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Segment Reporting
 3 Months Ended
Mar. 31, 2016
Segment Reporting [Abstract]  
Segment Reporting

NOTE 2 – SEGMENT 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 is expected to decline in the near future as our one remaining refinery 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
March 31		  

(in millions)

    2016      2015  

Net sales:

      

Fuel Specialties

    $ 149.8       $ 199.4   

Performance Chemicals

      44.5         57.6   

Octane Additives

      17.8         12.2   
  

 

 

     

 

 

  
   $ 212.1       $ 269.2   
  

 

 

     

 

 

  

Gross profit:

      

Fuel Specialties

    $ 51.2       $ 61.5   

Performance Chemicals

      13.2         14.5   

Octane Additives

      11.8         5.8   
  

 

 

     

 

 

  
   $ 76.2       $ 81.8   
  

 

 

     

 

 

  

Operating income:

      

Fuel Specialties

    $ 16.7       $ 23.5   

Performance Chemicals

      6.1         6.4   

Octane Additives

      11.0         5.1   

Pension credit

      1.8         0.0   

Corporate costs

      (10.2 )       (8.1 ) 

Adjustment to fair value of contingent consideration

      1.6         (3.5 ) 

Loss on disposal of subsidiary

      (1.4 )       0.0   
  

 

 

     

 

 

  

Total operating income

    $ 25.6       $ 23.4   
  

 

 

     

 

 

  

The pension credit 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
March 31		  

(in millions)

    2016      2015  

Depreciation:

      

Fuel Specialties

    $ 2.3       $ 1.9   

Performance Chemicals

      0.5         0.8   

Octane Additives

      0.1         0.1   

Corporate

      0.2         0.4   
  

 

 

     

 

 

  
   $ 3.1       $ 3.2   
  

 

 

     

 

 

  

Amortization:

      

Fuel Specialties

    $ 3.2       $ 3.2   

Performance Chemicals

      1.0         1.0   

Corporate

      1.8         0.9   
  

 

 

     

 

 

  
   $ 6.0       $ 5.1