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Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Information
B. Segment Information

The Company has six operating segments which are aggregated into three reportable segments: Industrial, Process and Contractor.

The Industrial segment includes our Industrial Products and Applied Fluid Technologies divisions. The Industrial segment markets equipment and solutions for moving and applying paints, coatings, sealants, adhesives and other fluids. Markets served include automotive and vehicle assembly and components production, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries.

The Process segment includes our Process, Oil and Natural Gas, and Lubrication divisions. The Process segment markets pumps, valves, meters and accessories to move and dispense chemicals, oil and natural gas, water, wastewater, petroleum, food, lubricants and other fluids. Markets served include food and beverage, dairy, oil and natural gas, pharmaceutical, cosmetics, electronics, semiconductor fabrication, wastewater, mining, fast oil change facilities, service garages, fleet service centers, automobile dealerships and industrial lubrication applications.

The Contractor segment markets sprayers for architectural coatings for painting, corrosion control, texture and line striping.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The cost of manufacturing for each segment is based on product cost, and expenses are based on actual costs incurred along with cost allocations of shared and centralized functions based on activities performed, sales or space utilization. Depreciation expense is charged to the manufacturing or operating cost center that utilizes the asset, and is then allocated to segments on the same basis as other expenses within that cost center. Reportable segments are defined by product. Segments are responsible for development, manufacturing, marketing and sales of their products. This allows for focused marketing and efficient product development. The segments share common purchasing, certain manufacturing, distribution and administration functions.

Subsequent Event. Effective January 1, 2022, our high performance coatings and foam product offerings within the Applied Fluid Technologies division of the Industrial segment were realigned and are now managed under the Contractor segment. This change aligns the types of products offered and markets served within the segments. Segment operating results will be reported under the new organizational structure in the first quarter of 2022, in connection with the effective date of the realignment. Historic segment information restated to conform to the new organizational structure.

Segment information follows (in thousands):
202120202019
Net Sales
Industrial$840,256 $677,680 $747,396 
Process397,626 326,105 344,930 
Contractor749,726 646,330 553,719 
Total$1,987,608 $1,650,115 $1,646,045 
Operating Earnings
Industrial$296,542 $226,575 $247,216 
Process91,037 64,498 76,367 
Contractor169,518 164,549 128,282 
Unallocated corporate (expense)(25,774)(28,675)(27,409)
Impairment— (35,229)— 
Total$531,323 $391,718 $424,456 
Assets
Industrial$713,657 $632,165 
Process436,198 404,370 
Contractor487,916 438,067 
Unallocated corporate805,427 513,526 
Total$2,443,198 $1,988,128 

Management assesses performance of segments by reference to operating earnings excluding unallocated corporate expenses and asset impairments. Unallocated corporate (expense) includes such items as stock compensation, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses. Unallocated assets include cash, allowances and valuation reserves, deferred income taxes, certain capital and other assets.

Geographic information follows (in thousands):
202120202019
Net Sales (based on customer location)
United States$1,004,318 $883,451 $840,659 
Other countries983,290 766,664 805,386 
Total$1,987,608 $1,650,115 $1,646,045 
Long-lived Assets
United States$388,835 $301,643 
Other countries62,226 49,107 
Total$451,061 $350,750 
Sales to Major Customers. Worldwide sales to one customer in the Contractor and Industrial segments individually represented over 10 percent of the Company’s consolidated sales in 2021, 2020 and 2019.