Segment and Related Information

12 Months Ended

Dec. 31, 2019

Segment and Related Information [Abstract]

Segment and Related Information

Note 21.  Segment and Related Information

The Company determines its operating segments based on the discrete financial information that is regularly evaluated by its chief operating decision maker, our Chief Executive Officer, in deciding how to allocate resources and in assessing performance.  The Company's operating segments are strategic business units that offer different products and serve different markets.  They are managed separately and require different technology and marketing strategies.

The Company has four reportable segments: Performance Materials, Specialty Minerals, Refractories and Energy Services.

● The Performance Materials segment is a leading global supplier of bentonite and bentonite-related products, chromite and leonardite.  This segment also provides products for non-residential construction, environmental and infrastructure projects worldwide, serving customers engaged in a broad range of construction projects.

● The Specialty Minerals segment produces and sells the synthetic mineral product precipitated calcium carbonate ("PCC") and processed mineral product quicklime ("lime"), and mines mineral ores then processes and sells natural mineral products, primarily limestone and talc.

● The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment, and calcium metal and metallurgical wire products.

● The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in oil and gas industry.  This segment offers a range of services for off-shore filtration and well testing to the worldwide oil and gas industry.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on the operating income of the respective business units.  The costs deducted to arrive at operating profit do not include several items, such as net interest or income tax expense.  Depreciation expense related to corporate assets is allocated to the business segments and is included in their income from operations.  However, such corporate depreciable assets are not included in the segment assets.  Intersegment sales and transfers are not significant.

Segment information for the years ended December 31, 2019, 2018 and 2017 was as follows:

	Year Ended December 31,
(millions of dollars)	2019		2018		2017
Net Sales
Performance Materials	$	823.3	$	828.1	$	734.8
Specialty Minerals		574.4		589.3		584.8
Refractories		298.1		311.9		279.4
Energy Services		95.2		78.3		76.7
Total		1,791.0		1,807.6		1,675.7
Income from Operations
Performance Materials		97.1		116.8		119.7
Specialty Minerals		83.1		95.4		88.9
Refractories		39.8		45.4		39.8
Energy Services		7.8		4.5		6.1
Total		227.8		262.1		254.5
Depreciation, Depletion and Amortization
Performance Materials		43.6		41.1		40.5
Specialty Minerals		40.4		38.2		35.5
Refractories		7.0		6.6		6.8
Energy Services		7.4		8.4		8.2
Total		98.4		94.3		91.0
Segment Assets
Performance Materials		2,091.2		2,119.7		1,989.6
Specialty Minerals		525.1		511.9		519.4
Refractories		293.2		296.6		307.4
Energy Services		121.5		110.4		110.6
Total		3,031.0		3,038.6		2,927.0
Capital Expenditures
Performance Materials		16.8		22.4		33.1
Specialty Minerals		37.7		42.4		32.6
Refractories		5.7		5.0		5.9
Energy Services		4.7		4.9		4.5
Total		64.9		74.7		76.1

A reconciliation of the totals reported for the operating segments to the applicable line items in the consolidated financial statements is as follows:

	Year Ended December 31,
(millions of dollars)	2019			2018			2017
Income from Operations before Provision (Benefit) for Taxes on Income
Income from operations for reportable segments	$	227.8		$	262.1		$	254.5
Acquisition related transaction and integration costs		—			(1.7	)		(3.4	)
Unallocated corporate expenses		(19.1	)		(4.5	)		(6.7	)
Consolidated income from operations		208.7			255.9			244.4
Non-operating deductions, net		(51.4	)		(51.8	)		(53.5	)
Income from operations before provision (benefit) for taxes on income		157.3			204.1			190.9
Total Assets
Total segment assets		3,031.0			3,038.6			2,927.0
Corporate assets		81.6			48.5			43.4
Consolidated total assets		3,112.6			3,087.1			2,970.4
Capital Expenditures
Total segment capital expenditures		64.9			74.7			76.1
Corporate capital expenditures		0.1			1.2			0.6
Consolidated capital expenditures		65.0			75.9			76.7

Financial information relating to the Company's operations by geographic area was as follows:

	Year Ended December 31,
(millions of dollars)	2019		2018		2017
Net Sales
United States	$	962.4	$	961.6	$	939.3
Canada/Latin America		80.2		83.7		81.6
Europe/Africa		435.3		443.4		349.0
Asia		313.1		318.9		305.8
Total International		828.6		846.0		736.4
Consolidated net sales		1,791.0		1,807.6		1,675.7
Long-Lived Assets
United States	$	1,742.3	$	1,767.7	$	1,774.4
Canada/Latin America		13.0		13.7		14.8
Europe/Africa		190.7		225.0		115.9
Asia		117.2		123.0		132.0
Total International		320.9		361.7		262.7
Consolidated long-lived assets		2,063.2		2,129.4		2,037.1

Net sales and long-lived assets are attributed to countries and geographic areas based on the location of the legal entity.  No individual foreign country represents more than 10% of consolidated net sales or consolidated long-lived asset.

The Company's sales by product category are as follows:

	Year Ended December 31,
(millions of dollars)	2019		2018		2017
Metalcasting	$	291.2	$	328.9	$	294.3
Household, Personal Care & Specialty Products		376.6		348.5		294.6
Environmental Products		86.6		80.3		67.7
Building Materials		68.9		70.4		78.2
Paper PCC		364.9		378.5		377.7
Specialty PCC		69.1		66.9		66.0
Ground Calcium Carbonate		91.3		91.0		87.3
Talc		49.1		52.9		53.8
Refractory Products		244.8		261.1		226.9
Metallurgical Products		53.3		50.8		52.5
Energy Services		95.2		78.3		76.7
Total	$	1,791.0	$	1,807.6	$	1,675.7