Business Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting Measurement Disclosures [Abstract]

Segment Reporting Disclosure [Text Block]

Note 4 – Business Segments

The Company’s operating segments, which are consistent with its reportable segments, reflect the structure of the Company’s

internal organization, the method by which the Company’s resources are allocated and the manner by which the Company and the

chief operating decision maker assess its performance. During the third quarter of 2019 and in connection with the Combination, the

Company reorganized its executive management team to align with its new business structure, which reflects the method by which the

chief operating decision maker of the Company assesses its performance and allocates its resources. The Company’s current

reportable segment structure includes

four

 segments: (i) Americas; (ii) EMEA; (iii) Asia/Pacific; and (iv) Global Specialty Businesses. 

The three geographic segments are composed of the net sales and operations in each respective region, excluding net sales and

operations managed globally by the Global Specialty Businesses segment, which includes the Company’s container, metal finishing,

mining, offshore, specialty coatings, specialty grease and Norman Hay businesses.

Although the Company changed its reportable segments in the third quarter of 2019, the calculation of the reportable segments’

measures of earnings remains otherwise generally consistent with past practices. Segment operating earnings for the Company’s

reportable segments are comprised of net sales less COGS and selling, general and administrative expenses (“SG&A”) directly related

to the respective segment’s product sales. Operating expenses not directly attributable to the net sales of each respective segment,

such as certain corporate and administrative costs, Combination, integration and other acquisition-related expenses, and restructuring

and related charges, are not included in segment operating earnings. Other items not specifically identified with the Company’s

reportable segments include interest expense, net and other (expense) income, net.

The following table presents information about the performance of the Company’s reportable segments for the three and nine

months ended September 30, 2020 and 2019. Certain immaterial reclassifications within the segment disclosures for the three and

nine months ended September 30, 2019 have been made to conform with the Company’s current customer industry segmentation.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2020

2019

2020

2019

Net sales

Americas

$

119,540

$

116,691

$

330,012

$

260,663

EMEA

94,005

82,369

276,546

183,806

Asia/Pacific

84,877

74,266

226,850

165,234

Global Specialty Businesses

68,802

51,804

198,417

132,506

Total net sales

$

367,224

$

325,130

$

1,031,825

$

742,209

Segment operating earnings

Americas

$

31,099

$

23,765

$

70,590

$

52,069

EMEA

17,439

13,303

46,269

31,034

Asia/Pacific

27,304

20,404

66,106

45,375

Global Specialty Businesses

21,161

15,245

58,114

36,819

Total segment operating earnings

97,003

72,717

241,079

165,297

Combination, integration and other acquisition-related expenses

(6,913)

(14,702)

(22,786)

(23,789)

Restructuring and related charges

(1,383)

(24,045)

(3,585)

(24,045)

Fair value step up of inventory sold 

—

(10,214)

(226)

(10,214)

Indefinite-lived intangible asset impairment

—

—

(38,000)

—

Non-operating and administrative expenses

(39,786)

(29,203)

(110,282)

(68,621)

Depreciation of corporate assets and amortization

(14,062)

(9,055)

(41,547)

(12,770)

Operating income (loss) 

34,859

(14,502)

24,653

25,858

Other (expense) income, net

(239)

203

(22,407)

(389)

Interest expense, net

(6,837)

(6,102)

(22,109)

(7,611)

Income (loss) before taxes and equity in net income of

associated companies

$

27,783

$

(20,401)

$

(19,863)

$

17,858

Inter-segment revenues for the three and nine months ended September 30, 2020 were $

1.7

 million and $

7.0

 million for Americas,

$

5.3

 million and $

16.1

 million for EMEA, $

0.2

 million and $

0.5

 million for Asia/Pacific, and $

1.1

 million and $

3.4

 million for Global

Specialty Businesses, respectively. Inter-segment revenues for the three and nine months ended September 30, 2019 were $

2.1

million and $

4.8

 million for Americas, $

5.3

 million and $

15.4

 million for EMEA, less than $

0.1

 million and $

0.1

 million for

Asia/Pacific, and $

1.4

 million and $

4.1

 million for Global Specialty Businesses, respectively. However, all inter-segment transactions

have been eliminated from each reportable segment’s net sales and earnings for all periods presented in the above tables.