XML 43 R28.htm IDEA: XBRL DOCUMENT
v3.22.4

OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | 12 Months Ended
--- | ---
Dec. 31, 2022
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION |
OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION | 19. OPERATING SEGMENTS AND GEOGRAPHIC INFORMATION ​ The Company’s organizational structure consists of global business unit and global regional leadership teams. The Company’s eleven operating segments follow its commercial and product-based activities and are based on engagement in business activities, availability of discrete financial information and review of operating results by the Chief Operating Decision Maker at the identified operating segment level. ​ The Company’s operating segments that share similar economic characteristics and future prospects, nature of the products and production processes, end-use markets, channels of distribution and regulatory environment have been aggregated into three reportable segments: Global Industrial, Global Institutional & Specialty and Global Healthcare & Life Sciences. The Company’s operating segments that do not meet the quantitative criteria to be separately reported have been combined into Other. The Company provides similar information for Other as the Company considers the information regarding its underlying operating segments as useful in understanding its consolidated results. ​ The Company’s operating segments are aggregated as follows: ​ Global Industrial ​ Includes the Water, Food & Beverage, Paper, and Downstream operating segments. It provides water treatment and process applications, and cleaning and sanitizing solutions primarily to large industrial customers within the manufacturing, food and beverage processing, transportation, chemical, primary metals and mining, power generation, pulp and paper, commercial laundry, global petroleum and petrochemical industries. The underlying operating segments exhibit similar manufacturing processes, distribution methods and economic characteristics. ​ Global Institutional & Specialty ​ Includes the Institutional and Specialty operating segments. It provides specialized cleaning and sanitizing products to the foodservice, hospitality, lodging, government and education and retail industries. The underlying operating segments exhibit similar manufacturing processes, distribution methods and economic characteristics. ​ Global Healthcare & Life Sciences ​ Includes the Healthcare and Life Sciences operating segments. It provides specialized cleaning and sanitizing products to the healthcare, personal care and pharmaceutical industries. The underlying operating segments exhibit similar manufacturing processes, distribution methods and economic characteristics. ​ Other ​ Includes the Pest Elimination operating segment which provides services to detect, eliminate and prevent pests, such as rodents and insects, the CTG operating segment which produces and sells colloidal silica, which is comprised of nano-sized particles of silica in water used primarily for binding and polishing applications and the Textile Care operating segment which provides products and services that manage the entire wash process through custom designed programs, premium products, dispensing equipment, water and energy management and reduction, and real time data management. ​ Corporate ​ Consistent with the Company’s internal management reporting, Corporate amounts in the table below include sales to ChampionX under the Master Cross Supply and Product Transfer agreements entered into as part of the ChampionX Separation, as discussed in Note 5. Corporate also includes intangible asset amortization specifically from the Nalco and Purloite acquistions and special (gains) and charges, as discussed in Note 3, that are not allocated to the Company’s reportable segments. ​ Comparability of Reportable Segments ​ The Company made immaterial changes, including the movement of certain customers and cost allocations between reportable segments. These changes are reflected in the “Other” column in the table below. ​ ​ The Company evaluates the performance of its non-U.S. dollar functional currency international operations based on fixed currency exchange rates, which eliminate the impact of exchange rate fluctuations on its international operations. Fixed currency amounts are updated annually at the beginning of each year based on translation into U.S. dollars at foreign currency exchange