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Basis Of Presentation
9 Months Ended
Sep. 30, 2011
Basis Of Presentation [Abstract] 
Basis Of Presentation

NOTE 1—BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X under the Securities Exchange Act of 1934. Accordingly, they do not include all the information and notes necessary for a comprehensive presentation of financial position, results of operations and cash flows.

It is our opinion, however, that all adjustments (consisting of normal, recurring adjustments, unless otherwise disclosed) have been made which are necessary for the financial statements to be fairly stated. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K filed on February 18, 2011.

The results for the interim period covered by this report are not necessarily indicative of the results to be expected for the full year.

When we use the terms the "Corporation", "Company", "Registrant", "we", "us" and "our", we are referring to Innospec Inc. and its consolidated subsidiaries ("Innospec") unless otherwise indicated or the context otherwise requires.

During the second quarter of 2011, the Company revised the classification of certain amortization of intangible assets expenses in its results for 2011 and comparable information for 2010. Previously, these expenses were disclosed separately within operating expenses. This has no impact on 2011 or any prior periods' reported net sales, income before income taxes, net income, earnings per share, net cash provided by operating activities or any balance sheet category. The classification of expenses of $1.2 million for the three months ended March 31, 2011, and $4.7 million for the year ended December 31, 2010, with respect to amortization of intangible assets has been revised from operating expenses to an increase in costs of goods sold of $0.8 million and $3.1 million, respectively, and an increase in selling expenses of $0.4 million and $1.6 million, respectively. The impact on gross profit and selling, general and administrative expenses for the previously reported quarters is provided below:

 

     2011  

(in millions)

    First
Quarter		  

Previously reported:

   

Gross profit

    $ 53.6   

SG&A expenses

      (23.6 ) 

Amortization of intangible assets

      (1.2 ) 

Revised classification:

   

Gross profit

      52.8   

SG&A expenses

    $ (24.0 ) 

 

     2010  
     First
Quarter		     Second
Quarter		     Third
Quarter		     Fourth
Quarter		     Full Year  

Previously reported:

           

Gross profit

    $ 52.2      $ 54.7      $ 55.4      $ 54.9      $ 217.2   

SG&A expenses

      (26.9 )      (23.7 )      (28.2 )      (33.1 )      (111.9 ) 

Amortization of intangible assets

      (1.2 )      (1.1 )      (1.2 )      (1.2 )      (4.7 ) 

Revised classification:

           

Gross profit

      51.4        54.0        54.6        54.1        214.1   

SG&A expenses

    $ (27.3 )    $ (24.1 )    $ (28.6 )    $ (33.5 )    $ (113.5 ) 

 

In April 2011, the Company received a purchase order from the Iraqi Ministry of Oil ("MOO") for 2,000 tonnes of tetra ethyl lead ("TEL"). Upon completion of the order 160.5 tonnes of free issue TEL is to be supplied to the MOO in full and final settlement of any claims the Republic of Iraq may have against the Company concerning claims on certain payments totalling approximately €2.0 million that had been claimed by the MOO in connection with two contracts dating back to 2003. Signed acceptance of the terms was received from the MOO on June 13, 2011. The free issue TEL is contingent on delivery and payment for the full 2,000 tonnes.