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Segmental Reporting | 9 Months Ended
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Sep. 30, 2012
Segmental Reporting [Abstract] |
SEGMENTAL REPORTING | NOTE 2 – SEGMENTAL REPORTING Innospec divides its business into three segments for management and reporting purposes: Fuel Specialties, Performance Chemicals and Octane Additives. On September 20, 2012, the Company announced its Active Chemicals segment would be renamed Performance Chemicals, effective October 1, 2012, to make the purpose of our products clearer to the customers we serve. The Fuel Specialties and Performance 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. 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:
|  | Three Months Ended September 30 |  |  | Nine Months Ended September 30 |
(in millions) |  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 127.0 |  |  | $ | 136.1 |  |  | $ | 372.2 |  |  | $ | 376.5 |
Performance Chemicals |  |  | 46.8 |  |  |  | 43.9 |  |  |  | 138.2 |  |  |  | 139.1 |
Octane Additives |  |  | 9.6 |  |  |  | 22.1 |  |  |  | 52.3 |  |  |  | 58.3 |
|  | $ | 183.4 |  |  | $ | 202.1 |  |  | $ | 562.7 |  |  | $ | 573.9 |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 36.8 |  |  | $ | 38.1 |  |  | $ | 110.2 |  |  | $ | 105.6 |
Performance Chemicals |  |  | 10.4 |  |  |  | 9.6 |  |  |  | 33.6 |  |  |  | 35.0 |
Octane Additives |  |  | 3.5 |  |  |  | 10.0 |  |  |  | 27.6 |  |  |  | 28.0 |
|  | $ | 50.7 |  |  | $ | 57.7 |  |  | $ | 171.4 |  |  | $ | 168.6 |
Operating income/(loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 19.6 |  |  | $ | 19.9 |  |  | $ | 58.2 |  |  | $ | 54.5 |
Performance Chemicals |  |  | 5.6 |  |  |  | 5.0 |  |  |  | 18.8 |  |  |  | 21.7 |
Octane Additives |  |  | 1.5 |  |  |  | (38.1 | ) |  |  | 21.9 |  |  |  | (27.8 | )
Pension credit/(charge) |  |  | 0.0 |  |  |  | (0.1 | ) |  |  | 0.2 |  |  |  | (0.3 | )
Corporate costs |  |  | (9.1 | ) |  |  | (6.3 | ) |  |  | (25.5 | ) |  |  | (20.3 | )
Restructuring charge |  |  | (0.1 | ) |  |  | 0.0 |  |  |  | (0.2 | ) |  |  | 0.0 |
Impairment of Octane Additives segment goodwill |  |  | (0.3 | ) |  |  | (0.6 | ) |  |  | (0.9 | ) |  |  | (1.7 | )
Profit on disposal |  |  | 0.1 |  |  |  | 0.0 |  |  |  | 0.1 |  |  |  | 0.0 |
Total operating income/(loss) |  | $ | 17.3 |  |  | $ | (20.2 | ) |  | $ | 72.6 |  |  | $ | 26.1 |
The pension credit/(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 following table presents a summary of the depreciation and amortization charges incurred by the Company’s reportable segments:
|  | Three Months Ended September 30 |  |  | Nine Months Ended September 30 |
(in millions) |  | 2012 |  |  | 2011 |  |  | 2012 |  |  | 2011 |
Depreciation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 0.4 |  |  | $ | 0.6 |  |  | $ | 1.4 |  |  | $ | 1.8 |
Performance Chemicals |  |  | 0.6 |  |  |  | 1.2 |  |  |  | 1.8 |  |  |  | 3.5 |
Octane Additives |  |  | 0.2 |  |  |  | 0.2 |  |  |  | 0.5 |  |  |  | 0.6 |
Corporate |  |  | 0.4 |  |  |  | 0.4 |  |  |  | 1.2 |  |  |  | 1.3 |
|  | $ | 1.6 |  |  | $ | 2.4 |  |  | $ | 4.9 |  |  | $ | 7.2 |
Amortization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 0.6 |  |  | $ | 0.5 |  |  | $ | 1.6 |  |  | $ | 1.6 |
Performance Chemicals |  |  | 0.3 |  |  |  | 0.3 |  |  |  | 1.0 |  |  |  | 1.0 |
Octane Additives |  |  | 0.2 |  |  |  | 0.3 |  |  |  | 0.5 |  |  |  | 0.8 |
|  | $ | 1.1 |  |  | $ | 1.1 |  |  | $ | 3.1 |  |  | $ | 3.4 |

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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 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 11: 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 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 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: 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 15: 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 + Details
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