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Segmental Reporting and Geographical Area Data | 12 Months Ended
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Dec. 31, 2014
Segment Reporting [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, 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 is generally characterized by volatile and declining demand. In 2014, the Company had as a significant customer in the Fuel Specialties segment, Royal Dutch Shell plc and its affiliates (“Shell”), which accounted for $81.9 million (8.5%) of our net group sales. In 2013 and 2012, Shell accounted for $83.1 million (10%) and $82.9 million (11%) of our 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) |  | 2014 |  |  | 2013 |  |  | 2012 |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 682.2 |  |  | $ | 567.4 |  |  | $ | 527.2 |
Performance Chemicals |  |  | 223.5 |  |  |  | 192.4 |  |  |  | 179.6 |
Octane Additives |  |  | 55.2 |  |  |  | 59.0 |  |  |  | 69.6 |
|  | $ | 960.9 |  |  | $ | 818.8 |  |  | $ | 776.4 |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 219.0 |  |  | $ | 181.1 |  |  | $ | 158.7 |
Performance Chemicals |  |  | 54.4 |  |  |  | 46.3 |  |  |  | 43.8 |
Octane Additives |  |  | 28.6 |  |  |  | 27.8 |  |  |  | 33.9 |
|  | $ | 302.0 |  |  | $ | 255.2 |  |  | $ | 236.4 |
Operating income: |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 104.4 |  |  | $ | 92.7 |  |  | $ | 87.6 |
Performance Chemicals |  |  | 25.6 |  |  |  | 23.6 |  |  |  | 24.3 |
Octane Additives |  |  | 22.6 |  |  |  | 21.5 |  |  |  | 26.0 |
Pension credit/(charge) |  |  | (3.3 | ) |  |  | (2.3 | ) |  |  | (1.6 | )
Corporate costs |  |  | (38.7 | ) |  |  | (43.6 | ) |  |  | (38.6 | )
Fair value of contingent consideration |  |  | 1.9 |  |  |  | 0.0 |  |  |  | 0.0 |
Impairment of Octane Additives segment goodwill |  |  | 0.0 |  |  |  | (1.3 | ) |  |  | (1.2 | )
Total operating income |  | $ | 112.5 |  |  | $ | 90.6 |  |  | $ | 96.5 |
Identifiable assets at year end: |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 676.9 |  |  | $ | 446.4 |  |  | $ | 356.6 |
Performance Chemicals |  |  | 181.0 |  |  |  | 176.8 |  |  |  | 113.4 |
Octane Additives |  |  | 29.2 |  |  |  | 42.0 |  |  |  | 48.9 |
Corporate |  |  | 112.8 |  |  |  | 129.5 |  |  |  | 60.5 |
|  | $ | 999.9 |  |  | $ | 794.7 |  |  | $ | 579.4 |
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 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 geographical area are reported by source, being where the transactions originated. Intercompany sales are priced using an appropriate pricing methodology 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) |  | 2014 |  |  | 2013 |  |  | 2012 |
Net sales by source: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 468.6 |  |  | $ | 276.1 |  |  | $ | 274.1 |
United Kingdom |  |  | 486.1 |  |  |  | 502.4 |  |  |  | 475.1 |
Rest of Europe |  |  | 146.9 |  |  |  | 129.1 |  |  |  | 142.8 |
Rest of World |  |  | 21.4 |  |  |  | 0.2 |  |  |  | 0.5 |
Sales between areas |  |  | (162.1 | ) |  |  | (89.0 | ) |  |  | (116.1 | )
|  | $ | 960.9 |  |  | $ | 818.8 |  |  | $ | 776.4 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 15.2 |  |  | $ | 10.0 |  |  | $ | 5.6 |
United Kingdom |  |  | 57.8 |  |  |  | 43.7 |  |  |  | 36.3 |
Rest of Europe |  |  | 39.3 |  |  |  | 40.4 |  |  |  | 52.6 |
Rest of World |  |  | (1.4 | ) |  |  | 0.0 |  |  |  | 0.0 |
Impairment of Octane Additives segment goodwill |  |  | 0.0 |  |  |  | (1.3 | ) |  |  | (1.2 | )
|  | $ | 110.9 |  |  | $ | 92.8 |  |  | $ | 93.3 |
Long-lived assets at year end: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 197.9 |  |  | $ | 148.2 |  |  | $ | 31.5 |
United Kingdom |  |  | 54.1 |  |  |  | 29.4 |  |  |  | 28.7 |
Rest of Europe |  |  | 10.4 |  |  |  | 11.5 |  |  |  | 11.5 |
Rest of World |  |  | 0.6 |  |  |  | 0.0 |  |  |  | 0.0 |
|  | $ | 263.0 |  |  | $ | 189.1 |  |  | $ | 71.7 |
Identifiable assets at year end: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 449.3 |  |  | $ | 291.7 |  |  | $ | 174.1 |
United Kingdom |  |  | 216.4 |  |  |  | 261.5 |  |  |  | 192.1 |
Rest of Europe |  |  | 39.0 |  |  |  | 53.2 |  |  |  | 63.8 |
Rest of World |  |  | 19.1 |  |  |  | 0.4 |  |  |  | 0.4 |
Goodwill |  |  | 276.1 |  |  |  | 187.9 |  |  |  | 149.0 |
|  | $ | 999.9 |  |  | $ | 794.7 |  |  | $ | 579.4 |

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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 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 3: 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 4: 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 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 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 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 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 10: 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 11: 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 12: 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 13: 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 14: 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 + Details
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