rates established by management, with all periods presented using such rates. The “Fixed Currency Rate Change” column shown in the following table reflects the impact on previously reported values related to fixed currency exchange rates established by management at the beginning of 2022 and have been updated from the 2021 rates reflected in the Company’s 2021 Form 10-K. The difference between the fixed currency exchange rates and the actual currency exchanges rates is reported within the “Effect of foreign currency translation” row in the table below. The “Other” column in the table reflects immaterial changes between segments, primarily cost allocations. ​ The impact of the preceding changes on previously reported full year 2021 and 2020 reportable segment net sales and operating income is summarized as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2021
​ |  | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
​ | ​ | 2021 Reported | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Fixed | ​ | ​ | ​ | 2021 Reported
​ | ​ | Valued at 2021 |  | ​ | ​ |  | Currency | ​ |  | Valued at 2022
(millions) | ​ | Management Rates |  | Other | ​ |  | Rate Change | ​ |  | Management Rates
Net Sales | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ |  | ​ | ​
Global Industrial | ​ | ​ | $6,304.9 | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | ($218.1) | ​ | ​ | ​ | ​ | $6,086.8
Global Institutional & Specialty | ​ | ​ | 3,978.2 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (69.4) | ​ | ​ | ​ | ​ | 3,908.8
Global Healthcare & Life Sciences | ​ | ​ | 1,195.4 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (45.8) | ​ | ​ | ​ | ​ | 1,149.6
Other | ​ | ​ | 1,226.9 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (25.9) | ​ | ​ | ​ | ​ | 1,201.0
Corporate | ​ | ​ | 139.4 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (2.0) | ​ | ​ | ​ | ​ | 137.4
Subtotal at fixed currency rates | ​ | ​ | 12,844.8 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (361.2) | ​ | ​ | ​ | ​ | 12,483.6
Effect of foreign currency translation | ​ | ​ | (111.7) | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | 361.2 | ​ | ​ | ​ | ​ | 249.5
Consolidated reported GAAP net sales | ​ | ​ | $12,733.1 | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $12,733.1
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating Income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Global Industrial | ​ | ​ | $1,031.0 | ​ | ​ | ​ | $4.0 | ​ | ​ | ​ | ​ | ($49.3) | ​ | ​ | ​ | ​ | $985.7
Global Institutional & Specialty | ​ | ​ | 556.9 | ​ | ​ | ​ | (3.8) | ​ | ​ | ​ | ​ | (7.4) | ​ | ​ | ​ | ​ | 545.7
Global Healthcare & Life Sciences | ​ | ​ | 160.9 | ​ | ​ | ​ | (0.9) | ​ | ​ | ​ | ​ | (7.7) | ​ | ​ | ​ | ​ | 152.3
Other | ​ | ​ | 187.3 | ​ | ​ | ​ | 0.7 | ​ | ​ | ​ | ​ | (4.0) | ​ | ​ | ​ | ​ | 184.0
Corporate | ​ | ​ | (318.6) | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | 2.0 | ​ | ​ | ​ | ​ | (316.6)
Subtotal at fixed currency rates | ​ | ​ | 1,617.5 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (66.4) | ​ | ​ | ​ | ​ | 1,551.1
Effect of foreign currency translation | ​ | ​ | (18.9) | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | 66.4 | ​ | ​ | ​ | ​ | 47.5
Consolidated reported GAAP operating income | ​ | ​ | $1,598.6 | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $1,598.6
​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, 2020
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2020 Reported |  | ​ | ​ | ​ | ​ |  | ​ | Fixed | ​ | ​ |  | 2020 Reported
​ | ​ | Valued at 2021 |  | Segment | ​ |  | Currency | ​ |  | Valued at 2022
(millions) | ​ | Management Rates |  | Change | ​ |  | Rate Change | ​ |  | Management Rates
Net Sales | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ |  | ​ | ​
Global Industrial | ​ | ​ | $6,048.2 | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | ($202.5) | ​ | ​ | ​ | ​ | $5,845.7
Global Institutional & Specialty | ​ | ​ | 3,629.0 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (69.2) | ​ | ​ | ​ | ​ | 3,559.8
Global Healthcare & Life Sciences | ​ | ​ | 1,241.1 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (51.0) | ​ | ​ | ​ | ​ | 1,190.1
Other | ​ | ​ | 1,103.4 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (23.6) | ​ | ​ | ​ | ​ | 1,079.8
Corporate | ​ | ​ | 100.6 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (1.2) | ​ | ​ | ​ | ​ | 99.4
