Business Segments

12 Months Ended

Dec. 31, 2021

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 assesses the Company’s performance. The Company has

four

 reportable 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.

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 income (expense), net.

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

December 31, 2021, 2020 and 2019.

2021

2020

2019

Net sales

Americas

$

572,643

$

450,161

$

392,121

EMEA

480,126

383,187

285,570

Asia/Pacific

388,160

315,299

247,839

Global Specialty Businesses

320,229

269,030

207,973

Total net sales

$

1,761,158

$

1,417,677

$

1,133,503

2021

2020

2019

Segment operating earnings

Americas

$

124,863

$

96,379

$

78,297

EMEA

85,209

69,163

47,014

Asia/Pacific

96,318

88,356

67,512

Global Specialty Businesses

90,632

79,690

58,881

Total segment operating earnings

397,022

333,588

251,704

Combination, integration and other acquisition-related expenses

(23,885)

(29,790)

(35,477)

Restructuring and related charges

(1,433)

(5,541)

(26,678)

Fair value step up of acquired inventory sold

(801)

(226)

(11,714)

Indefinite-lived intangible asset impairment

-

(38,000)

-

Non-operating and administrative expenses

(157,864)

(143,202)

(104,572)

Depreciation of corporate assets and amortization

(62,573)

(57,469)

(27,129)

Operating income

150,466

59,360

46,134

Other income (expense), net

18,851

(5,618)

(254)

Interest expense, net

(22,326)

(26,603)

(16,976)

Income before taxes and equity in net income of

associated companies

$

146,991

$

27,139

$

28,904

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, as of December 31, 2021, 2020 and 2019:

2021

2020

2019

Segment assets

Americas

$

983,521

$

969,551

$

926,122

EMEA

714,659

697,821

688,663

Asia/Pacific

750,970

713,004

685,476

Global Specialty Businesses

506,610

511,458

550,055

Total segment assets

$

2,955,760

$

2,891,834

$

2,850,316

2021

2020

2019

Segment long-lived assets

Americas

$

129,321

$

122,302

$

139,170

EMEA

69,990

69,344

56,108

Asia/Pacific

123,130

119,233

126,166

Global Specialty Businesses

37,951

59,091

69,184

Total segment long-lived assets

$

360,392

$

369,970

$

390,628

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

identifiable assets for the years ended December 31, 2021, 2020 and 2019:

2021

2020

2019

Capital expenditures

Americas

$

9,678

$

6,451

$

6,404

EMEA

6,767

3,844

3,263

Asia/Pacific

2,264

5,688

3,857

Global Specialty Businesses

2,748

1,918

2,021

Total segment capital expenditures

$

21,457

$

17,901

$

15,545

2021

2020

2019

Depreciation

Americas

$

12,074

$

12,322

$

7,500

EMEA

6,936

6,813

4,560

Asia/Pacific

4,596

4,672

3,458

Global Specialty Businesses

3,043

3,544

2,248

Total segment depreciation

$

26,649

$

27,351

$

17,766

During the years ended December 31, 2021, 2020 and 2019, the Company had approximately $

1,198.4

 million, $

963.2

 million

and $

719.8

 million of net sales, respectively, attributable to non-U.S. operations. As of December 31, 2021, 2020 and 2019, the

Company had approximately $

155.2

 million, $

176.6

 million and $

174.4

 million of long-lived assets, respectively, attributable to non-

U.S. operations.

Inter-segment revenue for the years ended December 31, 2021, 2020 and 2019 was $

12.2

 million, $

9.1

 million and $

7.3

 million

for Americas, $

29.0

 million, $

22.0

 million and $

20.3

 million for EMEA, $

1.6

 million, $

0.6

 million and $

0.2

 million for Asia/Pacific

and $

7.4

 million, $

4.7

 million and $

5.4

 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.