Segment Reporting

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021:

(In thousands)	Surfactants		Polymers		Specialty Products		Segment Totals
2023
Net sales	$	1,602,819	$	642,471	$	80,478	$	2,325,768
Operating income		72,399		60,770		11,476		144,645
Assets		1,586,148		537,193		70,508		2,193,849
Capital expenditures		231,341		19,971		9,310		260,622
Depreciation and amortization expenses		64,377		32,426		5,789		102,592
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

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

(In thousands)	2023			2022			2021
Operating income - segment totals	$	144,645		$	275,538		$	253,768
Goodwill and other intangibles impairment (3)(4)		(2,038	)		—			—
Business restructuring, assets impairment and loss on asset   disposition (1)		(11,968	)		(308	)		(3,353	)
Unallocated corporate expenses (2)		(72,026	)		(67,894	)		(79,634	)
Total operating income		58,613			207,336			170,781
Interest expense, net		(12,103	)		(9,809	)		(5,753	)
Other, net		1,881			(8,824	)		7,509
Consolidated income before income taxes	$	48,391		$	188,703		$	172,537
Assets - segment totals	$	2,193,849		$	2,241,161		$	1,880,106
Unallocated corporate assets		169,505			192,011			185,506
Consolidated assets	$	2,363,354		$	2,433,172		$	2,065,612
Capital expenditures - segment totals	$	260,622		$	300,047		$	189,006
Unallocated corporate expenditures		(287	)		1,506			5,476
Consolidated capital expenditures	$	260,335		$	301,553		$	194,482
Depreciation and amortization expenses – segment totals	$	102,592		$	92,468		$	87,809
Unallocated corporate depreciation expenses		2,746			2,182			3,067
Consolidated depreciation and amortization expenses	$	105,338		$	94,650		$	90,876

(1)See Note 22, Business Restructuring, Assets Impairment 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 technology, deferred compensation and environmental remediation) that are not included in segment operating income and not used to evaluate segment performance.

(3)See Note 4, Goodwill and Other Intangibles Assets, of the notes to the Company’s consolidated financial statements (included in Item 8 of this Form 10-K) regarding goodwill and other intangibles impairment.

(4)2023 Goodwill and other intangibles impairment expenses and 2023, 2022 and 2021 business restructuring, assets impairment and loss on asset disposition expenses were excluded from segment results.

Below is certain Company-wide geographic data for the years ended December 31, 2023, 2022 and 2021:

(In thousands)	2023		2022		2021
Net sales (1)
United States	$	1,312,866	$	1,579,194	$	1,297,650
France		202,038		227,421		179,746
Poland		171,889		195,781		198,883
United Kingdom		174,574		229,836		208,780
Brazil		124,661		175,004		136,799
Mexico		144,163		148,858		127,944
All other countries		195,577		217,176		196,164
Total	$	2,325,768	$	2,773,270	$	2,345,966
Long-lived assets (2)
United States	$	1,007,337	$	896,867	$	668,362
Netherlands		80,335		79,007		85,931
Germany		41,878		42,512		41,438
Singapore		17,617		20,899		23,507
Brazil		39,512		38,493		35,294
China		25,704		28,717		30,991
United Kingdom		33,857		33,389		38,634
Mexico		73,449		52,917		45,384
All other countries		36,989		34,444		39,034
Total	$	1,356,678	$	1,227,245	$	1,008,575

(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.