Segment Reporting and Geographical Area Data

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 3. Segment Reporting and Geographical Area Data

The Performance Chemicals, Fuel Specialties and Oilfield Services segments operate in markets where we actively seek growth opportunities although their ultimate customers are different.

Our Performance Chemicals segment provides effective technology-based solutions for our customers’ processes or products focused in the personal care, home care, agrochemical, construction, mining and other industrial markets.

Our Fuel Specialties segment develops, manufactures, blends, markets and supplies a range of specialty chemicals products used as additives to a wide range of fuels.

Our Oilfield Services segment develops and markets chemical solutions for fracturing, drilling, stimulation and completion operations, products for oil and gas production and transport which aid flow assurance and maintain asset integrity.

In 2023, the Company had a significant customer in the Oilfield Services segment which accounted for $265.2 million (13.6%) of our net group sales (2022 - $222.2 million and 11.3%).

The Company evaluates the performance of its segments based on operating income. The following table analyzes sales and other financial information by the Company’s reportable segments:

(in millions)	2023			2022			2021
Net Sales:
Personal Care	$	352.7		$	393.3		$	296.1
Home Care		86.8			94.2			93.0
Other		122.1			152.2			136.2
Performance Chemicals		561.6			639.7			525.3
Refinery and Performance		540.6			552.6			445.3
Other		155.3			177.6			173.0
Fuel Specialties		695.9			730.2			618.3
Oilfield Services		691.3			593.8			339.8
	$	1,948.8		$	1,963.7		$	1,483.4
Operating income/(expense):
Performance Chemicals	$	54.5		$	95.3		$	70.9
Fuel Specialties		109.7			121.7			104.6
Oilfield Services		78.6			41.7			10.4
Corporate costs		(81.2	)		(71.4	)		(55.6	)
Profit on disposal		—			—			1.8
Total operating income	$	161.6		$	187.3		$	132.1
Identifiable assets at year-end:
Performance Chemicals	$	580.1		$	610.4		$	469.5
Fuel Specialties		529.2			500.6			571.3
Oilfield Services		310.8			297.8			230.8
Corporate		287.3			194.9			299.3
	$	1,707.4		$	1,603.7		$	1,570.9

The Company includes within the corporate costs line item the costs of:

•managing the group as a company with securities listed on the NASDAQ and registered with the SEC;

•the CEO’s office, group finance, group human resources, group legal and compliance counsel, and investor relations;

•running the corporate offices in the U.S. and Europe;

•the corporate development function since they do not relate to the current trading activities of our other reporting segments; and

•the corporate share of the information technology, product technology, safety, health, environment, accounting and human resources departments.

The following tables analyze sales and other financial information by location:

(in millions)	2023			2022			2021
Net sales by source:
United States & North America	$	1,272.8		$	1,244.9		$	821.6
Europe		958.9			1,049.4			927.5
Rest of World		51.0			67.7			66.4
Sales between areas		(333.9	)		(398.3	)		(332.1	)
	$	1,948.8		$	1,963.7		$	1,483.4
Income before income taxes:
United States & North America	$	107.8		$	109.1		$	54.6
Europe		81.7			68.4			72.5
Rest of World		(15.1	)		7.1			7.3
	$	174.4		$	184.6		$	134.4
Long-lived assets at year-end:
United States & North America	$	156.4		$	147.0		$	137.3
Europe		193.9			163.0			167.4
Rest of World		17.3			0.2			0.2
	$	367.6		$	310.2		$	304.9
Identifiable assets at year-end:
United States & North America	$	630.2		$	570.9		$	464.9
Europe		605.9			626.3			698.4
Rest of World		72.0			47.7			43.3
Goodwill		399.3			358.8			364.3
	$	1,707.4		$	1,603.7		$	1,570.9

Sales by geographical area are reported by source, being where the transactions originated. Intercompany sales are priced using an appropriate pricing methodology and are eliminated in the consolidated financial statements.

Identifiable assets are those directly associated with the operations of the geographical area.

Goodwill has not been allocated by geographical location on the grounds that it would be impracticable to do so.