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Segment Reporting and Geographical Area Data
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting
Note 3.     Segment Reporting and Geographical Area Data
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 ceased trading and is no longer a reporting segment from July 1, 2020, as
reported
in our Quarterly Report on Form
10-Q
for the quarter ended June 30, 2020.
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 Metal
Extraction
markets.
Our Oilfield Services segment develops and markets chemical solutions for fracturing, stimulation and stimulation operations, products for oil and gas production which aid flow assurance and maintain asset integrity and products to prevent loss of mud in drilling operations.
The Octane Additives business has ceased trading and is no longer a reporting segment from July 1, 2020 as the production of TEL for use in motor gasoline has finished. Legacy costs related to these operations are now being recorded as operating expenses within corporate costs.
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)
   
2020
     
2019
     
2018
  
Net Sales:
                           
Refinery and Performance
    $ 372.9      $ 427.9      $ 432.1  
Other
      139.8        155.8        142.4  
    
 
 
     
 
 
     
 
 
  
Fuel Specialties
      512.7        583.7        574.5  
    
 
 
     
 
 
     
 
 
  
Personal Care
      231.4        228.0        241.4  
Home Care
      87.0        93.4        109.1  
Other
      107.0        107.3        117.6  
    
 
 
     
 
 
     
 
 
  
Performance Chemicals
      425.4        428.7        468.1  
    
 
 
     
 
 
     
 
 
  
Oilfield Services
      255.0        479.9        400.6  
Octane Additives
      0.0        21.0        33.7  
    
 
 
     
 
 
     
 
 
  
     $ 1,193.1      $ 1,513.3      $ 1,476.9  
    
 
 
     
 
 
     
 
 
  
 
(in millions)
   
2020
    
2019
    
2018
  
Gross profit:
                         
Fuel Specialties
    $ 160.3     $ 204.5     $ 195.0  
Performance Chemicals
      103.8       100.1       97.5  
Oilfield Services
      80.8       159.9       130.4  
Octane Additives
      (2.2 )      1.7       12.1  
    
 
 
    
 
 
    
 
 
  
     $ 342.7     $ 466.2     $ 435.0  
    
 
 
    
 
 
    
 
 
  
Operating income/(expense):
                         
Fuel Specialties
    $ 84.5     $ 116.6     $ 116.3  
Performance Chemicals
      54.8       48.7       44.7  
Oilfield Services
      (9.5 )      39.7       22.1  
Octane Additives
      (2.8 )      (0.7 )      9.9  
Corporate costs
      (52.2 )      (54.4 )      (52.4 ) 
Restructuring charge
      (21.3 )      0.0       (7.1 ) 
Impairment of intangible assets
      (19.8 )      0.0       0.0  
    
 
 
    
 
 
    
 
 
  
Total operating income
    $ 33.7     $ 149.9     $ 133.5  
    
 
 
    
 
 
    
 
 
  
Identifiable assets at year end:
                         
Fuel Specialties
    $ 509.7     $ 499.7     $ 470.5  
Performance Chemicals
      391.5       383.3       463.9  
Oilfield Services
      210.8       316.8       296.1  
Octane Additives
      0.0       24.2       39.6  
Corporate
      285.4       244.8       203.3  
    
 
 
    
 
 
    
 
 
  
     $ 1,397.4     $ 1,468.8     $ 1,473.4  
    
 
 
    
 
 
    
 
 
  
Identifiable assets relating to our tetra ethyl lead (“TEL”) operations are included within our Fuel Specialties segment in 2020 and in our Octane Additives segment in 2019 and 2018, as shown in the table above. Octane Additives ceased trading on June 30, 2020 and is no longer a reporting segment after that date. As a result, it is now appropriate to report the identifiable assets relating to the remaining TEL production within Fuel Specialties from July 1, 2020. Our TEL operations historically produced TEL for automotive gasoline, which is reported in our Octane Additives segment for the years presented above, and for our AvTel product line, which is reported in our Fuel Specialties segment.
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, product technology, safety, health, environment, accounting and human resources departments.
The following tables analyze sales and other financial information by location:
 
(in millions)
   
2020
    
2019
    
2018
  
Net sales by source:
                         
United States & North America
    $ 642.4     $ 897.2     $ 803.1  
United Kingdom
      689.1       810.9       797.5  
Rest of Europe
      83.4       115.7       143.7  
Rest of World
      45.6       47.8       29.5  
Sales between areas
      (267.4 )      (358.3 )      (296.9 ) 
    
 
 
    
 
 
    
 
 
  
     $ 1,193.1     $ 1,513.3     $ 1,476.9  
    
 
 
    
 
 
    
 
 
  
Income before income taxes:
                         
United States & North America
    $ 0.0     $ 53.9     $ 37.1  
United Kingdom
      16.9       67.0       59.5  
Rest of Europe
      19.7       27.2       32.8  
Rest of World
      3.1       2.3       2.2  
    
 
 
    
 
 
    
 
 
  
     $ 39.7     $ 150.4     $ 131.6  
    
 
 
    
 
 
    
 
 
  
Long-lived assets at year end:
                         
United States & North America
    $ 141.0     $ 156.0     $ 148.6  
United Kingdom
      61.3       70.4       71.6  
Rest of Europe
      123.2       116.6       112.2  
Rest of World
      0.2       0.3       0.3  
    
 
 
    
 
 
    
 
 
  
     $ 325.7     $ 343.3     $ 332.7  
    
 
 
    
 
 
    
 
 
  
 
(in millions)
  
2020
 
  
2019
 
  
2018
 
Identifiable assets at year end:
                         
United States & North America
    $ 368.8     $ 419.5     $ 402.5  
United Kingdom
      455.8       487.2       504.7  
Rest of Europe
      171.0       163.2       173.1  
Rest of World
      30.6       35.9       28.2  
Goodwill
      371.2       363.0       364.9  
     $ 1,397.4     $ 1,468.8     $ 1,473.4  
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.