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Segment And Geographic Area Information
 12 Months Ended
Dec. 31, 2011
Segment And Geographic Area Information [Abstract]  
Segment And Geographic Area Information
24. Segment and Geographic Area Information

Segment Information—The tables below show our consolidated segment results. The "All other" category includes the operations of the TEL business, as well as certain contract manufacturing performed by Ethyl.

The accounting policies of the segments are the same as those described in Note 1. We evaluate the performance of the petroleum additives business based on segment operating profit. NewMarket Services departments and other expenses are billed to Afton and Ethyl based on the services provided under the holding company structure. Depreciation on segment property, plant, and equipment, as well as amortization of segment intangible assets is included in segment operating profit. No transfers occurred between the petroleum additives segment, the real estate development segment or the "All other" category during the periods presented. The table below reports revenue and operating profit by segment, as well as a reconciliation to income before income taxes for the last three years.

 

     2011     2010     2009  

Revenue

       

Petroleum additives

    $ 2,126,444      $ 1,774,372      $ 1,518,138   

Real estate development

      11,431        11,316        0   

All other

      11,683        11,704        11,984   
  

 

 

    

 

 

    

 

 

  

Consolidated revenue (a)

    $ 2,149,558      $ 1,797,392      $ 1,530,122   
  

 

 

    

 

 

    

 

 

  

Segment operating profit

       

Petroleum additives

       

Petroleum additives before gain on legal settlement, net

    $ 309,626      $ 299,053      $ 279,800   

Gain on legal settlement, net (b)

      38,656        0        0   
  

 

 

    

 

 

    

 

 

  

Total petroleum additives

      348,282        299,053        279,800   

Real estate development

      7,042        7,000        (391 ) 

All other

      2,861        2,403        (57 ) 
  

 

 

    

 

 

    

 

 

  

Segment operating profit

      358,185        308,456        279,352   

Corporate, general, and administrative expenses

      (16,709 )      (20,330 )      (17,033 ) 

Interest and financing expenses, net

      (18,820 )      (17,261 )      (11,716 ) 

Loss on interest rate swap agreement (c)

      (17,516 )      (10,324 )      (11,440 ) 

Other (expense) income, net

      (1,423 )      (545 )      213   
  

 

 

    

 

 

    

 

 

  

Income before income tax expense

    $ 303,717      $ 259,996      $ 239,376   
  

 

 

    

 

 

    

 

 

  

 

(a) Net sales to one customer of our petroleum additives segment exceeded 10% of consolidated revenue in 2011, 2010, and 2009. Sales to Royal Dutch Shell plc and its affiliates (Shell) amounted to $246 million (11% of consolidated revenue) in 2011, $217 million (12% of consolidated revenue) in 2010, and $232 million (15% of consolidated revenue) in 2009. These sales represent a wide-range of products sold to this customer in multiple regions of the world.
(b) For 2011, the petroleum additives segment includes a net gain of $38.7 million related to a legal settlement. See Note 18 for additional information.
(c) The loss on the interest rate swap agreement represents the change, since the beginning of the reporting period, in the fair value of an interest rate swap which we entered into on June 25, 2009. We are not using hedge accounting to record the interest rate swap, and accordingly, any change in the fair value is immediately recognized in earnings.

 

The following table shows asset information by segment and the reconciliation to consolidated assets. Segment assets consist of accounts receivable, inventory, and long-lived assets. Long-lived assets in the table below include property, plant, and equipment, net of depreciation, as well as intangible assets and certain other assets, both net of amortization.

 

     2011      2010      2009  

Segment assets

         

Petroleum additives

    $ 854,134       $ 768,814       $ 613,852   

Real estate development

      109,162         112,385         113,125   

All other

      14,125         17,246         17,633   
  

 

 

     

 

 

     

 

 

  
     977,421         898,445         744,610   

Cash and cash equivalents

      50,370         49,192         151,831   

Short-term investments

      0         300         300   

Other accounts receivable

      173         5,906         379   

Deferred income taxes

      43,066         28,850         38,788   

Prepaid expenses

      36,943         15,358         38,975   

Non-segment property, plant and equipment, net

      24,791         23,315         23,951   

Prepaid pension cost

      11,494         8,597         2,430   

Other assets and deferred charges

      47,404         32,778         23,928   
  

 

 

     

 

 

     

 

 

  

Total assets

    $ 1,191,662       $ 1,062,741       $ 1,025,192   
  

 

 

     

 

 

     

 

 

  

Additions to long-lived assets

         

Petroleum additives

    $ 50,760       $ 42,908       $ 37,173   

Real estate development

      0         2,046         53,030   

All other

      30         51         25   

Corporate

      2,725         1,631         405   
  

 

 

     

 

 

     

 

 

  

Total additions to long-lived assets

    $ 53,515       $ 46,636       $ 90,633   
  

 

 

     

 

 

     

 

 

  

Depreciation and amortization

         

Petroleum additives

    $ 36,604       $ 32,454       $ 30,098   

Real estate development

      4,091         4,065         0   

All other

      112         98         94   

Corporate

      2,545         2,517         2,628   
  

 

 

     

 

 

     

 

 

  

Total depreciation and amortization

    $ 43,352       $ 39,134       $ 32,820   
  

 

 

     

 

 

     

 

 

  

 

Geographic Area Information—The table below reports revenue, total assets, and long-lived assets by geographic area. Long-lived assets in the table below include property, plant, and equipment, net of depreciation. No country, except for the United States, exceeded 10% of consolidated revenue or long-lived assets in any year. NewMarket assigns revenues to geographic areas based on the location to which the product was shipped.

 

     2011      2010      2009  

Revenue

         

United States

    $ 767,715       $ 650,781       $ 604,592   

Foreign

      1,381,843         1,146,611         925,530   
  

 

 

     

 

 

     

 

 

  

Consolidated revenue

    $ 2,149,558       $ 1,797,392       $ 1,530,122   
  

 

 

     

 

 

     

 

 

  

Total assets

         

United States

    $ 634,939       $ 590,216       $ 637,227   

Foreign

      556,723         472,525         387,965   
  

 

 

     

 

 

     

 

 

  

Total assets

    $ 1,191,662       $ 1,062,741       $ 1,025,192   
  

 

 

     

 

 

     

 

 

  

Long-lived assets

         

United States

    $ 256,998       $ 255,785       $ 256,901   

Foreign

      95,968         78,191         45,514   
  

 

 

     

 

 

     

 

 

  

Total long-lived assets

    $ 352,966       $ 333,976       $ 302,415