XML 26 R13.htm IDEA: XBRL DOCUMENT v3.22.4
Business Segments
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Business Segments 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 (expense) income, net.
The following tables present information about the performance of the Company’s reportable segments for the years ended December 31, 2022, 2021 and 2020.
202220212020
Net sales
Americas$696,102 $572,643 $450,161 
EMEA474,604 480,126 383,187 
Asia/Pacific386,450 388,160 315,299 
Global Specialty Businesses386,429 320,229 269,030 
Total net sales$1,943,585 $1,761,158 $1,417,677 
202220212020
Segment operating earnings
Americas$148,181 $124,863 $96,379 
EMEA50,708 85,209 69,163 
Asia/Pacific92,995 96,318 88,356 
Global Specialty Businesses113,940 90,632 79,690 
Total segment operating earnings405,824 397,022 333,588 
Combination, integration and other acquisition-related expenses(8,779)(23,885)(29,790)
Restructuring and related charges(3,163)(1,433)(5,541)
Fair value step up of acquired inventory sold— (801)(226)
Impairment charges(93,000)— (38,000)
Non-operating and administrative expenses(187,830)(157,864)(143,202)
Depreciation of corporate assets and amortization(60,748)(62,573)(57,469)
Operating income52,304 150,466 59,360 
Other (expense) income, net(12,607)18,851 (5,618)
Interest expense, net(32,579)(22,326)(26,603)
Income before taxes and equity in net income of associated companies$7,118 $146,991 $27,139 
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, 2022, 2021 and 2020:
202220212020
Segment assets
Americas$1,014,115 $983,521 $969,551 
EMEA602,289 714,659 697,821 
Asia/Pacific685,607 750,970 713,004 
Global Specialty Businesses519,611 506,610 511,458 
Total segment assets$2,821,622 $2,955,760 $2,891,834 
202220212020
Segment long-lived assets
Americas$118,525 $129,321 $122,302 
EMEA66,151 69,990 69,344 
Asia/Pacific113,476 123,130 119,233 
Global Specialty Businesses60,182 37,951 59,091 
Total segment long-lived assets$358,334 $360,392 $369,970 
The following tables present information regarding the Company’s reportable segments’ capital expenditures and depreciation for identifiable assets for the years ended December 31, 2022, 2021 and 2020:
202220212020
Capital expenditures
Americas$18,188 $9,678 $6,451 
EMEA5,628 6,767 3,844 
Asia/Pacific3,245 2,264 5,688 
Global Specialty Businesses1,478 2,748 1,918 
Total segment capital expenditures$28,539 $21,457 $17,901 
202220212020
Depreciation
Americas$8,858 $12,074 $12,322 
EMEA4,897 6,936 6,813 
Asia/Pacific4,060 4,596 4,672 
Global Specialty Businesses5,109 3,043 3,544 
Total segment depreciation$22,924 $26,649 $27,351 
During the years ended December 31, 2022, 2021 and 2020, the Company had approximately $1,246.7 million, $1,198.4 million and $963.2 million of net sales, respectively, attributable to non-U.S. operations. As of December 31, 2022, 2021 and 2020, the Company had approximately $156.4 million, $155.2 million and $176.6 million of long-lived assets, respectively, attributable to non-U.S. operations.
Inter-segment revenue for the years ended December 31, 2022, 2021 and 2020 was $11.9 million, $12.2 million and $9.1 million for Americas, $32.4 million, $29.0 million and $22.0 million for EMEA, $0.9 million, $1.6 million and $0.6 million for Asia/Pacific and $8.5 million, $7.4 million and $4.7 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.
In January 2023, the Company reorganized certain of its executive management team to align with its new business structure, which reflects the method by which the Company will assess its performance and allocate its resources going forward. This change was made subsequent to December 31, 2022 and therefore, the reportable segments presented in the preceding tables represented the business structure the Company operated during the periods presented. Effective beginning in the first quarter of 2023, the Company’s new structure will include three reportable segments: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia/Pacific. The three geographic segments are composed of the net sales and operations in each respective region, including net sales and operations formerly included in the Global Specialty Businesses segment.