Segment Reporting

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Reporting

17. Segment Reporting

The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Each segment provides distinct products and requires separate management due to unique markets, technologies and production processes. Surfactants are used in a variety of consumer and industrial cleaning and disinfection products as well as in agricultural products, lubricating ingredients, oil field chemicals and other specialized applications. Polymers are used primarily in the manufacture of rigid foam for thermal insulation in the construction industry, plastics, building materials, refrigeration systems and CASE applications. Specialty Products are used in food, flavoring, nutritional supplement and pharmaceutical applications.

The Company evaluates the performance of its segments and allocates resources based on operating income before interest expense, other income/expense items and income tax provision. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

The following is segment data for the three years ended December 31, 2022, 2021 and 2020:

(In thousands)	Surfactants		Polymers		Specialty Products		Segment Totals
2022
Net sales	$	1,882,745	$	789,080	$	101,445	$	2,773,270
Operating income		162,746		82,897		29,895		275,538
Assets		1,579,242		565,726		96,193		2,241,161
Capital expenditures		259,442		35,679		4,926		300,047
Depreciation and amortization expenses		55,262		31,399		5,807		92,468
2021
Net sales	$	1,562,795	$	713,440	$	69,731	$	2,345,966
Operating income		165,999		73,591		14,178		253,768
Assets		1,245,207		556,799		78,100		1,880,106
Capital expenditures		154,953		29,077		4,976		189,006
Depreciation and amortization expenses		51,375		30,598		5,836		87,809
2020
Net sales	$	1,351,686	$	452,277	$	65,787	$	1,869,750
Operating income		169,101		68,214		13,966		251,281
Assets		1,018,555		361,219		92,964		1,472,738
Capital expenditures		88,484		26,719		5,960		121,163
Depreciation and amortization expenses		49,429		22,873		5,686		77,988

Below are reconciliations of segment data to the consolidated financial statements:

(In thousands)	2022			2021			2020
Operating income - segment totals	$	275,538		$	253,768		$	251,281
Business restructuring and asset disposition (1)		(308	)		(3,353	)		(1,212	)
Unallocated corporate expenses (2)		(67,894	)		(79,634	)		(78,547	)
Total operating income		207,336			170,781			171,522
Interest expense, net		(9,809	)		(5,753	)		(5,409	)
Other, net		(8,824	)		7,509			4,954
Consolidated income before income taxes	$	188,703		$	172,537		$	171,067
Assets - segment totals	$	2,241,161		$	1,880,106		$	1,472,738
Unallocated corporate assets		192,011			185,506			279,598
Consolidated assets	$	2,433,172		$	2,065,612		$	1,752,336
Capital expenditures - segment totals	$	300,047		$	189,006		$	121,163
Unallocated corporate expenditures		1,506			5,476			4,629
Consolidated capital expenditures	$	301,553		$	194,482		$	125,792
Depreciation and amortization expenses – segment totals	$	92,468		$	87,809		$	77,988
Unallocated corporate depreciation expenses		2,182			3,067			3,872
Consolidated depreciation and amortization expenses	$	94,650		$	90,876		$	81,860

(1)See Note 22, Business Restructuring and Asset Disposition, of the notes to the Company’s consolidated financial statements (included in Item 8 of this Form 10-K) regarding business restructuring and asset disposition costs.

(2)Unallocated corporate expenses are primarily comprised of corporate administrative expenses (e.g., corporate finance, legal, human resources, information systems, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance.

Below is certain Company-wide geographic data for the years ended December 31, 2022, 2021 and 2020:

(In thousands)	2022		2021		2020
Net sales (1)
United States	$	1,579,194	$	1,297,650	$	1,117,695
France		227,421		179,746		141,516
Poland		195,781		198,883		147,289
United Kingdom		229,836		208,780		93,115
Brazil		175,004		136,799		105,639
Mexico		148,858		127,944		100,763
All other countries		217,176		196,164		163,733
Total	$	2,773,270	$	2,345,966	$	1,869,750
Long-lived assets (2)
United States	$	896,867	$	668,362	$	499,260
Netherlands		79,007		85,931		—
Germany		42,512		41,438		39,759
Singapore		20,899		23,507		25,815
Brazil		38,493		35,294		35,786
China		28,717		30,991		27,300
United Kingdom		33,389		38,634		24,335
Mexico		52,917		45,384		39,482
All other countries		34,444		39,034		42,970
Total	$	1,227,245	$	1,008,575	$	734,707

(1)Net sales are attributed to countries based on the location of the Company legal entity making the sale.

(2)Includes net property, plant and equipment, goodwill and other intangible assets.