Segment Reporting

9 Months Ended

Sep. 30, 2018

11.	SEGMENT REPORTING

The Company has three reportable segments: Surfactants, Polymers and Specialty Products. Net sales by segment for the three and nine months ended September 30, 2018 and 2017, were as follows:

(In thousands)	Three Months Ended September 30				Nine Months Ended September 30
	2018		2017		2018		2017
Segment Net Sales
Surfactants	$	346,884	$	321,444	$	1,062,708	$	973,381
Polymers		141,646		147,754		404,446		415,551
Specialty Products		19,467		18,616		60,044		62,252
Total	$	507,997	$	487,814	$	1,527,198	$	1,451,184

Segment operating income and reconciliations of segment operating income to consolidated income before income taxes for the three and nine months ended September 30, 2018 and 2017, are summarized below:

(In thousands)	Three Months Ended September 30						Nine Months Ended September 30
	2018			2017			2018			2017
Segment Operating Income
Surfactants	$	31,201		$	22,559		$	105,670		$	92,080
Polymers		17,431			21,146			53,783			63,884
Specialty Products		2,653			990			6,543			7,711
Segment operating income		51,285			44,695			165,996			163,675
Business restructuring		(1,715	)		(426	)		(2,346	)		(1,798	)
Unallocated corporate expenses ⁽¹⁾		(21,876	)		(13,835	)		(51,616	)		(46,080	)
Consolidated operating income		27,694			30,434			112,034			115,797
Interest expense, net		(2,797	)		(2,763	)		(8,620	)		(8,618	)
Other, net		346			1,641			1,990			3,526
Consolidated income before income taxes	$	25,243		$	29,312		$	105,404		$	110,705

⁽¹⁾

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.

⁽²⁾

The 2017 data has been immaterially changed from the amounts originally reported as a result of the Company’s first quarter 2018 adoption of ASU No. 2017-7, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.