Segment Reporting

12 Months Ended

Dec. 31, 2021

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 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, 2021, 2020 and 2019:

(In thousands)	Surfactants		Polymers		Specialty Products		Segment Totals
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
2019
Net sales	$	1,272,723	$	512,347	$	73,675	$	1,858,745
Operating income		122,780		69,567		16,415		208,762
Assets		907,032		338,179		86,718		1,331,929
Capital expenditures		69,725		29,188		4,441		103,354
Depreciation and amortization expenses		48,422		22,151		5,483		76,056

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

(In thousands)	2021			2020			2019
Operating income - segment totals	$	253,768		$	251,281		$	208,762
Business restructuring and asset disposition (1)		(3,353	)		(1,212	)		(2,744	)
Unallocated corporate expenses (2)		(79,634	)		(78,547	)		(78,758	)
Total operating income		170,781			171,522			127,260
Interest expense, net		(5,753	)		(5,409	)		(5,932	)
Other, net		7,509			4,954			4,571
Consolidated income before income taxes	$	172,537		$	171,067		$	125,899
Assets - segment totals	$	1,880,106		$	1,472,738		$	1,331,929
Unallocated corporate assets		185,506			279,598			247,438
Consolidated assets	$	2,065,612		$	1,752,336		$	1,579,367
Capital expenditures - segment totals	$	189,006		$	121,163		$	103,354
Unallocated corporate expenditures		5,476			4,629			2,218
Consolidated capital expenditures	$	194,482		$	125,792		$	105,572
Depreciation and amortization expenses – segment    totals	$	87,809		$	77,988		$	76,056
Unallocated corporate depreciation expenses		3,067			3,872			2,645
Consolidated depreciation and amortization    expenses	$	90,876		$	81,860		$	78,701

(1) See Note 22, Business Restructuring, of the notes to the Company’s consolidated financial statements (included in Item 8 of this Form 10-K) regarding business restructuring 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, 2021, 2020 and 2019:

(In thousands)	2021		2020		2019
Net sales (1)
United States	$	1,297,650	$	1,117,695	$	1,115,993
France		179,746		141,516		145,933
Poland		198,883		147,289		156,391
United Kingdom		208,780		93,115		96,842
Brazil		136,799		105,639		102,590
Mexico		127,944		100,763		83,160
All other countries		196,164		163,733		157,836
Total	$	2,345,966	$	1,869,750	$	1,858,745
Long-lived assets (2)
United States	$	668,362	$	499,260	$	462,199
Netherlands		85,931		—		—
Germany		41,438		39,759		30,084
Singapore		23,507		25,815		28,741
Brazil		35,294		35,786		46,740
China		30,991		27,300		27,201
United Kingdom		38,634		24,335		21,551
Mexico		45,384		39,482		21,959
All other countries		39,034		42,970		42,280
Total	$	1,008,575	$	734,707	$	680,755

(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.