Segment and Related Information

9 Months Ended

Sep. 28, 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 nine-month periods ended September 28, 2025 and September 29, 2024 is as follows:

	Three Months Ended
	Sep. 28, 2025						Sep. 29, 2024
		Consumer &		Engineered				Consumer &		Engineered
(in millions of dollars)		Specialties		Solutions		Total		Specialties		Solutions		Total
Net sales	$	277.4	$	255.0	$	532.4	$	280.3	$	244.4	$	524.7
Cost of goods sold		218.0		177.4		395.4		217.8		171.7		389.5
Segment production margin		59.4		77.6		137.0		62.5		72.7		135.2
Marketing and administrative expenses		18.9		30.3		49.2		17.5		31.3		48.8
Research and development expenses		3.1		2.5		5.6		3.3		2.6		5.9
Segment income from operations	$	37.4	$	44.8	$	82.2	$	41.7	$	38.8	$	80.5

	Nine Months Ended
	Sep. 28, 2025								Sep. 29, 2024
		Consumer &		Engineered						Consumer &		Engineered
(in millions of dollars)		Specialties		Solutions			Total			Specialties		Solutions		Total
Net sales	$	823.4	$	729.7		$	1,553.1		$	861.5	$	738.9	$	1,600.4
Cost of goods sold		651.9		507.7			1,159.6			670.6		514.8		1,185.4
Segment production margin		171.5		222.0			393.5			190.9		224.1		415.0
Marketing and administrative expenses		57.1		91.7			148.8			53.8		94.3		148.1
Research and development expenses		9.7		7.4			17.1			9.5		7.8		17.3
Restructuring and other items		5.8		3.3			9.1			-		-		-
Gain on sale of assets, net		-		(5.6	)		(5.6	)		-		-		-
Segment income from operations	$	98.9	$	125.2		$	224.1		$	127.6	$	122.0	$	249.6

	Three Months Ended						Nine Months Ended
		Sep. 28,			Sep. 29,			Sep. 28,			Sep. 29,
(in millions of dollars)		2025			2024			2025			2024
Segment income from operations	$	82.2		$	80.5		$	224.1		$	249.6
Interest expense, net		(13.8	)		(14.0	)		(41.6	)		(43.8	)
Other non-operating deductions, net		(0.5	)		(3.1	)		(4.4	)		(4.4	)
Unallocated expenses:
Provision for litigation reserve and credit losses		-			-			215.0			30.0
Restructuring and other items		-			-			2.2			-
Litigation expenses		7.5			2.6			14.5			8.9
Unallocated corporate expenses		3.8			1.3			7.0			8.3
Income (loss) before taxes and equity in earnings	$	56.6		$	59.5		$	(60.6	)	$	154.2

Segment information is as follows for the three and nine-month periods ended September 28, 2025 and September 29, 2024:

	Three Months Ended				Nine Months Ended
		Sep. 28,		Sep. 29,		Sep. 28,		Sep. 29,
(in millions of dollars)		2025		2024		2025		2024
Depreciation, Depletion and Amortization
Consumer & Specialties	$	10.8	$	11.6	$	31.8	$	35.2
Engineered Solutions		11.6		11.5		36.1		35.4
Total	$	22.4	$	23.1	$	67.9	$	70.6
Capital Expenditures
Consumer & Specialties	$	17.4	$	8.3	$	47.8	$	27.5
Engineered Solutions		9.0		15.1		23.3		30.8
Corporate		0.9		1.3		3.6		3.1
Total	$	27.3	$	24.7	$	74.7	$	61.4

The Company’s segment assets as of September 28, 2025 and December 31, 2024 are as follows:

		Sep. 28,		Dec. 31,
(in millions of dollars)		2025		2024
Segment Assets
Consumer & Specialties	$	1,338.8	$	1,289.4
Engineered Solutions		2,056.4		2,028.0
Corporate		63.6		76.5
Total	$	3,458.8	$	3,393.9

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

	Three Months Ended				Nine Months Ended
		Sep. 28,		Sep. 29,		Sep. 28,		Sep. 29,
(in millions of dollars)		2025		2024		2025		2024
Household & Personal Care	$	129.8	$	130.9	$	380.3	$	396.1
Specialty Additives		147.6		149.4		443.1		465.4
High-Temperature Technologies		178.9		174.8		526.7		536.8
Environmental & Infrastructure		76.1		69.6		203.0		202.1
Total	$	532.4	$	524.7	$	1,553.1	$	1,600.4