Segment and Related Information

12 Months Ended

Dec. 31, 2021

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.  Accordingly, in the first quarter of 2021, the Company reorganized the management structure for its Energy Services and Performance Materials operating segments to support MTI's key growth initiatives, more closely align complementary technologies, processes and capabilities, and better reflect the way performance is evaluated and resources are allocated. As a result, Energy Services was combined into the Environmental Products product line within the Performance Materials operating segment. Presented below are the restated financial results for fiscal years ended 2020 and 2019 to conform to the current management structure.

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 three reportable segments: Performance Materials, Specialty Minerals and Refractories.

● The Performance Materials segment is a leading global supplier of bentonite and bentonite-related products 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 and remediation projects, as well as offers a range of patented and unpatented technologies, products and services to the upstream and downstream oil and gas sector throughout the world.

● 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 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, 2021, 2020 and 2019 was as follows:

	Year Ended December 31,
(millions of dollars)	2021		2020		2019
Net Sales
Performance Materials	$	976.0	$	825.8	$	918.5
Specialty Minerals		578.9		510.9		574.4
Refractories		303.4		258.1		298.1
Total		1,858.3		1,594.8		1,791.0
Income from Operations
Performance Materials		125.0		108.8		104.9
Specialty Minerals		72.9		67.8		83.1
Refractories		49.3		35.5		39.8
Total		247.2		212.1		227.8
Depreciation, Depletion and Amortization
Performance Materials		49.2		47.4		51.0
Specialty Minerals		38.4		39.6		40.4
Refractories		7.0		6.9		7.0
Total		94.6		93.9		98.4
Segment Assets
Performance Materials		2,393.2		2,219.1		2,212.7
Specialty Minerals		605.9		559.6		525.1
Refractories		293.1		290.8		293.2
Total		3,292.2		3,069.5		3,031.0
Capital Expenditures
Performance Materials		22.0		14.6		21.5
Specialty Minerals		51.7		46.5		37.7
Refractories		9.7		5.5		5.7
Total		83.4		66.6		64.9

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)	2021			2020			2019
Income from Operations before Provision for Taxes on Income
Income from operations for reportable segments	$	247.2		$	212.1		$	227.8
Litigation expenses		—			(10.4	)		(10.9	)
Acquisition-related expenses		(4.0	)		(3.1	)		—
Unallocated corporate expenses		(7.5	)		(10.7	)		(8.2	)
Consolidated income from operations		235.7			187.9			208.7
Non-operating deductions, net		(33.4	)		(49.9	)		(51.4	)
Income from operations before provision for taxes and equity in earnings		202.3			138.0			157.3
Total Assets
Total segment assets		3,292.2			3,069.5			3,031.0
Corporate assets		82.0			139.9			81.6
Consolidated total assets		3,374.2			3,209.4			3,112.6
Capital Expenditures
Total segment capital expenditures		83.4			66.6			64.9
Corporate capital expenditures		2.6			0.2			0.1
Consolidated capital expenditures		86.0			66.8			65.0

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

	Year Ended December 31,
(millions of dollars)	2021		2020		2019
Net Sales
United States	$	959.6	$	822.5	$	962.4
Canada/Latin America		99.8		70.5		80.2
Europe/Africa		441.9		410.0		435.3
Asia		357.0		291.8		313.1
Total International		898.7		772.3		828.6
Consolidated net sales		1,858.3		1,594.8		1,791.0
Long-Lived Assets
United States	$	1,925.3	$	1,723.2	$	1,742.3
Canada/Latin America		10.6		11.3		13.0
Europe/Africa		151.1		182.9		190.7
Asia		120.6		126.5		117.2
Total International		282.3		320.7		320.9
Consolidated long-lived assets		2,207.6		2,043.9		2,063.2

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 assets.

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

	Year Ended December 31,
(millions of dollars)	2021		2020		2019
Household, Personal Care & Specialty Products	$	460.5	$	380.2	$	376.6
Metalcasting		319.2		258.1		291.2
Environmental Products		136.3		131.6		181.8
Building Materials		60.0		55.9		68.9
Paper PCC		349.7		308.4		364.9
Specialty PCC		77.1		69.3		69.1
Ground Calcium Carbonate		98.1		89.3		91.3
Talc		54.0		43.9		49.1
Refractory Products		237.1		212.3		244.8
Metallurgical Products		66.3		45.8		53.3
Total	$	1,858.3	$	1,594.8	$	1,791.0