Segment and Related Information

12 Months Ended

Dec. 31, 2022

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.

As of December 31, 2022, the Company had three reportable segments: Performance Materials, Specialty Minerals and Refractories.

● The Performance Materials segment is a leading global supplier of a wide range of bentonite-based and synthetic materials for consumer-oriented and industrial markets and for non-residential construction, environmental remediation, and infrastructure projects. This segment is the Company's largest and most diverse business segment with extensive technical, sales and commercial capabilities.

● 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. This segment is a leading supplier globally of PCC products.  This segment's products are used principally in the paper and packaging, building materials, paint and coatings, glass, ceramic, polymer, food, automotive and pharmaceutical industries.

● The Refractories segment produces monolithic and shaped refractory materials and specialty products.  It also provides services and sells application and measurement equipment, calcium metal and metallurgical wire products.  Refractories segment products are primarily used in high-temperature applications in the steel, non-ferrous metal and glass industries.

See Note 22 to the Consolidated Financial Statements for a discussion of changes to the Company's segments expected to be made for the first quarter of 2023.

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, 2022, 2021 and 2020 was as follows:

	Year Ended December 31,
(millions of dollars)	2022		2021		2020
Net Sales
Performance Materials	$	1,127.7	$	976.0	$	825.8
Specialty Minerals		648.4		578.9		510.9
Refractories		349.4		303.4		258.1
Total		2,125.5		1,858.3		1,594.8
Income from Operations
Performance Materials		127.2		125.0		108.8
Specialty Minerals		41.3		72.9		67.8
Refractories		57.6		49.3		35.5
Total		226.1		247.2		212.1
Depreciation, Depletion and Amortization
Performance Materials		50.7		49.2		47.4
Specialty Minerals		37.2		38.4		39.6
Refractories		6.3		7.0		6.9
Total		94.2		94.6		93.9
Segment Assets
Performance Materials		2,442.1		2,393.2		2,219.1
Specialty Minerals		609.3		605.9		559.6
Refractories		303.7		293.1		290.8
Total		3,355.1		3,292.2		3,069.5
Capital Expenditures
Performance Materials		30.8		22.0		14.6
Specialty Minerals		39.8		51.7		46.5
Refractories		10.4		9.7		5.5
Total		81.0		83.4		66.6

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)	2022			2021			2020
Income from Operations before Provision for Taxes on Income
Income from operations for reportable segments	$	226.1		$	247.2		$	212.1
Litigation expenses		(1.5	)		—			(10.4	)
Acquisition related transaction and integration costs		(5.1	)		(4.0	)		(3.1	)
Unallocated corporate expenses		(4.7	)		(7.5	)		(10.7	)
Consolidated income from operations		214.8			235.7			187.9
Non-operating deductions, net		(58.1	)		(33.4	)		(49.9	)
Income before tax and equity in earnings		156.7			202.3			138.0
Total Assets
Total segment assets		3,355.1			3,292.2			3,069.5
Corporate assets		46.5			82.0			139.9
Consolidated total assets		3,401.6			3,374.2			3,209.4
Capital Expenditures
Total segment capital expenditures		81.0			83.4			66.6
Corporate capital expenditures		1.3			2.6			0.2
Consolidated capital expenditures		82.3			86.0			66.8

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

	Year Ended December 31,
(millions of dollars)	2022		2021		2020
Net Sales
United States	$	1,135.6	$	959.6	$	822.5
Canada/Latin America		148.3		99.8		70.5
Europe/Africa		496.8		441.9		410.0
Asia		344.8		357.0		291.8
Total International		989.9		898.7		772.3
Consolidated net sales		2,125.5		1,858.3		1,594.8
Long-Lived Assets
United States	$	1,915.8	$	1,925.9	$	1,723.2
Canada/Latin America		16.4		10.6		11.3
Europe/Africa		162.8		151.1		182.9
Asia		112.1		120.6		126.5
Total International		291.3		282.3		320.7
Consolidated long-lived assets		2,207.1		2,208.2		2,043.9

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)	2022		2021		2020
Household, Personal Care & Specialty Products	$	560.9	$	460.5	$	380.2
Metalcasting		334.0		319.2		258.1
Environmental Products		174.1		136.3		131.6
Building Materials		58.7		60.0		55.9
Paper PCC		381.7		349.7		308.4
Specialty PCC		100.4		77.1		69.3
Ground Calcium Carbonate		109.1		98.1		89.3
Talc		57.2		54.0		43.9
Refractory Products		273.4		237.1		212.3
Metallurgical Products		76.0		66.3		45.8
Total	$	2,125.5	$	1,858.3	$	1,594.8