Segment and Related Information

12 Months Ended

Dec. 31, 2024

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 two reportable segments: the Consumer & Specialties segment and the Engineered Solutions segment.

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.

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 revenues, expenses, operating income and a reconciliation of the operating segment totals to the applicable line items on the consolidated financial statements is as follows:

	Year Ended December 31,
	2024								2023
(millions of dollars)	Consumer & Specialties		Engineered Solutions			Total			Consumer & Specialties		Engineered Solutions		Total
Net Sales	$	1,140.2	$	978.3		$	2,118.5		$	1,160.2	$	1,009.7	$	2,169.9
Cost of goods sold		890.4		680.4			1,570.8			938.6		724.4		1,663.0
Segment production margin		249.8		297.9			547.7			221.6		285.3		506.9
Marketing and administrative expenses		71.7		125.8			197.5			69.1		124.6		193.7
Research and development expenses		12.6		10.4			23.0			11.5		9.7		21.2
Gain on sale of assets, net		—		(12.3	)		(12.3	)		—		—		—
Impairment of assets		—		—			—			71.7		—		71.7
Restructuring and other items, net		—		—			—			0.9		3.2		4.1
Litigation expenses		—		—			—			26.8		—		26.8
Segment income from operations	$	165.5	$	174.0		$	339.5		$	41.6	$	147.8	$	189.4

	Year Ended December 31,
	2022
(millions of dollars)	Consumer & Specialties		Engineered Solutions		Total
Net Sales	$	1,124.6	$	1,000.9	$	2,125.5
Cost of goods sold		937.0		723.5		1,660.5
Segment production margin		187.6		277.4		465.0
Marketing and administrative expenses		63.1		120.7		183.8
Research and development expenses		10.8		9.6		20.4
Acquisition-related expenses		2.1		—		2.1
Litigation expenses		32.6		—		32.6
Segment income from operations	$	79.0	$	147.1	$	226.1

	Year Ended December 31,
(millions of dollars)	2024			2023			2022
Segment income from operations	$	339.5		$	189.4		$	226.1
Interest expense, net		(56.4	)		(59.2	)		(43.9	)
Other non-operating deductions, net		(4.7	)		(4.9	)		(3.8	)
Unallocated expenses:
Provision for credit losses		30.0			—			—
Restructuring and other items, net		—			2.8			—
Acquisition-related expenses		—			0.3			3.0
Litigation expenses		11.3			2.4			—
Unallocated corporate expenses		11.7			12.1			8.3
Debt extinguishment expenses		(1.8	)		—			(6.9	)
Non-cash pension settlement charge		—			—			(3.5	)
Income before tax and equity in earnings	$	223.6		$	107.7		$	156.7

Segment information for the years ended December 31, 2024, 2023 and 2022 was as follows:

	Year Ended December 31,
(millions of dollars)	2024		2023		2022
Depreciation, Depletion and Amortization
Consumer & Specialties	$	47.2	$	47.2	$	48.0
Engineered Solutions		47.7		47.7		46.2
Total	$	94.9	$	94.9	$	94.2
Segment Assets
Consumer & Specialties	$	1,289.4	$	1,244.8	$	1,107.5
Engineered Solutions		2,028.0		2,028.5		2,187.5
Corporate		76.5		73.3		106.6
Total	$	3,393.9	$	3,346.6	$	3,401.6
Capital Expenditures
Consumer & Specialties	$	45.2	$	56.8	$	44.3
Engineered Solutions		39.3		31.2		34.0
Corporate		5.0		5.5		4.0
Total	$	89.5	$	93.5	$	82.3

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

	Year Ended December 31,
(millions of dollars)	2024		2023		2022
Net Sales
United States	$	1,089.4	$	1,144.0	$	1,135.6
Canada/Latin America		151.2		150.2		148.3
Europe/Africa		521.1		525.5		496.8
Asia		356.8		350.2		344.8
Total International	$	1,029.1	$	1,025.9	$	989.9
Consolidated net sales	$	2,118.5	$	2,169.9	$	2,125.5
Long-Lived Assets
United States	$	1,849.1	$	1,842.0	$	1,915.8
Canada/Latin America		14.6		17.7		16.4
Europe/Africa		147.3		157.0		162.8
Asia		110.6		114.7		112.1
Total International	$	272.5	$	289.4	$	291.3
Consolidated long-lived assets	$	2,121.6	$	2,131.4	$	2,207.1

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 assets.

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

	Year Ended December 31,
(millions of dollars)	2024		2023		2022
Household & Personal Care	$	530.0	$	517.6	$	476.2
Specialty Additives		610.2		642.6		648.4
High-Temperature Technologies		713.2		720.9		702.5
Environmental & Infrastructure		265.1		288.8		298.4
Total	$	2,118.5	$	2,169.9	$	2,125.5