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Segment Reporting and Geographical Area Data | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Segment Reporting and Geographical Area Data | Note 3. Segment Reporting and Geographical Area Data In the second quarter of 2016, we finalized changes to our reporting segments to reflect the development of our management structure and strategy. As a result of these changes, information that the Company’s chief operating decision maker regularly reviews for purposes of allocating resources and assessing financial performance has changed. Therefore, the Company has reported its financial performance based on the four reportable segments described below.
| • |  | Fuel Specialties, including the Polymers business previously reported in Performance Chemicals and excluding the Oilfield Services business
| • |  | Performance Chemicals, excluding the Polymers business
| • |  | Oilfield Services, which was previously reported within Fuel Specialties
| • |  | Octane Additives (no change)
We have recast certain prior period amounts to conform to the way we internally manage and monitor segment performance. The Fuel Specialties, Performance Chemicals and Oilfield Services 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. Our Fuel Specialties segment develops, manufactures, blends, markets and supplies a range of specialty chemicals products used as additives to a wide range of fuels. Our Performance Chemicals segment provides effective technology-based solutions for our customers’ processes or products focused in the Personal Care, Home Care, Agrochemical and Mining markets. Our Oilfield Services segment develops and markets products to prevent loss of mud in drilling operations, chemical solutions for fracturing and stimulation operations and products for oil and gas production which aid flow assurance and asset integrity. Our Octane Additives segment, which we believe is the world’s only producer of tetra ethyl lead (“TEL”), comprises sales of TEL for use in automotive gasoline and provides services in respect of environmental remediation. There are no significant customers with sales greater than 10% of our net group sales in the last three financial years. 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) |  | 2016 |  |  | 2015 |  |  | 2014 |
Net Sales: |  |  |  |  |  |  |  |  |  |  |  |
Refinery and Performance |  | $ | 388.9 |  |  | $ | 408.0 |  |  | $ | 440.2 |
Other |  |  | 120.7 |  |  |  | 124.8 |  |  |  | 126.6 |
Fuel Specialties |  |  | 509.6 |  |  |  | 532.8 |  |  |  | 566.8 |
Personal Care |  |  | 126.8 |  |  |  | 119.6 |  |  |  | 106.1 |
Fragrances |  |  | 0.1 |  |  |  | 23.0 |  |  |  | 56.2 |
Other |  |  | 11.8 |  |  |  | 12.4 |  |  |  | 15.3 |
Performance Chemicals |  |  | 138.7 |  |  |  | 155.0 |  |  |  | 177.6 |
Oilfield Services |  |  | 191.7 |  |  |  | 265.0 |  |  |  | 161.3 |
Octane Additives |  |  | 43.4 |  |  |  | 59.5 |  |  |  | 55.2 |
|  | $ | 883.4 |  |  | $ | 1,012.3 |  |  | $ | 960.9 |
(in millions) |  | 2016 |  |  | 2015 |  |  | 2014 |
Gross profit: |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 186.4 |  |  | $ | 176.0 |  |  | $ | 170.8 |
Performance Chemicals |  |  | 43.4 |  |  |  | 42.4 |  |  |  | 43.7 |
Oilfield Services |  |  | 76.4 |  |  |  | 99.1 |  |  |  | 58.9 |
Octane Additives |  |  | 26.1 |  |  |  | 28.5 |  |  |  | 28.6 |
|  | $ | 332.3 |  |  | $ | 346.0 |  |  | $ | 302.0 |
Operating income: |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 110.6 |  |  | $ | 102.1 |  |  | $ | 94.2 |
Performance Chemicals |  |  | 16.0 |  |  |  | 16.3 |  |  |  | 17.8 |
Oilfield Services |  |  | (4.7 | ) |  |  | 9.0 |  |  |  | 18.0 |
Octane Additives |  |  | 22.7 |  |  |  | 24.7 |  |  |  | 22.6 |
Pension credit/(charge) |  |  | 6.7 |  |  |  | 0.2 |  |  |  | (3.3 | )
Corporate costs |  |  | (53.9 | ) |  |  | (38.3 | ) |  |  | (38.7 | )
