Segment Information

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company is organized into three reporting segments. The segments are defined by the regions where the Company’s products are manufactured, marketed and distributed to the Company’s customers. The three regional segments are the North America segment (comprised primarily of the Company's operations in the United States and Canada), the Europe segment and the Asia/Pacific segment (comprised of the Company’s operations in Asia, the South Pacific, and the Middle East). These segments are similar in several ways, including the types of materials used, the production processes, the distribution channels and the product applications.

The Administrative & All Other column primarily includes expenses such as self-insured workers compensation claims for employees of the Company’s venting business, which was sold in 2010, stock-based compensation for certain members of management, interest expense, foreign exchange gains or losses and income tax expense, as well as revenues and expenses related to real estate activities, such as gain on sale of property, rental income and depreciation expense on the Company’s property in Vacaville, California. In November 2018, the Vacaville property was sold for $17.5 million, net of closing costs and sales price adjustments and resulted in a pre-tax gain of $8.8 million.

The following table shows certain measurements used by management to assess the performance of the segments described above as of December 31, 2018, 2017 and 2016, respectively:

(in thousands)	North America		Europe			Asia/ Pacific		Administrative & All Other			Total
2018
Net sales	$	910,587	$	159,027		$	9,195	$	—		$	1,078,809
Sales to other segments *	2,279		1,773			28,292		—			32,344
Income from operations	164,453		(3,026		)	2,040		8,865			172,332
Depreciation and amortization	30,505		6,297			1,794		797			39,393
Impairment of goodwill	—		6,686			—		—			6,686
Significant non-cash charges	6,340		1,169			48		3,619			11,176
Provision for income taxes	39,638		2,947			113		2,797			45,495
Capital expenditures and business acquisitions, net of     cash acquired	27,059		2,556			1,702		—			31,317
Total assets	1,119,012		157,437			25,644		(280,430		)	1,021,663

(in thousands)	North America		Europe		Asia/ Pacific		Administrative & All Other			Total
2017
Net sales	$	803,697	$	165,155	$	8,173	$	—		$	977,025
Sales to other segments *	3,237		959		20,715		—			24,911
Income (loss) from operations	132,995		2,723		1,296		901			137,915
Depreciation and amortization	25,745		5,832		1,246		901			33,724
Gain on bargain purchase of a business	—		6,336		—		—			6,336
Significant non-cash charges	9,861		1,509		65		2,473			13,908
Provision for income taxes	47,434		2,124		419		1,824			51,801
Capital expenditures and business acquisitions, net of cash acquired	70,040		11,411		4,511		—			85,962
Total assets	953,033		208,640		26,820		(150,970		)	1,037,523

(in thousands)	North America		Europe		Asia/ Pacific		Administrative & All Other			Total
2016
Net sales	$	742,021	$	111,274	$	7,366	$	—		$	860,661
Sales to other segments *	2,512		570		28,690		—			31,772
Income (loss) from operations	137,466		2,115		1,807		(178		)	141,210
Depreciation and amortization	19,433		5,809		1,208		1,477			27,927
Significant non-cash charges	9,124		1,052		113		3,657			13,946
Provision for (benefit from) income taxes	45,547		1,428		721		1,470			49,166
Capital expenditures and business acquisitions, net of cash acquired	37,652		8,461		1,250		—			47,363
Total assets	853,826		165,121		25,118		(64,091		)	979,974

 * Sales to other segments are eliminated on consolidation.

Cash collected by the Company’s United States subsidiaries is routinely transferred into the Company’s cash management accounts, and therefore has been included in the total assets of “Administrative & All Other.” Cash and short-term investment balances in “Administrative & All Other” were $113.6 million, $80.2 million and $137.4 million as of December 31, 2018, 2017 and 2016, respectively. As of December 31, 2018, the Company had $45.5 million, or 28.4%, of its cash and cash equivalents held outside the United States in accounts belonging to the Company’s various foreign operating entities. The majority of this balance is held in foreign currencies and could be subject to additional taxation if repatriated to the United States.

The significant non-cash charges comprise compensation related to equity awards under the Company's stock-based incentive plans and the Company's employee stock bonus plan. The Company’s measure of profit or loss for its reportable segments is income (loss) from operations. The reconciling amounts between consolidated income before tax and consolidated income from

operations are net interest income (expense), loss in equity method investment, gain on bargain purchase of a business, and loss on disposal of a business. Interest income (expense) is primarily attributed to “Administrative & All Other.”

The following table shows the geographic distribution of the Company’s net sales and long-lived assets as of December 31, 2018, 2017 and 2016, respectively:

	2018				2017				2016
(in thousands)	Net Sales		Long-Lived Assets		Net Sales		Long-Lived Assets		Net Sales		Long-Lived Assets
United States	$	860,482	$	210,063	$	758,181	$	223,184	$	702,071	$	192,787
Canada	46,874		4,257		43,176		4,650		38,269		4,473
United Kingdom	27,194		1,417		23,157		1,459		20,751		1,183
Germany	22,950		13,221		21,821		14,153		33,062		12,582
France	40,182		7,891		36,677		9,152		20,905		8,349
Poland	10,200		2,794		20,409		2,471		6,633		1,830
Sweden	15,461		1,154		16,421		1,068		—		—
Denmark	11,682		1,454		14,723		1,601		15,728		1,249
Norway	12,324		—		12,902		229		—		—
Switzerland	6,939		8,067		5,593		8,748		6,549		8,469
Australia	6,119		199		5,501		268		4,741		239
Belgium	5,547		1,961		5,050		2,065		1,286		1,798
The Netherlands	5,068		81		4,834		110		4,909		21
New Zealand	3,061		111		2,604		130		2,474		163
Chile	3,233		41		2,314		61		1,572		56
Other countries	1,493		11,635		3,662		12,710		1,711		7,471
	$	1,078,809	$	264,346	$	977,025	$	282,059	$	860,661	$	240,670

Net sales and long-lived assets, excluding intangible assets, are attributable to the country where the sales or manufacturing operations are located.

The Company's wood construction products include connectors, truss plates, fastening systems, fasteners and pre-fabricated shearwalls and are used for connecting and strengthening wood-based construction primarily in the residential construction market. Its concrete construction products include adhesives, specialty chemicals, mechanical anchors, carbide drill bits, powder actuated tools and reinforcing fiber materials and are used for restoration, protection or strengthening concrete, masonry and steel construction in residential, industrial, commercial and infrastructure construction. The following table show the distribution of the Company’s net sales by product for the years ended December 31, 2018, 2017 and 2016, respectively:

(in thousands)	2018		2017		2016
Wood Construction	$	913,202	$	833,200	$	732,414
Concrete Construction	165,317		143,102		128,247
Other	290		723		—
Total	$	1,078,809	$	977,025	$	860,661

No customer accounted for as much as 10% of net sales for the years ended December 31, 2018, 2017 and 2016.