Segment Reporting and Geographical Area Data

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Reporting

Note 3.     Segment Reporting and Geographical Area Data 

The Fuel Specialties, Performance Chemicals and Oilfield Services segments operate in markets where we actively seek growth opportunities although their ultimate customers are different. The Octane Additives segment ceased trading and is no longer a reporting segment from July 1, 2020, as reported in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2020.

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 Performance Chemicals segment provides effective technology-based solutions for our customers’ processes or products focused in the personal care, home care, agrochemical and metal extraction markets.

Our Oilfield Services segment develops and markets chemical solutions for fracturing, stimulation and stimulation operations, products for oil and gas production which aid flow assurance and maintain asset integrity and products to prevent loss of mud in drilling operations.

The Octane Additives business has ceased trading and is no longer a reporting segment from July 1, 2020 as the production of TEL for use in motor gasoline has finished. Legacy costs related to these operations are now being recorded as operating expenses within corporate costs.

There are no significant customers with sales greater than 10% of our net group sales in the last three financial years.

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)	2021		2020		2019
Net Sales:
Refinery and Performance	$	445.3	$	372.9	$	427.9
Other		173.0		139.8		155.8
Fuel Specialties		618.3		512.7		583.7
Personal Care		296.1		231.4		228.0
Home Care		93.0		87.0		93.4
Other		136.2		107.0		107.3
Performance Chemicals		525.3		425.4		428.7
Oilfield Services		339.8		255.0		479.9
Octane Additives		—		—		21.0
	$	1,483.4	$	1,193.1	$	1,513.3

(in millions)	2021			2020			2019
Gross profit/(loss):
Fuel Specialties	$	193.2		$	160.3		$	204.5
Performance Chemicals		125.2			103.8			100.1
Oilfield Services		116.5			80.8			159.9
Octane Additives		—			(2.2	)		1.7
	$	434.9		$	342.7		$	466.2
Operating income/(expense):
Fuel Specialties	$	104.6		$	84.5		$	116.6
Performance Chemicals		70.9			54.8			48.7
Oilfield Services		10.4			(9.5	)		39.7
Octane Additives		—			(2.8	)		(0.7	)
Corporate costs		(55.6	)		(52.2	)		(54.4	)
Restructuring charge		—			(21.3	)		—
Impairment of intangible assets		—			(19.8	)		—
Profit on disposal		1.8			—			—
Total operating income	$	132.1		$	33.7		$	149.9

(in millions)	2021		2020		2019
Identifiable assets at year end:
Fuel Specialties	$	571.3	$	509.7	$	499.7
Performance Chemicals		469.5		391.5		383.3
Oilfield Services		230.8		210.8		316.8
Octane Additives		—		—		24.2
Corporate		299.3		285.4		244.8
	$	1,570.9	$	1,397.4	$	1,468.8

Identifiable assets relating to our tetra ethyl lead (“TEL”) operations are included within our Fuel Specialties segment in 2021 and 2020 and in our Octane Additives segment in 2019, as shown in the table above. Octane Additives ceased trading on June 30, 2020 and is no longer a reporting segment after that date. As a result, it is now appropriate to report the identifiable assets relating to the remaining TEL production within Fuel Specialties from July 1, 2020. Our TEL operations historically produced TEL for automotive gasoline, which is reported in our Octane Additives segment for the years presented above, and for our AvGas product line, which is reported in our Fuel Specialties segment.

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 President/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)	2021			2020			2019
Net sales by source:
United States & North America	$	821.6		$	642.4		$	897.2
United Kingdom		811.9			689.1			810.9
Rest of Europe		115.6			83.4			115.7
Rest of World		66.4			45.6			47.8
Sales between areas		(332.1	)		(267.4	)		(358.3	)
	$	1,483.4		$	1,193.1		$	1,513.3

(in millions)	2021		2020		2019
Income before income taxes:
United States & North America	$	54.6	$	—	$	53.9
United Kingdom		46.1		16.9		67.0
Rest of Europe		26.4		19.7		27.2
Rest of World		7.3		3.1		2.3
	$	134.4	$	39.7	$	150.4
Long-lived assets at year end:
United States & North America	$	137.3	$	141.0	$	156.0
United Kingdom		55.4		61.3		70.4
Rest of Europe		112.0		123.2		116.6
Rest of World		0.2		0.2		0.3
	$	304.9	$	325.7	$	343.3
Identifiable assets at year end:
United States & North America	$	464.9	$	368.8	$	419.5
United Kingdom		533.7		455.8		487.2
Rest of Europe		164.7		171.0		163.2
Rest of World		43.3		30.6		35.9
Goodwill		364.3		371.2		363.0
	$	1,570.9	$	1,397.4	$	1,468.8

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.