Segment Information

12 Months Ended

Dec. 31, 2019

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, 2019, 2018 and 2017, respectively:



(in thousands)	North America		Europe		Asia/ Pacific			Administrative & All Other			Total
2019	North America		Europe		Asia/ Pacific			Administrative & All Other			Total
Net sales	$	972,849	$	155,144	$	8,546		$	—		$	1,136,539
Sales to other segments *	1,977		2,068		26,764			—			30,809
Income from operations	176,329		6,817		(731		)	(1,161		)	181,254
Depreciation and amortization	30,652		5,457		1,698			595			38,402
Significant non-cash charges	5,273		1,141		211			4,157			10,782
Provision for income taxes	40,452		1,934		577			1,412			44,375
Capital expenditures, including purchases of intangible assets, and business acquisitions, net of cash acquired	31,695		8,245		236			—			40,176
Total assets	1,269,545		169,785		30,055			(374,019		)	1,095,366



(in thousands)	North America		Europe			Asia/ Pacific			Administrative & All Other			Total
2018	North America		Europe			Asia/ Pacific			Administrative & All Other			Total
Net sales	$	910,587	$	159,027		$	9,195		$	—		$	1,078,809
Sales to other segments *	2,279		1,773			28,292			—			32,344
Income (loss) from operations	168,139		(2,656		)	(2,029		)	9,171			172,625
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	North America		Europe		Asia/ Pacific		Administrative & All Other			Total
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		1,259			138,273
Depreciation and amortization	25,745		5,832		1,246		901			33,724
Gain on bargain purchase of a business	—		6,336		—		—			6,686
Significant non-cash charges	9,861		1,509		65		2,473			13,908
Provision for (benefit from) 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

* 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 in the total assets of "Administrative & All Other." Cash and cash equivalent balances in "Administrative & All Other" were $161.4 million, $114.8 million and $82.0 million as of December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019, the Company had $68.8 million, or 29.9%, 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), net and other, foreign exchange gain (loss), net 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, 2019, 2018 and 2017, respectively:



	2019				2018				2017
(in thousands)	Net Sales		Long-Lived Assets		Net Sales		Long-Lived Assets		Net Sales		Long-Lived Assets
United States	$	921,703	$	210,349	$	860,482	$	210,063	$	758,181	$	223,184
Canada	47,948		1,181		46,874		4,257		43,176		4,650
United Kingdom	26,376		1,683		27,194		1,417		23,157		1,459
Germany	22,357		10,529		22,950		13,221		21,821		14,153
France	39,969		7,010		40,182		7,891		36,677		9,152
Poland	11,826		2,770		10,200		2,794		20,409		2,471
Sweden	13,792		1,762		15,461		1,154		16,421		1,068
Denmark	10,761		2,235		11,682		1,454		14,723		1,601
Norway	11,238		—		12,324		—		12,902		229
Switzerland	5,600		7,781		6,939		8,067		5,593		8,748
Australia	4,939		110		6,119		199		5,501		268
Belgium	5,605		1,913		5,547		1,961		5,050		2,065
The Netherlands	4,019		93		5,068		81		4,834		110
New Zealand	3,606		166		3,061		111		2,604		130
Chile	3,198		28		3,233		41		2,314		61
Other countries	3,602		10,647		1,493		11,635		3,662		12,710
	$	1,136,539	$	258,257	$	1,078,809	$	264,346	$	977,025	$	282,059

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, 2019, 2018 and 2017, respectively:



(in thousands)	2019		2018		2017
Wood Construction	$	948,768	$	913,202	$	833,200
Concrete Construction	187,462		165,317		143,102
Other	309		290		723
Total	$	1,136,539	$	1,078,809	$	977,025

One customer, The Home Depot, accounted for as much as 11% of net sales for the year ended December 31, 2019 and no customers accounted for as much as 10% of net sales for the years ended 2018 and 2017.