NOTE 2 – SEGMENT REPORTING

The Company reports its financial performance based on the four reportable segments Fuel Specialties, Performance Chemicals, Oilfield Services and Octane Additives.

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.

The Company evaluates the performance of its segments based on operating income. The following tables analyze sales and other financial information by the Company’s reportable segments:


	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2018			2017			2018			2017
Net Sales:
Refinery and Performance	$	98.1		$	88.7		$	209.1		$	189.1
Other		36.1			32.6			68.5			58.6

Fuel Specialties		134.2			121.3			277.6			247.7

Personal Care		62.6			48.6			123.0			96.1
Home Care		26.5			29.4			56.2			56.3
Other		29.8			26.9			63.7			47.0

Performance Chemicals		118.9			104.9			242.9			199.4

Oilfield Services		95.0			76.1			187.9			142.6
Octane Additives		10.0			24.0			10.4			30.9

	$	358.1		$	326.3		$	718.8		$	620.6


	Three Months Ended June 30						Six Months Ended June 30
(in millions)	2018			2017			2018			2017
Net sales:
Fuel Specialties	$	134.2		$	121.3		$	277.6		$	247.7
Performance Chemicals		118.9			104.9			242.9			199.4
Oilfield Services		95.0			76.1			187.9			142.6
Octane Additives		10.0			24.0			10.4			30.9

	$	358.1		$	326.3		$	718.8		$	620.6

Gross profit:
Fuel Specialties	$	44.5		$	45.2		$	93.0		$	91.3
Performance Chemicals		23.8			17.4			49.2			34.1
Oilfield Services		28.6			29.0			60.0			54.4
Octane Additives		5.9			13.5			5.1			16.2

	$	102.8		$	105.1		$	207.3		$	196.0

Operating income/(loss):
Fuel Specialties	$	23.7		$	23.9		$	51.9		$	50.9
Performance Chemicals		9.7			6.5			21.8			12.5
Oilfield Services		4.1			3.7			7.1			6.7
Octane Additives		5.2			12.8			3.8			14.8
Corporate costs		(14.4	)		(12.4	)		(27.4	)		(23.3	)
Loss on disposal of subsidiary		0.0			(1.0	)		0.0			(1.0	)
Foreign exchange loss on liquidation of subsidiary		0.0			0.0			0.0			(1.8	)

Total operating income	$	28.3		$	33.5		$	57.2		$	58.8

The following table presents a summary of the depreciation and amortization charges incurred by the Company’s reportable segments:


	Three Months Ended June 30				Six Months Ended June 30
(in millions)	2018		2017		2018		2017
Depreciation:
Fuel Specialties	$	0.9	$	1.0	$	1.9	$	2.0
Performance Chemicals		2.5		2.3		5.2		4.5
Oilfield Services		1.6		1.6		3.1		3.2
Octane Additives		0.3		0.2		0.6		0.4
Corporate		0.2		0.2		0.5		0.4

	$	5.5	$	5.3	$	11.3	$	10.5

Amortization:
Fuel Specialties	$	0.0	$	0.2	$	0.0	$	0.4
Performance Chemicals		2.2		1.8		4.5		3.7
Oilfield Services		2.8		3.0		5.4		6.0
Corporate		1.9		1.8		3.7		3.6

	$	6.9	$	6.8	$	13.6	$	13.7