XML 30 R11.htm IDEA: XBRL DOCUMENT v3.25.0.1
Segment Information
 12 Months Ended
Dec. 27, 2024
Segment Reporting, Measurement Disclosures [Abstract]  
Segment Information Segment Information
The Company has five operating segments which are aggregated into three reportable segments: Contractor, Industrial and Process.

The Contractor segment markets sprayers and equipment that apply paint to walls and other structures, texture to walls and ceilings, insulation to building walls and other items, highly viscous coatings to roofs, and markings on roads, parking lots, athletic fields and floors.

The Industrial segment includes our Industrial and Powder divisions. The Industrial segment markets equipment and solutions for moving and applying paints, powder coatings, sealants, adhesives and other fluids. Markets served include automotive and vehicle assembly and components production, including Electro or e-mobility, wood and metal products, rail, marine, aerospace, farm, construction, bus, recreational vehicles and various other industries.

The Process segment includes our Process 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 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. 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.

The Company’s chief operating decision maker is the chief executive officer.

The Company’s chief operating decision maker uses operating earnings excluding unallocated corporate expense to assess the operating performance of each segment. Operating earnings is used to make resource allocation decisions amongst segments and to determine compensation for certain employees. Gross profit is additionally used to evaluate product pricing and operating performance.

Unallocated corporate expenses include such items as stock compensation, certain acquisition transaction costs, bad debt expense, charitable contributions and certain facility expenses. Asset information by segment is not reported to the chief operating decision maker and therefore is not disclosed.
Segment information follows (in thousands):
202420232022
Contractor
Net Sales$988,865 $985,675 $999,060 
Cost of products sold484,926 493,857 555,622 
Gross Profit503,939 491,818 443,438 
Operating Expenses233,795 206,424 193,605 
Contractor Operating Earnings$270,144 $285,394 $249,833 
Industrial
Net Sales$619,653 $662,785 $649,347 
Cost of products sold260,856 279,160 274,660 
Gross Profit358,797 383,625 374,687 
Operating Expenses157,309 149,571 143,389 
Industrial Operating Earnings$201,488 $234,054 $231,298 
Process
Net Sales$504,798 $547,146 $495,114 
Cost of products sold238,195 255,375 250,832 
Gross Profit266,603 291,771 244,282 
Operating Expenses124,871 126,498 121,938 
Process Operating Earnings$141,732 $165,273 $122,344 
Reportable Segment Operating Earnings Total$613,364 $684,721 $603,475 
Unallocated corporate expense43,266 38,678 30,775 
Contingent consideration— (8,600)— 
Impairment— 7,800 — 
Operating Earnings570,098 646,843 572,700 
Interest expense2,828 5,191 9,897 
Other (income) expense, net(22,013)32,850 (2,921)
Earnings Before Income Taxes$589,283 $608,802 $565,724 

Geographic information follows (in thousands):
202420232022
Net Sales (based on customer location)
United States$1,149,044 $1,161,607 $1,116,012 
Other countries964,272 1,033,999 1,027,509 
Total$2,113,316 $2,195,606 $2,143,521 
Long-lived Assets
United States$635,698 $622,430 
Other countries135,958 119,283 
Total$771,656 $741,713 
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 2024, 2023 and 2022.