XML 49 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segmental Reporting And Geographical Area Data
 12 Months Ended
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