Business Segments

12 Months Ended

Dec. 31, 2020

Segment 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 chief operating

decision maker assess the Company’s 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 assesses the Company’s 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 each of the

Company’s reportable segments are comprised of the segment’s net sales less directly related COGS and SG&A. 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, net.

The following tables present information about the performance of the Company’s reportable segments for the years ended

December 31, 2020, 2019 and 2018. Certain immaterial reclassifications within the segment disclosures for the years ended

December 31, 2019 and 2018 have been made to conform with the Company’s current customer industry segmentation.

2020

2019

2018

Net sales

Americas

$

450,161

$

392,121

$

297,601

EMEA

383,187

285,570

216,984

Asia/Pacific

315,299

247,839

192,502

Global Specialty Businesses

269,030

207,973

160,433

Total net sales

$

1,417,677

$

1,133,503

$

867,520

2020

2019

2018

Segment operating earnings

Americas

$

96,379

$

78,297

$

62,686

EMEA

69,163

47,014

36,119

Asia/Pacific

88,356

67,512

53,739

Global Specialty Businesses

79,690

58,881

42,931

Total segment operating earnings

333,588

251,704

195,475

Combination, integration and other acquisition-related expenses

(29,790)

(35,477)

(16,661)

Restructuring and related charges

(5,541)

(26,678)

—

Fair value step up of inventory sold

(226)

(11,714)

—

Indefinite-lived intangible asset impairment

(38,000)

—

—

Non-operating and administrative expenses

(143,202)

(104,572)

(83,515)

Depreciation of corporate assets and amortization

(57,469)

(27,129)

(7,518)

Operating income

59,360

46,134

87,781

Other expense, net

(5,618)

(254)

(642)

Interest expense, net

(26,603)

(16,976)

(4,041)

Income before taxes and equity in net income of

associated companies

$

27,139

$

28,904

$

83,098

The following tables present information regarding the Company’s reportable segments’ assets and long-lived assets, including

certain identifiable assets as well as an allocation of shared assets, of December 31, 2020, 2019 and 2018:

2020

2019

2018

Segment assets

Americas

$

969,551

$

926,122

$

180,037

EMEA

697,821

688,663

149,984

Asia/Pacific

713,004

685,476

205,424

Global Specialty Businesses

511,458

550,055

174,220

Total segment assets

$

2,891,834

$

2,850,316

$

709,665

2020

2019

2018

Segment long-lived assets

Americas

$

122,302

$

139,170

$

60,745

EMEA

69,344

56,108

23,383

Asia/Pacific

119,233

126,166

26,217

Global Specialty Businesses

59,091

69,184

26,949

Total segment long-lived assets

$

369,970

$

390,628

$

137,294

The following tables present information regarding the Company’s reportable segments’ capital expenditures and depreciation for

identifiable assets for the years ended December 31, 2020, 2019 and 2018:

2020

2019

2018

Capital expenditures

Americas

$

6,451

$

6,404

$

3,401

EMEA

3,844

3,263

2,081

Asia/Pacific

5,688

3,857

6,059

Global Specialty Businesses

1,918

2,021

1,345

Total segment capital expenditures

$

17,901

$

15,545

$

12,886

2020

2019

2018

Depreciation

Americas

$

12,322

$

7,500

$

4,225

EMEA

6,813

4,560

3,434

Asia/Pacific

4,672

3,458

2,552

Global Specialty Businesses

3,544

2,248

1,985

Total segment depreciation

$

27,351

$

17,766

$

12,196

During the years ended December 31, 2020, 2019 and 2018, the Company had approximately

$963.2

 million,

$719.8

 million and

$534.6

 million of net sales, respectively, attributable to non-U.S. operations. As of December 31, 2020, 2019 and 2018, the Company

had approximately

$176.6

 million,

$174.4

 million and

$60.8

 million of long-lived assets, respectively, attributable to non-U.S.

operations.

Inter-segment revenue for the years ended December 31, 2020, 2019 and 2018 was

$9.1

 million,

$7.3

 million and

$8.3

 million for

Americas,

$22.0

 million,

$20.3

 million and

$21.9

 million for EMEA,

$0.6

 million,

$0.2

 million and

$0.5

 million for Asia/Pacific and

$4.7

 million,

$5.4

 million and

$5.3

 million for Global Specialty Businesses, 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.