Segment Reporting
We are organized into four operating segments: North America; Latin America; Europe, Middle East, Africa; and Asia Pacific. We combine our North America and Latin America operating segments into the "Americas" for reporting net sales by geographic area. In accordance with the objective and basic principles of the applicable accounting guidance, we aggregate our operating segments into one reportable segment that consists of the design, manufacture and sale of products used primarily in the maintenance of nonresidential surfaces.
The Company's chief operating decision maker ("CODM") is our chief executive officer.
The CODM uses net income, that is also reported on the income statement as consolidated net income, to evaluate return on assets and decide whether to reinvest profits into segments or other areas, such as acquisitions or dividends. It is also used to monitor budget versus actual results, conduct competitive analysis by benchmarking against the Company's competitors, and assess segment performance. Additionally, the CODM uses net income to allocate resources, evaluate performance, and make key operating decisions, considering budget-to-actual variances on a quarterly basis. The CODM also uses gross profit to evaluate pricing, allocate resources, and assess segment performance by comparing actual results to historical and forecasted data.
Significant expenses within net income include cost of sales, research and development, and selling and administrative expenses, which are each separately presented on the Company’s Consolidated Statements of Income. Other segment items within net income include net foreign currency transaction gain (loss), interest expense, net, other (expense) income, net, and income tax expense.
The measure of segment assets is reported on the balance sheet as total consolidated assets. The following table presents net sales by geographic area for the three years ended December 31:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Net Sales: | | | | | |
| United States | $ | 670.9 | | | $ | 766.9 | | | $ | 726.8 | |
| Other Americas | 121.1 | | | 121.6 | | | 113.5 | |
| Americas | 792.0 | | | 888.5 | | | 840.3 | |
| Europe, Middle East, Africa | 334.6 | | | 318.5 | | | 314.4 | |
| Asia Pacific | 76.9 | | | 79.7 | | | 88.9 | |
| Total | $ | 1,203.5 | | | $ | 1,286.7 | | | $ | 1,243.6 | |
Accounting policies of the operations in various operating segments are the same as those described in Note 2. Net sales are attributed to each operating segment based on the end user country and are net of intercompany sales. Apart from the United States shown in the table above, there were no individual foreign locations which had net sales which represented more than 10% of our consolidated net sales. No single customer represents more than 10% of our consolidated net sales.
The following table presents long-lived assets by geographic area as of December 31:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Long-lived assets: | | | | | |
| United States | $ | 172.9 | | | $ | 166.6 | | | $ | 104.2 | |
| Other Americas | 40.3 | | | 29.0 | | | 31.9 | |
| Americas | 213.2 | | | 195.6 | | | 136.1 | |
| Italy | 238.9 | | | 193.7 | | | 218.0 | |
| Other Europe, Middle East, Africa | 82.8 | | | 93.6 | | | 75.6 | |
| Europe, Middle East, Africa | 321.7 | | | 287.3 | | | 293.6 | |
| Asia Pacific | 31.3 | | | 29.6 | | | 30.4 | |
| Total | $ | 566.2 | | | $ | 512.5 | | | $ | 460.1 | |
Long-lived assets consist of property, plant and equipment, goodwill, intangible assets and certain other assets. Apart from the United States and Italy shown in the table above, there are no other individual foreign locations which have long-lived assets which represent more than 10% of our consolidated long-lived assets.