Segment and Related Information

6 Months Ended

Jun. 29, 2025

Segment and Related Information [Abstract]

Segment and Related Information

Note 13.  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: Consumer & Specialties and Engineered Solutions. See Note 1 to the Condensed Consolidated Financial Statements.

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 Condensed Consolidated Financial Statements is as follows for the three and six-month periods ended June 29, 2025 and June 30, 2024 is as follows:

	Three Months Ended
	Jun. 29, 2025						Jun. 30, 2024
(millions of dollars)	Consumer & Specialties		Engineered Solutions		Total		Consumer & Specialties		Engineered Solutions		Total
Net Sales	$	277.7	$	251.2	$	528.9	$	284.3	$	256.9	$	541.2
Cost of goods sold		218.1		173.9		392.0		219.6		177.7		397.3
Segment production margin		59.6		77.3		136.9		64.7		79.2		143.9
Marketing and administrative expenses		19.1		31.1		50.2		17.6		31.9		49.5
Research and development expenses		3.2		2.5		5.7		3.2		2.6		5.8
Restructuring and other items		3.3		2.5		5.8		—		—		—
Gain on sale of assets, net		—		(5.6)		(5.6)		—		—		—
Segment income from operations	$	34.0	$	46.8	$	80.8	$	43.9	$	44.7	$	88.6

	Six Months Ended
	Jun. 29, 2025						Jun. 30, 2024
(millions of dollars)	Consumer & Specialties		Engineered Solutions		Total		Consumer & Specialties		Engineered Solutions		Total
Net Sales	$	546.0	$	474.7	$	1,020.7	$	581.2	$	494.5	$	1,075.7
Cost of goods sold		433.8		330.4		764.2		452.9		343.0		795.9
Segment production margin		112.2		144.3		256.5		128.3		151.5		279.8
Marketing and administrative expenses		38.3		61.3		99.6		36.2		63.1		99.3
Research and development expenses		6.6		4.9		11.5		6.2		5.2		11.4
Restructuring and other items		5.8		3.3		9.1		—		—		—
Gain on sale of assets, net		—		(5.6)		(5.6)		—		—		—
Segment income from operations	$	61.5	$	80.4	$	141.9	$	85.9	$	83.2	$	169.1

	Three Months Ended						Six Months Ended
(in millions of dollars)	Jun. 29, 2025			Jun. 30, 2024			Jun. 29, 2025			Jun. 30, 2024
Segment income from operations	$	80.8		$	88.6		$	141.9		$	169.1
Interest expense, net		(13.6	)		(14.9	)		(27.8	)		(29.8	)
Other non-operating deductions, net		(1.9	)		(1.1	)		(3.9	)		(1.3	)
Unallocated expenses:
Provision for litigation reserve and credit losses		—			30.0			215.0			30.0
Restructuring and other items		—			—			2.2			—
Litigation expenses		4.2			4.2			7.0			6.3
Unallocated corporate expenses		2.0			3.8			3.2			7.0
Income (loss) before taxes and equity in earnings	$	59.1		$	34.6		$	(117.2	)	$	94.7

Segment information is as follows for the three and six-month periods ended June 29, 2025 and June 30, 2024:

	Three Months Ended				Six Months Ended
(in millions of dollars)	Jun. 29, 2025		Jun. 30, 2024		Jun. 29, 2025		Jun. 30, 2024
Depreciation, Depletion and Amortization
Consumer & Specialties	$	10.1	$	12.2	$	20.9	$	23.6
Engineered Solutions		11.9		11.8		24.6		23.9
Total		22.0		24.0		45.5		47.5
Capital Expenditures
Consumer & Specialties	$	18.9	$	12.7	$	30.4	$	19.2
Engineered Solutions		8.5		6.6		14.3		15.7
Corporate		1.7		0.9		2.7		1.8
Total	$	29.1	$	20.2	$	47.4	$	36.7

The Company's segment assets as of June 29, 2025 and December 31, 2024 are as follows:

(in millions of dollars)	Jun. 29,		Dec. 31,
Segment Assets	2025		2024
Consumer & Specialties	$	1,319.4	$	1,289.4
Engineered Solutions		2,069.6		2,028.0
Corporate		65.8		76.5
Total	$	3,454.8	$	3,393.9

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

	Three Months Ended				Six Months Ended
(in millions of dollars)	Jun. 29, 2025		Jun. 30, 2024		Jun. 29, 2025		Jun. 30, 2024
Household & Personal Care	$	127.4	$	126.8	$	250.5	$	265.2
Specialty Additives		150.3		157.5		295.5		316.0
High-Temperature Technologies		178.4		184.7		347.8		362.0
Environmental & Infrastructure		72.8		72.2		126.9		132.5
Total	$	528.9	$	541.2	$	1,020.7	$	1,075.7