Subtotal at fixed currency rates | ​ | ​ | 12,122.3 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (347.5) | ​ | ​ | ​ | ​ | 11,774.8
Effect of foreign currency translation | ​ | ​ | (332.1) | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | 347.5 | ​ | ​ | ​ | ​ | 15.4
Consolidated reported GAAP net sales | ​ | ​ | $11,790.2 | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $11,790.2
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating Income | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Global Industrial | ​ | ​ | $1,123.1 | ​ | ​ | ​ | $1.4 | ​ | ​ | ​ | ​ | ($45.4) | ​ | ​ | ​ | ​ | $1,079.1
Global Institutional & Specialty | ​ | ​ | 324.0 | ​ | ​ | ​ | (1.6) | ​ | ​ | ​ | ​ | (6.1) | ​ | ​ | ​ | ​ | 316.3
Global Healthcare & Life Sciences | ​ | ​ | 218.3 | ​ | ​ | ​ | (0.5) | ​ | ​ | ​ | ​ | (10.2) | ​ | ​ | ​ | ​ | 207.6
Other | ​ | ​ | 132.8 | ​ | ​ | ​ | 0.7 | ​ | ​ | ​ | ​ | (2.9) | ​ | ​ | ​ | ​ | 130.6
Corporate | ​ | ​ | (349.7) | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | 2.0 | ​ | ​ | ​ | ​ | (347.7)
Subtotal at fixed currency rates | ​ | ​ | 1,448.5 | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | (62.6) | ​ | ​ | ​ | ​ | 1,385.9
Effect of foreign currency translation | ​ | ​ | (52.8) | ​ | ​ | ​ | - | ​ | ​ | ​ | ​ | 62.6 | ​ | ​ | ​ | ​ | 9.8
Consolidated reported GAAP operating income | ​ | ​ | $1,395.7 | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $- | ​ | ​ | ​ | ​ | $1,395.7
​ ​ Reportable Segment Information ​ Financial information for each of the Company’s reportable segments were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Net Sales | ​ | ​ | Operating Income (Loss)
(millions) | ​ | 2022 | ​ | 2021 | ​ | 2020 | ​ | ​ | 2022 | ​ | 2021 | ​ | ​ | 2020
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Global Industrial | ​ | ​ | $6,944.0 | ​ | ​ | ​ | $6,086.8 | ​ | ​ | $5,845.7 | ​ | ​ | ​ | $977.0 | ​ | ​ | ​ | $985.7 | ​ | ​ | ​ | $1,079.1
Global Institutional & Specialty | ​ | ​ | 4,480.0 | ​ | ​ | ​ | 3,908.8 | ​ | ​ | 3,559.8 | ​ | ​ | ​ | 634.5 | ​ | ​ | ​ | 545.7 | ​ | ​ | ​ | 316.3
Global Healthcare & Life Sciences | ​ | ​ | 1,570.0 | ​ | ​ | ​ | 1,149.6 | ​ | ​ | 1,190.1 | ​ | ​ | ​ | 205.0 | ​ | ​ | ​ | 152.3 | ​ | ​ | ​ | 207.6
Other | ​ | ​ | 1,355.0 | ​ | ​ | ​ | 1,201.0 | ​ | ​ | 1,079.8 | ​ | ​ | ​ | 212.8 | ​ | ​ | ​ | 184.0 | ​ | ​ | ​ | 130.6
Corporate | ​ | ​ | 124.1 | ​ | ​ | ​ | 137.4 | ​ | ​ | 99.4 | ​ | ​ | ​ | (416.7) | ​ | ​ | ​ | (316.6) | ​ | ​ | ​ | (347.7)
Subtotal at fixed currency | ​ | ​ | 14,473.1 | ​ | ​ | ​ | 12,483.6 | ​ | ​ | 11,774.8 | ​ | ​ | ​ | 1,612.6 | ​ | ​ | ​ | 1,551.1 | ​ | ​ | ​ | 1,385.9
Effect of foreign currency translation | ​ | ​ | (285.3) | ​ | ​ | ​ | 249.5 | ​ | ​ | 15.4 | ​ | ​ | ​ | (50.1) | ​ | ​ | ​ | 47.5 | ​ | ​ | ​ | 9.8
Consolidated reported GAAP | ​ | ​ | $14,187.8 | ​ | ​ | ​ | $12,733.1 | ​ | ​ | $11,790.2 | ​ | ​ | ​ | $1,562.5 | ​ | ​ | ​ | $1,598.6 | ​ | ​ | ​ | $1,395.7
​ The profitability of the Company’s operating segments is evaluated by management based on operating income. ​ The Company has an integrated supply chain function that serves all of its reportable segments. As such, asset and capital expenditure information by reportable segment has not been provided and is not available, since the Company does not produce or utilize such information internally. In addition, although depreciation and amortization expense is a component of each reportable segment’s operating results, it is not discretely identifiable. ​ Geographic Information ​ Long-lived assets, which includes property, plant and equipment and right of use assets, at public exchange rates by geographic region were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Long-Lived Assets, net
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
(millions) | ​ | 2022 |  | 2021 |
United States | ​ | ​ | $2,508.9 | ​ | ​ | ​ | $2,416.4 | ​
Europe |  | ​ | 574.3 | ​ | ​ | ​ | 580.7 | ​
Asia Pacific | ​ | ​ | 210.3 | ​ | ​ | ​ | 237.1 | ​
Greater China |  | ​ | 176.6 | ​ | ​ | ​ | 186.4 | ​
Latin America |  | ​ | 146.5 | ​ | ​ | ​ | 137.9 | ​
India, Middle East and Africa | ​ | ​ | 64.1 | ​ | ​ | ​ | 60.2 | ​
Canada |  | ​ | 60.9 | ​ | ​ | ​ | 66.5 | ​
Total | ​ | ​ | $3,741.6 | ​ | ​ | ​ | $3,685.2 | ​
​ |  | ​ |  |  |  | ​ |  | ​
​ Geographic data for long-lived assets is based on physical location of those assets. Refer to Note 18 for net sales by geographic region.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration