Sales totaled $470 million this quarter, an increase of 14% from the fourth quarter last year and an increase of 12% at consistent translation rates.
Net earnings totaled $115 million for the quarter or $0.66 per diluted share.
After adjusting for the impact of excess tax benefits from stock option exercises, net earnings totaled $106 million or $0.61 per diluted share.
Gross margin rates increased 130 basis points from last year's fourth quarter.
Operating expenses increased $7 million in the fourth quarter as compared to a year ago due to increases in sales and earnings based expenses and higher product development costs.
The reported income tax rate was 11% for the quarter, down 5 percentage points from last year, primarily due to an increase in tax benefits related to stock option exercises.
After adjusting for the effect of stock option exercises, our tax rate for the quarter was 18%, slightly lower than the fourth quarter last year due to additional foreign income taxed at lower rates.
Cash flow from operations totaled $131 million in the fourth quarter and $394 million for the full year.
Discretionary cash outflows in the quarter included the final repayment of $125 million of the $250 million borrowed on the revolving credit facility in the first quarter.
We also made a voluntary contribution of $20 million to our U.S. pension plan.
For the full year 2020, dividends paid totaled $117 million and capital expenditures were $71 million.
Based on current exchange rates and the same volume and mix of products and sales by currency, the effect of exchange is currently expected to benefit sales by 2% and earnings by 6% for the full year, with the most significant impact coming in the first half.
Unallocated corporate expenses are projected to be $30 million and can vary by quarter.
The effective tax rate for the year is expected to be 18% to 19%.
Capital expenditures are expected to be $115 million, including $80 million for facility expansion projects.
The second quarter in a row, the Contractor segment exceeded 30% growth and ended the year with record sales and earnings.
The Industrial segment grew mid-single digits for the quarter, but still ended the year down 10%.
Process segment sales declined 10% for both the quarter and the year.

Summary:
After adjusting for the impact of excess tax benefits from stock option exercises, net earnings totaled $106 million or $0.61 per diluted share.