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Segmental Reporting And Geographical Area Data | 12 Months Ended
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Dec. 31, 2011
Segmental Reporting And Geographical Area Data [Abstract] |
Segmental Reporting And Geographical Area Data | Note 3. Segmental Reporting and Geographical Area Data Innospec divides its business into three segments for management and reporting purposes: Fuel Specialties, Active Chemicals and Octane Additives. The Fuel Specialties and Active Chemicals segments operate in markets where we actively seek growth opportunities but their end customers are different. The Octane Additives segment is generally characterized by volatile and declining demand. In 2011 the Company had a significant customer in the Fuel Specialties segment, Royal Dutch Shell plc and its affiliates ("Shell"), who accounted for $78.7 million (10%) of net group sales. In 2010 and 2009, Shell accounted for $67.8 million (10%) and $76.1 million (13%) of net group sales, respectively. The Company evaluates the performance of its segments based on operating income. The following table analyzes sales and other financial information by the Company's reportable segments:
(in millions) |  | 2011 |  |  | 2010 |  |  | 2009 |
Net sales |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 521.2 |  |  | $ | 458.1 |  |  | $ | 422.7 |
Active Chemicals |  |  | 177.0 |  |  |  | 152.7 |  |  |  | 130.2 |
Octane Additives |  |  | 76.2 |  |  |  | 72.4 |  |  |  | 45.6 |
|  | $ | 774.4 |  |  | $ | 683.2 |  |  | $ | 598.5 |
Gross profit |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 149.3 |  |  | $ | 145.9 |  |  | $ | 146.0 |
Active Chemicals |  |  | 40.6 |  |  |  | 33.3 |  |  |  | 26.0 |
Octane Additives |  |  | 36.5 |  |  |  | 34.9 |  |  |  | 14.2 |
|  | $ | 226.4 |  |  | $ | 214.1 |  |  | $ | 186.2 |
Operating income |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 81.7 |  |  | $ | 77.6 |  |  | $ | 81.4 |
Active Chemicals |  |  | 22.6 |  |  |  | 16.7 |  |  |  | 8.8 |
Octane Additives |  |  | (22.4 | ) |  |  | 25.8 |  |  |  | (44.8 | )
Pension charge |  |  | (0.5 | ) |  |  | (10.8 | ) |  |  | (6.4 | )
Corporate costs |  |  | (29.2 | ) |  |  | (26.3 | ) |  |  | (13.3 | )
Restructuring charge |  |  | (0.6 | ) |  |  | (8.7 | ) |  |  | (2.8 | )
Impairment of Octane Additives segment goodwill |  |  | (2.0 | ) |  |  | (2.2 | ) |  |  | (2.2 | )
Profit on disposal, net |  |  | 0.0 |  |  |  | 0.1 |  |  |  | 0.0 |
Total operating income |  | $ | 49.6 |  |  | $ | 72.2 |  |  | $ | 20.7 |
Identifiable assets at year end |  |  |  |
Fuel Specialties |  | $ | 281.5 |  |  | $ | 260.4 |  |  | $ | 247.6 |
Active Chemicals |  |  | 106.7 |  |  |  | 104.8 |  |  |  | 103.2 |
Octane Additives |  |  | 51.5 |  |  |  | 65.9 |  |  |  | 79.5 |
Corporate |  |  | 129.1 |  |  |  | 118.3 |  |  |  | 112.8 |
|  | $ | 568.8 |  |  | $ | 549.4 |  |  | $ | 543.1 |
The pension charge relates to the United Kingdom defined benefit pension plan which is closed to future service accrual. The charges related to our other much smaller pension arrangements in the U.S. and overseas are included in the segment and income statement captions consistent with the related employees' costs. The Company includes within the corporate costs line item the costs of:
| • |  | managing the Group as a company with securities listed on the NASDAQ and registered with the SEC;
| • |  | the President/CEO's office, group finance, group human resources, group legal and compliance counsel, and investor relations;
| • |  | running the corporate offices in the U.S. and Europe;
| • |  | the corporate development function since they do not relate to the current trading activities of our other reporting segments; and
| • |  | the corporate share of the information technology, accounting and human resources departments.
Sales by geographic area are reported by source (where the transactions originate) and by destination (where the final sales to customers are made). Intercompany sales are priced to recover cost plus an appropriate mark-up for profit and are eliminated in the consolidated financial statements. Identifiable assets are those directly associated with the operations of the geographical area. Goodwill has not been allocated by geographical location on the grounds that it would be impracticable to do so.
(in millions) |  | 2011 |  |  | 2010 |  |  | 2009 |
Net sales by source |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 265.6 |  |  | $ | 238.4 |  |  | $ | 217.0 |
United Kingdom |  |  | 482.8 |  |  |  | 431.8 |  |  |  | 356.2 |
Rest of Europe |  |  | 151.7 |  |  |  | 106.8 |  |  |  | 84.8 |
Other |  |  | 0.9 |  |  |  | 0.7 |  |  |  | 0.3 |
Sales between areas |  |  | (126.6 | ) |  |  | (94.5 | ) |  |  | (59.8 | )
|  | $ | 774.4 |  |  | $ | 683.2 |  |  | $ | 598.5 |
Net sales by destination |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 248.2 |  |  | $ | 231.4 |  |  | $ | 222.0 |
United Kingdom |  |  | 48.5 |  |  |  | 26.8 |  |  |  | 21.1 |
Rest of Europe |  |  | 304.2 |  |  |  | 235.1 |  |  |  | 219.5 |
Other |  |  | 173.5 |  |  |  | 189.9 |  |  |  | 135.9 |
|  | $ | 774.4 |  |  | $ | 683.2 |  |  | $ | 598.5 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | (42.6 | ) |  | $ | 11.1 |  |  | $ | (44.8 | )
United Kingdom |  |  | 39.0 |  |  |  | 25.5 |  |  |  | 52.4 |
Rest of Europe |  |  | 58.2 |  |  |  | 36.6 |  |  |  | 12.8 |
Other |  |  | 0.0 |  |  |  | (0.3 | ) |  |  | 0.1 |
Impairment of Octane Additives segment goodwill |  |  | (2.0 | ) |  |  | (2.2 | ) |  |  | (2.2 | )
|  | $ | 52.6 |  |  | $ | 70.7 |  |  | $ | 18.3 |
Long-lived assets at year end |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 22.0 |  |  | $ | 16.7 |  |  | $ | 17.3 |
United Kingdom |  |  | 32.4 |  |  |  | 40.1 |  |  |  | 47.6 |
Rest of Europe |  |  | 10.9 |  |  |  | 11.6 |  |  |  | 11.4 |
|  | $ | 65.3 |  |  | $ | 68.4 |  |  | $ | 76.3 |
Identifiable assets at year end |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 123.2 |  |  | $ | 97.4 |  |  | $ | 112.8 |
United Kingdom |  |  | 253.8 |  |  |  | 255.5 |  |  |  | 225.4 |
Rest of Europe |  |  | 49.8 |  |  |  | 52.4 |  |  |  | 58.3 |
Other |  |  | 0.5 |  |  |  | 0.5 |  |  |  | 0.6 |
Goodwill |  |  | 141.5 |  |  |  | 143.6 |  |  |  | 146.0 |
|  | $ | 568.8 |  |  | $ | 549.4 |  |  | $ | 543.1 |

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- 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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 + Details
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