Note 19. 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. Accordingly, in the first quarter of 2017, the Company reorganized the management structure for its Performance Materials and Construction Technologies business units to better reflect the way performance is evaluated and resources are allocated. As a result, all of the product lines within these business segments were combined into one operating segment. 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 now has four reportable segments: Specialty Minerals, Refractories, Performance Materials and Energy Services.

- 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.

- The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment, and calcium metal and metallurgical wire products.

- The Performance Materials segment is a leading global supplier of bentonite and bentonite-related products, chromite and leonardite. This segment also provides products for non-residential construction, environmental and infrastructure projects worldwide, serving customers engaged in a broad range of construction projects.

- The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in oil and gas industry. This segment offers a range of services for off-shore filtration and well testing to the worldwide oil and gas industry.

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, 2017, 2016 and 2015 was as follows:

	2017		2016			2015
	(millions of dollars)
Net Sales
Specialty Minerals	$	584.8	$	591.5		$	624.6
Performance Materials		734.8		686.1			694.9
Refractories		279.4		274.5			295.9
Energy Services		76.7		85.9			182.2
Total		1,675.7		1,638.0			1,797.6

Income from Operations
Specialty Minerals		88.9		102.7			100.8
Performance Materials		119.7		121.1			118.4
Refractories		39.8		37.0			27.8
Energy Services		6.1		(25.9	)		(27.9	)
Total		254.5		234.9			219.1

Depreciation, Depletion and Amortization
Specialty Minerals		35.5		34.9			34.0
Performance Materials		40.5		38.9			39.4
Refractories		6.8		6.9			7.5
Energy Services		8.2		11.2			17.4
Total		91.0		91.9			98.3

Segment Assets
Specialty Minerals		519.4		491.7			505.3
Performance Materials		1,989.6		1,942.1			1,965.4
Refractories		307.4		283.4			292.7
Energy Services		110.6		104.7			154.7
Total		2,927.0		2,821.9			2,918.1

Capital Expenditures
Specialty Minerals		32.6		40.4			51.9
Performance Materials		33.1		12.8			11.1
Refractories		5.9		5.9			11.1
Energy Services		4.5		1.4			11.1
Total		76.1		60.5			85.2

A reconciliation of the totals reported for the operating segments to the applicable line items in the consolidated financial statements is as follows:

	2017			2016			2015
	(millions of dollars)
Income from Operations before Provision (Benefit) for Taxes on Income
Income from operations for reportable segments	$	254.5		$	234.9		$	219.1
Acquisition related transaction and integration costs		(3.4	)		(8.0	)		(11.8	)
Unallocated corporate expenses		(8.4	)		(6.0	)		(7.0	)
Consolidated income from operations		242.7			220.9			200.3
Non-operating deductions, net		(51.8	)		(50.6	)		(67.7	)
Income from continuing operations before provision (benefit) for taxes on income		190.9			170.3			132.6

Total Assets
Total segment assets		2,927.0			2,821.9			2,918.1
Corporate assets		43.4			41.5			61.9
Consolidated total assets		2,970.4			2,863.4			2,980.0

Capital Expenditures
Total segment capital expenditures		76.1			60.5			85.2
Corporate capital expenditures		0.6			1.9			0.8
Consolidated capital expenditures		76.7			62.4			86.0

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

	2017		2016		2015
	(millions of dollars)
Net Sales
United States	$	939.3	$	936.2	$	1,049.6

Canada/Latin America		81.6		82.6		86.3
Europe/Africa		349.0		338.8		382.1
Asia		305.8		280.4		279.6
Total International		736.4		701.8		748.0
Consolidated net sales		1,675.7		1,638.0		1,797.6

Long-Lived Assets
United States	$	1,774.4	$	1,794.5	$	1,829.3

Canada/Latin America		14.8		14.8		13.0
Europe/Africa		115.9		98.2		117.6
Asia		132.0		127.3		138.3
Total International		262.7		240.3		268.9
Consolidated long-lived assets		2,037.1		2,034.8		2,098.2

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 asset.

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

	2017		2016		2015
	(millions of dollars)
Paper PCC	$	377.7	$	387.9	$	423.3
Specialty PCC		66.0		64.3		64.8
Talc		53.8		55.7		55.9
Ground Calcium Carbonate		87.3		83.6		80.6
Metalcasting		294.3		258.0		266.4
Household, Personal Care & Specialty Products		169.6		171.2		172.7
Basic Minerals		125.0		103.9		106.0
Environmental Products		67.7		78.9		69.8
Building Materials		78.2		74.1		80.0
Refractory Products		226.9		219.0		230.7
Metallurgical Products		52.5		55.5		65.2
Energy Services		76.7		85.9		182.2
Total	$	1,675.7	$	1,638.0	$	1,797.6