Segment information

Ingevity’s operating segments are (i) Performance Materials and (ii) Performance Chemicals, a description of both operating segments is included below.

Performance Materials

The Performance Materials segment manufactures and sells activated carbon products in the form of powder, granular, extruded pellets or structured honeycombs and activated carbon sheets which target gasoline vapor emission control within the automotive industry as well as the food, water, beverage and chemical purification industries. In addition, extruded pellets and structured honeycomb products are used for air emissions control, corrosion protection and odor reduction.

Performance Chemicals

The Performance Chemicals segment manufactures and sells products that are derived from CTO and lignin that are extracted from the kraft papermaking process. These materials are processed to make specialty chemicals that are used in the papermaking, adhesives, publication inks, rubber, asphalt, oilfield, bio-fuels, agriculture, dyestuffs and other industrial applications. The CTO-based products are produced by fractionating the CTO through a bio-refinery into intermediate products. The intermediates are either sold off or further processed into different specialty formulations to create increased value.



	Years Ended December 31,
In millions	2017			2016			2015
Net sales
Performance Materials	$	349.3		$	301.0		$	256.4
Performance Chemicals	623.1			607.3			701.9
Total net sales ⁽¹⁾	972.4			908.3			958.3

Segment operating profit ⁽²⁾
Performance Materials	122.0			106.9			79.7
Performance Chemicals	80.3			56.7			86.6
Total segment operating profit ⁽¹⁾	202.3			163.6			166.3

Separation costs ⁽³⁾	(0.9		)	(17.5		)	(17.2		)
Restructuring and other income (charges) ⁽⁴⁾	(3.7		)	(41.2		)	7.5
Acquisition costs	(7.1		)	—			—
Interest expense	(18.1		)	(19.3		)	(20.1		)
Interest income	2.3			1.4			—
(Provision) benefit for income taxes	(29.6		)	(42.6		)	(52.2		)
Net (income) loss attributable to noncontrolling interests	(18.7		)	(9.2		)	(4.6		)
Net income (loss) attributable to Ingevity stockholders	$	126.5		$	35.2		$	79.7

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(1)	Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation.

(2)

Segment operating profit is defined as segment revenue less segment operating expenses (segment operating expenses consist of costs of sales, selling, general and administrative expenses and other (income) expense, net). We have excluded the following items from segment operating profit: interest expense, net associated with corporate debt facilities, income taxes, gains (or losses) on divestitures of businesses, restructuring and other (income) charges, separation costs, acquisition costs and net income (loss) attributable to noncontrolling interest.


(3)	See Note 14 for more information on separation costs.


(4)	Information about how restructuring and other charges (income) relate to our businesses at the segment level is discussed in Note 15.

Net sales to external customers for each of our product line groups is presented below.



	Years Ended December 31,
In millions	2017		2016		2015
Performance Materials Net sales
Automotive Technologies product line	$	312.5	$	263.5	$	222.5
Process Purification product line	36.8		37.5		33.9
Total Performance Materials Net sales ⁽¹⁾	$	349.3	$	301.0	$	256.4



	Years Ended December 31,
In millions	2017		2016		2015
Performance Chemicals Net sales
Pavement Technologies product line	$	163.0	$	148.8	$	147.5
Oilfield Technologies product line	77.8		58.5		78.0
Industrial Specialties product line	382.3		400.0		476.4
Total Performance Chemicals Net sales ⁽¹⁾	$	623.1	$	607.3	$	701.9

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(1)	Relates to external customers only, all intersegment sales and related profit have been eliminated in consolidation.



	Depreciation and amortization						Capital expenditures
	Years Ended December 31,						Years Ended December 31,
In millions	2017		2016		2015		2017		2016		2015
Performance Materials	$	19.8	$	16.4	$	11.1	$	36.9	$	39.6	$	65.3
Performance Chemicals	20.6		22.4		23.5		15.7		17.1		35.6
Total	$	40.4	$	38.8	$	34.6	$	52.6	$	56.7	$	100.9



Net sales⁽¹⁾	Years Ended December 31,
In millions	2017		2016		2015
North America	$	662.9	$	597.8	$	623.0
Asia Pacific	142.5		138.8		149.3
Europe, Middle East and Africa	149.2		151.1		155.9
South America	17.8		20.6		30.1
Net sales	$	972.4	$	908.3	$	958.3



Property, plant and equipment, net	December 31,
In millions	2017		2016		2015
North America	$	358.4	$	349.1	$	338.7
Asia Pacific	79.3		72.7		76.9
Europe, Middle East and Africa	0.7		0.7		0.8
South America	0.1		0.3		21.1
Property, plant and equipment, net	$	438.5	$	422.8	$	437.5



Total assets	December 31,
In millions	2017		2016 ⁽²⁾		2015
Performance Materials	$	438.9	$	377.2	$	355.2
Performance Chemicals	479.8		450.9		420.5
Total segment assets⁽³⁾	918.7		828.1		775.7
Corporate and other	10.9		4.7		3.0
Total assets	$	929.6	$	832.8	$	778.7

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(1)	Sales are assigned to geographic areas based on location to which product was shipped to a third party.


(2)	Certain prior year amounts have been revised to conform with current year's presentation.


(3)	Segment assets exclude assets not specifically managed as part of one specific segment herein referred to as "Corporate and other."