Reporting For Segments

12 Months Ended

Dec. 31, 2020

Reporting For Segments [Abstract]

Reporting For Segments

21. Reporting for Segments

As discussed in Note 4, during the fourth quarter of 2019, we entered into a definitive agreement to sell our Tile Coatings business which has historically been the majority of our Performance Coatings reportable segment. Substantially all of the assets and liabilities of our Tile Coatings business were classified as held-for-sale in the accompanying consolidated balance sheets and results are included within discontinued operations in the consolidated statement of operations for all years presented. The retained assets, liabilities and operations of the Performance Coatings reportable segment are reflected within our Functional Coatings reportable segment. The Company’s reportable segments are Functional Coatings and Color Solutions.

Net sales to external customers by segment are presented in the table below. Sales between segments were not material.

(Dollars in thousands)	2020		2019		2018
Functional Coatings	$	608,192	$	644,783	$	683,669
Color Solutions		350,762		369,674		391,027
Total net sales	$	958,954	$	1,014,457	$	1,074,696

Segment gross profit is the metric utilized by management to evaluate segment performance. We measure segment gross profit for internal reporting purposes by excluding certain other cost of sales not directly attributable to business units. Assets by segment are not regularly reviewed by the chief operating decision maker. Each segment’s gross profit and reconciliations to Income before income taxes are presented in the table below:

(Dollars in thousands)	2020		2019		2018
Functional Coatings	$	175,601	$	192,668	$	211,018
Color Solutions		119,071		114,939		124,852
Other cost of sales		(916)		369		2,519
Total gross profit		293,756		307,976		338,389
Selling, general and administrative expenses		202,413		212,365		219,708
Restructuring and impairment charges		17,425		10,955		7,116
Other expense, net		29,017		41,865		41,622
Income before income taxes	$	44,901	$	42,791	$	69,943

Each segment’s capital expenditures for long-lived assets are detailed below:

(Dollars in thousands)	2020		2019		2018
Functional Coatings	$	12,266	$	46,304	$	49,964
Color Solutions		17,626		16,597		24,940
Total segment expenditures for long-lived assets		29,892		62,901		74,904
Unallocated corporate expenditures for long-lived assets		1,891		2,069		5,715
Total expenditures for long lived assets (1)	$	31,783	$	64,970	$	80,619

(1)Includes capital expenditures for discontinued operation of $4.7 million, $10.0 million and $5.8 million in 2020, 2019 and 2018, respectively, integrated within Functional Coatings.

We sell our products throughout the world and we attribute sales to countries based on the country where we generate the customer invoice. No single country other than the U.S. and Germany represent greater than 10% of our net sales. Net sales by geography are as follows:

(Dollars in thousands)	2020		2019		2018
United States	$	341,461	$	359,267	$	379,912
Germany		143,861		149,270		148,706
Other international		473,632		505,920		546,078
Total net sales	$	958,954	$	1,014,457	$	1,074,696

None of our operations in countries other than the U.S., Mexico, Germany and Columbia owns greater than 10% of consolidated long-lived assets. Long-lived assets that consist of property, plant, and equipment by geography at December 31, 2020 and 2019 are as follows:

(Dollars in thousands)	2020		2019
United States	$	69,088	$	71,617
Mexico		58,503		51,224
Germany		39,733		34,996
Columbia		30,888		32,475
Other international		117,118		112,360
Total long-lived assets	$	315,330	$	302,672