Business Segment Information

The Company's two reporting segments are Specialty Solutions and Performance Materials. These two reporting segments were determined based on products and services provided as defined under FASB Accounting Standards Codification ("ASC") 280, Segment Reporting. Accounting policies of the segments are the same as the Company’s accounting policies. The Company’s reporting segments are strategic business units that offer different products and services. They are managed separately based on certain differences in their operations, technology, and marketing strategies.

Segment operating profit represents net sales less applicable costs, expenses and provisions for restructuring and severance costs, asset write-offs and acquisition and integration related expenses relating to operations. However, Management excludes restructuring and severance costs, asset write-offs and acquisition and integration related costs when evaluating the results and allocating resources to the segments.

Segment operating profit excludes certain unallocated corporate headquarters expenses. Corporate headquarters expense includes the cost of providing and maintaining the corporate headquarters functions, including salaries, rent, travel and entertainment expenses, depreciation, utility costs, outside services and amortization of deferred financing costs.

In 2018, segment operating profit for Specialty Solutions includes restructuring and severance charges of $0.7 million and asset impairment and facility closure costs $1.1 million, and acquisition integration related expense of $1.8 million, and accelerated depreciation expense of $0.1 million, while the Performance Materials operating profit includes restructuring and severance charges of $1.1 million, asset impairment and facility closure costs of $14.3 million, accelerated depreciation of $1.1 million and environmental costs of $0.2 million.

In 2017, segment operating profit for Specialty Solutions includes restructuring and severance charges of $0.6 million, and asset impairment and facility closure costs of $0.3 million, while the Performance Materials operating profit includes restructuring and severance charges of $1.7 million, asset impairment and facility closure costs of $33.6 million, and a reduction in environmental costs of $2.0 million.

In 2016, segment operating profit for Specialty Solutions includes restructuring and severance charges of $0.2 million, and asset impairment and facility closure costs and other of $0.2 million, while the Performance Materials operating profit includes restructuring and severance charges of $3.3 million, asset impairment and facility closure costs of $4.2 million, acquisition and integration expenses of $1.1 million, environmental costs of $0.3 million, operational improvement gains of $0.4 million, and accelerated depreciation charges of $3.0 million.

The following table summarizes operations by segment and a reconciliation of segment sales to consolidated sales and segment operating profit to income (loss) before income taxes:



	2018			2017			2016
	(Dollars in millions)
Net Sales
Specialty Solutions	$	487.6		$	441.4		$	404.3
Performance Materials	282.2			341.7			355.6
Total Net Sales	$	769.8		$	783.1		$	759.9
Segment Operating Profit
Specialty Solutions	$	70.7		$	59.9		$	59.8
Performance Materials	(9.8		)	(12.6		)	8.5
Total segment operating profit	60.9			47.3			68.3
Interest expense	(19.3		)	(21.5		)	(24.7		)
Corporate expenses	(24.0		)	(24.5		)	(25.8		)
Corporate severance	(0.9		)	(2.9		)	(4.9		)
Operational improvement costs	—			—			0.8
Asset impairments	(0.1		)	(1.8		)	—
Acquisition and integration related expense	(2.2		)	(0.3		)	(0.9		)
Gain on sale of assets	0.9			—			—
Debt issuance costs write-off	(0.8		)	—			(2.9		)
Pension settlement	—			(0.4		)	—
Income (Loss) Before Income Taxes	$	14.5		$	(4.1	)	$	9.9



	2018		2017		2016
	(Dollars in millions)
Capital Expenditures:
Specialty Solutions	$	16.9	$	13.4	$	11.9
Performance Materials	6.0		10.9		11.9
Corporate	0.9		0.8		1.8
	$	23.8	$	25.1	$	25.6
Depreciation and Amortization:
Specialty Solutions	$	17.6	$	14.5	$	13.3
Performance Materials	12.4		11.4		16.2
Corporate	0.2		2.0		1.1
	$	30.2	$	27.9	$	30.6

The Company does not disclose assets by business segment as the Chief Operating Decision Maker ("CODM"), its Chief Executive Officer ("CEO"), does not use this information to make decisions, assess performance or allocate resources by business segment.

GEOGRAPHIC INFORMATION



	2018		2017			2016
	(Dollars in millions)
Net Sales:
United States	$	449.6	$	481.7		$	454.0
Europe	164.0		141.4			129.9
Asia	156.2		160.0			176.0
	$	769.8	$	783.1		$	759.9
Segment Operating Profit:
United States	$	37.1	$	38.4		$	56.7
Europe	18.6		17.4			10.9
Asia	5.2		(8.5		)	0.7
	$	60.9	$	47.3		$	68.3
Total Assets:
United States	$	246.4	$	313.5		$	362.4
Europe	261.1		205.9			197.9
Asia	81.7		93.4			127.0
	$	589.2	$	612.8		$	687.3
Long-Lived Assets:
United States	$	115.7	$	124.7		$	125.3
Europe	61.1		49.8			45.3
Asia	29.0		34.4			32.1
	$	205.8	$	208.9		$	202.7