,218		181,389
	South America		23,708		23,385		19,609
	Total segment assets	$	722,126	$	692,028	$	680,727

		2017		2016		2015
Segment long-lived assets
	North America (including Corporate)	$	88,818	$	86,775	$	87,421
	EMEA		28,507		25,630		27,101
	Asia/Pacific		22,427		22,040		23,096
	South America		2,691		2,858		2,573
	Total segment long-lived assets	$	142,443	$	137,303	$	140,191

The following tables present information regarding the Company’s reportable segments’ capital expenditures and depreciation for the years ended December 31, 2017, 2016 and 2015:

		2017		2016		2015
Capital expenditures
	North America (including Corporate)	$	3,919	$	2,918	$	4,166
	EMEA		3,936		3,263		3,081
	Asia/Pacific		2,458		3,269		3,169
	South America		559		504		617
	Total segment capital expenditures	$	10,872	$	9,954	$	11,033

		2017		2016		2015
Depreciation
	North America	$	5,791	$	5,672	$	5,577
	EMEA		3,368		3,323		2,975
	Asia/Pacific		2,669		2,765		2,812
	South America		649		672		832
	Total segment depreciation	$	12,477	$	12,432	$	12,196

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, 2017, 2016 and 2015, with the remaining product sales being immaterial to present:

	2017		2016		2015
Rolling lubricants	17.8	%	19.0	%	18.6	%
Machining and grinding compounds	15.8	%	14.9	%	15.3	%
Hydraulic fluids	11.6	%	12.0	%	12.6	%
Corrosion preventives	11.4	%	11.8	%	12.0	%
Specialty greases	10.0	%	10.1	%	8.5	%

During the years ended December 31, 2017, 2016 and 2015, the North America segment had approximately $49.2 million, $35.8 million and $34.0 million of net sales, respectively, which were attributable to non-domestic operations. As of December 31, 2017, 2016 and 2015, the North America segment had approximately $4.9 million, $4.9 million and $2.7 million of long-lived assets, respectively, which were attributable to non-domestic operations.

Inter-segment revenue for the years ended December 31, 2017, 2016 and 2015 was $9.4 million, $8.3 million and $9.1 million for North America, $22.0 million, $18.1 million and $17.8 million for EMEA, $0.4 million, $0.7 million and $1.0 million for Asia/Pacific and less than $0.1 million for the years ended December 31, 2017, 2016 and 2015 for 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.