Adjustment to fair value of contingent consideration |  |  | 9.4 |  |  |  | 40.7 |  |  |  | 1.9 |
(Loss)/profit on disposal of subsidiary |  |  | (1.4 | ) |  |  | 1.6 |  |  |  | 0.0 |
Total operating income |  | $ | 105.4 |  |  | $ | 156.3 |  |  | $ | 112.5 |
Identifiable assets at year end: |  |  |  |  |  |  |  |  |  |  |  |
Fuel Specialties |  | $ | 397.2 |  |  | $ | 408.9 |  |  | $ | 408.2 |
Performance Chemicals |  |  | 340.0 |  |  |  | 120.2 |  |  |  | 156.6 |
Oilfield Services |  |  | 240.0 |  |  |  | 240.9 |  |  |  | 293.1 |
Octane Additives |  |  | 38.1 |  |  |  | 28.7 |  |  |  | 29.2 |
Corporate |  |  | 166.1 |  |  |  | 229.9 |  |  |  | 112.8 |
|  | $ | 1,181.4 |  |  | $ | 1,028.6 |  |  | $ | 999.9 |
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 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. The following tables analyze sales and other financial information by location:
(in millions) |  | 2016 |  |  | 2015 |  |  | 2014 |
Net sales by source: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 474.4 |  |  | $ | 571.9 |  |  | $ | 468.6 |
United Kingdom |  |  | 428.2 |  |  |  | 445.2 |  |  |  | 486.1 |
Rest of Europe |  |  | 118.5 |  |  |  | 133.3 |  |  |  | 146.9 |
Rest of World |  |  | 31.1 |  |  |  | 22.1 |  |  |  | 21.4 |
Sales between areas |  |  | (168.8 | ) |  |  | (160.2 | ) |  |  | (162.1 | )
|  | $ | 883.4 |  |  | $ | 1,012.3 |  |  | $ | 960.9 |
Income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 16.8 |  |  | $ | 52.7 |  |  | $ | 15.2 |
United Kingdom |  |  | 42.6 |  |  |  | 60.6 |  |  |  | 57.8 |
Rest of Europe |  |  | 39.2 |  |  |  | 42.0 |  |  |  | 39.3 |
Rest of World |  |  | 4.5 |  |  |  | (3.0 | ) |  |  | (1.4 | )
|  | $ | 103.1 |  |  | $ | 152.3 |  |  | $ | 110.9 |
Long-lived assets at year end: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 155.3 |  |  | $ | 185.8 |  |  | $ | 197.9 |
United Kingdom |  |  | 45.9 |  |  |  | 49.3 |  |  |  | 54.1 |
Rest of Europe |  |  | 207.5 |  |  |  | 10.6 |  |  |  | 10.4 |
Rest of World |  |  | 0.5 |  |  |  | 0.4 |  |  |  | 0.6 |
|  | $ | 409.2 |  |  | $ | 246.1 |  |  | $ | 263.0 |
Identifiable assets at year end: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 377.3 |  |  | $ | 410.9 |  |  | $ | 449.3 |
United Kingdom |  |  | 257.6 |  |  |  | 303.4 |  |  |  | 216.4 |
Rest of Europe |  |  | 156.0 |  |  |  | 30.9 |  |  |  | 39.0 |
Rest of World |  |  | 15.7 |  |  |  | 16.0 |  |  |  | 19.1 |
Goodwill |  |  | 374.8 |  |  |  | 267.4 |  |  |  | 276.1 |
|  | $ | 1,181.4 |  |  | $ | 1,028.6 |  |  | $ | 999.9 |

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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 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: 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=68060357&loc=d3e9038-108599 Reference 3: 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=68060357&loc=d3e8971-108599 Reference 4: 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=68060357&loc=d3e8595-108599 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=68060357&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 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: 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=68060357&loc=d3e8844-108599 Reference 8: 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=68060357&loc=d3e8984-108599 Reference 9: 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=68060357&loc=d3e9031-108599 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=68060357&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 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: 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=68060357&loc=d3e8864-108599 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=68060357&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 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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