Segment and Geographic Data

The Company operates through three lines of business, or operating segments: Chemicals, Plastics and Environmental Services, which market to different sets of customers operating in an array of industries, with various end markets and customer segments within those industries. For segment presentation and disclosure purposes, the Chemicals and Plastics lines of business constitute separate reportable segments, while the Environmental Services line of business, which does not meet the materiality threshold for separate disclosure, is included in an "Other" segment.

Each line of business represents unique products and suppliers, and each line of business focuses on specific end markets within its industry based on a variety of factors, including supplier or customer opportunities, expected growth and prevailing economic conditions. Across the Chemicals and Plastics lines of business there are numerous industry segments, end markets and sub markets that the Company may choose to focus on. These end markets may change from year to year depending on the underlying market economics, supplier focus, expected profitability and the Company’s strategic agenda.

The Chemicals, Plastics and Environmental Services lines of business compete with national, regional and local companies throughout North America. Additionally, the Chemicals and Plastics lines of business compete with other distribution companies in Asia. The Plastics line of business also competes with other distribution companies in EMEA. Competition within each line of business is based primarily on the diversity of the product portfolio, service offerings, reliability of services and supply, technical support, price and delivery capabilities. The accounting policies used to account for transactions in each of the lines of business are the same as those used to account for transactions at the corporate level.

The Chemicals and Plastics lines of business are distribution businesses, while the Environmental Services line of business provides hazardous and non-hazardous waste collection, recovery, recycling and disposal services.

A brief description of each segment follows:

Chemicals. The Chemicals line of business distributes specialty and industrial chemicals, additives and solvents to industrial users via railcars, barges, bulk tanker trucks and as packaged goods in trucks. The Company’s chemical products are distributed in more than 50 countries worldwide, primarily in North America and Asia. In connection with the distribution of chemicals products, the Company provides value-added services such as custom blending, packaging and re-packaging, private-label manufacturing and product testing in the form of chemical analysis, product performance analysis and product development. While the Chemicals line of business serves multiple end markets, key end markets within the industrial space are household, industrial and institutional, performance coatings (including architectural coatings, adhesives, sealants and elastomers), lubricants, oil and gas and personal care.

Plastics. The Plastics line of business distributes a broad product line consisting of commodity polymer products and prime engineering resins to plastics processors engaged in blow molding, extrusion, injection molding and rotation molding via railcars, bulk trucks, truckload boxes and mixed truckloads or less-than-truckload quantities. The Company's plastics products are distributed in more than 50 countries worldwide, primarily in North America, EMEA and Asia. While the Plastics line of business serves a broad cross section of industrial segments, key end markets are automotive and healthcare.

Other. The Environmental Services line of business, in connection with certain waste disposal service companies, provides customers with comprehensive on-site and off-site hazardous and non-hazardous waste collection, transportation, recovery, disposal arrangement, and recycling services in North America, primarily in the U.S. These environmental services are offered through the Company’s network of distribution facilities used as transfer facilities and through a staff of dedicated on-site waste professionals. The Environmental Services line of business serves multiple end markets such as aerospace and defense, automotive, chemical manufacturing, industrial manufacturing and oil and gas.

The Chief Executive Officer is the Chief Operating Decision Maker. The Chief Operating Decision Maker reviews operating results in order to make decisions, assess performance and allocate resources to each line of business. In order to maintain the focus on line of business performance, certain expenses are excluded from the line of business results utilized by the Company’s Chief Operating Decision Maker in evaluating line of business performance. These expenses include depreciation and amortization, selling, general and administrative expense and corporate items including transaction related costs, interest and income tax expense. These items are separately delineated to reconcile to reported net income. No single customer accounted for more than 10% of revenues for any line of business for each of the periods reported. Intersegment revenues were insignificant.

Certain assets are aggregated at the line of business level. The assets attributable to the Company’s lines of business, that are reviewed by the Chief Operating Decision Maker, consist of trade accounts receivable, inventories, goodwill and any specific assets that are otherwise directly associated with a line of business. The Company’s inventory of packaging materials and containers, as well as property, plant and equipment, are generally not allocated to a line of business and are included in unallocated assets.

Summarized financial information relating to the Company’s lines of business is as follows:



	Three Months Ended June 30,						Nine Months Ended June 30,
	2018			2017			2018			2017
Sales and operating revenues
Chemicals	$	494.9		$	443.9		$	1,414.6		$	1,211.3
Plastics	512.6			466.2			1,491.7			1,350.4
Other	38.9			32.6			110.7			93.5
Total sales and operating revenues	1,046.4			942.7			3,017.0			2,655.2
Gross profit
Chemicals	64.9			54.3			185.3			147.6
Plastics	49.6			43.1			138.5			124.9
Other	5.7			5.3			19.0			16.8
Total gross profit	120.2			102.7			342.8			289.3
Selling, general & administrative expenses	88.8			79.4			259.5			233.9
Transaction related costs	—			0.2			0.1			1.3
Change in fair value related to contingent consideration obligations	(8.7		)	(0.8		)	(14.7		)	19.8
Operating income	40.1			23.9			97.9			34.3
Other income, net	0.4			5.7			0.9			8.3
Interest income (expense)
Interest income	0.2			—			0.4			0.2
Interest expense	(13.5		)	(13.5		)	(39.2		)	(38.0		)
Net income before income taxes	$	27.2		$	16.1		$	60.0		$	4.8



	June 30, 2018		September 30, 2017
IDENTIFIABLE ASSETS
Chemicals	$	845.1	$	793.6
Plastics	782.8		762.7
Other	95.5		91.0
Total identifiable assets by reportable segment	1,723.4		1,647.3
Unallocated assets	555.3		606.2
Total assets	$	2,278.7	$	2,253.5

Revenues by geographic location, based on the jurisdiction of the subsidiary entity receiving revenue credit for the sale, are presented below:



	Three Months Ended June 30,				Nine Months Ended June 30,
	2018		2017		2018		2017
U.S.	$	772.9	$	699.1	$	2,195.9	$	1,970.7
Canada	48.7		43.3		142.5		126.9
Other North America	33.3		29.7		99.9		54.9
Total North America Operations	854.9		772.1		$	2,438.3	$	2,152.5
EMEA	139.0		120.9		415.9		342.2
Asia	52.5		49.7		162.8		160.5
Total	$	1,046.4	$	942.7	$	3,017.0	$	2,655.2