Segment and Related Information

12 Months Ended

Dec. 31, 2023

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.  Effective January 1, 2023, the Company realigned its business reporting structure and reorganized into two segments, Consumer & Specialties and Engineered Solutions.  Following the realignment, the two new segments consist of the following businesses:

The Consumer & Specialties segment serves consumer end markets directly and provides mineral-based solutions and technologies that are essential to our customers’ products. The two product lines in this segment are Household & Personal Care - our mineral-to-shelf product line that serves pet care, personal and household care, fluid purification and other consumer oriented markets, and Specialty Additives, delivering specialty mineral additives to a variety of consumer and industrial end markets including paper, packaging, construction, automotive, and food and pharmaceuticals.

The Engineered Solutions segment combines all engineered systems, mineral blends, and technologies that are designed to aid in customer processes and projects. The two product lines in this segment are High-Temperature Technologies – combining all of our mineral-based blends, technologies, and systems serving the foundry, steel, glass, aluminum and other high-temperature processing industries, and Environmental & Infrastructure, which includes environmental and remediation solutions such as geosynthetic clay lining systems, water remediation technologies as well as drilling, commercial building and infrastructure-related products.

We believe the new structure better aligns our businesses and technologies with our customers and end markets and creates a more efficient and effective management structure that reflects the way performance is evaluated and resources are allocated.

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, 2023, 2022 and 2021 was as follows:

	Year Ended December 31,
(millions of dollars)	2023		2022		2021
Net Sales
Consumer & Specialties	$	1,160.2	$	1,124.6	$	962.6
Engineered Solutions		1,009.7		1,000.9		895.7
Total		2,169.9		2,125.5		1,858.3
Income from Operations
Consumer & Specialties		41.6		79.0		119.5
Engineered Solutions		147.8		147.1		127.7
Total		189.4		226.1		247.2
Depreciation, Depletion and Amortization
Consumer & Specialties		47.2		48.0		45.1
Engineered Solutions		47.7		46.2		49.5
Total		94.9		94.2		94.6
Segment Assets
Consumer & Specialties		1,244.8		1,107.5		1,062.8
Engineered Solutions		2,028.5		2,187.5		2,229.4
Total		3,273.3		3,295.0		3,292.2
Capital Expenditures
Consumer & Specialties		56.8		44.3		55.7
Engineered Solutions		31.2		34.0		26.6
Total		88.0		78.3		82.3

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)	2023			2022			2021
Income from Operations before Provision for Taxes on Income
Income from operations for reportable segments	$	189.4		$	226.1		$	247.2
Restructuring and other items, net		(2.8	)		—			—
Acquisition-related expenses		(0.3	)		(5.1	)		(4.0	)
Litigation expenses		(2.4	)		(1.5	)		—
Unallocated corporate expenses		(14.9	)		(4.7	)		(7.5	)
Consolidated income from operations	$	171.8		$	214.8		$	235.7
Non-operating deductions, net		(64.1	)		(58.1	)		(33.4	)
Income before tax and equity in earnings	$	107.7		$	156.7		$	202.3
Total Assets
Total segment assets		3,273.3			3,295.0			3,292.2
Corporate assets		73.3			106.6			82.0
Consolidated total assets	$	3,346.6		$	3,401.6		$	3,374.2
Capital Expenditures
Total segment capital expenditures		88.0			78.3			82.3
Corporate capital expenditures		5.5			4.0			3.7
Consolidated capital expenditures	$	93.5		$	82.3		$	86.0

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

	Year Ended December 31,
(millions of dollars)	2023		2022		2021
Net Sales
United States	$	1,144.0	$	1,135.6	$	959.6
Canada/Latin America		150.2		148.3		99.8
Europe/Africa		525.5		496.8		441.9
Asia		350.2		344.8		357.0
Total International	$	1,025.9	$	989.9	$	898.7
Consolidated net sales	$	2,169.9	$	2,125.5	$	1,858.3
Long-Lived Assets
United States	$	1,842.0	$	1,915.8	$	1,925.9
Canada/Latin America		17.7		16.4		10.6
Europe/Africa		157.0		162.8		151.1
Asia		114.7		112.1		120.6
Total International	$	289.4	$	291.3	$	282.3
Consolidated long-lived assets	$	2,131.4	$	2,207.1	$	2,208.2

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)	2023		2022		2021
Household & Personal Care	$	517.6	$	476.2	$	383.7
Specialty Additives		642.6		648.4		578.9
High-Temperature Technologies		720.9		702.5		642.7
Environmental & Infrastructure		288.8		298.4		253.0
Total	$	2,169.9	$	2,125.5	$	1,858.3