Business Segments

12 Months Ended

Dec. 31, 2018

Segment Reporting Disclosure [Text Block]

Note 5 – Business Segments

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 cost of goods sold (“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, 2018, 2017 and 2016:

		2018		2017		2016
Net sales
	North America	$	383,471	$	356,598	$	336,174
	EMEA		233,597		226,243		200,917
	Asia/Pacific		214,157		201,008		179,131
	South America		36,295		36,233		30,443
Total net sales		$	867,520	$	820,082	$	746,665

		2018		2017		2016
Operating earnings, excluding indirect operating expenses
	North America	$	88,276	$	77,694	$	77,833
	EMEA		35,970		35,350		33,810
	Asia/Pacific		56,056		48,342		45,866
	South America		3,881		3,927		1,386
Total operating earnings, excluding indirect operating expenses			184,183		165,313		158,895
Non-operating charges			(72,223)		(65,142)		(65,316)
Restructuring and related activities			—		—		439
Combination-related expenses			(16,661)		(29,938)		(1,531)
Depreciation of corporate assets and amortization			(7,518)		(7,489)		(7,134)
Operating income			87,781		62,744		85,353
Other expense, net			(642)		(718)		(492)
Interest expense			(6,158)		(3,892)		(2,889)
Interest income			2,117		2,534		2,037
Income before taxes and equity in net income of
	associated companies	$	83,098	$	60,668	$	84,009

The following tables present information regarding the Company’s reportable operating segments’ assets and long-lived assets as of December 31, 2018, 2017 and 2016:

		2018		2017		2016
Segment assets
	North America (including Corporate)	$	317,934	$	324,260	$	321,404
	EMEA		157,111		177,267		147,021
	Asia/Pacific		212,545		196,891		200,218
	South America		22,075		23,708		23,385
	Total segment assets	$	709,665	$	722,126	$	692,028

		2018		2017		2016
Segment long-lived assets
	North America (including Corporate)	$	84,876	$	88,818	$	86,775
	EMEA		26,239		28,507		25,630
	Asia/Pacific		23,650		22,427		22,040
	South America		2,529		2,691		2,858
	Total segment long-lived assets	$	137,294	$	142,443	$	137,303

The following tables present information regarding the Company’s reportable operating segments’ capital expenditures and depreciation for the years ended December 31, 2018, 2017 and 2016:

		2018		2017		2016
Capital expenditures
	North America (including Corporate)	$	4,574	$	3,919	$	2,918
	EMEA		2,081		3,936		3,263
	Asia/Pacific		6,059		2,458		3,269
	South America		172		559		504
	Total segment capital expenditures	$	12,886	$	10,872	$	9,954

		2018		2017		2016
Depreciation
	North America	$	5,770	$	5,791	$	5,672
	EMEA		3,434		3,368		3,323
	Asia/Pacific		2,552		2,669		2,765
	South America		440		649		672
	Total segment depreciation	$	12,196	$	12,477	$	12,432

During the years ended December 31, 2018, 2017 and 2016, the North America segment had approximately $50.8 million, $49.2 million and $35.8 million of net sales, respectively, which were attributable to non-U.S. operations. As of December 31, 2018, 2017 and 2016, the North America segment had approximately $4.5 million, $4.9 million and $4.9 million of long-lived assets, respectively, which were attributable to non-U.S. operations.

Inter-segment revenue for the years ended December 31, 2018, 2017 and 2016 was $9.7 million, $9.4 million and $8.3 million for North America, $22.0 million, $22.0 million and $18.1 million for EMEA, $0.5 million, $0.4 million and $0.7 million for Asia/Pacific and less than $0.1 million for the years ended December 31, 2018, 2017 and 2016 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.