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Segmental Reporting
 9 Months Ended
Sep. 30, 2014
Segment 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. The Fuel Specialties and Performance Chemicals segments operate in markets where we actively seek growth opportunities although their ultimate customers are different. The Octane Additives segment continues to decline as expected as our one remaining customer transitions to unleaded fuel.

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)

    2014     2013     2014     2013  

Net sales:

         

Fuel Specialties

    $ 156.1      $ 137.4      $ 465.4      $ 403.6   

Performance Chemicals

      57.0        47.9        172.5        140.2   

Octane Additives

      15.1        7.5        32.3        33.4   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 228.2      $ 192.8      $ 670.2      $ 577.2   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit:

         

Fuel Specialties

    $ 53.2      $ 42.6      $ 149.1      $ 130.1   

Performance Chemicals

      13.7        11.1        42.6        32.9   

Octane Additives

      6.7        3.7        16.2        17.6   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 73.6      $ 57.4      $ 207.9      $ 180.6   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income:

         

Fuel Specialties

    $ 24.5      $ 22.3      $ 67.8      $ 66.4   

Performance Chemicals

      6.6        5.6        20.9        17.1   

Octane Additives

      4.9        2.1        12.0        13.0   

Pension charge

      (0.8 )      (0.7 )      (2.5 )      (2.1 ) 

Corporate costs

      (10.0 )      (9.4 )      (29.7 )      (29.4 ) 

Impairment of Octane Additives segment goodwill

      0.0        (0.4 )      0.0        (1.0 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating income

    $ 25.2      $ 19.5      $ 68.5      $ 64.0   
  

 

 

    

 

 

    

 

 

    

 

 

  

Restructuring charges separately disclosed in prior periods have been reclassified to corporate costs. We have reclassified the prior period amounts to conform to the current period presentation.

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 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)

    2014      2013      2014      2013  

Depreciation:

            

Fuel Specialties

    $ 1.0       $ 0.5       $ 3.2       $ 1.7   

Performance Chemicals

      0.9         0.9         2.8         2.6   

Octane Additives

      0.1         0.1         0.3         0.5   

Corporate

      0.5         0.6         1.6         1.7   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 2.5       $ 2.1       $ 7.9       $ 6.5   
  

 

 

     

 

 

     

 

 

     

 

 

  

Amortization:

            

Fuel Specialties

    $ 1.9       $ 1.6       $ 6.2       $ 4.8   

Performance Chemicals

      1.1         0.6         3.7         1.3   

Octane Additives

      0.0         0.2         0.0         0.5   

Corporate

      0.9         0.0         2.8         0.0   
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 3.9       $ 2.4       $ 12.7       $ 6.6